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News
October 20, 2010
2 minute read

NOTICE OF AVAILABILITY OF QUALIFIED SCHOOL CONSTRUCTION BOND ALLOCATION FOR CHARTER SCHOOL PROJECTS IN NEW JERSEY


Please be advised that on March 10, 2010, the State of New Jersey received $215,904,000 in bond allocation authority to issue Qualified School Construction Bonds (QSCB) pursuant to the American Recovery and Reinvestment Act of 2009.  The State Treasurer has authorized the transfer of a portion of its allocation to the New Jersey Economic Development Authority (NJEDA) for the purpose of issuing bonds for the benefit of Charter School projects in New Jersey.

QSCBs may be issued to finance the construction, rehabilitation or repair of school facilities or for the acquisition of land where a school will be built. They provide low-cost borrowing to build and upgrade schools.  Investors who purchase QSCBs receive federal income tax credits at prescribed tax credit rates in lieu of interest.  These tax credit rates essentially allow a school to borrow without incurring interest costs.  For more information on the eligibility requirements for QSCBs, please consult bond counsel to the NJEDA.  A list of eligible bond counsel firms is listed on the NJEDA’s website at www.njeda.com/web/pdf/Bc2002-2004list.pdf.

The State is actively seeking to identify projects that could utilize the QSCB allocation.  Please notify the NJEDA if you are interested in obtaining a portion of the available allocation.   All requests must meet the following requirements. 

Eligibility Requirements
  1. The project financing must be ready to close no later than December 31, 2010;
  2. The applicant must have site plan approval from the municipality in which the project resides;
  3. The applicant must have secured either:
    • A term sheet or commitment from a financial institution.  The financial institution must be willing to directly purchase the QSCB; or
    • An underwriter for a public bond issue; and
  4. The applicant must have a construction contract.  All construction contract quotes must include the payment of Prevailing Wage pursuant to the NJ Department of Labor and Workforce Development requirements.  The contractor must agree to adhere to the NJEDA’s Affirmative Action requirements; and
  5. The applicant must be in good standing with the NJ Department of Education.

Required Information

  1. Name of the applicant and the project user;
  2. Summary of the project;
  3. Amount of QSCB allocation request;
  4. Pro forma with proposed sources and uses and including projected income and expenses;
  5. Detailed construction budget; and
  6. Copies of all financing term sheets or commitment letters.

All responses must be accompanied by the required information and received no later than November 19, 2010 to:

Lori Matheus, Vice President-Regional Business Development
New Jersey Economic Development Authority
PO Box 990
36 West State Street
Trenton NJ 08625
lmatheus@njeda.com
 
All questions may be directed to Margie Piliere, Director of Business Development-North, New Jersey Economic Development Authority at (609) 292-0360.

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