San Mateo County Board of Education approves workforce housing loan documents

The San Mateo County Board of Education on May 13, 2026, voted unanimously to approve Workforce Housing Loan Documents for an educator housing project after a presentation by Armando Sanchez of the Housing Endowment and Regional Trust (HEART). The motion, made by Board Member Chelsea Bonini and seconded by Board Member Beverly Gerard, passed with all seven members voting in favor.

Sanchez told the Board the property was ‘‘essentially new, built in 2021, and well maintained’’ and that every unit was inspected during escrow; due diligence identified one repair of about $15,000 that HEART intends to ask the seller to remedy. He said a seismic study showed low risk and that HEART has a long-term plan for maintenance reserves. On bond pricing, Sanchez said the senior bond carries a 5.25% coupon with a 5.5% yield and the junior bond has a 6% coupon with a 6.25% yield; issuance carries roughly a 25-basis-point discount on the larger senior piece.

Board members pressed for operational clarity. Deputy Superintendent Kevin Bultema said the Workforce Housing Subcommittee will review the building’s finances at least twice a year; HEART agreed to furnish detailed performance reports, including fees, subsidies and tenant counts on request. Sanchez explained how the subsidy mechanics work: if a unit is empty, funds reduce bond principal; if occupied, the subsidy applies immediately, so there is no accumulating balance. On projected interest costs, he noted ‘‘the final years of the bond carry almost $3 million in annual interest, so an extra year and a half would be roughly $4.5 million’’ based on current modeling assumptions.

The Board discussed property management arrangements. Sanchez confirmed Greystar will serve as property manager; the contract sets a fixed percentage fee (about a little over 2% of revenue) rather than an annually renegotiated rate, and that fee is calculated on rents collected, not on subsidy amounts. He estimated Greystar’s early-fee figure at roughly $56,000 every six months and said the fee will rise as revenue increases. Board members asked that, beyond Subcommittee review, the full Board receive periodic summary updates on the project’s finances and operations.

The approval was granted ‘‘subject to any insubstantial changes that Council or County Office staff may need to make,’’ and Superintendent Marco A. Chávez and HEART staff said they will continue coordination with affected local districts, arrange follow-up meetings with superintendents and schedule a site visit once arrangements are finalized. The motion passed unanimously (Alvaro, Arias, Bonini, Gerard, Love, O’Neill, Torres).