(a) (1) The California Student Housing Revolving Loan Fund is hereby established in the State Treasury to provide zero-interest loans to qualifying college and university applicants for the purpose of constructing affordable student housing and affordable faculty and staff housing. Notwithstanding § 13340 of the Government Code, all moneys in the fund are hereby continuously appropriated without regard to fiscal years for purposes of this chapter.

(2) (A) For the 2023-24 fiscal year, the sum of two hundred million dollars ($200,000,000) is hereby appropriated from the General Fund, to be deposited in the California Student Housing Revolving Loan Fund.

(B) It is the intent of the Legislature to appropriate three hundred million dollars ($300,000,000) in the 2024-25 fiscal year, three hundred million dollars ($300,000,000) in the 2025-26 fiscal year, three hundred million dollars ($300,000,000) in the 2026-27 fiscal year, three hundred million dollars ($300,000,000) in the 2027-28 fiscal year, and three hundred million dollars ($300,000,000) in the 2028-29 fiscal year, to be deposited in the California Student Housing Revolving Loan Fund.

(3) Of the total amount appropriated pursuant to subparagraph (A) of paragraph (2), and intended to be appropriated pursuant to subparagraph (B) of paragraph (2), in support of this chapter, 75 percent of the available funds shall be available for University of California and California State University applicants and 25 percent of the available funds shall be available for community college applicants.

(4) Notwithstanding paragraph (3), the amounts designated in paragraph (3) for the postsecondary segments may be adjusted to shift unused funds from a segment to accommodate excess demand from another segment, upon written notification by the Director of Finance to the Joint Legislative Budget Committee, and approval by the Joint Legislative Budget Committee. This written notification may be submitted 12 months after the funds for a fiscal year have been appropriated.

(b) The Treasurer may pledge any or all of the moneys in the fund as security for payment of the principal of, and interest on, a particular issuance of bonds by a designated lending authority pursuant to this chapter. For that purpose, or as convenient or necessary to the accomplishment of any other purpose of this chapter, the Treasurer may divide the fund into separate accounts or subaccounts.

(c) The Treasurer may invest moneys in the fund that are not required for its current needs, including proceeds from the sale of bonds, in eligible securities specified in § 16430 of the Government Code, and may include deposit for investment in the Surplus Money Investment Fund pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. Notwithstanding § 16305.7 of the Government Code, all interest or other increment resulting from the investment or deposit of moneys from the fund shall be deposited in the fund. Moneys in the fund shall not be subject to transfer to any other funds pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.

(d) If the Treasurer sells bonds for either authority that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

(Amended by Stats. 2023, Ch. 50, Sec. 5. (SB 117) Effective July 10, 2023.)