"Live a moral life which includes, but is not limited to, abstinence
from all sexual relations outside the bonds of heterosexual marriage." (Page 56, point no. 7)
That is blatant discrimination against homosexuals - and regardless of what your personal opinion on that subject is, it is also clear that they require you observe the laws of the land.
"Obey, honor, and sustain the law of the land." (same page, point no. 5)
One of the key elements to get state funding is that you don't practice any form of discrimination, and the wording could have been changed to the following to be legal:
"Live a moral life which includes not practicing any pre- or extra-marital sex on campus."
That type of wording would have been in accordance with the laws of the land, but apparently the homophobic belief that other people's practices could be "contagious" are still believed in cults such as the Living Church of God.
They are setting themselves up for persecution, but - once again - that would be used as yet another sign of "being faithful" using the standard chapters of Matthew 24 combined with the book of Revelation. A clever plot to instigate the martyrdom they so wish as proof of being somehow special.
Be attentive when investigating such a group because they will use any trick in the book to appear righteous - and thus get more donations because they can afterwards claim they don't get any state funding when that would have been available to them if their terms of admissions were in accordance with "the laws of the land."