State Allocation Board Increases Facility Grants and Developer Fees

At their January meeting the State Allocation Board (Board) adjusted the School Facility Program (SFP) grants, the Level 1 developer fees and approved $243 million in Charter School Facilities Program Unfunded Preliminary Apportionments. The regulations package included items changing the new construction funding application process requiring districts to re-establish their eligibility, including a requirement to execute the grant agreement.

The Board adopted an increase of 4.17% for 2018 SFP grants on a per-pupil basis. Effective January 1, 2018 the new construction grants for Elementary, Middle, and High are $11,567, $12,234, and $15,567 respectively. The modernization grants are $4,404, $4,658, and $6,099 respectively.

The Board also increased the statutory Level 1 developer fees to $3.79 per square foot for residential development and $0.61 per square foot for commercial development. The increase takes effect immediately and may now be implemented by school districts through local action.

The action by the Board does not mean districts can automatically increase their rates. The district’s developer fee justification report must be updated. The Governing Board of an LEA will need to adopt a resolution before the district can increase the fees. The increase becomes effective 60 days after the resolution is adopted.

Proposition 51 included $500 million for the Charter School Facility Program (CSFP). Preliminary apportionments are a reservation of CSFP bond authority for projects. The Board approved 25 Preliminary Charter School Apportionments worth $243,013,928. The Office of Public School Construction (OPSC) anticipates bringing another item to a future Board meeting to award additional preliminary CSFP apportionments up to the amount of available CSFP bond authority.

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