0985 School Finance Authority
Program Descriptions

30 - STATE CHARTER SCHOOL FACILITIES INCENTIVE GRANTS PROGRAM

In 2004, CSFA was awarded a grant under the United States Department of Education's State Charter School Facilities Incentive Grants Program to provide California charter schools with assistance for facilities costs. The $50 million federal grant was allocated over a five-year period (through 2009) to eligible charter schools. Grant funds are used toward a charter school's cost of rent, lease, mortgage or debt service payments for existing or new facilities or toward the costs of acquiring land and constructing or renovating a facility. Grants are awarded to charter schools based on preference points allotted for the percentage of low-income students, percentage overcrowded, not-for-profit status, and demonstrated student performance. Eligible charter schools must, at a minimum, be in good standing with their chartering authority, provide site-based instruction, and have completed at least one school year of instructional operations. Additional requirements are listed in the program regulations.

In 2009, CSFA received an additional grant of $48 million from the United States Department of Education's State Charter School Facilities Incentive Grants Program. The award will be allocated over a five-year period and the program eligibility and criteria are similar to those under the first award of $50 million. Under this round, CSFA implemented a change in regulations to award charter schools preference points if the school is providing better educational opportunities than surrounding public schools. First time applicants are also given preference as compared to past recipients.

CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM

In 2010, CSFA was awarded $8.3 million by the Credit Enhancement for Charter School Facilities Program (CFDA 84.354A) authorized under Title V, Part B, Subpart 2 of the Elementary and Secondary Education Act, to enhance credit for charter schools and enable them to access non-Federal funds that will address the costs of renovating, acquiring, and constructing school facilities. The grant funds will act as a reserve against any shortfalls in debt service on bonds that are issued by CSFA.

QUALIFIED SCHOOL CONSTRUCTION BONDS (QSCB)

The American Recovery and Reinvestment Act of 2009 (ARRA) provided funding for the new construction or renovation of school facilities through the use of Qualified School Construction Bonds (QSCBs). Of California's $773 million in "volume cap" allocation for the issuance of QSCBs, approximately $73 million was reserved for use by charter schools through the issuance of conduit revenue bonds by CSFA which will be designated as QSCBs. To date, CSFA has allocated a total of approximately $50 million of the $73 million. Additionally, in 2010, CSFA was awarded an additional $68 million for the issuance of QSCBs through Assembly Bill 2560 (Chapter 266, Statutes of 2010).