California School Finance Authority: Educational Workforce Housing Revolving Loan Fund.

Plain English Breakdown

The bill does not provide specific details on how many years LEAs have to repay their loans.

California School Finance Authority: Educational Workforce Housing Revolving Loan Fund

This bill creates a fund managed by the California School Finance Authority to provide interest-free loans to local education agencies for building housing for teachers and other school workers, based on student attendance.

What This Bill Does

• Creates the Educational Workforce Housing Revolving Loan Fund in the State Treasury to be administered by the California School Finance Authority.
• Requires the authority to loan money from this fund to local education agencies (LEAs) for predevelopment activities related to educational workforce housing, with no interest and based on LEA average daily attendance.
• Sets up a process where a statewide educational nonprofit helps identify eligible LEAs for loans and requires LEAs to apply and meet certain criteria to qualify.
• Requires the Controller to deduct from apportionments made to LEAs an amount equal to their annual repayment of the loan, which is then paid into the fund.

Who It Names or Affects

• Local Education Agencies (LEAs) that want to build housing for teachers and other school workers.
• The California School Finance Authority, which will manage the new loan fund.
• A statewide educational nonprofit organization that helps identify eligible LEAs for loans.

Terms To Know

Local Education Agencies (LEAs)

School districts, charter schools, county offices of education, and community college districts in California.

Revolving Loan Fund

A fund that lends money to organizations or individuals and then gets the money back with interest to lend again.

Limits and Unknowns

• The bill does not specify how many years LEAs have to repay their loans.
• It is unclear what percentage of the total loan amount will be given to the nonprofit organization for administrative costs.
• Details on how the Educational Workforce Housing Security Fund operates are not fully explained.

Official Summary Text

AB 1381, as amended, Muratsuchi.
California School Finance Authority: Educational Workforce Housing Revolving Loan Fund.
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
efforts.
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 these loans to be repaid over an unspecified number of years.
The bill would require the authority to designate a statewide educational nonprofit organization, as specified, to, among other requirements, assist the authority in
identifying LEAs for the receipt of
developing the criteria local educational agencies must meet to qualify for
a loan. The bill would
provide
require
that
a
an
LEA
seeking a loan under these provisions submit an application to the authority and would provide that the LEA
qualifies for a loan
under its provisions
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
equal to an unspecified percentage
no more 2%
of the total amount of loans issued. The bill would also make legislative findings and declarations related to
its
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.

Current Bill Text

Download Bill PDF