Multistudio launched a series of Workforce Housing Think Tanks in 2023 to help California school districts understand and navigate the complex process of developing housing for educators and staff. The third session, held in November 2024, took a closer look at what makes a project financially feasible by analyzing the capital structure of a real-world feasibility study.

Continuing the Conversation

This session was the third in Multistudio’s ongoing Workforce Housing Think Tank series. Session #1, Identifying a Path Forward for Workforce Housing, explored the barriers to affordable housing for K–12 teachers and staff and identified actionable starting points for districts. Session #2, From Project Concept to Completion: Leveraging Partnership in Workforce Housing, held in June 2024, brought together multiple districts, developers, advisors, and policy advocates to map out effective partnerships and implementation strategies. Session #3, Bridging Gaps for Feasible Workforce Housing Solutions offered a deeper look into the financial structures and development models that can make workforce housing feasible for public school districts.

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Together, these sessions offer a roadmap from inspiration to implementation.

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K-12 Workforce Housing Think Tank #3 Key Takeaways

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Understanding the Elements of Feasibility

The session opened with insights from Corey Smith of Housing Action Coalition, who outlined how policy, financing, and land use regulation continue to impact workforce housing efforts. Tony Mirenda of Kitchell described the development process as a “three-legged stool” requiring alignment of market demand, political will, and financial structure. Ross Robb of RLR Ventures introduced five key levers districts can use to shape project viability:

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• Project Cost: Consider using cost-effective building materials, adjusting unit sizes, or limiting amenities. Local abatements may help offset prevailing wage requirements.
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• Rent Revenue & Operating Expenses: Property tax abatements can significantly reduce operating costs and help balance affordability.
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• Cost of Capital: Grants and no-cost capital sources improve overall feasibility.
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• Land Cost: District-owned land or low-cost ground leases can dramatically lower overall development costs.
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• Development Structure: Delivery models should align with district goals while enabling access to funding and approvals.

Applying the Framework: A Case Study

The Annex Group, with Relequity and Multistudio, presented a feasibility study for an anonymized Bay Area district ("District X"). This district had a former elementary school site zoned for housing and general obligation bond funds approved by voters. With area median incomes over $166,000 and average rents well above what a single-income teacher could afford, the team conducted a site and market analysis to determine a viable development strategy.

Multistudio’s Matt Pauly presented a site analysis showing that a four-story wood-framed building (Type III) with a 35-foot height limit could accommodate up to 148 units while respecting neighborhood scale. Considerations included parking, slope, and access, as well as the potential use of state density bonuses (AB 1287) to expand unit count.

Financial Strategies: Two Paths Forward

Ketan Chokshi of The Annex Group outlined two financial strategies for District X:

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• Path 1: Leverage district bond funds with low-cost financing tools such as Certificates of Participation, grants, and net operating income to reduce overall capital cost and rent levels. This approach supports the district’s ability to retain control and tailor unit allocations to staff needs.
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• Path 2: Use traditional third-party financing for a simpler transaction process, while acknowledging that affordability may be affected due to investor priorities and higher capital costs.

Each model brings different levels of city involvement, potential for nonprofit structures, and options for district ownership or partnership through a Joint Powers Authority. The right path depends on the specific goals and constraints of each district.

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Building the Right Team

No two workforce housing projects are the same. The key is assembling the right partners and aligning funding, entitlement strategy, and delivery model from the start. Through our think tanks, Multistudio has built a network of districts, developers, program managers, and advocates with experience navigating the complexities of workforce housing. These partnerships allow districts to move confidently from feasibility to design and through construction.

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Thank You to Our Contributors

Special thanks to Jason Taylor, Tom Tomaszewski, Ketan Chokshi, and Matt Zetzl of The Annex Group, Justin Smith of Relequity, Ross Robb of RLR Ventures LLC, Lori Shelton, Calvin Wong, and Wazi Chowdhury of South San Francisco USD, Tony Mirenda, Erica Kodiyan, and Kent Brown of Kitchell, Corey Smith of Housing Action Coalition as well as numerous Bay Area district representatives, developers, and architects for their contributions.

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Explore what’s possible.

‍Discover how Multistudio and our partners can help your district bring workforce housing to life:
www.multi.studio/perspective/perspective/workforce-housing