Measure T passage would reduce rent for teachers

An illustration of the proposed teacher housing development for 777 W. Middlefield Road, where the Village Lake Apartments are now.

BY SONYA HERRERA
Daily Post Staff Writer

The rent of new apartments to be leased by Mountain View Whisman School District employees will depend on the passage of $259 million bond Measure T on March 3, according to district spokeswoman Shelly Hausman.

Between 124 and 144 apartments at the soon-to-be-built development at 777 W. Middlefield Road will be leased to teachers and other district employees.

If the bond measure passes, the district will use $60 million of the proceeds to subsidize rents at these apartments, according to Hausman.

This would allow the employees to pay comparatively little in rent.

However, Hausman said that if the bond measure doesn’t pass, the district would charge district employees the maximum rent allowed by law.

In addition, the district would still owe $40 million to Fortbay/Miramar Property Group for the cost of building the development, according to its master facilities plan.

About $137 million of the bond proceeds would be used to fund safety and energy-efficiency improvements at district schools, as well as to build new facilities for a projected growth in enrollment, according to the plan.

An additional $100 million would go toward employee housing, including the $40 million to pay the developer and the $60 million for subsidizing rents.

Last year, Superintendent Ayinde Rudolph said the district would rent the apartments to employees who make between 50% and 80% of the area median income, which in Santa Clara County was $131,400 for a four-person household as of last year.

Rudolph had said the low-income apartments would cost $1,409 a month for a studio, $1,509 for a one-bedroom and $1,811 for a two-bedroom. The moderate-income apartments, rented to employees who make between $66,150 and $111,720, will cost $2,630 for a studio, $2,818 for a one-bedroom and $3,381 for a two-bedroom.

In October, City Council discussed contributing city funds in order to use 20 of the apartments for city employees who qualify. That would mean the district would only get 124 units.

The district and city still haven’t decided whether the city will use some of the apartments, according to city spokeswoman Shonda Ranson.

Construction of the apartments will begin sometime this year, though the exact date is not known, according to Hausman.

The apartments are expected to be finished in 2022.

If Measure T passes, the district would borrow $259 million through a bond sale, which would be repaid through a $300 tax per $1 million of assessed property value. The estimated total repayment amount is about $538 million, and the estimated revenue from the tax is $18.6 million each year.

4 Comments

  1. “While it’s a big real estate investment on the part of the school district, amounting to a public agency cutting a $56 million check to fulfill a developer’s low-income housing requirements, Rudolph said told the Voice that the rental income should fully offset the costs over a 35-year term, with maybe $500,000 in excess income.” is what was reported in the MV Voice when the teacher housing deal was authorized in October 2018

    I guess the fine print is that this check would be financed by Measure T and the taxpayers?

    Not opposed to Measure T (can’t vote on it but will gladly pay it) ..but it’d be nice to have more transparency on that deal between city, school district and developer.

    Who pays for what and does the developer even pay for anything at all?

  2. I note that the ballot text says “$30/$100,000 assessed value,” which sounds so much better than $300/$1M. But it doesn’t say how many years we would be paying.

  3. Instead of giving teachers rent money or down payment for the house, let’s put the money in a builders’ pocket and then let teachers pay rent to live in those apartments. This school district is so corrupt. Measure B money also went for constructions. This money is not for school teachers, this is for builders.

  4. We were told at our school meeting that the money is needed to build more schools because of the influx of people Google is bringing to MV. If this is the case, Google should foot the bill (or at list a good part of it) and not the homeowners.

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