Body of News Release
Marin County, CA – The Marin County Board of Supervisors took action to take the next step and consider a funding commitment for a needed workforce housing development being planned for a vacant property near the Larkspur city limits. This is the first major workforce housing initiative of this scale implemented by the County and its educational partners.
Known as the Oak Hill Workforce Housing Project, the 135-unit apartment complex would provide affordable rental housing for County of Marin employees, public school teachers, and school staff who meet income eligibility requirements. Oak Hill is a vacant 8.5-acre property between San Quentin Village and the Larkspur Landing waterfront area. The state-owned surplus property just off Sir Francis Drake Boulevard is considered an ideal location for a development that would help provide vital housing options for critical County and educator workers.
After the Supervisors heard the update on the project plans during their December 9 meeting, they approved a revised financing structure that included an additional $2.5 million in Housing Trust fund support and a County guarantee to backfill any use of the JPA’s debt service reserve fund if there are unanticipated expenses or vacancies. The Board also directed staff from the Office of the County Executive to create legal agreements with partner agencies to reimburse the County for any revenue losses from vacancies higher than what is budgeted in the project's financial plan.
Taking the lead on the Oak Hill project is the Marin County Public Financing Authority, a joint powers authority (JPA) made up of the County of Marin and the Marin County Office of Education. The JPA, formed in 2023, plans to issue tax-exempt bonds to fund Oak Hill’s construction and retain ownership of the leasehold estate. It is also assigned the development rights.
The total estimated cost of the Oak Hill project is approximately $124 million. The collaborating agencies developed a financing package proposal that blends bond proceeds ($94.6 million), state and local grants ($18.5 million), contributions from the County’s Affordable Housing Trust ($7.5 million), and additional philanthropic support.
Now more than five years into planning, Oak Hill was facing a funding gap of over $17 million primarily because of increased interest rates and construction costs caused by macroeconomic inflationary trends. A guarantor financing program was proposed to reduce the interest or borrowing rate on project bonds and assure the affordability of units relative to Marin’s median incomes, and close the financing gap.. Local school districts, College of Marin, and the Marin County Office of Education are considering their own guarantor commitments for specific units at the Oak Hill development.
Serving as a so-called umbrella guarantor demonstrates the County’s leadership in addressing housing affordability and workforce needs.
Representing a county with some of the highest housing costs in the nation, the Supervisors have consistently supported affordable housing proposals. Almost two-thirds of Marin County workers commute from adjacent counties, contributing to traffic and increased greenhouse gas emissions. One of the greatest barriers to turning housing proposals into reality is the rising cost of development — even after suitable sites have been identified.
In 2019, the undeveloped parcel was identified as a state-owned property that could be repurposed to alleviate the housing crisis. It was then included on the County’s inventory of potential housing sites as an attractive option because of its proximity to transportation, commerce, and services. The Oak Hill development would help the County reach its state-mandated housing goals and would provide cost-saving options for people considering jobs with local government and participating school districts as well as existing employees.
The state selected two housing agencies – Eden Housing and Educational Housing Partners – to collaborate on the plan to build the residential community for two populations: educators and County staff who meet income requirements (135 units); and other very-low- and low-income households (115 units). Education Housing Partners is designated to manage the workforce project construction once it is fully permitted.
Under the proposal, households of three with incomes from $88,150 to $141,040 would qualify for an Oak Hill home. Rents for a two-bedroom unit would range from approximately $1,836 to $2,938. In a recent County of Marin employee survey, 269 workers expressed interest in renting an affordable home at Oak Hill once construction is completed.