GILROY
– A joint effort between the school district and Gilroy’s
leading affordable housing agency – South County Housing – will
make it easier for at least 15 teachers to buy homes in Garlic Town
this fall.
GILROY – A joint effort between the school district and Gilroy’s leading affordable housing agency – South County Housing – will make it easier for at least 15 teachers to buy homes in Garlic Town this fall.
Ground between Monterey Road and Church Street is being broken for a 25-unit single-family housing development where 15 homes will be marketed specifically toward Gilroy Unified School District teachers. In June, a hotline was started so teachers interested in buying the three- and four-bedroom homes could place themselves on an interest list.
Through financial contributions from various affordable housing programs, upwards of $112,000 may be deducted from the cost of the $448,000 homes.
“We can get the cost down to a point where dual-income families will be able to afford it,” GUSD teacher recruiter Gene Sakahara said. “We know $448,000 will scare off many first-time home buyers.”
If all of the potential funding mechanisms are worked out, officials estimate that mortgage payments could be reduced to as low as $2,330.
Contributions toward the purchase of homes could include:
• $38,000 from California Housing Finance Agency
• $23,440 from the Santa Clara Housing Trust Fund
• $30,000 from the City of Gilroy
The so-called La Maestra housing development will be located on Church Street behind Antonio Del Buono Elementary School. The project is adjacent to the Trimble Court subdivision, a South County Housing project for a temporary and transitional shelter where the dilapidated Serra Apartments on Monterey Road used to be.
The shakiest of the funding mechanisms is the $30,000 from the city. Staff is investigating whether it is legal for the city to contribute housing funds for a specific type of person, in this case teachers.
“We’re pretty sure teachers have regulatory exemption,” City Administrator Jay Baksa said. “But we can’t say only carpenters or only green people can get housing money, at least that’s the way I understand it.”
If the city can make the contributions, it would use money from its housing trust fund.
The city would pay the estimated $30,000 in developer impact fees for the home buyer, using money from the housing trust fund. When the homeowner sells the house at some time in the future, the $30,000 will be recouped by the city and go back into the housing trust fund.
“We’d like to make it a revolving fund if it all works out,” Baksa said.
The effort between South County Housing and GUSD could be replicated by the city, which like the school district finds it increasingly difficult to retain employees in high-priced Silicon Valley.
“We’re all finding it really tough to hire people without them being 70 miles away,” Baksa said at a recent joint meeting between the city and GUSD.
For GUSD, recruiting teachers was made a little easier this year when many Silicon Valley and Bay Area educators were laid off due to budget cuts. However, retaining qualified teachers has long been a thorn in the side for the school district.
“We’re probably moving within the next year,” said third-year Gilroy High School teacher Lulu Jones even after hearing about the La Maestra project.
Jones’ departure is a double-whammy for the school district since the biology teacher is married to Tim Jones, a five-year social science teacher at GHS.
Lulu Jones was scheduled to have a Caesarean section on Tuesday, giving birth to the Jones’ first child. Three years ago, Lulu Jones was approved for a $180,000 home loan and is still in the midst of making payments on school and car loans.
The Jones’ live in a two-bedroom second dwelling unit in Morgan Hill. They have considered moving to the Midwest or further north in California where both have family.
“I just don’t see how we can do it here with a child,” Jones said. “We’re cramped right now, and our second bedroom is our office area. Now it will be the baby’s room.”
