Charter School Facility Grant Program – (SB740)

Charter School Facility Grant Program – (SB740)

Status: ACTIVE
Funder: California State Treasurer's Office
Last Updated: March 13, 2026

Summary

The Charter School Facility Grant Program (SB740) aims to provide financial assistance for charter school facilities, specifically targeting schools that enroll a significant percentage of students eligible for free or reduced-price meals. This program, now managed by the California School Finance Authority, offers annual grants to help offset facility costs. Funding availability is announced annually on the CSFA website, ensuring support for schools in need of financial aid for their operational expenses.

Overview

Purpose To provide financial assistance for charter school facilities. Description The Charter School Facility Grant Program provides annual grants to offset annual on-going facility costs for charter schools that service a high-percentage of students eligible for free or reduced-price meals or located in a public elementary school boundary serving a similar demographic. This program, previously administered by the California Department of Education, was transferred to the California School Finance Authority (CSFA) in 2013-14. Availability of funding is announced on the CSFA website each year.

Eligibility

You can learn more about this opportunity by visiting the funder's website. Any Applicant shall be eligible to apply for a grant if all of the following conditions are met:The Application is submitted by or on behalf of a Charter School.An approved charter has been awarded, is in place, and is current at the time of Application.In the case of a First Year Charter School, a charter petition has been submitted for approval to the Chartering Authority and evidence, such as a copy of the charter petition, is submitted that the school anticipates beginning operations in the Fiscal Year for which an Application is submitted.The Charter School meets one of the following criteria:Fifty-five percent (55%) or more of the student enrollment at the Charter School site is eligible for prior year FRPM; orThe Charter School site for which grant funds are requested is physically located in the attendance area of a public elementary school in which fifty-five percent (55%) or more of the pupil enrollment is eligible for prior year FRPM and the school site gives a preference in admissions to pupils who are currently enrolled in that public elementary school and to pupils who reside in the elementary school attendance area where the Charter School site is located, as determined by the local school district.First Year Charter Schools not operational in the prior year shall be eligible in the current year if the school meets the FRPM Eligibility requirements based on current year data.In all subsequent funding rounds, all schools shall adhere to Application dates outlined in Section 10170.5.The Charter School, educational management organization, or charter management organization is not in default with the requirement of all programs administered by the Authority.The Applicant is in Good Standing, as described in Section 10170.2(q), during the Fiscal Year. The Charter School shall not operate as, or be operated by, a for-profit corporation, a for- profit educational management organization, or a for-profit charter organization.Grant funds may be applied toward a Charter School's facilities costs for all of the following:Costs associated with facility rents or leases as evidenced by an executed rental or lease agreement and beginning with the 2017-18 funding round, shall be subject to one of the following conditions:Reimbursable facility rent or lease costs do not exceed prior year's reimbursable costs on file with the Authority, subject to an adjustment of the annual COLA Index (COLA Cap); orThe rent or lease costs of New Facility Agreements are at or below Fair Market Rent based on an Independent Appraisal as described in Section 10170.6(d) and paid for by the Applicant.If the Independent Appraisal finds the rent and lease costs above the Fair Market Rent, the costs will be based on Fair Market Rent as determined by the Independent Appraisal.If funds remain, costs associated with the facility but not limited to, remodeling buildings, deferred maintenance, initially installing or extending service systems and other built-in equipment, improving sites, and common area maintenance charges that are based on the Charter School's usage of the facility and are limited to maintaining and repairing the facility and its common areas will be evaluated for an award.Costs described above and associated with portions of school district or county office of education facilities that are not existing school district or county office of education facilities and are not reasonably equivalent facilities received from the Charter Authority.Costs associated with a ground lease as evidenced by an executed rental or lease agreement where there is no existing district facility on the ground being leased.

Ineligibility

Grant funds may not be apportioned for any of the following:Units of ADA generated through nonclassroom-based instruction as defined in Education Code Section 47612.5;Facility rent and lease costs associated with a Charter School's occupancy of existing district or county office of education facilities;Facility rent and lease costs associated with a Charter School's occupancy of reasonably equivalent facilities received from its Chartering Authority pursuant to Education Code Section 47614;Costs incurred to meet a Charter School's local match obligation for Charter School facilities that receives funds pursuant to the Charter School Facilities Program;Costs incurred for instructional or administrative costs including, but not limited to, salaries and benefits paid to teachers, instructional aides, the educational management organization or charter management organization responsible for managing the Charter School, or the Chartering Authority and existing district personnel;Lease costs assessed to the Charter School based on grant funds awarded to the school by the Authority during the same funding round;Facility rent and lease costs associated with a facility previously purchased and paid in full by the Charter School with State Charter School Facilities Incentive Grants Program funds unless those costs are associated with capital improvements;Facility rent and lease costs associated with lease-to-purchase agreements where the rent and lease costs lower the final purchase price;Facility rent and lease costs associated with a facility that is inaccessible to the Applicant. The Authority reserves the right to request evidence such as a Certificate of Occupancy or letter from the lessor that establishes the date the Applicant began to occupy the leased site; orCosts incurred during any period the Applicant is found not to be in Good Standing