Charter School Facilities Credit Enhancement Grant Program
The Authority is seeking written comments on proposed amendments to the regulations for the Charter School Facilities Credit Enhancement Grant Program by Monday, April 1, 2013, at 5:00 p.m.
Credit Enhancement Grant Program Overview
The U.S. Department of Education has awarded a grant of $8.3 million to the California School Finance Authority (Authority) pursuant to the Credit Enhancement for Charter School Facilities Program (CFDA #84.354A). Program funds may provide credit enhancement to support the acquisition, renovation or construction of charter school facilities, or the refinancing of existing charter school facility debt.
Application Eligibility Criteria
An applicant charter school shall be eligible to apply for a reservation of funds if all of the following conditions are met:
- An approved charter has been awarded and current at the time of application, throughout the application review and approval process and throughout the term of an award.
- The charter school is in good standing with its chartering authority and is in compliance with the terms of its charter at the time of application submission. The Authority will rely on information from the chartering authority regarding the charter school’s good standing and compliance with the terms of its charter.
- The charter school has completed at least one school year of instructional operations under its current County-District-School (CDS) Code and charter number issued by the California Department of Education.
- At least 80% of the classroom-based instruction offered by the charter school shall be at the financed school site, and the charter school shall attain an average daily attendance rate of at least 80% based on the charter school’s most recent California Basics Educational Data System (CBEDS) report.
- The charter school is established pursuant to Education Code section 47600 et seq., and also meets the federal definition of charter school as defined in section 5210(1) of the Elementary and Secondary Education Act of 1965 (20 USCA section 7221(i)), as amended by the No Child Left Behind Act of 2001.
- The charter school admits students by lottery in the event more students want to attend the school than the school can accommodate.
Eligible Use of Program Funds
- Program funds must be applied toward funding the primary debt service reserve requirement for debt issued by or through the Authority for an awardee charter school. The program covers debt issued by or through the Authority to acquire, renovate or construct charter school facilities, or refinance existing charter school facility debt.
- The Authority may award up to $1.5 million per application.
- The term of repayment for any financing in conjunction with a program award shall not exceed the useful life of the financed asset.
- The grant award shall be held in trust by the Authority or an Authority-approved financial institution, solely for authorized purposes and shall not be released to awardee charter schools without the Authority’s or trustee’s approval. Conditions for release of the grant funds throughout the term of the financing will be determined by the Authority, in collaboration with all lending parties, prior to closing of the financing.
- Awarded reservation of funds shall be released and returned to the Authority when the funds are no longer needed for the authorized purposes.
- Awarded reservations will expire if the charter school does not use the funds within six months of Authority approval.
Please contact us if you would like additional information about this program.