AUTHORIZATION:

Elementary and Secondary Education Act of 1965, as amended, Executive Order Title V, Part B, Subpart 2.

OBJECTIVES:

To provide grants to eligible entities to leverage funds through credit enhancement initiatives in order to assist charter schools in using private-sector capital to acquire, construct, renovate, or lease academic facilities.

TYPES OF ASSISTANCE:

Project Grants Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

Grant recipients must deposit the funds received under this program (other than funds used for administrative costs) in a reserve account established and maintained by the entity for this purpose. Amounts deposited in such an account must be used by the entity to help charter schools access private-sector capital for acquiring, renovating, or constructing facilities. Reserve accounts must be used for one or more of the following purposes:

(1)Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein;

(2)Guaranteeing and insuring leases of personal and real property;

(3)Facilitating financing by identifying potential lending sources and encouraging private lending and other similar activities that directly promote lending to, or are conducted for the benefit of, charter schools; and

(4)Facilitating the issuance of bonds by charter schools or by public entities for the benefit of charter schools. This may be accomplished by providing technical, administrative, and other appropriate assistance, including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   A public entity, such as a State or local government entity, a private nonprofit entity, or a consortium of such entities may apply.

Beneficiary Eligibility:   Public charter schools as defined in Section 10310, ESEA.

Credentials/Documentation:   No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure:   This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Applications must be prepared and submitted in accordance with a notice published in the Federal Register. By the due date, eligible applicants must submit to the Department of Education a complete application that addresses the purposes of the program, the selection criteria, and any priorities included in the application notice, and includes all required assurances and signatures. "Intergovernmental Review of Federal Programs."

Award Procedure:   The Department of Education awards these grants on a competitive basis. The program office notifies successful applicants of awards and negotiates and awards grants. Contact the program office for more information.

Deadlines:   Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time:   

The range of approval/disapproval time is approximately 60 to 120 days following the application deadline.

Appeals:   

The General Education Provisions Act hearing procedures regarding recovery of funds are applicable to this program.

Renewals:   

Continuation awards are subject to the availability of appropriations.

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ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   

Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance:   

Funds under this program are available for the Department of Education to obligate by September 30. Once these funds are obligated, they must be expended from the Federal account in five years. In addition, two years after the grantee's receipt of grant funds, the Secretary may collect any or all funds in a reserve account if the grantee has not made substantial progress or is no longer using the funds for their specified purpose. See the following for information on how assistance is awarded/released: Electronic transfer.

POST ASSISTANCE REQUIREMENTS:

Reports:   Each eligible entity receiving a grant under this program annually must submit to the Secretary a report of its operations and activities. Each such annual report must include--

(1) a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity;

(2) a copy of any report made on an audit of the financial records of the eligible entity that was conducted during the reporting period;

(3) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds in leveraging private funds;

(4) a listing and description of the charter schools served during the reporting period;

(5) a description of the activities carried out by the eligible entity to assist charter schools; and

(6) a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity during the reporting period. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.

Audits:   This program is excluded from coverage under OMB Circular No. A-133. The financial records of each eligible entity receiving a grant under this subpart shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant.

Records:   In accordance with the General Education Provisions Act and the Education Department General Administrative Regulations (EDGAR), certain records must be retained for three years after the end of the grant.

FINANCIAL INFORMATION:

Account Identification:  

91-0204-0-1-501.

Obligations:   (Project Grants) FY 08 $8,300,000; FY 09 est $8,300,000; FY 10 est $8,300,000

Range and Average of Financial Assistance:  

Range: $8,000,000. Average: $8,000,000.

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