LUSD Facilities Master Plan | Page 85

Funding Options Report October 2016

Section Six

F i n a n c i a l P l a n n i n g

Livingston Union School District | Facilities Master Plan

Funding Options Report October 2016

Other Funding Programs Continued
federal tax credit in lieu of a cash interest payment. As the federal government is providing the interest payment, the district is typically only responsible for repaying the value of the bond.
There are three requirements a district must meet in order to qualify for the program. These are:
• At least 35 % of the students attending the specified Academy school or program must be eligible for free or reduced-cost lunches established under the National Lunch Act, or the district must be located in an Empowerment Zone or Enterprise Community. All sites in the Livingston Union School District meet the free or reduced cost criteria.
• The district must secure a written commitment for private entity contributions of at least 10 % of the QZAB amount.
• The Academies must be district-operated and provide education and training for K-12 with the same academic standards and assessments as other students in the district.
The QZAB bond often allows districts to increase project size without necessarily increasing the project budget by relieving the interest payments in addition to providing the ability to utilize sinking funds as repayment. The Livingston Union School District was issued $ 2,080,000 in QZAB bonds.
This program has $ 99.7 million in available funding.
NEW MARKETS TAX CREDIT( NMTC)
The New Markets Tax Credit program was authorized under the Community Renewal and Tax Relief Act of 2000 to spur new investment into projects that provide economic and social benefits to low-income communities.
This program finances approximately 20-25 % of total project budget while providing a below-market rate financing.
Factors that are considered to qualify for the New Market Tax Credit program are:
• Whether the project serves a low-income population or is located in a lowincome community.
• Whether the project has strong community and economic benefits or provides critical public services.
• Other funding sources secured for the project.
• Level of need for NMTC financing of the project to attain economic feasibility.
• The project construction schedule for the next twelve months.
The District must create a non-profit organization that will own or lease the project. That non-profit then applies to the Community Development Entity for an allocation. If selected, the Community Development Entity sells a percentage of the NMTC to institutional investors who then take the tax credits over a seven year period. The Community Development Entity then“ lends” the net amount to the non-profit with a one percent interest rate and loan forgiveness after seven years.
Additional information related to the NMTC program is scheduled to be announced in late 2016.
PRE-DISASTER MITIGATION( PDM)
PDM funds flow from FEMA to individual states and is administered in California by the California Emergency Management Agency( CalEMA). The program was created when the Disaster Mitigation Act of 2000 amended the Stafford Act to provide a funding mechanism that is not dependent on a presidential disaster declaration. PDM funding requires at least a 25 % match( 75 % federal share of project cost).
Grants are available for the creation of Local Hazard Mitigation Plans( LHMPs) and for the implementation of mitigation projects prior to a disaster event. To apply for funding; applicants must complete a Notice of Interest( NOI) available on the CalEMA web site. Eligible applicants who submit an NOI for an eligible activity will be given the code to access the Federal eGrants system to complete an application.
School Districts and Local Educational Agencies( LEAs) with LHMPs or which are parts of a multi-jurisdictional LHMP are eligible applicants. Please note, the 2016 Fiscal Year Pre-Disaster Mitigation( PDM) application period opened on March 15, 2016, and will close on June 15, 2016. This program operates on an annual funding cycle based on the fiscal year.
Please note, funds are allocated when FEMA approves the application and they must be used within 18 months of FEMA approval.
This program has $ 90 million in available funding.
DROUGHT RESPONSE OUTREACH PROGRAM( DROPS)
The DROPS program is a competitive grant program for projects designed to address the drought by capturing, treating, infiltrating or using storm water while providing multiple benefits, including water conservation, water supply augmentation, energy savings, increased awareness of water resource sustainability, and reduced dry weather run off. Each LEA may only submit one grant request and the project must be completed by the winter of 2018 / 19.
This program was allocated a total of $ 25.5 million with approximately $ 20.3 million being allocated to“ Southern” California( However, $ 5 million of this amount is set aside for LAUSD). There is a 25 % set-aside out of the total funding for Disadvantaged Schools. Funding and match requirements are based on district-wide enrollment. Preference is given to Low Impact Development projects.
Applications for this program are not currently being accepted.
EMERGENCY REPAIR PROGRAM( ERP)
Funding for this program was available to schools ranked in deciles 1 through 3, as identified by performance on the 2006 Academic Performance Index( API). Funds were allocated for qualifying emergency repairs made to existing building systems or structural components that are broken and not functioning properly and that pose a health and safety threat to pupils and staff.
The Livingston Union School District received $ 157,106 for projects funded under this program.
SCHOOL FACILITIES NEEDS ASSESSMENT GRANT PROGRAM
Funding for this program was available to schools ranked in deciles 1 through 3, as identified by performance on the 2003 Academic Performance Index( API). Under the School Facilities Needs Assessment Grant Program, eligible schools received funding to conduct a one-time assessment of facilities. Each eligible school received $ 10 per pupil( based on October 2003 enrollment) to complete the review, with a minimum grant amount of $ 7,500.
At the February 23, 2005, SAB meeting, Livingston Union School District received an apportionment of $ 31,030 in order to conduct the necessary assessments.
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