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Qualified School Construction Bond Program Shannon Farrell-Hart California Department of Education School Facilities P

2. Qualified School Construction Bonds Overview. Tax credit bonds that were created by the American Recovery and Reinvestment Act (ARRA) of 2009Provides federal tax credits for bondholders in lieu of interestThis is not a grant, it is a tax credit. 3. Qualified School Construction Bonds Overview.

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Qualified School Construction Bond Program Shannon Farrell-Hart California Department of Education School Facilities P

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    1. Qualified School Construction Bond Program Shannon Farrell-Hart California Department of Education School Facilities Planning Division Webinar October 19, 2010

    2. 2 Qualified School Construction Bonds Overview Tax credit bonds that were created by the American Recovery and Reinvestment Act (ARRA) of 2009 Provides federal tax credits for bondholders in lieu of interest This is not a grant, it is a tax credit

    3. 3 Qualified School Construction Bonds Overview Qualified School Construction Bonds (QSCB) are defined as any bond issued if: 100 percent of available project proceeds are used for: Construction, rehabilitation, or repair of a public school facility For the acquisition of land on which a facility will be constructed using QSCB

    4. 4 Qualified School Construction Bond Overview Total national authorization for 2009 and 2010 is $22 billion $11 billion in 2009 $11 billion in 2010 U.S. Department of Treasury issued 2010 guidance and allocations Notice 2010-17

    5. 5 Qualified School Construction Bond Tax-Credit Authorization 2009 authorization for California was $1,355,491,000 2010 authorization for California is $1,266,626,000 $546,568,000 was directly allocated to twelve large California school districts Remaining $720,058,000 is authorized through the California Department of Education (CDE) and the California State Treasurer’s Office, California School Finance Authority (CSFA)

    6. 6 Qualified School Construction Bond 2010 Legislation Assembly Bill (AB) 2560 (Brownley), Chapter 266, Statutes of 2010, authorizes the CDE and CSFA to distribute the states 2010 volume cap for the QSCB program AB 2560 provides authorization, process, and criteria for allocation/issuance of 2010 QSCBs

    7. 7 Qualified School Construction Bond 2010 CDE Allocation $866,405,658 will be allocated to districts and county offices of education by the CDE $651,652,000 in 2010 allocation $214,753,658 in rollover of 2009 allocations $68,406,000 will be allotted to the CSFA to assist charter schools in obtaining issuance http://www.treasurer.ca.gov/csfa/qscb.asp

    8. 8 Qualified School Construction Bond 2010 CDE Program Who can apply: All districts Except districts that received a 2009 allocation and did not issue may not apply until June 24, 2011 County offices of education Who cannot apply: Districts that received a direct allocation from the U.S. Department of the Treasury

    9. 9 Qualified School Construction Bond 2010 CDE Program Maximum of $25,000,000 authorization per district or county office of education No minimum for bond authorization

    10. 10 Qualified School Construction Bond Timeline October 1, 2010 application posted to CDE Website http://www.cde.ca.gov/ls/fa/qs/

    11. 11 Qualified School Construction Bond Timeline November 5, 2010 – first day applications may be submitted via certified mail Any applications postmarked prior to November 5, 2010 will be returned to the district OTHER FORMS OF DELIVERY WILL NOT BE ACCEPTED

    12. 12 Qualified School Construction Bond Timeline December 1, 2010 – CDE will not authorize any district or county office of education prior to this date

    13. 13 Qualified School Construction Bond 2010 CDE Program If the program is oversubscribed: First, earliest date of postmark Second, projects submitted have received Division of the State Architect approval before the QSCB application was submitted Third, greater percentage of enrolled pupils who qualify for federal free and reduced priced meals program

    14. 14 Qualified School Construction Bond 2010 CDE Program The CDE shall maintain a waiting list of all eligible school districts and county offices of education in the priority established

    15. 15 Qualified School Construction Bond Issuance Projects will be funded by voter-approved bonds or bond anticipation notes as authorized by Education Code Section 15150 Small districts (enrollment of 2,500 or less) and county offices of education may use other forms of financing but must submit a resolution adopted by the governing board authorizing the issuance

    16. 16 Qualified School Construction Bond Issuance Fifteen days after bond issuance, a copy of the appropriate federal Internal Revenue Service Form, Information Return for Tax-Exempt Bonds will be submitted to CDE as confirmation of issuance

    17. 17 Qualified School Construction Bond Issuance Within six months of issuance the school district or COE must be under contract for use of available project proceeds equal to 10% Proceeds expended within three years of issuance Thirty days after the completion of the expenditure the district or county office of educaiton shall submit a completion report to the CDE

    18. 18 Contacts School Facilities Planning Division 916-322-2470 Shannon Farrell-Hart, Education Fiscal Services Consultant 916-323-3923 sfarrell@cde.ca.gov

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