Gov. Code, § 15820.204

(a) After the board has determined the participating college has sufficient control over the student housing project site or any property to be leased pursuant to Section 15820.203, through either fee simple ownership of the site or other property or comparable long-term possession of the site or other property, and right of access to the site or other property sufficient to ensure undisturbed use and possession, and the participating college has entered into a lease and any other agreements to transfer sufficient rights to the student housing project site or other property being leased to facilitate the financing authorized by this chapter, the board and the board of governors may borrow funds for project costs from the Pooled Money Investment Account pursuant to Sections 16312 and 16313, the General Fund pursuant to Section 15849.1, or from any other appropriate source.

(b) If any of the revenue bonds, notes, or bond anticipation notes authorized by this chapter are not sold, the board of governors shall commit a sufficient amount of its support appropriation to repay any loans made for an approved student housing project.