D.C. Code § 38-1833.02

Current through codified legislation effective September 18, 2024

Section 38-1833.02 - Direct Loan Fund for Charter School Improvement

(a) There is established within the District of Columbia a Direct Loan Fund for Charter School Improvement.

(b) The Direct Loan Fund for Charter School Improvement shall be administered by the Office of Charter School Financing and Support, except that no loan may be made under this section without the approval of the committee described in section 603(e)(3)(C)(iii) of the Student Loan Marketing Association Reorganization Act of 1996 ( 20 U.S.C. 1155(e)(3)(C)(iii) ).

(c) Funds distributed under this section shall be for construction, purchase, renovation, and maintenance of charter school facilities.

(d) Loans distributed under this section shall not exceed $2,000,000 per charter school campus.

(e) The Office of Charter School Financing and Support shall determine what interest rates and terms apply to loans granted under this section. In determining the rates and terms of a loan granted to a charter school, the Office of Charter School Financing and Support should do its best to provide low interest options and flexible terms.

(f) To be eligible for a loan under this subsection, an applicant shall be one of the following:

(A) A public charter school with a charter in effect pursuant to Chapter 18 of this title [§ 38-1800.01 et seq.], which meets or exceeds its performance goals as outlined in its originating charter;

(B) A limited liability company that participates in a New Markets Tax Credit program transaction structure with public charter schools; or

(C) A nonprofit corporation that develops and finances a facility that will be occupied by a public charter school throughout the term of the loan; provided, that in the event the facility financed under this subsection is not occupied by a public charter school, the loan shall be deemed to be in default.

(g) In repaying a loan granted under this section, a debtor may use facility maintenance funds granted to them by the District of Columbia Public Schools.

(h) The term of a loan within the context of a New Markets Tax Credit as this term is defined in the Internal Revenue Code, may extend to 7 years; all other loan terms under this subsection shall not exceed 5 years.

D.C. Code § 38-1833.02

Feb. 20, 2003, 117 Stat. 131, Pub. L. 108-7, § 143(b); Sept. 24, 2010, D.C. Law 18-223, § 4012, 57 DCR 6242; Sept. 14, 2011, D.C. Law 19-21, § 4042, 58 DCR 6226.

20 U.S.C. § ,1155(e), as of December 8, 2004, reads as follows:

"(e) Establishment of account

"(1) In general. Notwithstanding any other provision of law, the District of Columbia Financial Responsibility and Management Assistance Authority shall establish an account to receive-

"(A) amounts collected from the sale and proceeds resulting from the exercise of stock warrants pursuant to section 1087-3(c)(9) of this title;

"(B) amounts and proceeds remitted as compensation for the right to assign the ~Sallie Mae' name as a trademark or service mark pursuant to section 1087-3(e)(3) of this title; and

"(C) amounts and proceeds collected from the sale of the stock of the Corporation and deposited pursuant to subsection (c)(3) of this section.

"(2) Amounts and proceeds

"(A) Amounts and proceeds relating to Sallie Mae. The amounts and proceeds described in subparagraphs (A) and (B) of paragraph (1) shall be used to finance public elementary and secondary school facility construction and repair within the District of Columbia or to carry out the District of Columbia School Reform Act of 1995.

"(B) Amounts and proceeds relating to Connie Lee. The amounts and proceeds described in subparagraph (C) of paragraph (1) shall be used to finance public and public charter elementary and secondary school facility construction and repair within the District of Columbia. Of such amounts and proceeds, $5,000,000 shall be set aside for a credit enhancement revolving fund for public charter schools in the District of Columbia, to be administered and disbursed in accordance with paragraph (3).

"(3) Credit enhancement revolving fund for public charter schools

"(A) Distribution of amounts. Of the amounts in the credit enhancement revolving fund established under paragraph (2)(B)-

"(i) 50 percent shall be used to make grants under subparagraph (B); and

"(ii) 50 percent shall be used to make grants under subparagraph (C).

"(B) Grants to eligible nonprofit corporations

"(i) In general. Using the amounts described in subparagraph (A)(i), the Mayor of the District of Columbia shall make and disburse grants to eligible nonprofit corporations to carry out the purposes described in subparagraph (E).

"(ii) Administration. Subject to subparagraph (F), the Mayor shall administer the program of grants under this subparagraph, except that if the committee described in subparagraph (C)(iii) is in operation and is fully functional prior to the date the Mayor makes the grants, the Mayor may delegate the administration of the program to the committee.

"(C) Other grants

"(i) In general. Using the amounts described in subparagraph (A)(ii), the Mayor of the District of Columbia shall make grants to entities to carry out the purposes described in subparagraph (E).

"(ii) Participation of schools. A public charter school in the District of Columbia may receive a grant under this subparagraph to carry out the purposes described in subparagraph (E) in the same manner as other entities receiving grants to carry out such activities.

"(iii) Administration through committee. 'Subject to subparagraph (F), the Mayor shall carry out this subparagraph through the committee appointed by the Mayor under the second sentence of paragraph (2)(B) (as in effect prior to November 22, 2000). The committee may enter into an agreement with a third party to carry out its responsibilities under this subparagraph.

"(iv) Cap on administrative costs. Not more than 5 percent of the funds available for grants under this subparagraph for a fiscal year may be used to cover the administrative costs of making grants under this subparagraph for the fiscal year.

"(D) Special rule regarding eligibility of nonprofit corporations. In order to be eligible to receive a grant under this paragraph, a nonprofit corporation must provide appropriate certification to the Mayor or to the committee described in subparagraph (C)(iii) (as the case may be) that it is duly authorized by two or more public charter schools in the District of Columbia to act on their behalf in obtaining financing (or in assisting them in obtaining financing) to cover the costs of activities described in subparagraph (E)(i).

"(E) Purposes of grants

"(i) In general. The recipient of a grant under this paragraph shall use the funds provided under the grant to carry out activities to assist public charter schools in the District of Columbia in-

"(I) obtaining financing to acquire interests in real property (including by purchase, lease, or donation), including financing to cover planning, development, and other incidental costs;

"(II) obtaining financing for construction of facilities or the renovation, repair, or alteration of existing property or facilities (including the purchase or replacement of fixtures and equipment), including financing to cover planning, development, and other incidental costs;

"(III) enhancing the availability of loans (including mortgages) and bonds; and

"(IV) obtaining lease guarantees (in accordance with regulations promulgated by the Office of Public Charter School Financing).

"(ii) No direct funding for schools. Funds provided under a grant under this subparagraph may not be used by a recipient to make direct loans or grants to public charter schools.

"(F) Role of Office of Public Charter School Financing and Support. During fiscal year 2003 and each succeeding fiscal year, the Office of Public Charter School Financing and Support shall be responsible for receiving applications, making payments, and otherwise administering this paragraph, except that no grant may be made under this paragraph without the approval of the committee described in subparagraph (C)(iii)."