Housing woes

To hire and keep good teachers as housing costs rise, Colorado school districts take on new role: landlord

PHOTO: Mark Payler
Ray Perez, a sophomore at Custer County High School, works with instructor Bruce May on a project that will convert a former preschool building into teacher housing.

As Colorado’s housing costs skyrocket, a growing number of school districts, local leaders and lawmakers are taking steps to make housing more affordable for teachers and staff.

For years, resort communities such as Aspen and rural districts such as Woodlin on the Eastern Plains have leased housing to employees at below-market rates. More recently, subsidized housing for educators has cropped up in pricey urban areas such as San Francisco, Boston and Baltimore.

But lately, Colorado districts big and small are looking at building their own housing or collaborating with external partners to do so. Such projects are underway now in three rural districts, and Denver Public Schools, the state’s largest district, is exploring the idea.

Driving these plans are fears that recruiting and retaining good teachers will shift from hard to impossible as housing costs rise. Compounding the problem is Colorado’s perennial school funding squeeze and the lagging teacher salaries that go with it.

“This year when it comes to hiring season, I will probably struggle to replace four to six teachers because of housing,” said David Blackburn, superintendent of the Salida school district in central Colorado. “It’s in the middle of every conversation about quality staff.”

In Denver, where an influx of new residents and a wave of gentrification have pushed up housing prices across the metro area, district officials say they’re in the earliest stages of figuring out how the district could help employees with housing.

Currently, the Denver-based Donnell-Kay Foundation is compiling information for the district about models of subsidized teacher housing used across the country. Some have been spearheaded by school districts and others by real estate developers with little involvement from districts. (Chalkbeat is a grantee of the Donnell-Kay Foundation.)

Allen Balczarek, who works on special projects for Denver Public Schools, said specific recommendations could go before the school board or district leadership team in 2017.

He said the lack of affordable housing for teachers isn’t yet a crisis in Denver, but called it a very serious issue.

City officials say growing concerns about affordability spurred a new ordinance to raise $150 million over 10 years to create and preserve affordable housing for a wide range of Denver residents, from homeless individuals to families earning $64,000 to $96,000 a year.

Federal tax credits have already helped create affordable housing around the city, though many teachers make too much to qualify.

“There’s some we can help, but there’s probably many we can’t because of their income,” said Brent Snyder, manager of the company that developed and owns the new WeltonPark apartment complex in Denver’s Five Points neighborhood.

Most of the 223 units, which start around $840 a month, are restricted to tenants earning up to 60 percent of the area’s median income — around $34,000 a year if they’re single.

There’s a huge need for housing for middle-income Denver residents — those making more than 60 percent of the area median income, said Snyder.

Jim Wilson, a Republican state representative from Salida, said he plans to introduce a bill during the 2017 session that would give tax credits to employers that offer employee housing. While that wouldn’t directly help school districts or other public entities that don’t pay taxes, he said he’d like to find a way to do that.

Affordable housing is a statewide issue, he said. “It’s going to be a big topic of conversation at the statehouse this year.”

Roommates and rising rents

While there’s limited data showing that housing costs directly impact teacher recruitment and retention, there’s plenty of anecdotal evidence that it’s a factor.

First-year Jefferson County teacher Krista Degerness, 34, said she had no problem finding a job after earning her master’s degree in special education last spring. But paying the bills has been trickier. She moved in with her sister to cut costs, paying $700 of the $1,700 rent for their Centennial townhouse. She earns $42,000 a year.

Degerness loves her job, but says, “The money is very hard.”

Alex Saldivar faced similar challenges when he moved from Indianapolis to Denver for a teaching job with DPS in 2015. He and his girlfriend paid $1,250 a month for their one-bedroom apartment, leaving when the rent increased to $1,450 the following year.

“That frankly is untenable,” he said. “They essentially pushed us out.”

Saldivar left his teaching job after a year and now works for a nonprofit organization in Denver.

Some superintendents say they start teacher candidate interviews with heart-to-hearts about the reality of housing costs in their communities. They don’t want candidates, especially those from out-of-state, jumping in with visions of majestic mountain peaks, and not the dollar signs that go with them.

Custer County superintendent Mark Payler said when he surveyed the southern Colorado district’s newer teachers recently, most said they planned to stay for only two to three years. One factor, he said, is the difficulty of securing decent housing on a starting salary of $29,500.

In Denver, a recent exit survey taken by teachers sheds some light on the subject. Of 219 teachers who left the district after the 2015-16 school year, 23 said Denver’s high cost of living was a big factor in their decision. Nearly 50 cited moving as a key reason for leaving, though there is likely overlap because respondents could cite multiple reasons.

Additional evidence comes from a September report from the National Housing Conference and the Center for Housing Policy that examined housing affordability for school employees in the nation’s biggest cities. Denver was among 24 cities where buying a house was unaffordable for teachers as well as lower-paid workers.

The “Paycheck to Paycheck” report also found that renting an apartment in Denver requires an annual salary of at least $49,000. While the district’s average teacher salary is around $54,000 with an average of $5,800 in additional stipends and incentives, the base salary for a beginning Denver teacher with a bachelor’s degree is about $40,000.

Emulating rural districts

The concept of providing subsidized teacher housing has a long history in some Colorado districts.

Take tiny Woodlin on the Eastern Plains. The district owns 14 housing units, including trailers, houses, and apartments, most built around 1960 right on the school campus. Most employees pay rent of $70-$105 per month and the district covers water and propane.

Other rural districts, such as Karval and Deer Trail, offer employees similar deals. Then there’s Aspen, which has 43 units of subsidized housing going for $850-$1,500 a month. Market rate rents easily surpass $2,000 a month there, said Superintendent John Maloy.

In the last 18 months, three other Colorado districts have launched projects to build employee housing — often with significant support from local civic leaders, banks and the business community.

Custer County is converting a vacant district-owned building — formerly a preschool — to four apartments with the help of community volunteers and high school students in the district’s building trades class. The one-bedroom units will be ready next July, with rent at $550 a month.

Salida Schools embarked on a similar project this fall, breaking ground for 10 new housing units in the nearby town of Poncha Springs. They’ll eventually be sold to district employees at below-market rates. Like in Custer County, building trades students are helping with construction.

Roaring Fork has the largest project underway, with plans to build a total of 60 new subsidized apartments in three locations using $15 million from the district’s 2015 bond issue. Those units will become available in 2018.

Superintendent Rob Stein said district officials initially shied away from including money for staff housing in the bond issue. They didn’t think the public would support it. But when two local educators, a beloved principal and his wife, a teacher, departed because they couldn’t afford a house in the area, things changed.

“That single story may very well have allowed us to move forward with going to voters for a bond,” Stein said.

In turn, such projects may soon spread to the Front Range — and some observers say not just Denver.

“I think the mountain towns … are the harbingers of what’s to come,” said Tony Lewis, executive director of the Donnell-Kay Foundation. “I think you’re gonna see it in Cherry Creek, Aurora and Boulder.”

School districts as developers and landlords

Leaders in districts that already offer subsidized housing say it makes a big difference — serving as extra enticement to prospective teachers and making it easier for veteran teachers to stay.

“I’ve suddenly got a new tool I can go to market with when I’m looking for new teachers,” said Payler, Custer County’s superintendent.

But it also brings up lots of questions: Which employees get first dibs on the housing? Can some units be set aside for hard-to-fill positions? Will employees be allowed to stay in the units indefinitely? What happens if too few district staff need the housing?

For districts that have wrestled with these questions, the answers have evolved. For example, in 2015, the Aspen district established a five-year time limit for employees renting its subsidized units, in the hopes of making it a stepping stone as opposed to a permanent solution.

Beyond eligibility criteria, there’s also the fact that school districts with subsidized housing double as landlords, either hiring property management companies to handle leasing and maintenance or doing it themselves.

Rose Cronk, superintendent in the Woodlin district for more than a decade, said of the district-owned housing, “Sometimes I’m the one over there cleaning rainwater out of the bottom of the basement.”

In some districts now considering subsidized housing, administrators worry such projects could distract from their educational goals.

Balczarek said one of the key questions for Denver is, “How do we get into this without drifting too far from our mission?”

One possibility, he said, is to work with an external partner — maybe the city’s housing authority or a nonprofit group — to develop and manage housing on district property.

Even with the many complications involved in financing and managing subsidized housing, some district leaders note that, unlike that state’s intractable school funding system, it’s a problem that can be addressed locally.

“It’s another creative solution to the fiscal crisis schools are facing” Stein said.

School choice

Secret CPS report spotlights big vacancies, lopsided options for students

The school district says the report will help inform how it invests in and engages with communities. Communities groups worry the document will be used to justify more school closings, turnarounds and charters.

An unreleased report by a school choice group backed by the business community paints in stark detail what many Chicagoans have known for years: that top academic schools are clustered in wealthier neighborhoods, and that fewer black and Latino students have access to those schools.

The report highlights startling figures: About 27 percent of black students are in the district’s lowest-rated schools, compared with 8 percent of Latino students and 3 percent of whites. It also says that while Chicago Public Schools has more than 150,000 unfilled seats, 40 percent, or 60,000 of them, are at top-ranked schools. That surplus will grow as enrollment, which has been plummeting for years, is projected to decline further by 5.1 percent over the next three years. What that means is the cash-strapped district is moving toward having nearly one extra seat for every two of its students.

The document effectively shows that, in many areas of the city, students are skipping out on nearby options, with less than half of district students attending their designated neighborhood schools.

In a city still reeling from the largest mass school closure in U.S. history, this report could lay groundwork for another round of  difficult decisions.

The “Annual Regional Analysis” report, compiled by the group Kids First Chicago on CPS’ behalf, has been circulating among select community groups but has not been made public. It comes on the heels of a report showing students’ high school preferences vary with family income level. Students from low-income neighborhoods submit more applications than students from wealthier ones and apply in greater numbers for the district’s charter high schools.

The group behind the latest report has had many iterations: Kids First is a new name, but its origins date back to 2004, when it started as the charter fundraising group Renaissance Schools Fund. That was during the Renaissance 2010 effort, which seeded 100 new schools across the city, including many charters. The group changed its name to New Schools Chicago in 2011 and again rebranded this year as Kids First, with a greater focus on parent engagement and policy advocacy.

The report has caused a stir among some community groups who’ve seen it. Because the school district has used enrollment figures to justify closing schools, some people are worried it could be used to propose more closings, turnarounds, and charter schools.

“To me this is the new reason [for school closings],” said Carolina Gaeta, co-director of community group Blocks Together, which supports neighborhood schools. “Before it was academics, then it was utilization, now it’s going to be access and equity. Numbers can be used any way.”

In a statement on the report, Chicago Teachers Union Spokeswoman Christine Geovanis blasted Mayor Rahm Emanuel’s administration for policies that she alleged “undermine enrollment at neighborhood schools,” such as the proliferation of charter schools, school budget cuts, and building new schools over the objection of community members.

Reached by phone Thursday, Kids First CEO Daniel Anello confirmed that his organization helped put the report together, but declined to comment on its contents, deferring to the district. CPS Spokeswoman Emily Bolton acknowledged the report’s existence in a statement emailed to Chalkbeat Chicago that said the school district “is having conversations with communities to get input and inform decisions” about where to place particular academic programs. The statement said CPS is still in the process of drafting a final version of the document, but gave no timetable. Mayor Rahm Emanuel’s office didn’t grant requests for interviews about the Annual Regional Analysis.

Below is a preview of the report provided to Chalkbeat Chicago.

Gaps in access to arts and IB programs

Data released this week from the district’s GoCPS universal high school application clearly shows what academic programs are most in demand: selective enrollment programs that require children to test in;  arts programs; and career and technical education offerings, or CTE.

The Kids First’s analysis puts those findings into context, however, by detailing how supply is geographically uneven, especially when it comes to arts. Maps in the report divide the city into regions defined by the city’s planning department and show how highly-desirable arts programs are not spread equally throughout the city, and are most concentrated along the northern lakefront and downtown.

PHOTO: Sam Park
This map shows the number of fine & performing arts program seats available per 100 elementary school students in each planning area.

Worse, four regions offer 10 or fewer arts seats per 100 students, including the Bronzeville/South Lakefront region that includes neighborhoods such as South Shore, Woodlawn, Kenwood and Hyde Park. They are also scarce in the West Side region, which includes Austin, North Lawndale, and Humboldt Park and in the Northwest neighborhoods of Belmont Cragin, Dunning, and Portage Park.

The report also shows an imbalance in the number of rigorous International Baccalaureate programs.

This map shows the number of IB program seats per 100 students available to elementary and high school students in each planning area.

The highest number of IB seats are in the wealthy, predominately white Lincoln Park area. In contrast, there are far fewer IB seats in predominantly black communities such as  Englewood and Auburn Gresham, Ashburn and in the predominantly Latino Back of the Yards.

When it comes to selective-enrollment elementary school programs such as gifted centers and classical schools, which require students to pass entrance exams, options tend to be concentrated, too, with fewer choices on the South and West sides of the city. This map shows where selective enrollment high school options are most prevalent:

PHOTO: Sam Park
This map shows the number of selective enrollment high school seats available per 100 students in the city’s planning regions.

STEM programs are more evenly distributed across Chicago than both IB and selective enrollment schools, yet whole swaths of the city lack them, especially on the South Side, including the Greater Stony Island. As the other maps show, that region lacks most of the high-demand academic programs the district has to offer.

PHOTO: Sam Park
This map shows the number of STEM program seats available per 100 elementary school students.

Racial disparities in school quality

The analysis also shows disparities in quality of schools, not just variety.

At CPS, 65 percent of students districtwide are enrolled at Level 1-plus or Level 1-rated schools. But only 45 percent of black students and 72 percent of Latino students are in those top-rated seats, compared with 91 percent of white students.

The disparities are even more severe given that the school district is mostly Latino and black, with fewer than one in 10 students identified as white. 

A page from a presentation of the Annual Regional Analysis showed to select community groups.

In the Greater Lincoln Park region, 100 percent of elementary schools have one of the top two ratings — the highest concentration of them in the city.  The highest concentration of top-rated high school seats, 91 percent, is in the Central Area, which includes Downtown and the South Loop.

The lowest concentration of top-rated elementary seats, 35 percent, is in the Near West Side region, and the lowest concentration of high school seats, 14 percent, is in the West Side region.

Long commutes from some neighborhoods

The number of students choosing schools outside their neighborhood boundaries has increased in recent years.

But the report shows that school choice varies by race: 44 percent of black students attend their neighborhood elementary school, compared with 67 percent of Latino students, 69 percent of white students, and 66 percent of Asian students. For high schoolers, only 14 percent of black students attend their neighborhood school, compared with 28 percent of Asians, 30 percent of Latinos, and 32 percent of whites.

More students enrolling outside their neighborhood attendance boundaries means more and more students have longer commutes, but how far they travel depends on their address. 

Again, this is an area where the Greater Stony Island area stands out.

A graphic from the Annual Regional Analysis executive report that shows how far elementary school students in each of the city’s 16 planning regions travel from their homes to school. The data shows that students on the South and West Sides tend to have longer commutes.

The average distance traveled for elementary school students is 1.5 miles — but K-8 students in Greater Stony Island travel an average of 2.6 miles. The average distance to class for high schoolers citywide is 2.6 miles, but students in the Greater Stony Island region travel an average of 5 miles, about twice the city average. 

A graphic from the Annual Regional Analysis executive report that shows how far high school students in each of the city’s 16 planning regions travel from their homes to school. The data shows that students on the South and West Sides tend to have longer commutes.

Looking forward

The introduction to the Annual Regional Analysis describes it as “a common fact base” to understand the school landscape. It clearly states the intent of the report is to assist with district planning, not to provide recommendations.

It still bothers Wendy Katten, founder of Raise Your Hand, who has seen the report and said it tells little about how kids are actually learning at schools.

“It sounds like some data a company would use to reduce inventory at a manufacturing plant,” she said.

Gaete with Blocks Together said the numbers in the report are also missing important context about how the proliferation of charter schools, a lack of transparent and equitable planning, and a lack of support for neighborhood schools in recent decades has exacerbated school quality disparities across race and neighborhoods in Chicago, one of the nation’s most diverse but segregated cities.

It’s unclear when the final study will be published, or how exactly the school district will use its contents to inform its decisions and conversations with communities.

But an event posting on the website for Forefront, a membership association for “nonprofits, grantmakers, public agencies, advisors, and our allies,” mentions a briefing for the report on Oct. 10.

Kids First Chicago CEO Dan Anello and CPS Director of Strategy Sadie Stockdale Jefferson will share the report there, according to the website.

Q and A

In a wide-ranging interview, Carranza takes issue with admissions to New York City’s gifted programs

PHOTO: Christina Veiga
Since becoming schools chancellor, Richard Carranza has questioned city admissions methods that critics say exacerbate segregation. Here, he speaks to a crowd at a town hall about school diversity.

Ever since the city launched a push to scrap the entrance exam for its vaunted specialized high schools, Chancellor Richard Carranza has made it clear that he doesn’t believe a single test should be used to make school admissions decisions.

In an exclusive back-to-school interview with Chalkbeat on Friday, he said that also goes for the city’s gifted and talented programs.

Just like specialized high schools, gifted programs are deeply segregated. Only 22 percent of students in gifted programs are black or Hispanic, compared with 70 percent citywide. And just like specialized high schools, admission to most of the city’s gifted programs hinges solely on the results of an exam.

“I think that’s not a good idea,” Carranza said. “When you look at the disparities in representation across this system, you have to ask the question, ‘Do we have the right way of assessing and making decisions about students?’”

Most students enter gifted programs when they’re in kindergarten, so they are only 4 years old when they take the test — an approach that Carranza questioned.

“There is no body of knowledge that I know of that has pointed to the fact that you can give a test to a 4-year-old or a 5-year-old and determine if they’re gifted,” he said. “Those tests — and it’s pretty clear — are more a measure of the privilege of a child’s home than true giftedness.”

A full transcript of our interview with the chancellor is coming soon. We’ll have interesting insights about Carranza’s relationship with his predecessor, what he thinks about the city’s Renewal turnaround program now that he’s had time to get to know it better, and the problems he’s trying to solve with a recent bureaucratic overhaul. Here are some highlights to hold you over until then.

Why few schools may get shuttered under Carranza’s leadership — even though he’s ‘not scared’ of closures

In one of his very first moves as chancellor, Carranza spared a storied Harlem school that was slated for closure. Since then, he has shaken up the school’s leadership, initiated new partnerships, and brought in a different support structure.

It’s just one example, but it could be a hint of what’s to come during Carranza’s tenure.

The school that won the reprieve is a part of the mayor’s high profile Renewal program, which aims to boost student learning by offering social services and a longer school day. The program has shown mixed results, at best, and many Renewal schools have been shuttered after failing to make progress. 

Carranza indicated there could be more closures ahead: “Let me be clear: I’m not scared of closing a school if it’s not serving the needs of the students,” he said.

But he added: “My experience — nine times out of 10 — has been that we haven’t done all we can do to give schools that are struggling to improve the right conditions, the right resources and the right support to actually improve.”

Did Carranza push City Hall to do something about segregation at specialized high schools?

City Hall has indicated that its plans to overhaul admissions at the city’s vaunted specialized high schools had been in the works for some time. Indeed, de Blasio promised to do something about the stark underrepresentation of black and Hispanic students at the schools during his first run for mayor.

Carranza wouldn’t reveal much about what happened behind the scenes in the lead-up to the city’s June announcement that officials would lobby to scrap the exam that serves as the sole entrance criteria for specialized high schools. The chancellor said he brought up the issue in his talks with the mayor before coming onboard, and said his boss shared the same vision.

“I can tell you the mayor is passionate about making sure that our schools are just as diverse as our city,” Carranza said.

Asked whether he personally played a role in the decision, Carranza would only say that the mayor “knew what he was getting,” when he was tapped to be chancellor.

He later added: “One of the things that I appreciate is, that what the mayor hired was an educator to be the chancellor, and he lets me do my job.”

Alex Zimmerman contributed reporting.