Section 1860.14 - Hardship Assistance and Financial HardshipA School District shall qualify for hardship assistance by demonstrating a Financial Hardship, as provided in this Section, which prevents the School District from funding all or a portion of the matching share requirement for a Program grant.
A School District is eligible for a financial hardship grant to fund all or a portion of its matching share requirement after demonstrating the requirements of subsections (a), (b), and (c) below:
(a) The School 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 School District meets at least one of the following: (1) The current outstanding bonded indebtedness of the School District, issued for the purpose of constructing school facilities 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 School 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 School District's matching share requirement for the Program project(s).(3) The School District's total bonding capacity at the time of the request for financial hardship status is $5 million or less.(4) It is a County Superintendent of Schools.(b) The School District is financially unable to provide all necessary matching funds for an eligible project. To determine this, an analysis shall be made of the School District's financial records by OPSC including data and records maintained by the CDE and the County Office of Education. The analysis shall consist of a review of the School District's latest Independent Audit regarding funds available from all capital facility accounts, such as bridge financing, developer fees, funds generated from capital facility certificates of participation, federal grants, redevelopment funds and sale proceeds from surplus property, the appraised value of facilities approved for replacement, and bond funds either encumbered, unencumbered or authorized but unsold. 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 OPSC and all prospective revenue made available to the School 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.(c) If the School District meets the financial hardship requirements in this Section, the amount of financial hardship is equal to the School District's matching share less funds deemed available in (b). (1) Once a School District has been notified that OPSC is scheduled to begin processing the School District's Form SAB 70-01, the School District must submit documentation to support the Financial Hardship request within 30 calendar days.(2) If the School District does not submit documentation within 30 calendar days, the School District will be ineligible to receive a Financial Hardship grant for their project(s) and preference points as provided in Section 1860.15.Cal. Code Regs. Tit. 2, § 1860.14
1. New section filed 12-14-2018 as an emergency; operative 12-14-2018 (Register 2018, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-12-2019 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-14-2018 order transmitted to OAL 6-11-2019 and filed 7-17-2019 (Register 2019, No. 29).
3. Amendment of subsection (a)(4) filed 11-16-2022 as an emergency; operative 11-16-2022 (Register 2022, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-15-2023 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 11-16-2022 order transmitted to OAL 5-8-2023 and filed 6-20-2023 (Register 2023, No. 25). Note: Authority cited: Sections 17375(b)(2)(A) and 17375(b), Education Code. Reference: Sections 17075.10 and 17070.15, Education Code.
1. New section filed 12-14-2018 as an emergency; operative 12/14/2018 (Register 2018, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-12-2019 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-14-2018 order transmitted to OAL 6-11-2019 and filed 7/17/2019 (Register 2019, No. 29).
3. Amendment of subsection (a)(4) filed 11-16-2022 as an emergency; operative 11/16/2022 (Register 2022, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-15-2023 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 11-16-2022 order transmitted to OAL 5-8-2023 and filed 6/20/2023 (Register 2023, No. 25).