School Climate & Safety

L.A. Fund Offers Facilities Money

By Caroline Hendrie — June 21, 2005 1 min read
  • Save to favorites
  • Print

A new fund started doling out money in Los Angeles last week to help charter schools there overcome their biggest barrier to growth: finding affordable facilities.

A coalition of nonprofit organizations and financial institutions announced that they had cobbled together a $36 million fund from a mix of public and private sources to pay for buildings to house five to seven charter schools in disadvantaged communities.

The Los Angeles Charter School New Markets Loan Fund was made possible by a federal tax-credit program aimed at spurring investment in low-income communities. Known as the New Markets Tax Credit Program, run by the U.S. Department of the Treasury, the program is being used around the country to shake loose money for charter schools.

Word of the fund comes two years after the federal government authorized Excellent Education Development, or ExED, to find investors to take advantage of the income-tax credits in the Los Angeles area.

“It takes a while to get all the investors in and make it happen,” said Anita Landecker, the executive director of the Los Angeles-based nonprofit organization.

Officials announced the fund last week at the groundbreaking of a building near downtown Los Angeles that will become home to the first school to qualify. The Camino Nuevo High School has been housed in a former ice cream factory, the kind of facility that is not uncommon in a city where the demand for new charter schools is high but the real estate costs are often out of sight.

“Affordable facilities is the biggest obstacle to creating charter schools in Los Angeles,” Ms. Landecker said.

Schools benefiting from the new fund will be able to borrow money at below-market rates, thanks in part to the tax credits lenders receive under the federal program.

“If a market-rate loan is at 8 percent, we can lend at 6 percent,” Ms. Landecker said.

Schools taking part will also receive grants financed through a $2 million gift to ExED from the Los Angeles-based Broad Foundation. Those grants, aimed at helping the schools pay back the loans, are to average around $400,000 per school.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Classroom Technology Webinar
Transform Teaching and Learning with AI
Increase productivity and support innovative teaching with AI in the classroom.
Content provided by Promethean
Curriculum Webinar Computer Science Education Movement Gathers Momentum. How Should Schools React?
Discover how schools can expand opportunities for students to study computer science education.
School & District Management Webinar Fostering Student Well-Being with Programs That Work
Protecting student well-being has never been more important. Join this webinar to learn how to ensure your programs yield the best outcomes.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School Climate & Safety 'Swatting' Hoaxes Disrupt Schools Across the Country. What Educators Need to Know
School lockdowns can cause stress to students, teachers, and families, even if threats don't materialize.
8 min read
A bald man and a woman with long brown hair tearfully hug a teen girl who is wearing a pale beighe backpack. Three women look on with concerned expressions.
A family shares a tearful reunion after Thomas Jefferson High School in San Antonio, Texas, went into lockdown because of a false report of a shooting.
Kin Man Hui/The San Antonio Express-News via AP
School Climate & Safety How to Spend $1 Billion in School Safety Funds: Here's What the Feds Recommend
A "Dear Colleague" letter from the Education Department puts a priority on creating inclusive, equitable school environments.
4 min read
The U.S. Department of Education urged schools to use federal funds to support the social, emotional, mental, and physical health needs of students in a "dear colleague" letter sent Sept. 15.
Third grader Alexis Kelliher points to her feelings while visiting a sensory room at Williams Elementary School in Topeka, Kan.
Charlie Riedel/AP
School Climate & Safety A Pair of Retired Military Officers Makes a Case Against Arming Teachers
Their comments come on a call organized by a national teachers' union pushing back against the school safety strategy.
3 min read
A man in a black polo shirt with short sleeves holds up a hand gun in front of a projector screen that shows a diagram of a gun with labeled parts.
Clark Aposhian, president of Utah Shooting Sport Council, holds a pistol during concealed weapons training for 200 Utah teachers, in West Valley City, Utah.
Rick Bowmer/AP