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Introducing SB 502: Expanding Workforce Housing for Educational Entities

2.2 minute read

March 25, 2025

California Senate Bill 502 (SB 502), introduced in 2025, seeks to amend the Building Homes and Jobs Trust Fund to provide dedicated funding for local educational agencies to develop workforce housing. By allowing school districts and community colleges to access a portion of the trust fund, SB 502 aims to address the housing affordability crisis that disproportionately affects teachers and school staff. Many educators face long commutes or struggle to afford housing near their workplaces, impacting retention, recruitment, and overall school community stability.

Currently, funds from the Building Homes and Jobs Trust Fund, established by the Building Homes and Jobs Act (SB 2, 2017), are allocated primarily for affordable housing programs, homeless services, and rental assistance across California. While these programs are critical in addressing the state's housing crisis, educational entities have had limited access to these funds, despite the pressing need for affordable workforce housing. SB 502 would change that by setting aside a portion of the fund specifically for school districts and community colleges.

Key Provisions of SB 502

  • Dedicated Housing Funds for Educators: SB 502 allows 20% of the trust fund to be allocated for affordable owner-occupied workforce housing or low- to moderate-income workforce housing for local educational agencies.
  • Zero-Interest Loan Program: The bill sets aside 5% of the trust fund to create a zero-interest revolving loan fund. This fund would help school districts cover development and predevelopment costs for building multifamily workforce housing.
  • Expanded Access to Housing Support: By opening up state housing funds to school districts and community colleges, SB 502 creates a sustainable funding source for educator housing, reducing reliance on local bond measures or district-specific programs.

Impact on Educational Entities

By providing financial support for school workforce housing, SB 502 has the potential to transform educational employment in California. Housing costs are one of the biggest challenges for retaining teachers, administrators, and school staff. This bill would

  • Improve Teacher Retention and Recruitment: More affordable housing options near schools could make it easier to attract and keep educators, reducing turnover rates.
  • Strengthen School Communities: Allowing teachers and staff to live closer to their workplaces fosters a stronger connection to students, parents, and the broader community.
  • Enhance Workforce Stability: With less housing insecurity, educators can focus more on their students' success rather than on long commutes or finding stable housing.

If passed, SB 502 could be a game changer for school districts and community colleges across California, ensuring that housing costs no longer drive educators away from the communities they serve. Harris & Associates will continue to track this legislation and provide updates as it progresses through the legislative process.

Authors

Hitta Mosesman

Hitta Mosesman

Vice President / Community Development + Housing