Body of News Release
UPDATE 4/15: The Board accepted the report and committed to the guarantor program.
Marin County, CA – The County of Marin is considering a commitment to finance 34 homes within a 135-unit affordable workforce housing complex, one of two affordable housing projects planned for a vacant property between San Quentin Village and the Larkspur Landing waterfront area.
Known as the Oak Hill Workforce Housing Project, the development would provide lower income housing for teachers, school staff and County employees who meet income eligibility requirements. The proposal will be reviewed during the Marin County Board of Supervisors meeting on April 15, when County staff will present a report on the project’s financing program and recommend that the Board commit to being a guarantor for 34 of the homes. The units would be designated for County of Marin employees who qualify for the below-market-rate opportunity because of their annual household income.
The Oak Hill project, now five years into planning, is facing a funding gap of $16.4 million primarily because of increased interest rates. To close approximately $10 million of the gap and strengthen the project’s viability, a guarantor financing program was set up to significantly reduce the interest or borrowing rate on project bonds and assure the affordability of units relative to Marin’s median incomes. Joining as a guarantor would allow the County of Marin to secure 34 Oak Hill homes for its employees who qualify.
Staff members from the Community Development Agency recommend that the Board join the project as a guarantor, according to the staff report, as long as it is conditioned on agreements from several local school districts and peer reviewed by a qualified independent financial advisor. Being a guarantor is also seen as a move to support workforce stability and diversity. School districts, College of Marin, and the Marin County Office of Education are considering their own guarantor commitments for Oak Hill homes.
Representing a county with some of the highest housing costs in the nation, the Supervisors have consistently supported affordable housing proposals. Today, one of the greatest barriers to turning housing plans into reality is the rising cost of development — even after suitable sites have been identified. The Oak Hill project directly addresses that challenge by lowering borrowing costs through a guarantor model, making it financially feasible to build the type of housing Marin urgently needs.
Almost two-thirds of Marin County workers commute from adjacent counties, contributing to traffic and increased greenhouse gas emissions. The County is working with Marin, regional, and statewide agencies on solutions to the affordable housing crisis that would improve the quality of life for all.
In 2019, the undeveloped parcel in unincorporated Larkspur 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.
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. Due to the State of California’s ownership of the land, the state is the lead agency on entitlements, environmental reviews, and permitting.
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 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 extremely low- and low-income households (115 units). Education Housing Partners is designated to manage the 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.
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