THE WHY, WHAT, HOW, and “IF NOT” OF OUSD’S WORKFORCE HOUSING PROJECT
As many of you are aware, the Ojai Unified School District (“OUSD”) Board of Trustees has been considering, for more than a year now, the possibility of transforming the District’s virtually unused property at 414 and 450 E. Ojai Avenue, the former site of District Offices and Chaparral/Legacy High School, into a beautiful, park-like housing village for OUSD employees. However, as recent comments on social media sites from a handful of people would seem to indicate, some of you may not be aware of the actual facts behind this potential project.
THE WHY—
Public schools in California receive roughly 95% of their overall funding from the State, through a formula which is based upon enrollment and daily attendance figures. In the 1990s to mid-2000’s, OUSD had roughly 4500 enrolled students. Nowadays, primarily because young families can no longer afford to live here, our total enrollment is roughly 2000. Virtually every school district in the state, and indeed the country, is facing the same demographics. So, OUSD now receives less than half the state funds we would have had two decades ago. Approximately 80% of our District-wide yearly budget is spent on salaries and benefits for our employees. Because OUSD is so much smaller than districts such as Ventura and Oxnard (and less wealthy in terms of tax base than such districts as Oak Park and Thousand Oaks) we cannot afford to pay our employees the same wages which better-funded districts can. On average, our employees, across the board from janitors to senior administrators, earn approximately 20% LESS than employees elsewhere in Ventura County.
Couple that with the absolute scarcity of affordable housing here in the Ojai Valley, whether owner-occupied or rentals, and we have found that we are at a monumental disadvantage in terms of trying to recruit employees, or retain those we already have. People simply want to earn the most they can for doing a similar job, and they also wish to live close to their work if at all possible. Many of our upper-level employees have been with OUSD a long time, and were fortunate enough to be able to buy here when prices were affordable. Those employees, however, will be retiring within the next five years or so, and replacing them, and keeping the younger employees who we have been lucky enough to recruit, will be a very difficult task, unless something changes in the overall financial situation here.
There are only two ways to “bridge the gap” between what we can offer our employees, both in the short term and in the long run, versus what other nearby, better-funded districts can offer. One would be to somehow offer higher wages. However, absent a benefactor willing to deposit multiple millions of dollars annually into the OUSD general operating fund, in perpetuity, that option is not, and will never be, realistic. The other option is to somehow make working and living here more affordable for current and future employees. Providing DESIREABLE BELOW MARKET RATE HOUSING would do just that. When we surveyed our current employees, on two separate occasions, roughly 90% told us that such housing would be a major motivating factor in them wanting to stay on as OUSD employees and, in their opinions, would be a powerful asset in attracting future District staff. More than 80 of them affirmatively stated that they would be ready to occupy such housing if it became available.
A viable, thriving public school system is an enormous factor in the health and welfare of any small town, and is the single factor most often cited for why families locate where they do. If OUSD can no longer maintain a premier workforce the District risks collapse, potentially causing the Ojai community, and our local economy, to stagnate or fade.
THE WHAT –
The OUSD Board has now spent more than eighteen months examining a multitude of possible options, and the so-called “feasibility”, of obtaining suitable housing for our current and future employees. We have hired consultants who have guided California school districts through such a process, and architects to work with them on possible concepts for construction. We have retained experts to explore financing options. NONE of the monies spent so far have come from our general budget (which pays for salaries and benefits). The final result of all of this work has been to advise us that, YES, such a project is feasible, and is possible on the District’s downtown Ojai properties.
Contrary to unfounded rumors we are NOT working with any “developer”. In fact, early on we at OUSD decided to try, if at all possible, to “self-fund” or self-develop any housing project. What that means is that WE, ALONE will get to set rental rates. And we, alone, will get to say who lives in the village. And we, alone, get to decide what the project looks like from an architectural standpoint, and how many units are desired, and where they will be sited, and how much open space and greenery will exist, etc. By self-funding this project we can keep it uniquely “Ojai”, for the benefit of our entire community, and with direct input from our community. Indeed, I would like to personally thank the many residents who shared their excellent ideas during our many workshops and meetings, and via media and emails. These valuable contributions have been integrated into our draft plans.
We are now focusing on roughly 90 units. Most of which will be 2 or 3 bedrooms. All of the units will be significantly larger than what would be built if done by either commercial or “affordable” developers. The style will be Mission Revival, to blend with Ojai’s downtown. Open space will be abundant. The units will be built in “clusters” rather than a bland apartment style. We expect the final plan to have few buildings, if any, of more than two stories and none of those would be along existing downtown streets. Our present plan is to set rental rates at 30% BELOW existing market rate rental prices here in the Ojai Valley. No parking will be utilized on existing streets and, in fact, the current proposal calls for adding 32 new public parking spots along N. Montgomery Street. All of these things, and the studies which support them, and the detailed information being relied upon, and the history of all of the OUSD Board’s discussions, are readily available on our OUSD website.
We fully intend to retain the designated “historic” building along Ojai Avenue and, at a later date, see if we can lease it to the City, or to someone else. We fully intend to retain the Chaparral Auditorium, for use as a public-serving theatre venue/ music venue/meeting space/exhibit space/ other potential opportunities for local organizations.
THE HOW –
Nearly every school district in California (and a multitude of other businesses as well) is trying to figure out how to house its employees. Ventura and Oxnard are going to sell off multiple properties to raise some of the necessary funds, yet they will still have to eventually seek massive public bond financing support. Other districts do not have the land with which to work. We are lucky to have unused land, perfectly located next to walking, biking and public transit avenues and to our vibrant downtown. The perfect location where people will want to live. We have sent proposals to the City of Ojai for some sort of partnership. Regardless, we have the benefit of two recently enacted laws which will enable us, as a matter of right, to proceed with this project with only minimal, ministerial involvement of the City, if need be. Those laws require us to continue to own the property for at least 55 years, and to house only our own employees (or, if not enough seek housing there, employees of nearby school districts or of local public agencies could apply to live in the village).
The most crucial element, as is usually the case, will be how to pay for such a project. Costs of construction, even for rudimentary “low income affordable” studio apartments, is extremely high. Once again, that issue has been examined, from all angles, by multiple experts in the field. Their work, and conclusions, is readily available on our website. In addition, I personally, and in conjunction with OUSD Assistant Superintendent and Chief Business Officer Kevin Olson, have explored quite a few other potential funding sources. The most viable option (once again without involving some sort of for-profit commercial developer) seems to be a combination of Certificate of Participation funding (basically low interest loans based upon our anticipated revenue stream over time) and general obligation bonds. ALL of the financial models we have received have explicitly factored in ongoing expenses, for such things as maintenance and management. All of those models have been, at our request, extremely “conservative” in their forecasting.
The average (median) assessed value of residential property within the school district boundaries is slightly less than $600,000. Thus, even with a maximum legally possible assessment of $60 per $100K for a general obligation bond, the average residential taxpayer here would be paying LESS THAN $1 PER DAY to help house OUSD employees, current and future for the next thirty or so years, to help keep our public school district competitive and viable, and to ensure that our children, and those who follow them, can continue to receive the first-class public education to which they are entitled, and are deserving of. At present, residents within the OUSD boundaries are taxed at among the very lowest rates of any school district in Ventura County.
THE IF NOT –
What are OUSD’s options if we do not proceed? The primary consequence would be the immediate loss of a crucial tool for recruiting and retaining essential staff, including teachers, specialists and support personnel. Within a few years, neighboring districts will likely establish their own housing programs. Without a similar offering, OUSD will lose its only realistic competitive advantage for educators who wish to live and raise families within the Ojai Valley.
We face a choice: either an unused property becomes a permanent eyesore in downtown Ojai or we must sell or lease it to meet our mandated fiduciary obligations. Selling the property (perhaps for a few million dollars) WOULD NOT allow those funds to ever be used for employee salary or benefit enhancements, pursuant to state law. Furthermore, selling would likely attract a major developer, potentially leading to undesirable development. Leasing this property would seem problematic due to its current “as-is” condition? And, the maximum probable annual lease value of around $250,000 would only result in a benefit of roughly $1000 per year per employee. Such an amount would be insufficient to address housing insecurity or wage shortfalls, and inadequate for incentivizing new teacher recruitment.
These are some of the actual facts concerning the OUSD’s proposed employee housing project. If you are going to form an opinion on this, or any other topic, please take the time to know the facts, NOT the rumors. Please feel free to speak with any OUSD Board member, or to reach out in writing to me at phil.moncharsh@ojaiusd.org or to our CBO, Mr. Kevin Olson, at kevin.olson@ojaiusd.org.
Respectfully,
Phil Moncharsh, on behalf of the
Ojai Unified School District Board of Trustees