(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 Act 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 appropriated 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 th