(a) As used in this chapter “project” means the purpose for which a community college district has applied for assistance under the Community College Construction Act for one or more institutions under its authority or for district wide facilities. A “project” may include the planning, acquisition, or improvement of community college sites; the planning, construction, reconstruction or remodeling of permanent structures for use as classrooms, laboratories, libraries, performing arts facilities, gymnasia, basic outdoor physical education facilities, basic food service facilities, child development centers, affordable student housing facilities, or related facilities necessary to instruct students or to administer educational programs; essential maintenance or utility facilities; and the initial furnishing or, and initial acquisition of equipment for, a project described above.

(b) A project may also include the reconstruction or remodeling of any facility leased or lease-purchased for educational purposes. The Chancellor's Office shall require transfer to the community college district of title or any other interest considered sufficient by the district, in and to facilities presently leased or to be leased in the future by the district, to the extent of the funds appropriated for reconstruction or remodeling of leased facilities. When sufficient title or interest has not been transferred, the term of the lease shall be of sufficient duration to completely amortize the reconstruction or remodeling cost. Such amortization shall be determined by utilizing Generally Accepted Accounting Principles (GAAP). If the lease is terminated prior to amortizing the reconstruction or remodeling costs the district shall repay the state for any unamortized state costs.

Projects constructed on property leased from the federal government, the state, or any county, city and county, city, or district are eligible for state funding. The district shall provide in the lease agreement that the lessor will be held harmless for district activities conducted on leased real property. The amortization shall be determined by utilizing GAAP. If the lease is terminated prior to amortizing the project, the district shall pay the state for any unamortized state costs.

(c) The projects defined by subdivisions (a) and (b) of this section shall not be construed as a commitment by the Board of Governors as to the type or possible number of projects that may be considered during any fiscal year.

(d) A project shall not include the planning or construction of student centers other than cafeterias, stadia, the improvement of sites for student or staff parking, or single-purpose auditoriums.