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.
Charter school leaders report that lack of access to adequate facilities is one of their primary concerns and one of the biggest barriers to growth. In fact, nearly one in five charter schools had to delay their opening date by a year or more due to facilities related issues. And nearly half of charter schools were in school buildings that did not have space for their anticipated enrollment in five years. Parent demand for charter schools is increasing, but facilities constraints are restricting supply.
Facilities related issues have discouraged countless school leaders from submitting or completing their application. The Charter School Facility Center is dedicated to helping public charter schools access better and more affordable facilities and facility financing.
In addition to the information you'll find below, we recommend school leaders visit LISC’s School Build for more resources to help in the facility development process. Additional information can also be found at the Department of Education's National Charter School Resource center.
The Charter School Facility Center’s newsletter provides news, policy developments, and best practices related to facilities, real estate, and design (FRED).
Are you looking to make a difference? Millions of children are seeking a better education and they need new schools and new school facilities.
The third edition of Borrowing with Tax-Exempt Bonds provides public charter schools with information about tax-exempt financing, including information about who and what types of projects qualify for tax-exempt financing and how to decide if tax-exempt financing might be right for your school.