News & Insights
Photo courtesy of: Greg Land
When you look across California’s community colleges, one truth is clear: demand for facilities—whether student housing, workforce training centers, or support spaces—is intensifying, while traditional funding sources like bonds and state allocations are increasingly constrained.
That’s where public-private partnerships (P3s) become an increasingly viable option.
California community colleges are contending with aging campuses, enrollment fluctuations, and heightened expectations for student success infrastructure. Meanwhile, bond fatigue and lengthy approval processes often push projects out of reach. P3s offer a practical alternative. By leveraging college-owned assets, transferring risk, and bringing private expertise to the table, P3s allow you to move projects forward faster while preserving your general fund.
Across the state, community colleges are exploring P3s to address housing shortages, build workforce training facilities, and create student support hubs. Orange Coast College (see Project Spotlight) used a P3 structure to deliver more than 800 beds of student housing, transforming its commuter campus into a residential environment without adding financial risk to the district (Source: OCC, LA Times, NCCD).
In addition to housing, P3s can serve as a tool for generating long-term revenue. Many community colleges have underutilized spaces, such as parking lots or areas designated for retail, that can be developed into retail centers or mixed-use developments in partnership with the private sector. These projects can generate a steady revenue stream for the institution, supporting campus operations and creating additional funding for further development, all while reducing reliance on traditional state funding. By integrating retail, dining, and even office space, community colleges can better engage with their local communities while boosting campus resources.
While full P3s can be transformative, hybrid approaches—where private-sector financing is used to develop institutional assets while the college retains control of the facilities—are becoming more common. This flexibility enables you to shape delivery models that align with your mission and risk tolerance. Think about partnerships with the healthcare industry that could build medical office space on campuses that have nursing or adaptive physical education programs, thereby expanding the learning environment.
If your district is grappling with how to meet facility demands under funding constraints, consider whether a P3 could be the strategic lever you need:
P3s are not a silver bullet. However, they can be a powerful tool for California’s community colleges, offering the potential to meet critical infrastructure needs without waiting for the next bond cycle. Managing a P3 project comes with its own set of risks—financial, operational, and regulatory—that must be carefully managed. It’s essential to work with trusted advisors who have experience navigating the complexities of P3 agreements and can help you mitigate risks effectively. For more on how to creatively leverage P3s for student housing, read our previous article on getting creative with student housing P3s.
The right advisor can make all the difference in ensuring a P3 delivers its full value. At B&D, we bring decades of experience helping institutions navigate complex P3 projects, ensuring both financial and mission success. Whether you’re just beginning to explore P3s or looking to expand an existing project, having the right partner by your side is essential.
Matt Bohannon is a vice president in Brailsford & Dunlavey’s Southern California PK-14 practice, where he advises clients on planning and delivering quality-of-life facilities that enhance educational outcomes. Since joining B&D in 2004, he has led the development of over $2.75 billion in completed or active projects, drawing on a background in architecture and expertise in financial and market analysis. Matt is widely recognized for his work in student housing, student unions, recreation centers, and public-private partnerships, and was named one of Engineering News-Record’s “Top 20 Under 40” in California. He can be reached at mbohannon@bdconnect.com.
