Cal. Code Regs. tit. 4, § 10170.4 – Eligible Costs.

(a) Grant funds may be applied toward a Charter School's facilities costs for all of the following:
1. (1) Costs associated with facility rents or leases as evidenced by an executed rental or lease agreement and beginning with the 2017-18 funding round, shall be subject to one of the following conditions:
  1. (A) Reimbursable facility rent or lease costs do not exceed prior year's reimbursable costs on file with the Authority, subject to an adjustment of the annual COLA Index (COLA Cap); or
  2. (B) The rent or lease costs of New Facility Agreements are at or below Fair Market Rent based on an Independent Appraisal as described in Section 10170.6(d) and paid for by the Applicant.
(i) If the Independent Appraisal finds the rent and lease costs above the Fair Market Rent, the costs will be based on Fair Market Rent as determined by the Independent Appraisal.
1. (2) If funds remain, costs associated with the facility but not limited to, remodeling buildings, deferred maintenance, initially installing or extending service systems and other built-in equipment, improving sites, and common area maintenance charges that are based on the Charter School's usage of the facility and are limited to maintaining and repairing the facility and its common areas will be evaluated for an award.
2. (3) Costs described in subdivisions (a)(1) and (a)(2) and associated with portions of school district or county office of education facilities that are not existing school district or county office of education facilities and are not reasonably equivalent facilities received from their Charter Authority.
3. (4) Costs associated with a ground lease as evidenced by an executed rental or lease agreement where there is no existing district facility on the ground being leased.
(b) Grant funds may not be apportioned for any of the following:
1. (1) Units of ADA generated through nonclassroom-based instruction as defined in Education Code Section 47612.5;
2. (2) Facility rent and lease costs associated with a Charter School's occupancy of existing district or county office of education facilities;
3. (3) Facility rent and lease costs associated with a Charter School's occupancy of reasonably equivalent facilities received from its Chartering Authority pursuant to Education Code Section 47614;
4. (4) Costs incurred to meet a Charter School's local match obligation for Charter School facilities that receives funds pursuant to the Charter School Facilities Program;
5. (5) Costs incurred for instructional or administrative costs including, but not limited to, salaries and benefits paid to teachers, instructional aides, the educational management organization or charter management organization responsible for managing the Charter School, or the Chartering Authority and existing district personnel;
6. (6) Lease costs assessed to the Charter School based on grant funds awarded to the school by the Authority during the same funding round;
7. (7) Facility rent and lease costs associated with a facility previously purchased and paid in full by the Charter School with State Charter School Facilities Incentive Grants Program funds unless those costs are associated with capital improvements;
8. (8) Facility rent and lease costs associated with lease-to-purchase agreements where the rent and lease costs lower the final purchase price;
9. (9) Facility rent and lease costs associated with a facility that is inaccessible to the Applicant. The Authority reserves the right to request evidence such as a Certificate of Occupancy or letter from the lessor that establishes the date the Applicant began to occupy the leased site; or
10. (10) Costs incurred during any period the Applicant is found not to be in Good Standing.
(c) Grant funds must be expended and liquidated within the guidelines of this article and the Charter School Facility Grant Program.
(d) No grant, whether for costs described in subdivision (a)(1), (a)(2), (a)(3), (a)(4), or a combination of, shall exceed the ADA Cap as defined in Section 10170.2(e) or 75% of the annual facility rent and lease costs for the Fiscal Year for which the Application is submitted, whichever is less.
(e) Where an Application is for multiple school sites, each site's eligibility and costs will be evaluated separately. The ADA applied to the determination of the grant, as described in subdivision (d), shall only be based on the eligible site(s).
1. (1) Where the Charter School's students migrate between eligible and ineligible school sites,the ADA applied shall be based upon the square footage ratio of eligible facilities to all facilities.
2. (2) Where the Charter School's students do not migrate between eligible and ineligible schools sites, the ADA applied shall be based upon the school's self-certification of the ADA for the facility the students are assigned to.

Note: Authority cited: Section 47614.5, Education Code. Reference: Sections 47612.5 and 47614.5, Education Code.

History

1. New section filed 8-16-2013 as an emergency; operative 8-16-2013 (Register 2013, No. 33). A Certificate of Compliance must be transmitted to OAL by 2-12-2014 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 1-21-2014 as an emergency, including amendments; operative 1-21-2014 (Register 2014, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-21-2014 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 3-24-2014 as an emergency; operative 4-21-2014 (Register 2014, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-21-2014 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 3-24-2014 order, including amendment of subsections (a)(2) and (d), transmitted to OAL 6-25-2014 and filed 8-6-2014; amendments effective 8-6-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 32).

5. Amendment of section and Note filed 4-27-2015 as an emergency; operative 4-27-2015 (Register 2015, No. 18). A Certificate of Compliance must be transmitted to OAL by 10-26-2015 or emergency language will be repealed by operation of law on the following day.

6. Amendment of section and Note refiled 10-26-2015 as an emergency; operative 10-26-2015 (Register 2015, No. 44). A Certificate of Compliance must be transmitted to OAL by 1-25-2016 or emergency language will be repealed by operation of law on the following day.

7. Amendment of section and Note refiled 1-25-2016 as an emergency; operative 1-25-2016 (Register 2016, No. 5). A Certificate of Compliance must be transmitted to OAL by 4-25-2016 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 1-25-2016 order, including further amendment of section, transmitted to OAL 4-1-2016 and filed 4-27-2016; amendments operative 4-27-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 18).

9. Amendment of subsection (b)(5) and new subsections (b)(6)-(8) and (e)(1)-(2) filed 8-24-2017; operative 8-24-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 34).

10. Amendment of subsection (a)(1), new subsections (a)(1)(A)-(B) and amendment of subsection (d) filed 11-2-2017 as an emergency; operative 11-2-2017 (Register 2017, No. 44). A Certificate of Compliance must be transmitted to OAL by 5-1-2018 or emergency language will be repealed by operation of law on the following day.

11. Amendment of subsection (a)(1), new subsections (a)(1)(A)-(B) and amendment of subsection (d) refiled 4-30-2018 as an emergency, including repealer of subsections (a)(1)(A)-(B); operative 4-30-2018 (Register 2018, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-30-2018 or emergency language will be repealed by operation of law on the following day.

12. Refiling of 4-30-2018 emergency action 7-30-2018; operative 7-30-2018 (Register 2018, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-29-2018 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 7-30-2018 order, including amendment of section, transmitted to OAL 9-6-2018 and filed 10-18-2018; amendments operative 10-18-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 42).

14. Repealer of subsection (a)(1)(A)(i), amendment of subsections (a)(3) and (b)(3)-(8), new subsections (b)(9)-(10) and amendment of subsections (d), (e) and (e)(2) filed 3-30-2020; operative 3-30-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 14).