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 (CFDA 84.282D) to provide California charter schools with assistance for facilities costs. The $50 million federal grant was allocated over a five-year period 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. Charter schools must, at a minimum, be in good standing with their chartering authority and in compliance with the terms of their charter, provide site-based instruction, and have completed at least one school year of instructional operations to be considered eligible for funding. 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 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.

QUALIFIED SCHOOL CONSTRUCTION BONDS (QSCBs)

The American Recovery and Reinvestment Act of 2009 (ARRA) provided funding for new construction or renovation of school facilities through the use of Qualified School Construction Bonds (QSCBs). Of California's $1.42 billion in "volume cap" allocation for the issuance of QSCBs, approximately $141 million was reserved for use by charter schools through the allocation and/or issuance of conduit revenue bonds by CSFA. To date, CSFA has allocated all of the $141 million. Of the total allocation to charter schools, CSFA has issued $51.6 million.