-
- May 23, 2019
- Legal Alerts
- 5 Minute Read
The California School Finance Authority (“CSFA”) has announced a filing deadline of 5:00 pm on June 3, 2019, for applications for funding from the Charter School Facility Grant Program, also known as the “SB 740” Program. The Program reimburses rental costs for classroom-based charter schools that meet certain eligibility criteria based on the percentage of students eligible for free and reduced-price meals, as described below. Funds under the Program can be used to reimburse the charter school for rent payments and other qualifying expenses incurred in using private facilities, including private facilities developed by and leased from a supporting organization. Funds provided under the Program cannot be used to reimburse a charter school for rent costs for existing school district or county office of education facilities, such as facilities provided by a school district under Proposition 39.
To be eligible, the charter school may show that fifty-five percent (55%) or more of its enrolled students qualify for free or reduced-price meals. Alternatively, the site must be located in the attendance area of a public elementary school in which fifty-five percent (55%) or more of the students qualify for free and reduced-price meals, as long as the charter school gives a preference in admissions to those students. To qualify, a charter school must have an approved charter and be in good standing with its authorizer. A charter school cannot be operated as or by a for-profit organization and cannot be in default with the requirement of any program administered by CSFA. A first-year charter school may apply for the Program if the charter petition has been submitted and the charter school anticipates beginning operations in the upcoming fiscal year.
Reimbursement under the Program is limited to the lesser of seventy-five percent (75%) of the annual rent cost or a set amount of reimbursement per unit of ADA (in 2018-2019, this “ADA Cap” was $1,147 per unit of ADA). For those charter schools returning to the program, CSFA will ensure that the reimbursement amount does not exceed the prior year’s reimbursement by more than an annual cost of living adjustment (COLA). CSFA will confirm that the rent costs do not exceed fair market value by referring to an independent appraisal for new charter schools or charter schools in new leases. This means that any charter schools applying to the Program for the first time or applying under a new lease (which is not a renewal of an existing lease) will be asked to provide an independent appraisal to CSFA as part of the application process. A qualified individual must prepare the appraisal, not a party related to the charter school. It must certify that the appraisal includes a fair market rent analysis that meets the Uniform Standards of Professional Appraisal Practice (USPAP) standards.
###
Contact YM&C with questions regarding this Legal Alert:
Remember, YM&C strongly advises that you seek legal counsel before acting on any information from our Legal Alerts. They provide general information about events of current legal importance but do not constitute legal advice. As the information contained here is necessarily general, its application to a particular set of facts and circumstances may vary.
