State audit calls out UC, CSU scholar housing and says $89 million shouldn’t be used for SJSU’s Spartan Village

A brand new state report launched Tuesday alleges that San Jose State College officers are planning to make use of $89 million in state funds for an unauthorized housing mission.

The report by the California State auditor evaluates the College of California, California State College and California Group Schools techniques and their efforts to offer reasonably priced scholar housing. The audit was directed by the state Legislature, amid rising scholar homelessness and housing insecurity throughout the state.

In July 2023, San Jose State College was granted $89 million within the state price range by means of the Greater Schooling Scholar Housing Grant Program, which offers grant funding to California schools and universities to assemble reasonably priced scholar housing.

The state audit alleges that the college was granted the funds to help the development of the Campus Village 3 mission, a 12-story high-rise that would supply greater than 1,000 scholar beds, together with 517 reasonably priced housing beds under market price.

However in accordance with the state audit, regardless of securing state funds for the mission, California State College and San Jose State leaders started pursuing a distinct housing mission — Spartan Village — within the fall of 2023, which the auditor alleges was not approved by the state. In line with San Jose State, the Campus Village 3 mission is at the moment paused.

Referred to as Spartan Village on the Paseo, the estimated $45 million mission occupies the previous south tower of downtown’s Signia by Hilton San Jose lodge. The college completed development in August 2024 and the constructing affords 675 beds unfold throughout 11 residential flooring, together with 124 reasonably priced housing beds. The college partnered with actual property agency Throckmorton Companions, which paid $73 million to purchase the tower. Beneath the cope with Throckmorton, San Jose State is leasing the constructing till 2056, however plans to purchase the constructing earlier than the tip of 2025 utilizing the state funds.

The state auditor alleges that as a result of the mission was not approved by the state beneath the grant program, if CSU funds the mission utilizing the $89 million allotted for the Campus Village mission, the college system will likely be evading this system’s utility course of, which implies the state didn’t have a chance to judge the mission and guarantee its dedication to reasonably priced housing necessities. The state auditor additionally identified that the Spartan Village mission makes use of the identical quantity in state funding to assemble 357 fewer scholar beds, growing the state’s price from about $88,500 per mattress in Campus Village to just about $136,000 per mattress in Spartan Village. and lowering the full cost-effectiveness of its funding. Nevertheless, each tasks would have constructed 517 reasonably priced housing beds.

San Jose State redirected inquiries to CSU officers.

CSU officers disagreed with the audit’s findings that Spartan Village was not approved and mentioned the college system adopted all the suitable processes and the Spartan Village mission was considerably higher than the deliberate Campus Village mission, because the mission allowed college students to maneuver in sooner, offered the reasonably priced beds at a decrease price per mattress and allowed the college to work collaboratively with the area people and revitalize a downtown neighborhood.

In a press release Tuesday, CSU mentioned the college system has taken important steps to handle scholar housing demand, together with including greater than 2,300 beds since 2022, with one other 4,425 at the moment beneath development.

CSU additionally reiterated that it disagrees with the audit’s discovering that the Spartan Village mission was unauthorized however mentioned it appreciates the state auditor’s concentrate on scholar housing and welcomes continued dialogue on how one can finest meet college students’ wants.

The audit’s common findings concluded that regardless of California’s efforts to handle scholar housing wants, the state’s three largest college techniques have largely didn’t correctly assess unmet demand for scholar housing campuses’ web sites don’t at all times present correct housing info or details about housing help applications for college kids to make monetary choices.

The report  beneficial the state Legislature set up a collaborative scholar housing working group throughout the three system places of work to higher assess and meet scholar housing wants, and direct system leaders to tackle a stronger management function to plan for housing throughout their techniques, in addition to recurrently monitor their campuses’ unmet demand for housing and their reasonably priced housing choices.

The audit comes as scholar homelessness and housing insecurity is on the rise following the pandemic. In 2020, the UCLA Heart for the Transformation of Faculties — an academic analysis and advocacy nonprofit — discovered that 1 in 5 California Group Faculty college students skilled homelessness, in addition to 1 in 10 CSU college students and 1 in 20 UC college students.

And a 2023 California Scholar Help Fee meals and housing survey discovered that of scholars who utilized for monetary help, 53% of respondents have been thought of housing insecure and housing insecurity was highest amongst college students enrolled within the California Group Schools at 65%.

Initially Printed: October 15, 2025 at 4:30 AM PDT