GILROY
– The school district added money to the pot for an affordable
teacher housing project, but the project’s coordinators are still
waiting for the city to approve funding before giving teachers the
go-ahead.
By Lori Stuenkel
GILROY – The school district added money to the pot for an affordable teacher housing project, but the project’s coordinators are still waiting for the city to approve funding before giving teachers the go-ahead.
Together, the school district and city loans are necessary to make 15 homes in South County Housing’s La Maestra and Trimble Court subdivision that are marketed to teachers affordable. The houses start at $440,000.
Gilroy Unified School District is offering teachers a $5,000 loan that would be considered a grant and forgiven after five years of full-time employment with the district. If the teacher is not still employed with GUSD at the end of five years, they would begin repaying the low-interest loan.
“We’re trying to create opportunities for teachers so they can stay in Gilroy,” said Gene Sakahara, recruiter for GUSD. “One of the biggest factors of our retention is the cost of housing, not only in Gilroy but the entire South Bay.”
The program will help GUSD’s recruitment efforts as well, Sakahara said, because the cost of housing in Gilroy is a concern for many applicants from outside the area.
“There’s no sense bringing them out if they know it’s not a reality in terms of them buying a house,” he said. “It’s been great to start this program with South County Housing and the city.”
Superintendent Edwin Diaz said the district is looking into whether it can use developer impact fees to continue the loan program. Another option is to secure a state grant that may be used by school districts with low-performing schools to offer housing subsidies.
Senior Project Manager Nancy Wright continues to work with three teachers planning to purchase one of the La Maestra homes, which are expected to be completed by May.
Interest in the program remains high, Wright said. Numerous teachers visited a model home Saturday in the Trimble Court portion of the project. But they are still waiting for the city’s proposed loan program to win approval from city staff and City Council.
South County Housing originally hoped to present teachers with a complete financial-aid package that would make the $448,000 houses affordable for a two-teacher income household, which starts at $72,000. Wright said the organization will reach that goal, just not as quickly as she expected or all at once. Now, teachers are waiting in anticipation of the city’s $30,000 deferred payment, low-interest loan.
Mandy Reedy, a teacher at Rod Kelley Elementary School, has been following the La Maestra project since she first heard about it last summer.
“I was really excited,” she said of viewing the Trimble Court model home, which is similar to the La Maestra homes.
Everything will fall into place once the city’s proposal is approved by Council, she said, and she hopes to put down a deposit toward her chosen home as soon as she can.
“I still think next month is possible (for putting the proposal before Council),” said Marilyn Roaf, the city’s housing and community development coordinator. The proposal is currently being reviewed by city staff, she said.
When that loan is secured, South County Housing will “throw our piece in,” Wright said.
“We really want this to work,” she said.
Wright could not estimate how much South County Housing will contribute, because it will depend on how many teachers want to participate versus how many loans the city will offer.
Roaf said the city is starting its program with six loans through the end of the fiscal year in late June. The city program will be evaluated and likely continued at the start of next fiscal year, Roaf said.
Wright said that Countrywide Financial, a lending company in San Jose that is working with South County Housing on La Maestra, will contribute money toward closing costs. The Countrywide representative working with South County Housing did not return phone calls by deadline.
The cornerstone of the financial assistance package for teachers is a $25,000 deferred-interest loan for first-time home-buyers from the High Cost Area Home Purchase Assistance Program, offered through the California Housing Finance Agency.
“It’s a pilot program – that’s what’s exciting, is that we have this many agencies working together,” she said.
The city may also make its loan program available to city employees in the future. Roaf said the city sent out a survey last year and quite a few employees were interested in a similar program.
Teachers interested in a La Maestra home will soon have the option of securing a home for $5,000, which will go toward a down payment. The three homes for teachers in the 15-home Trimble Court lot can be secured now, Wright said.
For more information on La Maestra, contact (800) 543-3432.
