0985 School Finance Authority
0918 - SMART BONDS PROGRAM
Chapter 1438, Statutes of 1985, as amended by Chapter 598, Statutes of 1987, established CSFA and authorized the issuance revenue bonds or other debt instruments. The proceeds from the sale of the bonds were available for loans to school and community college districts to assist with the acquisition of equipment and new school sites, construction of new facilities, reconstruction of existing facilities, capital improvements, and to provide working capital. Chapter 325, Statutes of 2006 (AB 2717), allows CSFA to issue debt on behalf of California charter schools for capital improvements and working capital needs.
0920 - CHARTER SCHOOL FACILITIES PROGRAM
Chapter 935, Statutes of 2002, as amended by Chapter 587, Statutes of 2003, created the Charter School Facilities Program (CSFP), which provides funding for the new construction, renovation or rehabilitation of charter school facilities. CSFA and the Office of Public School Construction jointly administer the program. CSFP was funded through the Kindergarten-University Public Education Facilities Bond Acts of 2002, 2004, and 2006, for a total of $900 million.
The program provides a 50% state subsidy for the charter school facilities project costs, with the balance of the project costs being repaid (to the state) by the charter school in the form of a long-term lease. Recipient charter schools must provide site-based instruction, be deemed financially sound by CSFA, and meet other program eligibility requirements.
0925 - 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 (CFDA 84.282D) to provide California charter schools with assistance for facilities costs. 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.
CSFA implemented a program change in regulations to award preference points for charter schools providing better educational opportunities than surrounding traditional public schools. First time recipients are also given preference as compared to past recipients.
CHARTER SCHOOL FACILITIES CREDIT ENHANCEMENT GRANT PROGRAM
In 2010, CSFA was awarded a grant of $8.3 million by the Charter School Facilities Credit Enhancement Grant 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.
0930 - CHARTER SCHOOL FACILITY GRANT PROGRAM
The Charter School Facility Grant Program provides assistance with rent and lease costs for charter schools that meet specific eligibility criteria. This program targets schools and communities with significant populations of economically disadvantaged students. Eligible charter schools are provided up to $750 per unit of eligible average daily attendance, not to exceed 75 percent of the total annual facilities rent or lease costs.
0935 - CHARTER SCHOOL REVOLVING LOAN PROGRAM
New non-conversion charter schools may receive low-interest loans from the Charter School Revolving Loan Program to use for start-up costs. The program provides loans of up to $250,000 to be paid back over a time period not to exceed five years. The interest collected is deposited into the Charter School Security Fund and may be used to replenish the Charter School Revolving Loan Fund and offset any loan defaults.