California Code of Regulations › Title 2 - Administration › Division 2 - Financial Operations › 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 › Section 1859.81 - Financial Hardship

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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:
(1) Approved interim housing
						  expenditures.
(2) Funding to pay
						  for previously recognized multi-year encumbrances approved at the initial
						  financial hardship approval.
(3)
						  Funding that is transferred into a Special Reserve Fund and is used for the
						  express purpose of the Federal Renovation Program when the amount expended out
						  of that fund does not exceed the maximum Federal Renovation Grant
						  amount.
(4) Funding that is
						  transferred into a Special Reserve Fund and is used for the express purpose of
						  the School Facilities Needs Assessment Grant Program or Emergency Repair
						  Program when the amount expended out of that fund does not exceed the maximum
						  grant amount apportioned.
(5)
						  Funding that is transferred into a Special Reserve Fund and is used for the
						  express purpose of the Career Technical Education Facilities Program when the
						  amount expended out of that fund does not exceed the applicant's share of the
						  maximum grant amount apportioned.
(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.
(7) Funding that is used for the express
						  purpose of reimbursing the State a proportionate share of financial hardship
						  received when there has been a transfer of a special education program and
						  title to the facility. In addition, the funding was used within five years of
						  the title transfer.
(8) Funding to
						  pay for obtaining a structural report pursuant to Section
						  1859.82.2 for an approvable and
						  funded seismic mitigation project.
(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.