Financing a charter school facility is challenging enough. Refinancing a charter school facility is often a larger project and has more consequences because long term debt can last for 30 years or more. The stakes can be significant when locking into long term financing.
In State Policy Analysis: State Support for School Facilities and Charter Schools, the Facility Center analyzes state funding for all public school facilities and identifies opportunities for charter schools to participate in this broader funding.
Since the early 1970s, moral obligation bonds have been used to finance housing, higher education facilities, hospitals, corrections facilities, and more. Some states are now using this tool to help charter schools save on borrowing costs.
Former credit rating analyst Liz Sweeney outlines recommendations for charter schools to maximize interactions with rating agencies.
Does a moral obligation affect a state’s credit rating?
State credit enhancement programs can provide effective, low-cost financing support for charter schools seeking to reduce costs for facilities financing.
The Charter School Facility Center’s newsletter provides news, policy developments, and best practices related to facilities, real estate, and design (FRED).
Charter schools are eligible uses of New Market Tax Credits (NMTC). There have been 75 NMTC transactions in schools, and most of them have been charter schools.