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Qualified School Construction Bonds (QSCBs)
Background
The American Recovery and Reinvestment Act (ARRA) of 2009 provides funding for new construction and renovation through the use of Qualified School Construction Bonds (QSCB). California received more than $773 million in allocation for calendar year 2009. Of this amount, approximately $73 million has been reserved for use by charter schools through the issuance of conduit revenue bonds by California School Finance Authority (CSFA) which will be designated as QSCBs. In October 2009, CSFA made a preliminary award of borrowing authority totaling $29.2 million to six charter schools and expects to make additional preliminary awards for borrowing authority at its June 2010 Board meeting. Currently, it is estimated that after the June 2010 meeting, there will be approximately $20 million of borrowing authority still available from CSFA’s 2009 allocation. CSFA is now accepting new applications from charter schools for the additional borrowing authority.
Funding Description
QSCBs offer charter schools the ability to sell bonds and use the revenue for construction, rehabilitation or repair of school facilities; acquisition of land; or to purchase equipment related to project construction or rehabilitation.
Open Filing Period
The Authority has approved an open application period, effective July 14, 2010. QSCB applications are now being accepted on a continuous basis.