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State Board of Finance approves $2.79 million emergency grant for Luna Community College student housing

State Board of Finance · January 15, 2026
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Summary

The State Board of Finance approved a $2,787,914 emergency grant to Luna Community College to site modular student housing after the college lost housing for dozens of students; board members raised concerns about depleting emergency reserves and asked for regular reimbursement reporting.

The State Board of Finance approved a $2,787,914 emergency grant on Jan. 14 to Luna Community College to fund modular student housing intended to accommodate athletics and other residential students for the coming academic year.

President Carol Linder told the board the college lost housing for about 52 students last year and that Highlands University could not guarantee space for the fall semester. Linder said the proposal centers on Palomar modular units placed on campus to provide 84 rooms; the college expects the modular units to be long-lived if sited on concrete foundations with structural anchoring.

"If we can say that we're going to have housing, this is a game changer for Luna," Linder said, describing the impact on recruitment for nursing, welding and other programs. She added the college had performed an "informal feasibility" review and would complete more formal studies as the project advances.

Board members pressed for details on cost breakdown and durability. Member Paul Cassidy asked whether Palomar was procured through a cooperative agreement and whether the college had a path to pay recurring maintenance. Linder said the college had evaluated several options, prioritized an approach that could be delivered quickly, and believed it could cover maintenance and potential cost overruns from reserves and internal adjustments.

Several members expressed concern about the effect of a single large emergency award on the board'9s ability to respond to other statewide emergencies. Director Leach told the board the draft resolution provides for reimbursement-based disbursement and monthly reporting of invoices and project progress.

Member Cassidy moved approval; the motion was seconded and passed on a roll-call vote, with one member recorded as voting no. The resolution as drafted uses the remaining special appropriation balance first and draws the rest from the board'9s operating reserve fund, with reimbursements subject to monthly reporting requirements.

Next steps include launch of site-preparation work (surveys, utility upgrades, site engineering) and monthly reporting to the board as invoices are submitted for reimbursement.

The board asked staff and Luna leadership to return with progress updates during reimbursement review.