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Application Submittal
Q. When can applications be submitted?
A. The filing period ended June 5, 2007. --- Regulation Section 1859.161
Q. If I received a CSFP preliminary apportionment before, can I apply again for the same project under Proposition 1D?
A. No. The applicant would have to rescind its prior preliminary apportionment before a new application for the same project can be processed by the OPSC. An applicant can, however, apply for a different project. --- Regulation Section 1859.162
Q. Does a charter school project have to involve a public school district?
A. Yes. The school district in which the charter school will be physically located will have to be involved with the charter school project under the Charter School Facilities Program (CSFP). In addition to providing the charter school with documentation for the preliminary apportionment application, the school district holds title to the charter school property/buildings and signs one or more agreements depending on the kind of project that is proposed. --- Education Code 17078.57(a)(3)(A)
Q. What kind of agreements are required for a new construction project?
A. There are three Charter School Agreements that must be executed before any funding is released for a new construction project. The school district and charter school must sign a Use Agreement pertaining to the use of the charter facility. The charter school and the State must sign a Funding Agreement pertaining to the loan provided by the State for the charter school's 50 percent matching share. The school district, charter school and the State must sign a Memorandum of Understanding (MOU) that identifies respective roles and responsibilities of all parties.
Q. Where do I get templates or samples of the Charter School Agreements?
A. Please go to the California School Finance Authority Web site at www.treasurer.ca.gov/csfa for templates of the MOU and Funding Agreement. There is no sample of a Use Agreement. The Use Agreement must be written by the charter school and the school district.
Q. Does the school district in which the charter school project is physically located have to have new construction eligibility?
A. No. In past funding rounds, the school district in which a charter school was physically located must have had new construction eligibility as determined by the OPSC for school facilities purposes. Proposition 1D removed this requirement. However, for charter schools that apply independently, the school district must still certify to the number of unhoused students a charter school will house in a new construction project. --- Education Code 17078.54(c)(3)
Q. If a school district certifies to very few students or no students at all on the number of unhoused pupils being housed by the project, can the charter school project still get funded?
A. Yes. If the charter school application for new construction is successful, the funding would be based on the number of pupil grants requested on the application despite the number of students that the school district certifies would be housed by the charter school project. --- Education Code 17078.53(d)
Q. Does the school district's eligibility get reduced if it certifies that students will be attending the charter school?
A. Yes. If the school district has pupil grant eligibility as determined by the State, it will be reduced by the number of the district's unhoused students that the school district has stated will be housed by the charter school project in its certification.
Q. Can charter school facility funds be used to modernize buildings?
A. Yes. However, this type of work has been identified in AB 127 as "rehabilitation". Rehabilitation is a new component of the CSFP that is very similar to modernization, but can include additional work such as structural changes. Rehabilitation funds are available for existing school district buildings that are 15 years or older and that have not been previously modernized with state funding. --- Education Code 17078.54(a)
Q. Does a school site have to have modernization eligibility for a rehabilitation project?
A. No. The funding for a rehabilitation project would be based on the square footage in the charter school project. --- Regulation Section 1859.163.5
Q. If a charter school submits an application, what communication needs to take place with the school district?
A. A charter school applying independently for new construction funding may do so once it has provided written notification to the superintendent and governing board of the district where the project is physically located. The written notification of intent to apply (with proof of delivery) must be made 30 days prior to submitting the preliminary apportionment application to the OPSC. --- Regulation Section 1859.162(b)
For rehabilitation, when a charter is submitting an application on its own behalf, the charter and school district must develop and sign an agreement that allows the charter to use and rehabilitate district facilities. Otherwise, no notification is required for rehabilitation, or when a school district applies on behalf of the charter school. --- Regulation Section 1859.163.4(d)
Q. What should the notification to the school district include?
A. The charter school should notify the school district that they are applying for new construction CSFP, funding including the number of pupil grants being requested and at what grade level. The notification should also include a request that the school district, within 90 days, certify to the number of the district's unhoused students that the charter school would house. In addition, the charter should request that the school district update its enrollment projection (submit a Form SAB 50-01 to the OPSC) if it has not done so in the current school year. If the district has not established eligibility, the charter should request that the school district submit a Form SAB 50-01, Form SAB 50-02 and a Form SAB 50-03 to the OPSC. --- Regulation Section 1859.162.1
Q. If a school district is not required to have eligibility, why does a school district have to update its enrollment projection or establish eligibility?
A. The enrollment projection will be used in a formula to determine preference points for the relief of overcrowding should the program become oversubscribed. --- Regulation Section 1859.164.1(b)
Q. How does the school district make the certification?
A. In cases where the charter school is applying for new construction funding independently, the certification must be made through a resolution at a regularly scheduled board meeting. The resolution must be an action item that includes the opportunity for discussion. The certification should also include an explanation of how the district arrived at the number of the district's unhoused students that the charter school project will house. --- Regulation Section 1859.162.1
Q. Does the certification have to be submitted with the Application for Preliminary Apportionment?
A. No. The OPSC recognizes that the certification documentation may only be available after the charter has submitted the preliminary apportionment application. The charter should submit the documentation to the OPSC as soon as the charter receives it. If the school district does not make the certification, the OPSC will assist the district with the certification process.
Q. Is a resolution required if the school district is applying on behalf of a charter school?
A. No. However, if the school district has determined that the number of the district's unhoused students is less than the number of pupil grants it has requested on behalf of the charter school on the Form SAB 50-09, the school district must submit an explanation of how it determined the number to the OPSC.
Q. What forms are required to submit an application?
A. A complete listing of application requirements can be viewed by clicking here.
Q. What if I miss components of my application?
A. The applicant will be given a 24-hour courtesy phone call to allow for the submission of any missing documentation.
Q. What if an application is submitted and it has problems or errors?
A. The OPSC will review each application as it is submitted. If there is an error or issue that needs to be remedied we will send the charter/district a letter requesting changes or more information. The charter/district will have 15 days to respond. If the response is not received within 15 days, the application will be returned. The charter/district may resubmit a returned application only within the filing period.
Q. What if the charter serves K-12 pupils and the school will be built in an area served by both an elementary school district and a high school district?
A. For charter schools applying independently, a certification and an Application for Preliminary Apportionment would be required for both the elementary and the high school districts serving that area, proportionate to the number of pupils being used for each grade level. In addition, if a charter school project is located where there are overlapping district boundaries, but proposes to serve only the grade levels served by just one of the districts, the district that serves the same grade levels will be subject to the district related requirements --- Regulation Section 1859.162.3.
Q. What if the school district where the charter facility will be located has not established eligibility?
A. The appropriate documentation to establish new construction eligibility would be required to be submitted at the time the Application for Preliminary Apportionment is submitted. We encourage the charter school to work with the district to establish eligibility. A good working relationship between the two parties can result in a school facility that is satisfactory for all parties involved. However, if the district has never participated in the SFP program and does not wish to participate at this time, the OPSC cannot require the district to establish new construction eligibility.
Q. What if the school district where the charter facility will be located has not updated eligibility?
A. The district will need to update their eligibility by submitting the latest enrollment information on the Form SAB 50-01 prior to the OPSC processing the preliminary apportionment application. If there are problems with this process, the OPSC will assist the district.
Q. How can a charter school filing on its own behalf receive a project tracking number?
A. Project Tracking Numbers (PTN) are needed to submit a preliminary apportionment application and are matched to the school district where the charter school will be physically located. To generate a tracking number, the charter school will need to have access to the district's password. With the password, the PTN can be generated from the OPSC Web site. If the district does not know the password or if the charter has difficulty obtaining it from the district, please contact the OPSC for assistance.
Q. Where should the data for free and reduced lunch percentages come from?
A. The data should come from the most recent (2007 Application should use October 2006/2007) Consolidated Application Part 2 submitted to the California Department of Education (CDE). A charter school applicant may use whichever associated percentage is more advantageous. The applicant can choose between free/reduced lunch percentages from the charter school itself, from the school district where the charter school is physically located or from the public school nearest to the charter school project. --- Regulation Section 1859.164.1(a)
Q. Can school districts qualify for the non-profit preference points?
A. No. Only those schools with a 501(c)(3) or non-profit public benefit corporation status are considered non-profit for the purposes of the Charter Schools Facilities Program. --- Regulation Section 1859.2
Q. How does OPSC determine if a charter school is considered urban, rural or suburban?
A. This determination is based on information provided by the National Center for Education Statistics. It is calculated using the census tracts from the most recent census data. This information can be found at http://nces.ed.gov/globallocator. --- Regulation Section 1859.2
Q. Can a charter file for eminent domain?
A. It is our understanding that charter schools cannot do this.
Q. Can a school district file for eminent domain on behalf of a charter school?
A. We do not see any reason that this could not occur, however, please check with your legal counsel before doing so.
Apportionments and How They are Calculated
Q. Does the charter school have to pay for a portion of a project?
A. Yes. For both new construction and rehabilitation projects, the charter must provide a 50 percent matching share which can come from the charter's own resources or it can be borrowed from the State and paid back in annual installments for up to 30 years.
Q. Is the preliminary apportionment amount the state share or the total project cost?
A. Neither. The preliminary apportionment amount represents the state's share of the project's eligible costs in the form of a grant in addition to the charter's matching share in the form of a loan. Should some of the new construction project costs exceed the estimates provided to calculate the preliminary apportionment (i.e., site development, hazardous material cleanup, Department of Toxic Substances Control fees or relocation), they may be funded at the final apportionment on a first come, first served basis if there are funds remaining in the Charter School Facilities Account and if they are eligible project costs.
Q. What are the pupil grant amounts for new construction?
A. The pupil grant amounts are as follows --- Regulation Section 1859.163.1(a)(1):
- Elementary - $8,120
- Middle - $8,597
- High - $11,229
- Non-severe - $17,304
- Severe - $25,874
Q. Is there a limit on the number of pupil grants that can be requested for new construction funding?
A. There are no longer caps on the number of pupil grants that can be requested under Proposition 1D. The charter school is, however, limited to the number of pupil grants it can request based on the state loading standards for the number and grade level of classrooms in the project. The charter school will also be limited by the amount of the matching share that the charter school is able to repay while still remaining financially sound. --- Education Code 17071.25(a)(2)(A)
Q. Is there a limit on the number of pupils we can build a new school for?
A. No. Other than the limiting state loading standards mentioned above, you can build for more pupils than you request grants for, however, the state will not contribute funding for any pupils over the amount requested on the preliminary apportionment application. In addition, the CSFA will also review the reasonableness of the charter's enrollment projections with respect to the number of pupil grants requested as part of its financial soundness review.
Q. Is there a limit on the amount of construction funding that will be provided?
A. There are no longer limits on the construction funding that can be requested under Proposition 1D. However, each charter school will be limited by the amount of the matching share obligation that the charter school is able to repay while remaining financially sound.
Q. What is the grant for a rehabilitation project?
A. The grant is determined by a dollar per square foot amount based on the project's square footage including the square footage of classrooms, multi-purpose rooms, gyms, libraries and administrative facilities. The rehabilitation project must include at least one classroom. The current grant amounts are as follows --- Regulation Section 1859.163.5(a)(G):
- Toilet Area = $139/square foot
- Non-Toilet Area = $252/square foot
Q. Is there a cap on the grant for a rehabilitation project?
A. Yes. A rehabilitation project can be funded up to what the same project would receive if it were a new construction project based on the loading standards of the classrooms in the project. For example, if there are four K-6 classrooms in the rehabilitation project, the state share of the project's grant would be capped at 4 x 25 x $8,120 = $812,000 where the "25" represents the state loading standard for one K-6 classroom. --- Regulation Section 1859.163.5(a)(2)
Q. If a charter school is determined to be in an urban area, does it automatically qualify for the urban grant?
A. No. To qualify for the urban grant for a new construction project, new sites must be at least $750,000 per useable acre, the project must include multi-level construction and the site size must be 60 percent or less of the CDE recommended site size for traditional schools. To qualify for the urban grant for a rehabilitation project, the only requirement is that the site size be 60 percent or less of the CDE recommended site size for traditional schools. --- Regulation Section 1859.163.1(a)
Q. Is the charter school assured to receive all of the grants requested if the application is approved and apportioned?
A. No. The grants requested on the preliminary apportionment application are an estimate of eligible grants only. The final determination of funding will occur at the final apportionment. The OPSC will review the Division of the Stat Architect (DSA) and California Department of Education (CDE) approved plans to determine eligible project costs for final apportionment determination.
Q. Will the total grant amounts be adjusted for inflation or construction cost index increases when a project is converted?
A. Yes. The approved preliminary apportionment requested will be increased by an inflation factor based on the Marshall Swift Class B Construction Cost Index to account for inflation. The final apportionment will be calculated using the grant amounts in effect at the time the conversion application is submitted. --- Regulation Section 1859.163.1(a)(8)
Q. When will the projects be apportioned?
A. We anticipate that the preliminary apportionments will go before the State Allocation Board for approval at the January 2008 SAB meeting, but the number of applications received will ultimately determine the SAB approval date.
How Apportionments are Awarded
Q. How does OPSC determine which applications receive funding?
A. If the estimated total apportionments of all Financially Sound Preliminary Charter School Applications received exceed the funds made available through Proposition 1D, the applications shall be identified in each of the following four categories:
- Geographical Region One, Two, Three, or Four
- Urban, Rural, or Suburban areas
- Large, Medium, or Small Charter Schools
- K-6, 7-8, or 9-12 grade levels
The Board shall first apportion one project of each possible type, a maximum of four in category (a) and a maximum of three in categories (b) through (d), starting with (a) and continuing through (d). If more than one application is received of the same type within a category, the Board will apportion based on which project has the highest preference points. If a project has the highest preference points but was previously apportioned, the project with the next highest preference points will be apportioned. The same process will continue for the remaining categories until the Board has apportioned a project within each type in categories (a) through (d), or until no funding remains. If after funding one project in each category (a) through (d), funding remains available, the process shall be repeated until no funding remains.
All Preliminary Charter School Applications received from a charter school will be processed in the date order received by the OPSC. If more than one Preliminary Charter School Application is received on the same day from the same charter school, those applications will be processed by the OPSC based on the priority order assigned to those applications by the charter school on the Form SAB 50-09. --- Regulation Section 1859.164
Q. How are the regions divided?
A. The regions are divided as follows --- Regulation Section 1859.2:
- Region 1 - Alpine, Amador, Butte, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mendocino, Modoc, Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Sonoma, Sutter, Tehama, Trinity, Yolo, and Yuba
- Region 2 - Alameda, Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Mono, Monterey, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz, Stanislaus, Tulare, and Tuolumne
- Region 3 - Los Angeles, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura
- Region 4 - Imperial, Orange, Riverside and San Diego
Q. Do the charter schools that did not receive funding from previous bonds receive any preference with the 2007 program?
A. No. The funding priority is established in law.
Q. Will an application be put on an unfunded list if it does not get funded this time?
A. Currently, there are no provisions for an unfunded list for eligible projects that do not receive funding. As money is returned to the State Unrestricted Charter School Fund in the form of lease payments from previous charter school apportionments, additional filing periods may be established. We currently do not have any time frames for when this may occur. --- Regulation Section 1859.161
Q. How long do we have from the date of apportionment to convert the project?
A. Four years with a possible one year extension. --- Regulation Section 1859.166
Use of Grant Funds
Q. Is advanced funding available for site acquisition or design costs?
A. Yes. There is advanced funding available for design for a rehabilitation project and for both site acquisition and design for a new construction project. This funding may be applied for after the preliminary apportionment has been granted and any required Charter School Agreements have been executed. For design funding requests, a Form SAB 50-05 must be submitted. For advanced site funds, a new Form SAB 50-09 must be submitted along with a preliminary appraisal and a CDE contingent site approval letter. The applicant requesting the release of funds for both site acquisition and/or design must have been deemed and maintained financial soundness status by CSFA. --- Regulation Section 1859.164.2
Q. Can the funding be used to retrofit an existing building that is not Field Act compliant?
A. Yes. New construction CSFP funding may be used for new construction of a charter school facility or to purchase and retrofit an existing building --- Education Code 17078.54(a). The cost of the building purchased is taken from the base grant. The cost of the land is taken from the site acquisition funds.
Q. Does the project need to be Field Act compliant upon completion?
A. Yes. --- Education Code 17078.54(c)(1)
Q. Can the charter purchase a site larger than the CDE recommended site size?
A. Yes. However, the site acquisition funding will be prorated proportionate to the CDE recommended site size.
Q. Can funds be used to build a new charter school facility on leased land?
A. Yes. The land can be leased as long as the lease terms meet the requirements of SFP Regulation Section 1859.22. The property must be leased from a governmental agency. Specific lease terms must apply (please see Section 1859.22 for more information).
Q. Can new construction funding be used to reimburse projects that have already been started or completed?
A. Yes. However, current regulations state that a district or charter must not have occupied the school site before a complete final apportionment Application for Funding (Form SAB 50-04) has been submitted to the OPSC and all other SFP requirements have been met including obtaining DSA and CDE approvals for the project.
Q. What kind of buildings can be rehabilitated?
A. District owned facilities that are 15 years old or older that were not previously modernized with state funding. --- Regulation Section 1859.163.4
Q. What if a building was only partially modernized? Can the charter still get funding for rehabilitation?
A. Yes. However, the rehabilitation grant would be reduced to offset the modernization work that was performed. --- Regulation Section 1859.163.6
Q. Can a charter school rehabilitate just one facility like a gym or a library?
A. No. The charter can rehabilitate multi-purpose rooms, gyms, libraries and administrative facilities, but it must also rehabilitate at least one classroom. --- Regulation Section 1859.163.4(b)
Q. Can a charter use the rehabilitation grant to replace old facilities?
A. Yes. The funding can be used to replace facilities that are at least 15 years old as long as the new facilities have the same square footage as those replaced.
Q. Can charter school facility funds be used on leased buildings?
A. No. The buildings must be owned. The funds may be used to purchase a building which the charter school was previously leasing though.
Q. Who holds title to the facility built with new construction funding?
A. The school district where the charter school is physically located. --- Education Code 17078.57(a)(3)(A) |
