State Superintendent Tony Thurmond Sponsors Legislation to Accelerate Housing Development for Educators and School Staff

SACRAMENTO—State Superintendent of Public Instruction Tony Thurmond is sponsoring legislation, Senate Bill (SB) 502, introduced on February 19 by State Senator Jesse Arreguín (D-07), to help local educational agencies (LEAs) across California address the housing affordability crisis. SB 502 would establish a fund to support predevelopment costs of housing for educators and school employees, a common barrier for LEAs seeking to establish workforce housing.

“California’s housing crisis is driving talented educators and school staff away from the communities that need them most,” said Superintendent Thurmond. “This bill will create a real pathway to accelerate the opportunities for districts to build over 2 million units of affordable housing over the next decade. We applaud Senator Arreguín for his efforts to support school employees.”

“The scarcity of housing is making it increasingly difficult to recruit and retain educators,” said Senator Arreguín. “Educators and all workers deserve to live in the communities they serve. That is why I am excited to partner with Superintendent of Public Instruction Thurmond to secure funding to kick-start workforce housing projects for educators and school employees, repurposing school land for needed homes.”

SB 502 would allow more than 125 school districts and LEAs each year to use state homebuilding funds to cover predevelopment costs—such as architectural planning and permit applications—needed to construct affordable housing for school employees. Many school districts have available land to build housing but lack the necessary funding to cover these initial costs.

A key component of the bill is the creation of a zero-interest revolving loan fund, which would be funded by setting aside 5 percent of the annual revenue generated by the Building Homes and Jobs Trust Fund—a state fund that generates over $250 million per year from a $75 transaction fee on real estate documents. Under existing law, these funds support affordable housing projects, but school districts currently lack clear access to these resources. SB 502 would change that, helping school districts overcome financial barriers to developing workforce housing.

California’s housing crisis has disproportionately impacted educators, with housing costs far outpacing salaries. In 2016, only 17.4 percent of homes were affordable to the average teacher, and most school employees are considered “housing cost burdened,” spending more than 30 percent of their income on housing. Meanwhile, school districts and county offices of education collectively own more than 75,000 acres of land that could be developed for workforce housing. Notably, 40 percent of this land is in areas with high teacher turnover rates, where the loss of educators disrupts student learning and school stability.

Employee housing has shown to be a highly effective strategy for addressing the school staffing crisis. Jefferson Union High School District in Daly City, an area hard-hit by the high cost of housing, recently opened a 122-unit housing development for staff. Following the opening of these housing units, Jefferson Union High School District opened the school year with zero vacancies, which board member Andy Lie called “unheard of in public education."

Superintendent Thurmond introduced a housing initiative last year to develop these 75,000 acres of surplus school property into affordable housing for educators and the workforce. This total amount of surplus school property has the potential to support 2.3 million units of new housing, nearly meeting the 2.5 million units needed to fully address California’s housing crisis.

Superintendent Thurmond has been instrumental in making state tax credits available for affordable housing, with $500 million approved for this purpose as part of the 2020 state budget and in subsequent years, including 2024. He has also pledged to secure future funding to provide state incentives when local school districts pass bond measures to build housing.

To share policy recommendations for Superintendent Thurmond’s housing initiative, email Initiatives@cde.ca.gov.

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Tony Thurmond — State Superintendent of Public Instruction
Communications Division, Room 5602, 916-319-0818, Fax 916-319-0100