An East Side school district is moving forward on its efforts to provide affordable housing for teachers and other employees.
Alum Rock Union School District’s $71.5 million bond known as Measure S is materializing five years after voters approved it to fund workforce housing and other capital improvements. Since then, affordable housing has worsened in the region, as the rising cost of living continues to strain the district’s ability to attract and retain teachers.
The $55-million Mayfair Workforce Housing Project includes a three-story development with 78 rental apartments at the Mathson campus, located at 2050 Kammerer Ave. The development will include a mix of one-, two- and three-bedroom apartments, an outdoor space with a lawn and seating areas, a children’s play structure and fenced dog run. It’s slated to begin construction in 2027, with completion anticipated by the end of 2028.
“Housing is one of our most basic needs, in a region where so many educators are priced out of the communities they serve,” Trustee Corina Herrera-Loera told San José Spotlight. “This project represents more than a place to live. It represents our community’s investment in the people who care for our children every day.”
Teacher Michelle Cervantes said affordable housing will allow teachers to live near the schools they serve and strengthen community ties.
“There are going to be people taking advantage of it,” she told San José Spotlight, “because it reduces commute time. Some teachers drive all the way from Modesto.”
But Cervantes also has concerns. She said the district may use subsidized housing as a reason to deny salary increases and wonders how long teachers will be allowed to live there.
Herrera-Loera said the housing project supports teachers and other workers in accessing quality housing at a more affordable cost, reduces long commutes and helps them put down roots in the neighborhoods they serve.
“The community’s support of Measure S made it possible for the district to move forward with workforce housing as part of a broader investment in our schools and the people who make them thrive,” Herrera-Loera said.
Trustee Minh Pham said as a state-funded district, this allows Alum Rock to have a revenue source through its real estate holdings. It will mitigate the effects of declining enrollment and unpredictable state funding, he told San José Spotlight.
The apartments will be available at below-market rental rates and half will be reserved for lower-income employee households earning up to 80% of the area median income. In Santa Clara County for a family of four that is roughly $162,400 and for an individual it’s $113,700. Rents are estimated to start as low as $1,800 per month. Average rents are projected to be at 40% below-market price.
Erik Schoennauer, a consultant with Education Housing Partners, said the number of apartments was chosen based on the bond measure’s budget and how many district employees were interested in housing. He said the housing project is important for employees who otherwise can’t afford to live in the most expensive housing market in the nation.
“It’s extremely difficult for public employee workers to find available housing and affordable housing with the salaries that public school districts are able to pay,” Schoennauer told San José Spotlight. “Because of that, it’s extremely hard for public school districts, not just Alum Rock but throughout the Bay Area, to attract and retain teachers and other school workers.”
Schoennauer said the goal of the project is to be self-sustaining. Since the school district doesn’t pay property tax, the bond measure will enable the district to sustain the project at a much lower rate than a market rate developer would, he said. And the district is simply passing along that built-in savings to the employees.
The city planning entitlement process may be completed in September, he said. The district is taking advantage of the state’s streamlined process for affordable employee housing by public school districts. It submitted a project application to San Jose in April.
The reduced approval time allows housing to be constructed at a lower cost and occupied earlier, according to the district. Leasing, maintenance and daily operations will be managed by a property management company.
If district employee demand is insufficient to fill the apartments, they will be made available to employees of other school districts or public agencies who meet the income requirements, according to the school district’s website — but the goal is to have all 78 apartments occupied by district employees and their families.
Contact Lorraine Gabbert at [email protected].
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