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Charter School Facility Grant (SB740) Program

Grants to California Charter
Schools for Facility Costs

Agency Type:


Funding Source:

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California School Finance Authority (CSFA)

Deadline Date:

10/15/21 5:00 PM


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Grants to California charter schools to defray facility-related expenses. Grant funds may be used for lease and rent as well as maintenance, repair, and other capital projects. Funding is intended to provide financial assistance to charter schools that serve a high percentage of students eligible for free or reduced-price meals (FRPM) or located in a public elementary school boundary serving a similar demographic.

Grant funds may be applied toward a Charter School's facilities costs for all of the following:

  1. 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 Cost Of Living Adjustment Index (COLA) Index (COLA Cap); or
    • The 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.
  2. 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.
  3. Costs described in subdivisions (a)(1) and (a)(2) 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.
  4. 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.

GrantWatch ID#:

GrantWatch ID#: 159591

Estimated Size of Grant:

The grant awards are funded in three apportionments:
- Initial Apportionment is 50% of lease/rent facilities cost (October 31)
- Second Apportionment is 25% of lease/rent (March 1)
- Final True-Up Apportionment is 25% of Other Costs and lease/rent (August 31 or 30 days after receiving all documents)

Additional Eligibility Criteria:

The application is available for schools that meet one of the two following conditions,
(1) A Charter School relocates from a facility that was ineligible for a grant award to a facility that is eligible, and the Application includes a description of the change in facility circumstances; or
(2) A First Year Charter School.

Any Applicant shall be eligible to apply for a grant if all of the following conditions are met:
(a) The Application is submitted by or on behalf of a Charter School.
(b) An approved charter has been awarded, is in place, and is current at the time of Application.
(c) 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.
(d) The Charter School meets one of the following criteria:
(1) Fifty-five percent (55%) or more of the student enrollment at the Charter School site is eligible for prior year FRPM; or
(2) The 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.
(3) 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.
(4) In all subsequent funding rounds, all schools shall adhere to Application dates outlined in Section 10170.5.
(e) The Charter School, educational management organization, or charter management organization is not in default with the requirement of all programs administered by the Authority.
(f) The Applicant is in Good Standing, as described in Section 10170.2(q), during the Fiscal Year. An Applicant found not to be in Good Standing, as determined by their Chartering Authority, shall be ineligible for grant funds. An Applicant may cure ineligibility for grant funds by meeting one of the following criteria:
(1) The Applicant receives confirmation of Good Standing within the Fiscal Year.
(2) An Applicant found not to be in Good Standing solely due to the Applicant failing to meet the requirements of Education Code Section 47607(f)(3) must provide evidence demonstrating fiscal solvency to the satisfaction of the Authority.
Such evidence may include the Applicant’s organizational budgets and audited financials.
(g) 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 not be apportioned for any of the following:
(1) Units of ADA generated through nonclassroom-based instruction as defined in Education Code Section 47612.5;
(2) Facility rent and lease costs associated with a Charter School's occupancy of existing district or county office of education facilities;
(3) 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;
(4) 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;
(5) 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;
(6) Lease costs assessed to the Charter School based on grant funds awarded to the school by the Authority during the same funding round;
(7) 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;
(8) Facility rent and lease costs associated with lease-to-purchase agreements where the rent and lease costs lower the final purchase price;
(9) 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; or
(10) Costs incurred during any period the Applicant is found not to be in Good Standing.

Pre-Application Information:

The Second Application Period for the 2021-22 SB740 Funding Round will be open from 8:00AM on Friday, September 10, 2021 until 5:00PM on Friday, October 15, 2021.

Recording of Webinar:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

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URL for Full Text (RFP):

Geographic Focus:

USA: California

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