§ 1859.81. Financial Hardship.
2 CA ADC § 1859.81Barclays Official California Code of Regulations
Barclays California Code of Regulations
Title 2. Administration
Division 2. Financial Operations (Refs & Annos)
Chapter 3. Department of General Services
Subchapter 4. Office of Public School Construction
Group 1. State Allocation Board
Subgroup 5.5. Regulations Relating to the Leroy F. Greene School Facilities Act of 1998: (School Facility Program)
Article 9. Hardship Assistance
2 CCR § 1859.81
§ 1859.81. Financial Hardship.
Except for Joint-Use Projects and Career Technical Educational Facilities Projects, a district is eligible for financial hardship to fund all or a portion of its matching share requirement after demonstrating the requirements of (a), (c), and (d) below:
(a) The district is financially unable to provide all necessary matching funds for an eligible project. To determine this, an analysis shall be made of the district's financial records by the OPSC including data and records maintained by the CDE and the County Office of Education. The analysis shall consist of a review of the district's latest Independent Audit regarding funds available from all capital facility accounts, including, but not limited to, developer fees, funds generated from capital facility certificates of participation, federal grants, redevelopment funds, sale proceeds from surplus property, the appraised value of facilities approved for replacement pursuant to Section 1859.82, bond funds either encumbered, unencumbered or authorized but unsold, and savings from other SFP projects. All funds thus identified that have not been expended or encumbered by a contractual agreement for a specific capital outlay purpose prior to the initial request for financial hardship status shall be deemed available as a matching contribution.
After the initial request for financial hardship status is granted, no further encumbrances will be approved by the OPSC and all prospective revenue made available to the district's capital facility accounts shall be deemed available as matching contribution on the subsequent financial hardship review, with the exception of:
(6) Funding that is transferred into a Special Reserve Fund and used for the express purpose of the Overcrowding Relief Grant when the amount expended out of that fund does not exceed the amount of the site acquisition and design costs of the project and the district has submitted an approved Form SAB 50-11.
(9) All other capital facility funding for a period of three years when no subsequent financial hardship request is made during this period, with the exception of the funding identified in (6). The three-year period begins with the date of the most recent financial hardship new construction or modernization adjusted grant funding apportionment.
When Overcrowding Relief Grant funding is set aside pursuant to (6) and the School District has not submitted, or the OPSC has not accepted, a Form SAB 50-04 for an Overcrowding Relief Grant within three years from the date of deposit into the Special Reserve Fund, or the School District has not met the requirements in Sections 1859.90 or 1859.105, remaining funds plus interest accrued at the Pooled Money Investment Board rate at that time period shall be deemed available as matching contribution on a subsequent financial hardship project or be captured through an audit adjustment pursuant to Section 1859.106.
The financial hardship analysis is subject to approval by the Board.
(b) From the funds deemed available as a matching contribution, the district may retain $19,776 per classroom in each enrollment reporting period for the cost to provide interim housing for the currently unhoused pupils of the district. The amount shown shall be adjusted annually in the manner prescribed in Section 1859.71. The number of classrooms needed for interim housing for the currently unhoused pupils shall be the sum of the positive numbers determined in (b)(7) as follows:
From the funds deemed available as a matching contribution, the district may also retain $19,776 per portable toilet unit in each reporting period for the cost to provide necessary interim toilet facilities for the currently unhoused pupils of the district. The amount shown shall be adjusted annually in the manner prescribed in Section 1859.71. The number of toilet facilities needed for interim housing shall be the sum of the positive numbers determined in (b)(7) divided by eight rounded up to the nearest whole number.
From the funds deemed available as a matching contribution, the district may also retain $19,776 per classroom in each reporting period for the cost to provide necessary interim housing for the currently unhoused pupils displaced as a result of a SAB approved seismic mitigation project pursuant to Section 1859.82.2. The amount shown shall be adjusted annually in the manner prescribed in Section 1859.71. The number of classrooms needed for interim housing shall be the quotient of the displaced pupils by 25 for K-6, for 27 for 7-12, 13 for Non-Severe and 9 for Severe and round up to the nearest whole number.
If the district's available funds, as determined by the OPSC analysis less costs for interim housing, is less than its matching share, the district will be deemed to have met the requirements of this Subsection.
(c) The district has made all reasonable efforts to fund its matching share of the project by demonstrating it is levying the developer fee justified under law or an alternative revenue source equal to or greater than the developer fee otherwise justified under law at the time of request for hardship and the district meets at least one of the following:
(1) The current outstanding bonded indebtedness of the district issued for the purpose of constructing school facilities in accordance with Education Code Section 17072.35 or 17074.25 as appropriate, at the time of request for financial hardship status, is at least 60 percent of the district's total bonding capacity. Outstanding bonded indebtedness includes that part of general obligation bonds, Mello-Roos Bonds, School Facility Improvement District Bonds and certificates of participation which the district is paying a debt service that was issued for capital outlay school facility purposes.
(2) The district had a successful registered voter bond election for at least the maximum amount allowed under Proposition 39 within the previous two years from the date of request for financial hardship status. The proceeds from the bond election that represent the maximum amount allowed under the provisions of Proposition 39 must be used to fund the district's matching share requirement for SFP project(s).
If the district's request for financial hardship status is denied by the Board, the district may be deemed eligible for rental payments of $2,000 per year per classroom under the Emergency School Classroom Law of 1979 for a two year period when relocatable classroom buildings are available and the district provides financial documentation that it is unable to afford the full rental amount and any other information satisfactory to the Board that the rental reduction is necessary. The number of classrooms eligible for the $2,000 rental payments shall be the sum of the numbers determined in (c)(5)(B) as follows:
(d) The district has not signed a contract for acquisition or construction of classrooms that replace existing facility(ies), which were included in the determination of the district's new construction eligibility pursuant to Education Code Section 17071.75, in a locally funded project during the five-year period immediately preceding the district's application for financial hardship assistance. This restriction may be lifted if the Board finds that unforeseen and extenuating circumstances existed that required the district to use local funds to replace the facility(ies).
(2) If the district does not submit Form SAB 50-04 under the provisions of financial hardship within 180 calendar days of the OPSC notification of approval of financial hardship status, the district must re-qualify for financial hardship status under the provisions of this Section by submittal of a new request for financial hardship status.
Financial hardship approval status by the OPSC for a separate design and/or site apportionment does not apply to any subsequent funding for the project(s).
(f) If the district submits Form SAB 50-04 within 180 calendar days of the OPSC notification of approval of financial hardship and the project(s) has been included on the “Unfunded List (Lack of AB 55 Loans)” for more than 180 calendar days as a result of the State of California's inability to provide interim financing from the Pooled Money Investment Account (AB 55 loans), the Board may suspend the unfunded review requirement as defined in Regulation Section 1859.81(e). Projects added to any other unfunded list shall be subject to the review detailed in Regulation Section 1859.81(e). Regulation Section 1859.81(f) shall become inoperative July 1, 2011.
(g) A project added to an unfunded list on or after July 1, 2011 will be subject to the review detailed in section (e)(3). For projects added to an unfunded list between February 25, 2009 and June 30, 2011, only the district's financial records on or after July 1, 2011 will be considered in calculating any adjustment to the district's matching share.
(2) Prior to processing an application OPSC will notify the district in writing to submit the necessary documentation for a Financial Hardship analysis pursuant to (a), (b), (c) and (d). OPSC will not accept any documents for a Financial Hardship analysis in advance of the notification. Failure to submit the requested documentation within 60 calendar days of OPSC's notification will result in either a. or b.:
Credits
Note: Authority cited: Sections 17070.35, 17075.15, 17078.72 and 17592.73, Education Code. Reference: Sections 17071.75, 17075.10, 17075.15 and 17079.20, Education Code.
History
1. New section filed 12-3-98 as an emergency; operative 12-3-98 (Register 98, No. 49). A Certificate of Compliance must be transmitted to OAL by 4-2-99 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-31-99 as an emergency; operative 3-31-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-29-99 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 7-29-99 as an emergency; operative 7-29-99 (Register 99, No. 31). A Certificate of Compliance must be transmitted to OAL by 11-26-99 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 7-29-99 order, including amendment of section, transmitted to OAL 8-26-99 and filed 10-8-99 (Register 99, No. 41).
5. Amendment of subsection (b)(5) filed 6-26-2000; operative 6-26-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 26).
6. Amendment of last paragraph filed 7-17-2000 as an emergency; operative 7-17-2000 (Register 2000, No. 29). A Certificate of Compliance must be transmitted to OAL by 11-14-2000 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 7-17-2000 order transmitted to OAL 11-9-2000 and filed 12-27-2000 (Register 2000, No. 52).
8. Amendment of last paragraph filed 1-2-2001 as an emergency; operative 1-2-2001 (Register 2001, No. 1). A Certificate of Compliance must be transmitted to OAL by 5-2-2001 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 1-2-2001 order transmitted to OAL 5-1-2001 and filed 6-13-2001 (Register 2001, No. 24).
10. Amendment of last paragraph filed 7-25-2001; operative 7-25-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 30).
11. Amendment of last paragraph filed 8-13-2001; operative 8-13-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 33).
12. Amendment filed 12-21-2001; operative 12-21-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 51).
13. Amendment of subsections (a)(1), (a)(4) and (b)(5)(A)-(B) filed 4-10-2002; operative 4-10-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 15).
14. Amendment of subsection (b)(5)(A)-(B) filed 5-2-2002; operative 6-1-2002 (Register 2002, No. 18).
15. Amendment of subsection (b)(5)(A) and second, third and fourth from last paragraphs filed 8-12-2002 as an emergency; operative 8-12-2002 (Register 2002, No. 33). A Certificate of Compliance must be transmitted to OAL by 12-10-2002 or emergency language will be repealed by operation of law on the following day.
16. Amendment filed 10-4-2002; operative 10-4-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 40).
17. Amendment of section and Note filed 11-4-2002 as an emergency; operative 11-4-2002 (Register 2002, No. 45). Pursuant to Education Code section 17070.35 a Certificate of Compliance must be transmitted to OAL by 11-4-2003 or emergency language will be repealed by operation of law on the following day.
18. Certificate of Compliance as to 8-12-2002 order transmitted to OAL 12-3-2002 and filed 1-16-2003 (Register 2003, No. 3).
19. Certificate of Compliance as to 11-4-2002 order transmitted to OAL 11-4-2003 and filed 12-19-2003 (Register 2003, No. 51).
20. Amendment of first paragraph filed 5-21-2004 as an emergency; operative 5-21-2004 (Register 2004, No. 21). A Certificate of Compliance must be transmitted to OAL by 9-20-2004 or emergency language will be repealed by operation of law on the following day.
21. Certificate of Compliance as to 5-21-2004 order transmitted to OAL 9-20-2004 and filed 11-2-2004 (Register 2004, No. 45).
22. Amendment of subsection (c)(1) filed 2-15-2005; operative 2-15-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 7).
23. New subsection (a)(4), subsection renumbering and amendment of Note filed 5-26-2005 as an emergency; operative 5-26-2005 (Register 2005, No. 21). A Certificate of Compliance must be transmitted to OAL by 9-23-2005 or emergency language will be repealed by operation of law on the following day.
24. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-19-2005 and filed 10-31-2005 (Register 2005, No. 44).
25. Amendment of first paragraph, new subsection (a)(5), subsection renumbering and amendment of Note filed 7-13-2007 as an emergency; operative 7-13-2007 (Register 2007, No. 28). Pursuant to Education Code section 17078.72(k) a Certificate of Compliance must be transmitted to OAL by 7-14-2008 or emergency language will be repealed by operation of law on the following day.
26. Amendment of first paragraph and new subsection (d) filed 7-18-2007; operative 7-18-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 29).
27. New subsection (a)(6), subsection renumbering, amendment of and new paragraph following newly designated subsection (a)(7) and amendment of Note filed 8-31-2007; operative 8-31-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 35).
28. Editorial correction of History 25 (Register 2007, No. 52).
29. New subsection (a)(7), subsection renumbering and amendment of Note filed 1-7-2008; operative 2-6-2008 (Register 2008, No. 2).
30. Certificate of Compliance as to 7-13-2007 order transmitted to OAL 3-18-2008 and filed 4-29-2008 (Register 2008, No. 18).
31. New subsection (a)(8), subsection relettering, amendment of subsections (b)(7), (c)(5) and (d) filed 4-30-2008; operative 4-30-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 18).
32. Redesignation of last five paragraphs of section as new subsection (e) and new subsection (f) filed 10-4-2010 as an emergency; operative 10-4-2010 (Register 2010, No. 41). A Certificate of Compliance must be transmitted to OAL by 4-4-2011 or emergency language will be repealed by operation of law on the following day.
33. Redesignation of last five paragraphs of section as new subsection (e) and new subsection (f) refiled 4-5-2011 as an emergency, including further amendment of subsection (f); operative 4-5-2011 (Register 2011, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
34. Certificate of Compliance as to 4-5-2011 order transmitted to OAL 6-10-2011 and filed 7-6-2011 (Register 2011, No. 27).
35. Designation of paragraphs following subsection (e) as new subsections (e)(1)-(3) and new subsection (g) filed 7-27-2011 as an emergency; operative 7-27-2011 (Register 2011, No. 30). A Certificate of Compliance must be transmitted to OAL by 1-23-2012 or emergency language will be repealed by operation of law on the following day.
36. Certificate of Compliance as to 7-27-2011 order transmitted to OAL 11-10-2011 and filed 12-21-2011 (Register 2011, No. 51).
37. Amendment of subsections (e)(1) and (e)(3) and new subsections (h)-(h)(4) filed 9-22-2017 as an emergency; operative 9-22-2017 (Register 2017, No. 38). A Certificate of Compliance must be transmitted to OAL by 3-21-2018 or emergency language will be repealed by operation of law on the following day.
38. Certificate of Compliance as to 9-22-2017 order transmitted to OAL 3-16-2018 and filed 4-12-2018 (Register 2018, No. 15).
39. Amendment of subsections (a)(8) and (b) filed 8-31-2020 as an emergency; operative 8-31-2020 (Register 2020, No. 36). Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-66-20). A Certificate of Compliance must be transmitted to OAL by 6-29-2021 or emergency language will be repealed by operation of law on the following day.
40. Certificate of Compliance as to 8-30-2020 order transmitted to OAL 5-5-2021 and filed 6-16-2021 (Register 2021, No. 25).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 2, § 1859.81, 2 CA ADC § 1859.81
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