The California School Finance Authority Act establishes the California School Finance Authority and authorizes the authority to, among other things, issue revenue bonds to finance or refinance educational facility projects for school districts, charter schools, county offices of education, and community college districts. Existing law requires the authority to administer various funds, including, for college applicants, the California Student Housing Revolving Loan Fund.

This bill would establish the Educational Workforce Housing Revolving Loan Fund in the State Treasury to be administered by the authority. The bill, upon appropriation, would require moneys in the fund be loaned to local education agencies (LEAs) for the purposes of conducting educational workforce housing predevelopment activities, as defined. The bill would require these loans be issued with no interest and based upon LEA average daily attendance, as specified. The bill would require the authority to designate a statewide educational nonprofit organization, as specified, to, among other requirements, assist the authority in developing the criteria local educational agencies must meet to qualify for a loan. The bill would require that an LEA seeking a loan under these provisions submit an application to the authority and would provide that the LEA qualifies for a loan if the fund maintains positive fund balance with adequate resources to establish a loan and if the LEA submits a signed commitment, as specified. The bill would require the Controller to deduct from apportionments made to the LEA, as appropriate, an amount equal to the annual repayment of the amount loaned to the LEA and pay the same amount into the fund, as provided. The bill would authorize the authority to adopt any necessary rules and regulations for the implementation of these provisions as emergency regulations, as specified. For annual administrative costs, the bill would require the nonprofit organization to receive, upon appropriation, an amount no more 2% of the total amount of loans issued. The bill would also make legislative findings and declarations related to the above-described provisions.

This bill would also establish the Educational Workforce Housing Security Fund in the State Treasury and, upon appropriation, would make moneys in the fund available for deposit into the Educational Workforce Housing Revolving Loan Fund in case of default on any loan made from the Educational Workforce Housing Revolving Loan Fund. The bill would require the authority to monitor the adequacy of the amount of moneys in the Educational Workforce Housing Revolving Loan Fund and to report annually to the Department of Finance and the Controller on the need, if any, to transfer funds from the Educational Workforce Housing Security Fund to the Educational Workforce Housing Revolving Loan Fund for the sole purpose of replacing funds lost in the Educational Workforce Housing Revolving Loan Fund due to loan defaults. The bill would also require the authority to provide, by October 1 of each year, detailed fund condition information for these funds to the Department of Finance and the Legislative Analyst’s Office, as provided.