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Facilities Financing Options at OSSE
The Office of Public Charter School Financing and Support (OPCSFS) has a range of financial tools, as well as grants, to help public charter schools meet facility needs. The OPCSFS offers support in the form of “gap financing” for public charter school facility projects. This support helps by leveraging the facilities allowance to secure private financing and other sources. The OPCSFS offers the following products to provide the supplemental capital that may be necessary to allow public charter schools to secure appropriate facilities through new construction, acquisition, and/or rehabilitation:
Direct Loan Fund: The Direct Loan program was funded initially by the District of Columbia 2003 Appropriations Act to structure and provide loans of up to $2,000,000.00 to District of Columbia public charter schools for the purpose of construction, acquisition, renovation, and and/or maintenance of public charter school facilities.
- Eligibility and application process for a Direct Loan:
To be eligible for a loan an applicant shall be one of the following:
(A) A public charter school with a charter in effect pursuant to Chapter 18 of DC Code § 38-1800.01 et seq., which meets or exceeds its performance goals as outlined in its originating charter;
(B) A limited liability company that participates in a New Markets Tax Credit program transaction structure with public charter schools; or
(C) A nonprofit corporation that develops and finances a facility that will be occupied by a public charter school throughout the term of the loan; provided, that in the event the facility financed is not occupied by a public charter school, the loan shall be deemed to be in default.
The OSSE Credit Enhancement Fund Credit Committee makes all determinations on loan requests made, which are done on a rolling basis. The Credit Committee meets monthly. The yearly calendar of Credit Committee meetings is published via the District of Columbia Register.
Credit Enhancement Revolving Fund: The Credit Enhancement Revolving Fund is authorized by Section 603 (e)(3)(C)(iii) of the Student Loan Marketing Association Reorganization Act of 1996 (20 U.S.C. 1155(e)(3)(C)(iii)) and approved in accordance with D.C. Official Code§2-301.05a (Supp. 2007). The Credit Enhancement Revolving Fund provides up to $1,000,000.00 in enhanced credit, lease guarantees, and access to financial assistance to eligible public charter schools for the acquisition, renovation, and/or construction of school facilities.
- Eligibility and application process for a Credit Enhancement:
- Rolling Approval Process:
Grants under the Credit Enhancement Program are available and awarded through the OSSE Credit Enhancement Fund Credit Committee on a rolling, first-come, first-serve basis, to the extent of available funding and appropriations, and satisfaction of the requirements of the program. The application review process will remain open only to the extent of available funding and appropriations.
- Eligible projects:
In order to be eligible for a grant under the Program, a project shall have prior approval (OSSE Credit Enhancement Fund Credit Committee) for financing, or financing contingent on a Qualified Credit Enhancement that does not exceed the maximum grant amount ($1,000,000.00).
The term "project" shall be defined to mean a proposal to:
- (a) Obtain financing to acquire interests in real property (including by purchase, lease or donation), including financing to cover planning, development, and other incidental costs;
- (b) Obtain financing for construction of facilities or the renovation, repair, or alteration of existing property or facilities (including the purchase or replacement of fixtures and equipment), including financing to cover planning, development, and other incidental costs; or
- (c) Enhance the availability of loans (including mortgages) and bonds.
Further information concerning funding requests and applications for both Credit Enhancement grants and Direct Loans may be obtained by contacting Debra Roane (debra.roane@dc.gov), Financial Program Specialist at the Office of Public Charter School Financing and Support.