Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

AB-1296: Unlocking School District Land for Affordable Housing- Quick Read

by Dan J. Harkey

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Summary:

California is currently grappling with a housing crisis that has collided with an educator workforce shortage, creating a perfect storm for our public schools.  Assembly Bill 1296 (AB 1296), authored by Assemblymember Mia Bonta, offers a strategic solution: empower local educational agencies (LEAs) to develop housing on district-owned land with state-supported technical assistance.

Background

California is currently grappling with two pressing challenges:

  • Housing Affordability: Over 2.5 million new homes are projected to be needed by 2030, including 1 million affordable units.  Yet, production lags at fewer than 100,000 units per year. 
  • Educator Shortage: One-third of teachers and an even higher share of classified staff are rent-burdened, contributing to 10,000 educator vacancies statewide. 

School districts collectively own over 75,000 acres of land, much of it underutilized.  AB 1296 aims to unlock this potential without diverting classroom resources. 

Key Provisions

✅ HCD Form and Public Database

  • By 1 January 2027, the Department of Housing and Community Development (HCD) must post a form for LEAs to declare interest in using property for housing projects.
  • Submitted information will be made publicly available on HCD’s website.

✅ Technical Assistance for Predevelopment

  • HCD will provide or contract for expert support, including:
    • Legal guidance on surplus land rules and zoning.
    • Funding strategies (grants, tax credits, loans).
    • Feasibility analysis and Partnership's's models.
    • Regulatory navigation (planning, CEQA).
    • Drafting agreements (ground leases, joint ventures). 

✅ Priority for High-Need Districts

  • Assistance prioritized for LEAs serving high-need students or located in high-cost housing markets or areas with educator shortages.

✅ Liability Protections

  • Technical assistance does not create attorney-client relationships, and HCD bears no liability for LEA decisions.

✅ Future Reserve Fund Reform

  • State legislative intent to explore school district reserve fund restructuring for housing development.

Impact

  • Educator Retention: Providing workforce housing near schools reduces turnover and the need for long commutes.
  • Housing Supply: Unlocks thousands of units on public land without new land acquisition.
  • Equity: Targets districts in high-cost regions and those serving vulnerable student populations. 

Implementation Guide for LEAs

1.       Inventory Land Assets

o   Identify non-surplus parcels suitable for housing.

2.       Submit Interest Form

o   Complete the HCD form by 2027 to access technical assistance.

3.       Engage Experts

o   Work with HCD or approved consultants for feasibility and compliance.

4.       Plan Partnerships

o   Explore joint ventures with developers or public agencies.

5.       Communicating with Stakeholders

o   Build community support and address concerns early.

Bottom Line

AB 1296 is a groundbreaking policy innovation that effectively addresses the intersection of education and housing.  By leveraging school district land and state expertise, California can tackle two critical crises—housing affordability and educator retention—simultaneously, all without compromising classroom resources.