Cal. Government Code § 15820.201

(a) For purposes of this chapter, a student housing project may include construction of student housing or the renovation of former commercial properties into student housing. These student housing facilities may include, but are not limited to, dining, laundry, parking, academic and student support service spaces, basic needs centers, student health care services, student family housing, childcare spaces, and other necessary and usual attendant and related facilities and equipment. (b) (1) For student housing projects selected for financing under this chapter before June 30, 2026, to be eligible for financing under this chapter, the participating college shall certify to the board both of the following: (A) The student housing project is designed or will be designed to include, at a minimum, the number of beds for low-income students specified in a participating college’s application submitted pursuant to Section 17201 of the Education Code, as may be adjusted pursuant to subdivision (g) of Section 15820.202. (B) The rent for the beds for low-income students as described in paragraph (1) shall not exceed 30 percent of 50 percent of the area median income for a single-room occupancy unit type, as may be adjusted pursuant to paragraph (3) of subdivision (b) of Section 15820.203. (c) (1) Before any disposition of a site for purposes of financing under this chapter, the participating college shall record a covenant or restriction against the student housing project, in a form acceptable to the board, stating, in substance, that the affordability restrictions in subdivision (b) shall run with the land and be enforceable against the participating college that violates the affordability restriction and each successor in interest who continues the violation. (2) The covenant or restriction shall expressly provide that the affordability restrictions shall be enforceable for the life of the student housing project and shall survive the termination of the leases, subleases, or other agreements entered into by the participating college pursuant to Section 15820.203. (d) (1) (A) A participating college that received funding pursuant to Section 17201 of the Education Code shall remain subject to the permanent affordability requirements specified in paragraph (2) of subdivision (f) of Section 17201 of the Education Code until the participating college records the covenant or restriction described in subdivision (c). (B) A participating college may elect to relinquish the authority provided under this chapter and return the funds awarded pursuant to Section 17201 of the Education Code to the state before establishing occupancy for the student housing project. (C) Upon a participating college providing a written notice to the Department of Finance and the Joint Legislative Budget Committee, the participating college shall be considered withdrawn from eligibility for financing under this chapter. (D) A participating college shall be released from the requirements and obligations of this chapter upon the return of the funds awarded pursuant to Section 17201 of the Education Code to the state. (e) (1) For student housing projects selected for financing under this chapter after June 30, 2026, to be eligible for financing under this chapter, the board of governors shall provide, on behalf of the participating college, the board with all of the following: (A) Certification that the chancellor’s office has approved an application that includes all of the following: (i) A detailed project cost estimate. (ii) The proposed scope of the project that details what will be constructed. The scope shall include the number of beds for low-income students, as defined in Section 17200 of the Education Code, as may be adjusted pursuant to subdivision (g) of Section 15820.202. The rent for the beds for low-income students shall not exceed 30 percent of 50 percent of the area median income for a single-room occupancy unit type, as may be adjusted pursuant to paragraph (3) of subdivision (b) of Section 15820.203. (iii) An estimated project schedule. (iv) Documentation of the participating college’s unmet demand for student housing as measured by the proportion of students waitlisted for on-campus housing compared to total enrollment and rental vacancy rates for housing in the county that the student housing project would be located. (v) An estimate of the anticipated impact on the campus’ ability to accommodate California resident enrollment growth. (vi) Information establishing the participating college’s ability to absorb costs above those identified in the project estimate described in clause (i), as substantiated by all of the following: (I) A budget that indicates a contingency of not less than 10 percent of construction costs. (II) A detailed description of the source or sources of the funds to be used for the project, other than financing requested under this chapter, the respective balances, and a certification by the participating college that the funds are lawfully available for use to pay costs related to, or necessary for, the student housing project. (III) In addition to the main fund source or sources identified in subclause (II), identification of a reserve fund source, other than the financing requested under this chapter, and the respective balances that would be available to cover cost increases that are not absorbable within the 10 percent contingency reserve described in subclause (I). (IV) Certification of the participating college’s commitment to absorb costs above those projected in the application. (B) Documentation of approval of the board’s required financing documents by the participating college. (C) Documentation establishing that the participating college has fee title ownership of the property on which the project will be constructed free from liens and encumbrances other than necessary utilities for the project. (2) (A) Before any disposition of a site for financing under this chapter, the participating college shall record a covenant or restriction against the student housing project, in a form acceptable to the board, stating, in substance, that the affordability restrictions in subdivision (b) shall run with the land and be enforceable against the participating college that violates the affordability restrictions and each successor in interest who continues the violation. (B) The covenant or restriction shall expressly provide that the affordability restrictions shall be enforceable for the life of the student housing project, and shall survive the termination of the leases, subleases, or other agreements entered into by the participating college pursuant to Section 15820.203. (3) For student housing projects described in this subdivision, to be eligible for financing under this chapter, the board of governors shall provide a written notice certifying the accuracy of all information contained in the documentation provided pursuant to this subdivision.