County support like this helps housing crisis

Marin County supervisors are continuing to show they are committed to preserving and creating affordable housing.

Their latest measure is a $4 million loan to a nonprofit housing developer to acquire an 80-unit apartment complex in Fairfax in order to keep its rents affordable.

The county is teaming with MidPen Housing Corp., a Bay Area leader in building and preserving affordable housing, to buy the Sherwood Oaks Apartments with the goal of keeping rents low enough that they are affordable.

MidPen's plans would even limit annual rent hikes to 2.5%, half of the cap of Fairfax's recently passed rent control law.

Concern about the loss of tax revenue — to schools, the town, the county and the state — because the property is being taken over by a nonprofit, loses sight of the importance of providing affordable housing.

Such housing is critical for seniors living on fixed incomes, local workers whose paychecks fall far short of Fairfax housing costs and the town's and county's commitment to promote racial and economic diversity.

The property is ideal as affordable housing. It is close to transit, local jobs, shopping and schools.

MidPen's acquisition and management will help meet the county's ongoing goals of saving existing local housing stock that can provide affordable housing.

The Marin Community Foundation is among the various funds committed to help MidPen make the acquisition. According to the request for the county loan, ”making the units permanently affordable with restrictions will help prevent future displacement of existing residents and add to the affordable housing inventory.”

The county's loan, which has a 3% interest rate, comes out of the county's Affordable Housing Fund, money supervisors have set aside exactly for opportunities that MidPen's partnership provides.

The county is considering a plan that would set aside an additional $25 million for the fund over the next five years.

In addition, as a loan, the payment will be replenished for use for other opportunities.

The security of the loan is the value of the property and MidPen's reputation, which includes 42 years of building and managing more than 8,400 units across Northern California.

This is MidPen's first project in Marin.

If the county's decision to contribute appears rushed, it is because MidPen is under a tight timeframe to complete the acquisition, in addition to raising funds for needed repairs.

This is a big opportunity to make good use of the county housing fund, and to make a big impact on protecting local affordable housing with residences that already exist and are part of the community — this one, since the 1960s — and doesn't require front-end development costs.

The county's loan is an example of county leadership “walking its talk,” demonstrating its priority for creating and preserving affordable housing when good opportunities arise.

This project promises to make a big impact toward living up to that commitment.