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Auxiliaries Planning and Bonds
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BOARD OF TRUSTEES RESOLUTION(S)

Subject: Off-Campus Housing Reference: RFIN 66-13

RESOLVED, By the Board of Trustees of the California State Colleges, that the following principles are adopted by this Board to guide the relationships of the Colleges with private developers of off-campus student housing:

1. The construction and operation of quality student housing by private developers shall be encouraged.

2. The educational principles and architectural and operational standards enunciated in the resolution on student housing adopted by this Board on April 30, 1965, and in the Development Guide for Campus Housing, shall be paramount in all on-campus or off-campus student housing programs.

3. The development of property immediately adjacent to, or property within the reasonable environ of the campus, is of vital concern to the Colleges. It is to the mutual benefit of the institution, private property owners, and civic bodies that such development be compatible with the character of the college and with the colleges' master plan.

4. Each State College shall develop a written statement of criteria con- cerning the involvement of the college with off-campus hosuing. This statement shall be in conformance with the policies established by the Board of Trustees and shall be submitted to the Chancellor for approval. It should convey to all interested developers the position of the college as to information that will be provided by the college.

5. The statements of criteria should reflect circumstances and factors applicable to the individual college. However, all colleges shall include the following criteria:

A. the State College or any of its auxiliary organizations will not:
1. guarantee a specific number or any student occupants for any development;

2. underwrite, pledge, encumber, subsidize or in any way guarantee a specific monetary sum to developers or to any financing agent;

3. obligate the State of California to the expenditure of time, money or labor in promoting, managing or supporting any off-campus housing; nothing in this sub-division, however, is intended to preclude the provision of services to college students, such as the establishment and maintenance of standards listing of approved housing and the like;

B. the off-campus student housing project shall not use the name of the State College or California State Colleges or the term "State College" as all or any part of its title;

C. off-campus housing developers shall cooperate with the California State Colleges in preserving and protecting the goodwill of the State of California and the Board of Trustees of the California State Colleges;

D. off-campus housing that meets such criteria established by the State Colleges as to quality of educational and social programming, student leadership training through self-government or supervision may be designated as "approved" off-campus housing.

6. Criteria applicable to off-campus housing may be changed from time to time. The California State Colleges reserve the right to revise plans for on-campus housing and provide additional facilities.

7. Neither the California State Colleges nor any of its representatives shall endorse, sponsor or otherwise become a party to any application to zoning authorities by any private individual or organization or any combination thereof for approval of a zoning variance, special zoning ordinance, special use permit or similar authorization.

College representatives should present relevent information to zoning authorites with respect to matters being considered when requested to do so or when the college feels such information would be helpful to an appropriate determination. In the event the college determines an application for action by a zoning authority would, if granted, be inimical to the environment or program of the college, it may oppose approval of such application.

8. If a State College auxiliary organization is to be involved in the operation or ownership of off-campus housing, the following conditions must be met prior to consummation of a legal commitment or amendment of an existing commitment by the organization:
A. proposals must be submitted to the Chancellor's Office for review and approval prior to consummation of any agreement.

B. the general credit of the organization will not be used to secure any obligation of the off-campus housing operation and the future assets or earnings of other auxiliary organizations or auxiliary organization activities other than the particular off-campus housing operation will not be pledged, assigned, encumbered or transferred for the benefit of or subsidy of the off-campus housing program and any agreement entered into shall so state. In the event the organization becomes lessee of an off-campus housing operation, its rental obligation under the lease may not exceed the net income realized from the operation.

C. a statement must be provided that in event of default the debt is not a lien, charge or liability as to either principal or interest, against the State of California, the Board of Trustees of the California State Colleges, or against any officers or employees of the State, or members of the Board, or against their property or funds. No lender or obligee shall ever have the right to compel any exercise of the taxing power of the State of California for debt or interest payment.

D. neither the organization nor any of its officers, agents, or employees shall be liable for any claims by the owners of the off-campus develop- ment, or any party financing all or any part of the facility, on account of any discretionary action on the part of the organization, or of its officers, agents or employees.

E. an auxiliary organization may present any agreements with respect to operation of off-campus housing which it has entered into prior to adoption of this resolution to the Office of the Chancellor for purpose of reviewing such agreement in order to determine whether it is in accord with this resolution. The Chancellor may in such case authorize exemptions from this resolution where necessary in order to permit the organization to honor its prior agreement.

9. All developers who propose projects which meet the approved written criteria developed by the college for off-campus housing, shall be treated in a fair and equal manner. State College officials shall not favor or promote one particular developer or project. Any position presented by the insti- tution shall be in terms of general principles and guidelines applicable to all proposals in a fair and equitable manner.

10. State College employees, State College auxiliary organization employees, and any person providing services to a State College under contract, shall avoid any conflict of interest with developers of off- campus student housing.

11. To assist in developing appropriate off-campus housing that would be economically advantageous to California State College students and obtain land and improvements for the California State Colleges at no cost to the State, the Board of Trustees will consider proposals for a proposed program which satisfy the requirements for tax exemption as stated in Ruling 63-20, (I.R.B. 1963-1, p.24) under the following conditions:

A. there will be no pledge of the name or credit of the State of California, the Board of Trustees of the California State Colleges, or their officers and employees.

B. the proposed program logically could be an extension of the college campus Master Plan.

C. the developer possesses sound and substantial evidence of ability to perform, as well as a high degree of fiscal integrity.

D. appropriate local support is evidenced (including compliance with zoning, building, fire and safety codes).

Reference: RFIN 68-22

RESOLVED, By the Board of Trustees of the California State Colleges, that the Resolution of the Board on the subject of the development of facilities for off-campus housing, adopted June 2, 1966 (Minute Book, pages 1316 to 1320), is amended by the addition of Subparagraph F to Paragraph 8 thereof, as follows:

F. In addition to the other provisions of this Resolution relating to the operation or ownership of off-campus housing by state college auxiliary organizations, the following requirements shall also be applicable to any commitment with respect to any off-campus housing which is entered into on or after June 28, 1968, as well as any action taken on or after June 28, 1968, to renew or exercise an option to continue any commitment which was originally made prior to that date:

1. State College auxiliary organizations shall not own or lease such facilities; provided, however, that the Chancellor may approve the temporary utillization for off-campus housing of property owned or leased by a State College auxiliary organization which property is held for other permanent use;

2. State College auxiliary organizations may manage or provide services, such as food operations, to such facilities only if;

a. The owner thereof is a nonprofit organization, contributions to which are deductible for federal income tax purposes, pursuant to Section 170 of the Internal Revenue Code, and which organization is exempt from the payment of federal income tax pursuant to Section 501, subdivision (c)(3) of that Code;

b. The management or other service agreement does not obligate the State College auxiliary organization for any period in excess of three years.

For purposes of this Subparagraph 8F(2)(b), an agreement which gives the State College auxiliary organization an option to renew for a period not exceeding three years, exercisable during an original or successive three year period, is permissible. Such renewals shall be subject to the approval requirement of Sub- paragraph 8A, as are all other proposals for involvement of State College auxiliary organizations in the operation of off-campus housing. Also authorized are provisions permitting the State College auxiliary organizations to continue activities in con- nection with the management of the facility, which are limited to concluding the business of its management or other service activities.

c. Neither an officer or employee of the State College or its auxiliary organization who has any duties in connection with college housing, nor any other officer or employee of the State College or its auxiliary organization, in his capacity as an officer or employee, shall be a member of the nonprofit organization or of its board of directors, or of any body having a reporting or advisory responsibility to such nonprofit organization.

3. The provisions of this Subparagraph 8F are not intended to prevent any of the normal operations of the State College in connection with the approval or listing of such facilities, as provided in Paragraph 5, Subparagraph A(3).



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