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.

IPS School Board Race 2018

Indiana teachers union spends big on Indianapolis Public Schools in election

PHOTO: Dylan Peers McCoy/Chalkbeat
IPS board candidate signs

The political arm of Indiana’s largest teachers union is spending big on the Indianapolis Public Schools board. The group donated $68,400 to three candidates vying for seats on the board this November, according to pre-election campaign finance disclosures released Friday.

The three candidates — Susan Collins, Michele Lorbieski, and Taria Slack — have all expressed criticism of the current board and the leadership of Superintendent Lewis Ferebee. Although that criticism touches on many issues, one particular bone of contention is the district’s embrace of innovation schools, independent campuses that are run by charter or nonprofit operators but remain under the district’s umbrella. Teachers at those schools are employed by the school operators, so they cannot join the union.

The trio was also endorsed by the IPS Community Coalition, a local group that has received funding from a national teachers union.

It’s not unusual for teachers unions to spend on school board elections. In 2016, the union contributed $15,000 to an unsuccessful at-large candidate for the Indianapolis Public Schools board. But $68,400 dwarfs that contribution. Those disclosures do not capture the full spending on the election. The three candidates endorsed by Stand for Children Indiana — Mary Ann Sullivan, Dorene Rodríguez Hoops, and Evan Hawkins — are likely getting significant unreported benefits.

Stand for Children, which supports innovation schools, typically sends mailers and hires campaign workers to support the candidates it endorses. But it is not required to disclose all of its political activity because it is an independent expenditure committee, also known as a 501(c)(4), for the tax code section that covers it. The group did not immediately respond to a request for information on how much it is spending on this race.

The candidates’ fundraising varied widely in the reporting period, which covered the period from April 14 to Oct. 12, with Taria Slack bringing in $28,950 and Joanna Krumel raising $200. In recent years, candidates have been raising significantly more money than had been common. But one recent candidate managed to win on a shoestring: Elizabeth Gore won an at-large seat in 2016 after raising about $1,200.

Read more: See candidates’ answers to a Chalkbeat survey

One part of Stand for Children’s spending became visible this year when it gave directly to tax campaigns. The group contributed $188,842 to the campaign for two tax referendums to raise money for Indianapolis Public Schools. That includes a $100,000 donation that was announced in August and about $88,842 worth of in-kind contributions such as mailers. The group has a team of campaign workers who have been going door-to-door for months.

The district is seeking to persuade voters to support two tax increases. One would raise $220 million for operating funds, such as teacher salaries, over eight years. A second measure would raise $52 million for building improvements. Donations from Stand for Children largely power the Vote Yes for IPS campaign, which raised a total of $201,717. The Indiana teachers union also contributed $5,000.

Here are the details on how much each candidate has raised and some of the notable contributions:

At large

Incumbent Mary Ann Sullivan, a former Democrat state lawmaker, raised $7,054. Her largest contribution came from the Indy Chamber Business Advocacy Committee, which donated $4,670. She also received $1,000 from Steel House, a metal warehouse run by businessman Reid Litwack. She also received several donations of $250 or less.

Retired Indianapolis Public Schools teacher Susan Collins, who is one of the candidates supported by the union, raised $16,422. The Indiana Political Action Committee for Education contributed $15,000. She also received several donations of $200 or less.

Ceramics studio owner and Indianapolis Public Schools parent Joanna Krumel raised $200. Her largest contribution, $100, came from James W. Hill.

District 3

Marian University Executive Director of Facilities and Procurement and Indianapolis Public Schools parent Evan Hawkins raised $22,037. His largest contributions from individuals were from businessmen Allan Hubbard, who donated $5,000, and Litwack, who donated $2,500. The Indy Chamber Business Advocacy Committee contributed $4,670 and web design valued at $330. He also received several donations of $1,000 or less. His donors included IPS board member Venita Moore, retiring IPS board member Kelly Bentley’s campaign, and the CEO of The Mind Trust, Brandon Brown.

Frost Brown Todd trial attorney and Indianapolis Public Schools parent Michele Lorbieski, who is one of the candidates supported by the union, raised $27,345. The Indiana Political Action Committee for Education contributed $24,900. She also received several contributions of $250 or less.

Pike Township schools Director of Information Services Sherry Shelton raised $1,763, primarily from money she contributed. David Green contributed $116.

District 5

Incumbent Dorene Rodríguez Hoops, an Indianapolis Public Schools parent, raised $16,006. Her largest contributors include Hubbard, who donated $5,000; the Indy Chamber Business Advocacy Committee, which gave $4,670 and web design valued at $330; and the MIBOR PAC, which contributed $1,000. She also received several contributions of $500 or less, including from Bentley.

Federal employee and Indianapolis Public Schools parent Taria Slack, who is one of the candidates supported by the union, raised $28,950. The Indiana Political Action Committee for Education contributed $28,500.

Innovation zone

Two more Denver schools win additional freedom from district rules

PHOTO: J. Zubrzycki/Chalkbeat
Alex Magaña, then principal at Grant Beacon Middle School, greeted students as they moved between classes in 2015.

Two more Denver schools this week won more flexibility in how they spend their money and time. The schools will create a new “innovation zone,” bringing the district’s number of quasi-autonomous zones to three.

The Denver school board on Thursday unanimously approved the schools’ application to operate more independently from district rules, starting in January.

The new zone will include Grant Beacon Middle School in south Denver and Kepner Beacon Middle School in southwest Denver. The two schools are high-performing by the district’s standards and follow a model that allows students to learn at their own pace.

With just two schools, the zone will be the district’s smallest, though Beacon leaders have signaled their intent to compete to open a third school in the growing Stapleton neighborhood, where the district has said it will need more capacity. The district’s other two innovation zones have four and five schools each.

Schools in zones are still district schools, but they can opt out of paying for certain district services and instead spend that money on things that meet their specific needs, such as additional teachers or aides. Zones can also form nonprofit organizations with their own boards of directors that provide academic and operational oversight, and help raise extra dollars to support the schools.

The new zone, called the Beacon Schools Network Innovation Zone, will have a five-member board of directors that includes one current parent, two former parents, and two community members whose professional work is related to education.

The zone will also have a teacher council and a parent council that will provide feedback to its board but whose members won’t be able to vote on decisions.

Some Denver school board members questioned the makeup of the zone’s board.

“I’m wondering about what kinds of steps you’re going to take to ensure there is a greater representation of people who live and reside in southwest Denver,” where Kepner Beacon is located, asked school board member Angela Cobián, who represents the region. She also asked about a greater representation of current parents on the board.

Alex Magaña, who serves as executive principal over the Beacon schools and will lead the new zone, said he expects the board to expand to seven members within a year. He also said the parent council will play a key role even if its members can’t vote.

“The parent council is a strong influence,” he said. “If the parent council is not happy, that’s going to be impacting both of the schools. I don’t want to undersell that.”

Other Denver school board members questioned the zone’s finances and how dependent it would be on fundraising. A district summary of the zone’s application notes that the zone’s budget relies on $1.68 million in foundation revenue over the next 5½ years.

Magaña said the zone would eventually seek to expand to four schools, which would make it more financially stable. As for philanthropic dollars, he said the zone would work to ensure any loss of revenue doesn’t hurt the schools’ unique programs or enrichment.

“I can’t emphasize enough that it won’t impact the schools,” he said.

Ultimately, Denver school board members said they have confidence in the Beacon model and look forward to seeing what its leaders do with their increased autonomy.