(a) The Higher Education Student Housing Grant Program is hereby established to provide one-time grants for the construction of student housing, or for the acquisition and renovation of commercial properties into student housing for the purpose of providing affordable, low-cost housing options for students enrolled in public postsecondary education in California.

(b) (1) (A) Of the total amount appropriated pursuant to subdivision (l), and intended to be appropriated pursuant to subdivision (p) in support of this section and Section 17202, as those sections read on January 1, 2023, 50 percent of the available funds shall be available for the California Community Colleges, 30 percent of the available funds shall be available for the California State University, and 20 percent of the available funds shall be available for the University of California.

(B) Commencing with the 2023-24 fiscal year, funding previously allocated for construction grants for campuses of the University of California and the California State University, or funding that is planned to be allocated for additional construction grants for the University of California and the California State University, pursuant to this section, as it read on January 1, 2023, shall be funded with bonds issued by the University of California and the California State University instead of funded from previous and planned General Fund appropriations.

(C) Commencing with the 2023-24 fiscal year, funding previously allocated for construction grants for campuses of the California Community Colleges, or funding that is planned to be allocated for additional construction grants for the California Community Colleges, pursuant to this section, as it read on January 1, 2023, shall be funded with local revenue bonds issued by community college districts instead of funded from previous and planned General Fund appropriations.

(2) Notwithstanding paragraph (1), the amounts designated in paragraph (1) for the California Community Colleges, and the amounts designated in subdivision (n) for the University of California and the California State University, may be adjusted to accommodate and prioritize projects serving low-income students across more than one segment.

(3) It is the intent of the Legislature that grants will be disbursed to increase the current stock of affordable student housing, for purposes of supporting low-income students and facilitating low-income student access to higher education.

(c) Proposals for one-time grants for the construction of, or rehabilitation of commercial properties for, student housing shall include, at a minimum, the project goals, costs, number of students to be housed, timeline for the project, financial feasibility of the project, anticipated impact on the campus‘ ability to accommodate California resident enrollment growth, a commitment to construct the project within the resource needs identified in the proposal, and any other information deemed necessary for evaluation of the criteria pursuant to subdivision (f).

(d) (1) University of California campuses, California State University campuses, and community college districts shall submit their applications to their respective administering entities.

(2) Applications for intersegmental projects shall be submitted to each of the administering entities overseeing a campus or college involved in the intersegmental project.

(3) Community college districts and intersegmental partners that receive planning grants may submit applications for construction grants to their respective administering entities only after feasibility studies and all other preliminary planning have been completed and reliable project cost estimates have been developed.

(e) The administering entities shall provide the Department of Finance, the Legislative Analyst’s Office, and the budget committees of the Legislature with information on all submitted project proposals, including, but not necessarily limited to, the information specified in subdivision (g), on or before February 1 preceding the fiscal year in which program funds are appropriated.

(f) Submitted proposals shall demonstrate all of the following:

(1) Construction on the project could begin by December 31 in the year the grant is awarded, or by the earliest possible date thereafter.

(2) (A) The rent provided in the applicable units of the development for low-income students shall be calculated at 30 percent of 50 percent of the area median income for a single-room occupancy unit type. The percentage of area median income may be adjusted upon written notification by the Director of Finance to the Joint Legislative Budget Committee, and approval by the Joint Legislative Budget Committee.

(B) Annual rent for the units described in this paragraph may be adjusted each year based on the lesser of the area median income calculation for a given year pursuant to subparagraph (A), or the percentage change in the annual average value of the California Consumer Price Index for all urban consumers for the most recent calendar year of actual data.

(C) The affordability restriction described in subparagraph (A) shall apply for the life of the facility.

(3) A commitment to first offer the housing available from the facilities to low-income students. In meeting this requirement, a campus may calculate the rental savings and number of low-income students that would be served by the student housing constructed pursuant to this section, and place the calculated number of students qualifying for the reduced rental rate throughout the campus’s available housing.

(4) (A) A commitment to require any students renting housing in the facilities to take a minimum average of 12 degree-applicable units per semester term, or the quarterly equivalent, to facilitate timely degree completion.

(B) Notwithstanding subparagraph (A), eligible students renting housing in the facilities shall be permitted to live in the facilities for the full academic or calendar year so long as the student remains enrolled in the applicable campus. Renewal of housing in the facility in subsequent academic or calendar years shall require the student to demonstrate compliance with subparagraph (A).

(C) Notwithstanding subparagraph (A), students renting housing in the facilities may temporarily reduce their unit load below 12 degree-applicable units if they are able to demonstrate an exceptional circumstance necessitating a reduced unit load, which may include, but is not necessarily limited to, illness or injury, as determined by the applicable campus.

(5) Receipt of a grant pursuant to this chapter will result in a public benefit, such as providing low-cost student housing and reduced rents, reducing students’ total cost of attendance, serving more low-income students, or other tangible benefits that would not be practical without the grant for student housing.

(6) The University of California and the California State University shall not use a public-private partnership to construct, operate, maintain, or any combination thereof, a project.

(7) As a condition of receiving funding for a project, the University of California shall comply, with respect to the project, with the requirements of Section 92495 applicable to capital outlay projects.

(8) A plan to build funds into the submitted project bid for project contingency.

(A) The amount for project contingency shall be 5 percent of construction costs for University of California and California State University projects and 10 percent of construction costs for California Community College projects. Intersegmental projects involving a California Community College shall include project contingency of 10 percent of construction costs. Grant funds may be used to cover these project contingency amounts.

(B) (i) The plan also shall identify the fund sources, other than the construction grants received under this program, and their respective balances that would be available to cover costs above those projected in the application.

(ii) Any applicant that receives a grant shall cover any costs above those identified in their application to the state using the fund sources identified in clause (i).

(9) (A) An applicant’s student population has unmet demand for housing, as measured by both of the following:

(i) The proportion of students waitlisted for on-campus housing compared to total enrollment.

(ii) Rental vacancy rates for housing in the county for which the student housing project would be located, as defined by the United States Census Bureau.

(B) Applicants shall calculate the data pursuant to clauses (i) and (ii) of subparagraph (A) using data for the most recent year available.

(10) A campus shall not apply for a grant to reimburse costs that it has already incurred.

(g) In their submittals to the Department of Finance, the Legislative Analyst’s Office, and budget committees of the Legislature, the administering entities shall rank all eligible applications using a composite score of all of the following measures:

(1) State funding per bed for low-income students, with a lower ratio receiving a higher ranking.

(2) Projected rents for low-income student units relative to the limit set forth in subparagraph (A) of paragraph (2) of subdivision (f), with a lower measure receiving a higher ranking.

(3) Project timeline, with an earlier construction start date receiving a higher ranking.

(4) The geographic location of each project. It is the intent of the Legislature that projects selected for a grant are fairly representative of various geographical regions of the state and campuses of the University of California, the California State University, and the California Community Colleges.

(5) Whether the applicant is reapplying with a project that was previously deemed ineligible, with a higher ranking given to the updated project applications that address any issues identified in a previous application.

(6) (A) Unmet demand for housing, with a higher ranking given to projects with either of the following:

(i) Higher proportions of students waitlisted for on-campus housing when compared to total enrollment.

(ii) Lower rental vacancy rates for housing in the county for which the student housing project would be located, as defined by the United States Census Bureau.

(B) Applicants shall calculate the proportions and rates pursuant to clauses (i) and (ii) of subparagraph (A) using data for the most recent year available.

(C) For each project, the administering entities shall select the measure determined pursuant to clauses (i) and (ii) of subparagraph (A) yielding the highest ranking.

(h) Proposals for student housing projects submitted pursuant to this chapter shall be considered for inclusion in the annual Budget or other legislation, subject to an available and sufficient appropriation.

(i) (1) Appropriations provided to support a project included in the annual Budget Act or other legislation pursuant to this chapter shall be considered grants to the applicant for purposes of constructing the project. As a condition of receiving funds pursuant to this chapter, the Regents of the University of California, the Trustees of the California State University, or the Board of Governors of the California Community Colleges, or the respective statewide offices for each segment, shall do all of the following:

(A) Provide oversight of the project for which funds are appropriated.

(B) From the receipt of funds to completion of construction for the project, report annually, beginning on or before July 1 of the year immediately following receipt of funding, to the Department of Finance and the relevant policy and budget committees of the Legislature on the status of the project. At a minimum, these reports shall include data on a project’s cost, funding by source, number of beds for low-income students, rents for low-income student beds, the number of standard rent beds and their associated rents, if applicable, building square footage, and project timeline. For each of these data elements that were included in a project’s application to the state, the reports shall compare the estimates provided in the application to the most recently available estimates.

(C) Following completion of the project, report annually, beginning on or before July 1 of the year immediately following completion, for a five-year period to the Department of Finance and the relevant policy and budget committees of the Legislature on the public benefit provided by the project as related to the selection criteria outlined in this chapter. At a minimum, these reports shall include data on a project’s number of beds for low-income students, rents for low-income student beds, the number of standard rent beds and their associated rents, if applicable, annual operating costs and revenues, and housing occupancy rates compared to the campuswide average. For each of these data elements that were included in a project’s application to the state, the reports shall compare the estimates provided in the application to the most recently available estimates.

(2) For a community college project funded pursuant to this chapter, the local community college district may perform the oversight and reporting functions required pursuant to subparagraphs (A) to (C), inclusive, of paragraph (1) in lieu of these functions being performed by the Board of Governors of the California Community Colleges or the office of the Chancellor of the California Community Colleges.

(j) For purposes of computing the maintenance of effort for the federal Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (Public Law 116-260), and the federal American Rescue Plan Act of 2021 (Public Law 117-2), these funds shall be considered fully expended in the year in which they are appropriated, and these funds shall be considered need-based financial aid, as the intent of the program is to reduce nontuition costs for students.

(k) Notwithstanding any other law, including subdivision (j), reduced housing expenses from student housing provided pursuant to this chapter shall augment and not supplant student financial aid from other public sources, and shall not be considered when calculating eligibility for student financial aid.

(l) For the 2022-23 fiscal year, seventeen million nine hundred seventy-four thousand dollars ($17,974,000) is hereby appropriated from the General Fund for the purpose of providing planning grants for California Community Colleges that are exploring or determining if it is feasible to offer affordable student rental housing.

(m) The funds appropriated pursuant to subdivision (l) shall be to the office of the Chancellor of the California Community Colleges, to be allocated to the following California Community Colleges, as follows:

(1) One hundred fifty-five thousand dollars ($155,000) for allocation to Chabot College.

(2) One hundred fifty-five thousand dollars ($155,000) for allocation to Las Positas College.

(3) One hundred eighty thousand dollars ($180,000) for allocation to Contra Costa College.

(4) One hundred eighty thousand dollars ($180,000) for allocation to Diablo Valley College.

(5) One hundred eighty thousand dollars ($180,000) for allocation to Los Medanos College.

(6) One hundred thirty-two thousand dollars ($132,000) for allocation to De Anza College.

(7) One hundred thirty-two thousand dollars ($132,000) for allocation to Foothill College.

(8) Five hundred eighty thousand dollars ($580,000) for allocation to Ohlone College for two projects.

(9) One hundred ten thousand dollars ($110,000) for allocation to Berkeley City College.

(10) One hundred ten thousand dollars ($110,000) for allocation to College of Alameda.

(11) One hundred ten thousand dollars ($110,000) for allocation to Laney College.

(12) One hundred ten thousand dollars ($110,000) for allocation to Merritt College.

(13) Two hundred thirty-five thousand dollars ($235,000) for allocation to Evergreen Valley College.

(14) Two hundred thirty-five thousand dollars ($235,000) for allocation to San Jose City College.

(15) Two hundred thousand dollars ($200,000) for allocation to the College of San Mateo.

(16) One hundred fifty thousand dollars ($150,000) for allocation to Solano Community College.

(17) Three hundred fourteen thousand dollars ($314,000) for allocation to Cerro Coso Community College.

(18) Three hundred fourteen thousand dollars ($314,000) for allocation to Porterville College.

(19) One hundred forty-five thousand dollars ($145,000) for allocation to Merced College.

(20) Five hundred sixty-four thousand dollars ($564,000) for allocation to Merced College for an intersegmental project with the University of California, Merced.

(21) Four hundred forty-nine thousand dollars ($449,000) for allocation to Fresno City College.

(22) Four hundred forty-nine thousand dollars ($449,000) for allocation to Madera College.

(23) One hundred fifty thousand dollars ($150,000) for allocation to West Hills College Coalinga.

(24) Seventy thousand dollars ($70,000) for allocation to Copper Mountain College.

(25) One hundred fifty-five thousand dollars ($155,000) for allocation to Mt. San Jacinto College.

(26) Five hundred forty thousand dollars ($540,000) for allocation to Moreno Valley College.

(27) Five hundred ninety thousand dollars ($590,000) for allocation to Norco College.

(28) Four hundred seventy thousand dollars ($470,000) for allocation to Riverside City College.

(29) Eight hundred forty-five thousand dollars ($845,000) for allocation to Crafton Hills College.

(30) Eight hundred forty-five thousand dollars ($845,000) for allocation to San Bernardino Valley College.

(31) Two hundred thousand dollars ($200,000) for allocation to Antelope Valley Community College.

(32) Two hundred twenty-five thousand dollars ($225,000) for allocation to Cerritos College.

(33) One hundred ten thousand dollars ($110,000) for allocation to El Camino College.

(34) One hundred twenty thousand dollars ($120,000) for allocation to Long Beach City College.

(35) One hundred ten thousand dollars ($110,000) for allocation to East Los Angeles College.

(36) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles City College.

(37) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Harbor College.

(38) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Mission College.

(39) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Pierce College.

(40) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Southwest College.

(41) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Trade Technical College.

(42) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Valley College.

(43) One hundred ten thousand dollars ($110,000) for allocation to West Los Angeles College.

(44) One hundred fifty thousand dollars ($150,000) for allocation to Cypress College.

(45) Fifty thousand dollars ($50,000) for allocation to Pasadena City College.

(46) Five hundred thousand dollars ($500,000) for allocation to Rancho Santiago Community College District.

(47) Five hundred twenty-two thousand dollars ($522,000) for allocation to Rio Hondo College.

(48) One hundred ten thousand dollars ($110,000) for allocation to Santa Monica College.

(49) Three hundred twenty-three thousand dollars ($323,000) for allocation to Irvine Valley College.

(50) Four hundred eighty-three thousand dollars ($483,000) for allocation to Saddleback College.

(51) Five hundred thousand dollars ($500,000) for allocation to Butte College for an intersegmental project with California State University, Chico.

(52) Three hundred forty-nine thousand dollars ($349,000) for allocation to Feather River College.

(53) One hundred ten thousand dollars ($110,000) for allocation to American River College.

(54) One hundred ten thousand dollars ($110,000) for allocation to Cosumnes River College.

(55) One hundred ten thousand dollars ($110,000) for allocation to Folsom Lake College.

(56) One hundred ten thousand dollars ($110,000) for allocation to Sacramento City College.

(57) Two hundred fifty thousand dollars ($250,000) for allocation to Mendocino College.

(58) One hundred fifty-five thousand dollars ($155,000) for allocation to Shasta College.

(59) One hundred fifty-five thousand dollars ($155,000) for allocation to Cuyamaca College.

(60) One hundred fifty-five thousand dollars ($155,000) for allocation to Grossmont College.

(61) One hundred fifty thousand dollars ($150,000) for allocation to MiraCosta College.

(62) Eight hundred twenty thousand dollars ($820,000) for allocation to Palomar College.

(63) Three hundred forty-four thousand dollars ($344,000) for allocation to San Diego City College.

(64) Six hundred eighteen thousand dollars ($618,000) for allocation to Southwestern College for five projects.

(65) One hundred eighty-five thousand dollars ($185,000) for allocation to Allan Hancock College.

(66) Two hundred forty-two thousand dollars ($242,000) for allocation to Cabrillo Community College.

(67) Three hundred twenty-five thousand dollars ($325,000) for allocation to Hartnell College.

(68) One hundred fifty thousand dollars ($150,000) for allocation to Santa Barbara City College.

(69) Two hundred fifty thousand dollars ($250,000) for allocation to Moorpark College.

(70) Two hundred forty-nine thousand dollars ($249,000) for allocation to Oxnard College.

(n) Commencing with the 2023-24 fiscal year all of the following shall apply:

(1) (A) The General Fund support for the grants provided to campuses of the University of California and the California State University, as listed in this section pursuant to Chapters 54 and 572 of the Statutes of 2022, shall revert to the General Fund and the project grants shall instead be funded by revenue bonds issued by the University of California and the California State University.

(B) In addition to the funding for projects pursuant to subparagraph (A) for the University of California, the University of California shall fund capital outlay planning and construction grants using revenue bond funding issued by the University of California for all of the following projects:

(i) One hundred twenty-six million dollars ($126,000,000) for allocation to the University of California, Riverside, for an intersegmental project with Riverside City College.

(ii) One hundred million dollars ($100,000,000) for allocation to the University of California, Merced, for an intersegmental project with Merced College.

(iii) One hundred eleven million seven hundred eighty-seven thousand dollars ($111,787,000) for allocation to the University of California, Santa Cruz, for an intersegmental project with Cabrillo Community College.

(C) (i) In addition to the funding for projects pursuant to subparagraph (A) for the California State University, the California State University shall fund construction grants using revenue bond funding issued by the California State University for all of the following projects:

(I) Eighty-nine million one hundred thousand dollars ($89,100,000) for allocation to the California State University, San Jose.

(II) Forty-one million three hundred forty thousand dollars ($41,340,000) for allocation to the California State University, Sacramento.

(III) Eighteen million eight hundred fifty thousand dollars ($18,850,000) for allocation to the California State University, Stanislaus.

(ii) The California State University shall use seven million four hundred eighty-nine thousand dollars ($7,489,000) in revenue bond funding issued by the California State University to fund cost overruns associated with approved project grants described in subparagraph (A).

(D) Projects funded by revenue bond funds pursuant to this paragraph shall meet all requirements of this chapter.

(2) (A) The General Fund support for the grants provided to campuses of the California Community Colleges, as listed in this section pursuant to Chapters 54 and 572 of the Statutes of 2022, shall revert to the General Fund, and the grants may instead be funded by local financing issued by community college districts for specified projects. A community college that has already received an allocation of resources shall revert those General Fund resources by June 29, 2024, or upon the enactment of the Budget Act of 2024, whichever is later.

(B) In addition to the funding for projects pursuant to subparagraph (A), the California Community Colleges may fund construction grants using local financing issued by community college districts for all of the following projects:

(i) Seventy-five million dollars ($75,000,000) for allocation to San Diego City College.

(ii) Sixty-seven million nine hundred ninety-five thousand dollars ($67,995,000) for allocation to Cerritos College.

(iii) Fifty-five million eight hundred fifty-four thousand dollars ($55,854,000) for allocation to the College of San Mateo.

(iv) Twenty-eight million four hundred fifteen thousand dollars ($28,415,000) for allocation to the College of the Redwoods.

(C) In addition to the funding for projects pursuant to subparagraphs (A) and (B), the California Community Colleges may fund construction grants using local financing issued by local community college districts for an additional eighty-one million three hundred forty-three thousand dollars ($81,343,000), subject to future legislation.

(D) Projects funded by local financing pursuant to this paragraph shall meet all requirements of this chapter.

(o) Any project receiving a grant pursuant to this section shall deliver, at a minimum, the number of beds for low-income students specified in its application when it was approved by the state. Rents for these beds shall not exceed the rates assumed in the project’s application. A project may deliver more beds or charge lower rents than assumed in its application if financially feasible.

(p) Intersegmental projects funded through the University of California shall divide the number of beds for low-income students between the participating campuses as specified in the Higher Education Student Housing Grant Program application approved by the state and further defined in the subsequent operating agreements between each University of California campus and the California Community College district partnership.

(q) It is the intent of the Legislature that no later than the Budget Act of 2024, a statewide lease revenue bond or other statewide financing or fiscal approach be developed and included to support California community college affordable student housing projects that have been approved pursuant to this section.

(Amended by Stats. 2023, Ch. 195, Sec. 1. (SB 142) Effective September 13, 2023.)