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Panel hears update on student housing grants; administration to prioritize completing approved projects
Summary
Finance and the Chancellor's Office updated the subcommittee on the higher education student housing grant initiative, noting 11 of 13 originally approved community college projects remain active and the administration's priority is to complete approved projects; members asked about returned funds and statutory changes to allow reallocation.
The subcommittee received an update on the higher education student housing grant program, a multi‑year effort to finance affordable student housing at higher education institutions.
Alexandria Velasquez and Alexandra Waldman from the Department of Finance reviewed the administration's approach. The 2024 Budget Act shifted projects to a lease revenue bond structure and the governor's 2025–26 budget continues debt‑service support for approved projects. Finance confirmed the governor's budget includes $1.3 million general fund for debt service for completed community college projects in 2025–26 (noting an additional adjustment will be made in the May Revision to correct a drafting oversight). Of the 13 eligible community college projects, 11 are actively participating in the lease revenue bond program, four are under construction, five are due to begin construction in the budget year, and two later.
The Chancellor's Office described substantial demand: it received about 35 unfunded applications with an estimated unmet need of roughly $2.14 billion in affordable beds and a total project cost of approximately $2.45 billion. A district representative and public commenters — including Santa Monica College and Long Beach City College advocates — urged reallocation of returned resources (two districts withdrew) to other high‑rank, shovel‑ready projects. Finance said reallocation to projects outside the original 13 would require statutory change and that the administration's priority is to complete approved projects.
Members asked for clarity by the May Revision on whether returned allocations could be reallocated or whether statute must be changed; Finance said it would seek legal clarification and advised any change would likely require legislative action. Committee members emphasized urgency to get shovel‑ready projects built amid rising construction costs and expressed concern about cost overruns and schedule delays. The subcommittee held the issue open.
