The real estate market may be red-hot in California, but low salaries have left many teachers out in the cold. With so many educators unable to afford to live in the areas where they teach, housing programs for teachers are being developed by local, state and federal government, as well as communities. Such plans include home loans, subsidized housing and the opportunity to purchase homes at bargain prices.
Helping put a roof over the heads of teachers has been labeled "progressive" by some because it addresses a critical need. Others, however, see such programs as Band-Aid solutions that ignore the real problem - abysmal teacher salaries. Some have likened such programs to treating teachers as charity cases, worthy of wearing signs, "Will Work for Housing."
The governor has called for a $50 million program offering $10,000 home loans for teachers. The debts would be forgiven if the teachers work in low-performing schools for five years. But the program would benefit only 5,000 teachers statewide.
State Treasurer Phil Angelides has proposed a similar plan, giving teachers tax breaks if they work at poor schools.
In November, the federal government began offering homes at half the market rate to teachers who agree to live in low-income areas for a minimum of three years. The Teacher Next Door program copies the two-year-old Officer Next Door program, which placed police officers in poor communities across the country. The premise is that neighborhoods will improve if they serve as a home base to people who are community role models.
The homes available under the Teacher Next Door program were seized by the government from homeowners who were unable to pay their federally insured mortgages. To qualify, full-time credentialed teachers must live within the school district boundaries. Homes are sold "as is," and teachers can pay as little as $100 for a down payment. After three years, teachers can sell the homes at market value.
The list of available homes can be viewed online [www.hud.org or www.goldenfeather. com/special.htm] or teachers can call the Housing and Urban Development Department at (415) 436-6532. Winners are selected by lottery.
Individual communities have also stepped up to the plate to provide teacher housing - especially in Silicon Valley, where a booming, high-tech job market has sent real estate prices sky high.
The San Jose Teacher Homebuyer Program has already helped teachers become first-time homeowners in the city. The program provides 100 percent financing for homes priced at up to $240,000. In San Jose, that translates into mostly condos and townhouses. So far, $2 million in city funds have been allocated for the program.
Here's how it works: The San Jose Department of Housing provides a down payment assistance loan of up to 3 percent of the purchase price, or $7,200. The interest-free loan is repayable in 30 years, upon resale or refinance of the home, or when the teacher is no longer teaching in area public schools.
A participating mortgage lender finances the remaining 97 percent of the loan. In addition to paying 2 to 3 percent of the purchase price for closing costs, qualifying teachers make monthly payments on 80 to 85 percent of the purchase price for the first 10 years. That translates into reduced monthly payments. In the 11th year, teachers assume payments on the 97 percent loan.
Eric Rise, a member of the San Jose Teachers Association (SJTA), is very enthusiastic about the program, which enabled him to purchase a two-bedroom condo. "It's a nice place in a nice neighborhood and it's just 10 minutes from work," says the fifth-grade math teacher at Simonds Elementary School. Before entering the program, he was living with relatives because he had been priced out of the housing market.
"I see nothing wrong with the program. Teachers need to have such a program," says SJTA President Kathy Burkhard. "But I do have a problem with the fact that teachers' salaries are so low they have to be on the dole. They have to be subsidized to have a home. They should have a living wage. This disturbs and insults me."
In San Jose, many new teachers arrived for jobs in August and left before setting foot in the classroom, once they realized the high cost of housing in the area, says Burkhard.
"Of course, the obvious solution is to pay teachers more so they can afford their own houses," says Bob Nichols, a CTA Board member and San Jose teacher. "But cities can't do that, because cities have nothing to do with school funding."
Nichols foresees potential problems for San Jose teachers because of what he describes as a "crazy-quilt pattern" of the 16 school districts there. Some districts have campuses both within and outside of San Jose boundaries. "If a teacher is transferred to another school in the same district that's outside San Jose, will that teacher lose his or her home?" he asks.
In nearby Santa Clara, school board members are considering an innovative proposal to construct apartments for teachers and rent them at below-market prices. The board has approved "in concept" a plan to construct 40 apartments for teachers on an old school site. The Santa Clara Unified School District is the first district in the state to consider building housing specifically for teachers. A final decision on the project has yet to be made.
Under the plan, the district would use money it has raised from the sale of surplus property. By law, that money cannot be used for teacher salaries or school supplies, but it can be used to finance capital projects, including construction. The project would cost about $4.6 million and would likely pay for itself over time from rent money collected from the 40-60 teacher tenants. Rents would be $300-$500 per month less than market value, and teachers would be allowed to live in the units for five years. The hope is that during those five years of paying low rent, teachers would be able to save up enough for a down payment on a home.
"It seems to be a step in the right direction in terms of trying to help teachers stay in the area and stay in the profession," says Carson Crites, president of the United Teachers of Santa Clara. "But at most, it would affect only 60 teachers of the 800 in our district."
It also fails to adequately address the needs of teachers who want to buy their own homes right away, says Crites. "Teachers who are spending less on rent might not save all of that money for a down payment," he muses. "They might decide they can afford a better car. Or they might decide not to work that second job to make ends meet."
Another plan to improve housing for teachers in Silicon Valley has been offered by a new nonprofit organization called Teachers Academy Foundation. The proposed teacher training center, estimated to cost between $30 million and $50 million, would include 200 to 400 apartments for teachers. The foundation has entered into discussions with the county's office of education, area universities that provide teacher training, and the City of San Jose, to see if they will help subsidize building costs. Corporate and philanthropic leaders have also been approached.
Under the plan, prospective teachers would pay below-market rent and complete college coursework for a teaching credential in the adjacent conference center. By providing job training with affordable housing for a period of two to three years, the hopes are that teachers would stay in the area and eventually earn and save enough to buy their own homes.
In San Francisco, where housing costs are also extremely high, school district and city officials have been discussing options to provide home purchase and rentals to teachers. No specific plans have yet been announced.
"I think it's great to see concern about helping to retain teachers," says Royce Peterson, president of the Campbell Education Association. "They teach in Silicon Valley for five years, then they move to Tracy or Sacramento because they can't buy houses here on a teacher's salary."
"If people want to attract teachers who can live in the community, then they should be paid a decent salary so they can afford to live in the community," says Marilyn Landau, a CTA Board member from United Teachers Los Angeles.
"I'd rather see teachers paid well enough so they won't need subsidies," says CTA President Wayne Johnson."
