Housing Project near Larkspur Landing faces budget shortfall amid rising interest rates

The Marin County government meeting on April 16, 2025, focused on a significant housing project located on state land, which aims to provide high-quality housing near Larkspur Landing. The project includes a mix of units, with 75% designated for schools and 25% for county use. The developer is known for constructing private market rate housing, and the new units will be built to similar specifications, with minor differences such as the absence of a pool and features designed to reduce long-term maintenance costs.

A major topic of discussion was the project's budget shortfall, primarily attributed to a significant increase in interest rates. The interest rates have more than doubled from historic lows, creating a financial gap that threatens the project's viability. The county is committed to serving a target population with incomes between 50% to 80% of the Area Median Income (AMI), which adds to the financial challenges.

To address the budget shortfall, the project has already secured $15.7 million in grants and is actively seeking additional funding. The team is also collaborating with the Marin Community Foundation to explore options for lower interest rate financing to help bridge the financial gap.

The meeting underscored the county's ongoing efforts to provide affordable housing while navigating the complexities of changing economic conditions. Further updates on funding and project progress are anticipated as the county continues to seek solutions to the budget challenges.