Financing & Treasury
THE CALIFORNIA STATE UNIVERSITY
HOUSING PROPOSAL REVIEW COMMITTEE
INFORMATION AND PROCESS
Campuses desiring to obtain approval of the Board of Trustees for a student housing project funded by Dormitory Revenue Fund or other non-state sources must have the project reviewed by the Housing Proposal Review Committee. The office of Financing and
Treasury provides a liaison to the committee, so that campuses wishing to proceed with projects should contact this office at (562) 951-4570.
Campuses will be responsible for presenting their projects to the committee. Providing advance material to the committee will speed the review process.
Presentations should be scheduled with enough lead time to allow for the committee to assemble at an appropriate location, review the project and develop appropriate findings (see review schedule below). Generally, a presentation to the committee should be made at least two months before a Trustees meeting. This will allow for the necessary lead time needed by the campus to request that the item be placed on a Trustees meeting agenda. The request for an agenda item must occur at least one month prior to the respective Trustees meeting.
II. HOUSING PROPOSALS
Presentations to the committee should contain the following as recommended by the Student Housing Task Force:
A. General Information
It is recommended that the proposal contain individual sections, which address the following issues, as these items are a necessary part of the review, by the
Chancellor's Office staff.
- Program Statement.
- A financial contingency plan indicating how the debt will be paid if the project looses its financial viability.
- Site Plan.
- Pertinent authorizing resolutions of externally funding entities such as an auxiliary organization, if applicable.
- Letters of support for the plan as proposed, including a letter from the University President.
- Planning timeline, both construction and fiscal events.
- Project budget (PPD 2-7 NS).
- Confirmation of past trustee approval and/or draft agenda item amending non-state funded capital outlay program to include the proposed project. A review of the project by the Housing Proposal Review Committee should precede subsequent trustee approvals.
B. Market Demand Study
- A market demand study demonstrating demand for the additional number and type of housing spaces, prepared by a qualified firm or the campus. The demand study, at a minimum, should address such issues as:
- Identify housing objectives, conduct a demographic analysis of current housing residents, hold focus group discussions to determine housing preferences among students and parents including, at a minimum, the type, cost, and location of housing.
- Review historical enrollment data by class level, age, county of residence, number of units, origin, and other relevant components of university enrollment. Provide a five-year enrollment projection.
- Review existing on-campus student housing, and summarize by building type, cost location, and vacancy rates. Provide demographic data by census tract and/or zip code in the vicinity of the campus related to off-campus housing. Review other data sources as necessary to project future off-campus housing supply.
- Identify recommended level of housing development. Specify the type, cost and location of proposed housing and relate the recommendations to the results of the demand and supply analysis.
C. Financial Plan
A viable financial plan supporting the project, developed in consultation with the
Chancellor's Office staff, demonstrating an ability to generate revenues adequate to pay operational and debt service costs and to maintain required reserve levels for a period through the capitalization of the building. Including the following information:
- List all revenue from existing housing program. Attach occupancy rates and fees for past five years.
- List all projected revenue from future housing projects proposed. Attach analysis from which projection was based.
- List any other sources of revenue, gifts, or grants applicable to housing program.
- List all current operating expenses such as salaries, benefits, utilities, supplies, and contracts.
- List all current capital and interest payments for entire housing program, including existing facilities, renovation, and deferred maintenance expenses.
- List all projected operating expenses associated with the proposed addition, expansion, or modification.
- List any other known current or future expenses which will affect the financial plan (e.g., anticipated expenses for deferred maintenance).
- List contributions to reserves.
Other Financial Information
- Projected revenue must exceed expenses.
- All figures are to be annualized.
- Plan must be valid and applicable for entire period of existing and proposed debt (e.g., 25-year life of bonds).
- Plan must include method of funding reserves for deferred maintenance, capital renewal, expansion, etc., which will be required prior to retiring debt.
- A contingency plan to provide alternative funding must be included if revenues are not fully realized.
- Inflation, cost increases, and salary increases must be included.
III. REVIEW SCHEDULE & PROCEDURES
The Housing Proposal Review Committee will generally follow the process below to schedule and conduct campus reviews:
- The HPRC will set aside six meeting days per year. Meeting days will be noted on the office of
Financing and Treasury's web page.
- Campuses wishing to bring an item before the committee must contact the office of
Financing and Treasury more than sixty days before the prescheduled meeting date for the meeting they wish to attend. Campuses will receive a meeting date confirmation from
Financing and Treasury once the meeting date has been confirmed with committee members.
- If the committee receives no item requests from campuses prior to the sixty-day cut-off, the respective committee meeting will be removed from the schedule.
- The committee requires that campuses provide the office of Financing and
Treasury with draft copies of material they intend to submit to the committee. The
Financing and Treasury staff will provide input back to the campus on recommended additions or changes to assist the campus in preparing material for the committee.
- Once a campus has arranged to bring an item before the committee at a scheduled meeting, the timetable for preparation of the item is as follows:
- The campus submits draft materials to Financing and Treasury no later than thirty working days prior to the confirmed meeting date.
- Financing and Treasury reviews material and provides input back to campuses no later than twenty working days prior to the confirmed meeting date.
- The campus mails updated material to committee members and Financing and
Treasury no later than ten working days prior to the confirmed meeting date.
- Logistics for the committee meetings will be arranged by Financing and
Treasury, and Financing and Treasury will serve as staff to the committee.
September 2, 2008