End of Session Legislative Update: Governor Acts on Student Housing and Water Quality Assessments

Today is the final day for the Governor to sign or veto bills in 2022. While we don’t know the final veto rate, he included a blanket message for a number of vetoes. The message warned that revenues are down in the first few months of the fiscal year, and that the Legislature passed bills with $30 billion in proposed spending commitments, including $10 billion in ongoing funding obligations. The Governor stated that such issues should be handled through the budget process rather than in policy bills. 

Below is an update on final actions for a number of bills pertaining to community college facilities and student housing. The Legislature will return December 5 to convene the 2023-24 legislative session.

Student Housing

AB 190 – Higher Education Trailer Bill – Student Housing
Signed by the Governor

AB 190 is a budget trailer bill that makes numerous changes to higher education statutes, including student housing. Budget trailer bills go into effect immediately upon signature.

Higher Education Student Housing Grant Program

Changes include but are not limited to:

• Removes the October 31 deadline to submit grant applications in 2022 and 2023. Each administering agency will now set their own application timelines. Note that the Chancellor’s Office has indicated that they expect the next application deadline to be January 2023. 
• Updates the ranking methodology to include “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.” This suggests that the next funding cycle will accept applications for new grant requests as well as those previously deemed ineligible.
• Applications for construction grants may be submitted only “after feasibility studies and all other preliminary planning have been completed and reliable project cost estimates have been developed.”
  

The Chancellor’s Office has indicated that they are preparing a memo with guidance to community colleges regarding specifics of the next application round. 

Revolving Loan Fund

AB 190 creates a revolving loan fund (RLF) for student and workforce housing projects at the CCC, UC, and CSU. The RLF provides zero-interest loans for projects with below-market rental rates. The California School Finance Authority within the State Treasurer’s Office will administer the program for community colleges. Application materials will be available by April 1, 2024, and applications in the first cycle will be due by July 1, 2024, for projects that could begin construction by June 30, 2025, or the earliest possible date thereafter. The bill outlines legislative intent to provide $900 million General Fund in both FY 2023-24 and 2024-25 for this program, for a total of $1.8 billion. Projects over $25 million must use a skilled and trained workforce. The requirements are similar but not identical to those currently used by community colleges for Design-Build projects, with additional compliance requirements for community colleges and potential penalties against community colleges for violations of the skilled and trained workforce requirements.

Click here for more information on what is included in AB 190. 

SB 886 (Wiener) – Student Housing CEQA Exemption
Signed by the Governor

SB 886 provides a statutory CEQA exemption for student and faculty housing projects at community colleges, UC, and CSU under specified circumstances. To qualify for the CEQA exemption, the project may not be on prime farmland, wetlands, lands in a very high fire hazard severity zone, or other on specified lands. The project must meet other parameters, such as being certified LEED Platinum or better, being within one-half mile of a major transit stop or the campus boundary (or has 15% lower per capita vehicle miles traveled), and utilizing no more than one-third of the project’s square footage for non-residential purposes like dining, academic, and student support services. The project must use a skilled and trained workforce, in accordance with Section 2600 of the Public Contract Code. The bill requires the facility to be owned by the college/university, making it potentially difficult or impossible to use certain P3 configurations. Because of the narrow potential uses, CCFC did not have a formal position on the bill. 

AB 1719 (Ward) – Tax Credits for CCD Workforce Housing Projects
Signed by the Governor

AB 1719 clarifies that a community college district may limit its workforce housing to employees of its own district and still be eligible for Low-Income Housing Tax Credits (LIHTC). Federal IRS rules state that if a residential unit is provided by an employer and limited to its own employees, the unit is not for use by the public and is therefore not eligible for Federal LIHTC. However, a state may set policy supporting members of a specified group while allowing the project to be LIHTC-eligible. AB 1719 extends the benefits currently allowed for school districts under the Teacher Housing Act of 2016 to community colleges, specifying that CCDs can limit occupancy to their own employees and still be eligible for local and state funds or LIHTCs. CCFC had a support position this bill.

Other Legislation

SB 1144 (Wiener) – Water Quality Assessments and Lead Pipe Replacement
Vetoed by the Governor

SB 1144 aimed to address water quality in schools and state buildings, which was defined to include community colleges. The bill required preparation of a water efficiency and quality assessment report at all community college sites in phases by December 1, 2030. The report required:

• An inventory of non-compliant plumbing fixtures;
• Evaluation if a building contains lead pipe or pipe of an unknown material;
• Testing water quality for lead contamination in potable water systems;
• For buildings with a cooling tower, a determination if there is a water management program.

Additionally, for buildings over ten stories with a cooling tower system built before January 1, 2013, the college would be required to implement a Legionella management program. The bill also included a number of provisions that would go into effect if funding was “expressly earmarked” for such purposes, including mitigation measures such as replacing non-compliant plumbing fixtures, adding filters to the potable water system, and replacing lead pipe.

CCFC did not have a formal position but raised concerns regarding costs and the inclusion of community colleges in a bill that failed to acknowledge the existing systems addressing water quality and facilities improvements. The Governor vetoed the bill in part due to cost concerns and burdens on the State Water Board and state buildings. 

AB 2232 (McCarty) – Classroom Air Quality and Ventilation Requirements
Signed by the Governor

AB 2232 requires community colleges and schools to have an HVAC system that meets minimum ventilation requirements under Title 24, unless the system is not capable of safely and efficiently doing so. In that case, schools and colleges must ensure that the system meets minimum ventilation requirements in effect at the time the building permit for installation of the system was issued. Schools and colleges should install MERV 13 filters or higher where feasible. The Division of the State Architect shall research, develop, and propose for adoption mandatory standards for carbon dioxide monitors in all classrooms during the 2022 Intervening Code Adoption Cycle. This bill was substantially amended in part due to concerns raised by CCFC regarding prior versions, which would have mandated installation of CO2 monitors in all classrooms without providing a funding source to do so. 

Rebekah Cearley
CCFC Legislative Advocate