California School Finance Authority: Educational Workforce Housing Revolving Loan Fund.

Assembly Member Muratsuchi's proposal to establish two new education workforce housing funds aims to help California school districts and county offices of education address teacher recruitment and retention challenges through housing development initiatives. The legislation creates an Educational Workforce Housing Revolving Loan Fund to provide interest-free loans to local education agencies (LEAs) for housing predevelopment activities like feasibility studies, community engagement, and project design.

The loan amounts vary based on student enrollment, with LEAs receiving $150,000 to $200,000 depending on their average daily attendance. A designated statewide educational nonprofit organization would provide technical assistance to LEAs in areas such as loan qualification, project planning, and staff training. Priority for loans would go to LEAs that do not currently provide workforce housing. LEAs must repay loans through annual deductions from their state funding apportionments over a maximum five-year period.

The companion Educational Workforce Housing Security Fund would serve as a backstop to cover potential loan defaults. The California School Finance Authority must monitor fund adequacy and report annually to state finance officials. Any transfers from the Security Fund to cover defaults require approval from the Director of Finance after a 30-day legislative notification period. Both funds would receive initial funding through legislative appropriation, with the nonprofit administrator eligible for up to 2% of total loan amounts annually for administrative costs.