Marin County plans new guarantor financing program to boost affordable housing for staff

The Marin County government meeting held on April 16, 2025, focused on addressing the pressing issue of affordable housing for local employees. The meeting highlighted a proposed guarantor financing program aimed at closing the budget gap for affordable housing projects.

The discussion began with concerns about increasing rental rates, which could deter demand for affordable units. Officials expressed reluctance to raise rents to market levels, as previous projects had failed when rents approached 20% of market rates. Instead, the focus shifted to the guarantor financing program, which would involve local school districts acting as guarantors for a portion of rental income. This approach is expected to lower interest rates, allowing for an increase in bond proceeds by $10 million, which could reduce monthly rents by $400 per unit.

The program is designed to provide dedicated affordable housing units for employees of participating agencies without requiring them to take on the role of landlords. A Joint Powers Authority (JPA) would manage the properties and engage a property management firm. The meeting noted that while not all school districts would participate, interest has been expressed by larger districts, such as Novato, which is considering guaranteeing 27 units out of a demand for 200.

The meeting also addressed the affordability levels of the proposed units, which would cater to a range of incomes. For example, units designated for households earning up to 50% of the area median income (AMI) would have estimated rents around $1,700, while those at 80% AMI would target incomes between $110,000 and $181,000. This broad range aims to accommodate many county employees, including planners, dispatchers, and entry-level health workers.

A significant point of discussion was the need for a robust waiting list to ensure units are filled quickly. The demand study indicated that over 300 individuals would be interested in these housing options each year. To mitigate risks associated with vacancies, the JPA plans to establish a vacancy reserve and budget for a 4% vacancy rate, which aligns with county averages.

The meeting concluded with a call for conceptual approval of the program, allowing officials to build a budget and refine plans over the coming months. The goal is to achieve a balanced budget by the May-June timeframe, with further discussions anticipated to finalize agreements with participating agencies.

Overall, the meeting underscored the urgency of addressing affordable housing needs for Marin County employees, emphasizing collaboration among local agencies to create sustainable solutions.