Developer updates board on workforce housing plan for school staff; legal tax-exemption remains hurdle
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Summary
A private developer told the board a workforce-housing pilot site has been identified and that the county is supportive, but attorneys and county counsel have not yet confirmed whether school-district-owned staff housing can be treated as property-tax exempt under current law; the developer pledged continued legislative outreach and possible March–June activity.
A private developer briefed the Marion County School Board on Dec. 18 about ongoing efforts to provide workforce housing for school staff, saying the project is moving forward on several fronts but still needs legal clarity about property tax treatment.
The developer said a suitable piece of property has been selected and an initial pilot at one school was used to test management and tenant interviews. He said one major question is whether housing provided through the school district could be treated as district-owned property and therefore exempt from property taxes — a benefit that would make housing more affordable for staff.
“One of the main components to this being affordable is that it's exempt from property taxes, and it's treated as school district owned property,” the presenter said. He added that county officials are supportive but that they have not found specific legal language allowing a school district to hold property for housing and guarantee a permanent exemption.
To address that, the presenter said the developer is pursuing two tracks: seek local home‑rule solutions with the county (which could allow a county-based approach and dedicate a number of units for school staff), and work with other counties where precedent may be established to create clearer statewide language. He said political lobbyists and state contacts have been engaged and that the team is coordinating meetings with legislators beginning Jan. 13.
Board members praised the proposal and asked staff to proceed cautiously on contractual language; several members urged surveying employees to quantify need and preferences. The board noted that a county-led interlocal approach could change who holds master lease responsibility while still reserving a set number of units for school staff.
The developer said the earliest movement on a project could begin in March or June depending on legal outcomes and legislative timing, and emphasized that the team is funding much of the advocacy work to secure clear protections for the district.
