**Archived Information**

**1/29/2007**

**U.S. DEPARTMENT OF EDUCATION**

# OFFICE OF INNOVATION AND IMPROVEMENT

# WASHINGTON, D.C. 20202

**FY 2007**

**APPLICATION FOR GRANTS**

**UNDER THE CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM**

# CFDA Number: 84.354A

# FORM APPROVED

# OMB No. 1855-0007, EXP. DATE 11/30/2007

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height="2.783333333333333in"}

**DATED MATERIAL - OPEN IMMEDIATELY**

**Closing Date: 4/2/2007**

> ![](media/image2.png){width="0.9173611111111111in"
> height="0.8993055555555556in"}**UNITED STATES DEPARTMENT OF
> EDUCATION**

Office of Innovation and Improvement

Dear Applicant:

Thank you for your interest in the Credit Enhancement for Charter School
Facilities Program. **Included in this application package are the
instructions and forms needed to submit a mandatory Grants.gov
application to the U.S. Department of Education.** Please take the time
to review the application package thoroughly.

This will be the first time the U.S. Department of Education is
accepting applications for this program electronically. Please read the
document describing the submission procedures to ensure your application
is received in a timely and acceptable manner. The application must be
submitted on or before the deadline date. Electronic submission of
applications is required; therefore, you must submit an electronic
application unless you follow the procedures in the Federal Register
notice and qualify for one of the exceptions to the electronic
submission requirement. If you think you may need an exception you are
urged to review the requirements promptly. **Applications submitted late
will not be accepted**. We suggest that you submit your application
several days before the deadline date. The Department is required to
enforce the established deadline to ensure fairness to all applicants.
Please note that Grants.gov does not allow applicants to "un-submit"
applications. If you discover that changes or additions are needed once
your application has been accepted and validated by the Department, you
must "re-submit" the application. If the Department receives duplicate
applications we will accept and process the application with the latest
"date/time received" validation.

If you have any questions about the program after reviewing the
application package, please call or e-mail Ann Margaret Galiatsos at
(202) 205-9765 or ann.galiatsos@ed.gov.

We look forward to receiving your application and appreciate your
efforts in assisting and expanding the number of high quality charter
schools across the Nation.

> Sincerely,
>
> John Fiegel
>
> Director
>
> Parental Options and Information

**[Table of Contents]{.smallcaps}**

A. Introductory materials

-   Grants.gov Submission Procedures and Tips for Applicants

-   Application Transmittal Instructions

B. Application Notice, Program Statute, and Regulations

C. General Application Instructions and Information

-    Application Checklist

-   General Instructions

-   Responding to the Project Selection Criteria

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-   Application Content Requirements

-   Table 1- Non-Grant Funds Projected to be Generated

-   Table 2- Applicant Activity Table for the Most Recently

Completed Fiscal Year

-   Table 3- Budget Form

-   Guidance on Section 427 of GEPA

-   Instructions to Government- and US Department of Education-wide
    Forms

D.  Instructions to Standard Forms and Grant Application Requirements

E. Other Important Information and Notices

-   Executive Order 12372

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-   State Single Points of Contact

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-   Estimated Public Reporting Burden

**INTRODUCTORY MATERIALS**

**IMPORTANT -- PLEASE READ**

**U.S. Department of Education**

#### Grants.gov Submission Procedures and Tips for Applicants 

Please note that the Grants.gov site works differently than the U.S.
Department of Education's (Department) e-Application system. To
facilitate your use of Grants.gov, this document includes important
submission procedures you need to be aware of to ensure your application
is received in a timely manner and accepted by the Department of
Education.

1)  **REGISTER EARLY** -- Grants.gov registration is a one-time process
    that may take five or more days to complete. You may begin working
    on your application while completing the registration process, but
    you cannot submit an application until all of the Get Started steps
    are complete. For detailed information on the Get Started Steps,
    please go to: <http://www.grants.gov/GetStarted>.

2)  **SUBMIT EARLY** -- **We strongly recommend that you do not wait
    until the last day to submit your application. Grants.gov will put a
    date/time stamp on your application after it is fully uploaded.**
    The time it takes to upload an application will vary depending on a
    number of factors including the size of the application and the
    speed of your Internet connection. If you start uploading your
    application before 4:30 p.m. Washington, D.C. time on the
    application deadline date, and it does not finish uploading until
    after 4:30 p.m., your application will be marked late. If that
    happens, please see the section below on submission problems.

Note: To submit successfully, you must provide the DUNS number on your
application that was used when your organization registered with the CCR
(Central Contractor Registry).

3)  **VERIFY SUBMISSION IS OK** -- You will want to verify that
    Grants.gov and the Department received your Grants.gov submission on
    time and that it was validated successfully. To see the date/time
    your application was received, login to Grants.gov and click on the
    Check Application Status link. For a successful submission, the
    date/time received should be earlier than 4:30 p.m. on the deadline
    date, AND the application status should be: Validated, Received by
    Agency, or Agency Tracking Number Assigned.

> If the date/time received is later than 4:30 p.m. Washington, D.C.
> time, on the closing date, your application is late. If your
> application has a status of "Received," it is still awaiting
> validation by Grants.gov. Once validation is complete, the status will
> either change to "Validated" or "Rejected with Errors." If the status
> is "Rejected with Errors," your application has not been received
> successfully. Some of the reasons Grants.gov may reject an application
> can be found on the Grants.gov site:
> <http://www.grants.gov/assets/ApplicationErrorTips.doc>.
>
> If you discover your application is late or has been rejected, please
> see the instructions below. Note: You will receive a series of
> confirmations both online and via e-mail about the status of your
> application. Please do not rely solely on e-mail to confirm whether
> your application has been received timely and validated successfully.

# Submission Problems -- What should you do?

If you have problems submitting to Grants.gov before the closing date,
please contact Grants.gov Customer Support at 1-800-518-4726 or use the
customer support available on the Web site:
<http://www.grants.gov/CustomerSupport>.

Electronic submission is [required]{.underline}. You must submit an
electronic application before 4:30 p.m., unless you follow the
procedures in the [Federal Register]{.underline} notice and qualify for
one of the exceptions to the electronic submission requirement
[and]{.underline} submit, no later than two weeks before the application
deadline date, a written statement to the Department that you qualify
for one of these exceptions. (See the [Federal Register]{.underline}
notice for detailed instructions.)

# 

# Helpful Hints When Working with Grants.gov

Please note, once you download an application from Grants.gov, you will
be working offline and saving data on your computer. Please be sure to
note where you are saving the Grants.gov file on your computer. You will
need to log on to Grants.gov to upload and submit the application. (This
is different from e-Application, where you are working online and saving
data to the Department's database.) You must provide the DUNS number
that was used when your organization registered with the Central
Contractor Registry (CCR) on your application.

Please go to <http://www.grants.gov/ForApplicants> for help with
Grants.gov and click on the links in the lower right corner of the
screen under Applicant Tips and Tools. For additional tips related to
submitting grant applications, please refer to the Grants.gov Submit
Application Tips found on the Grants.gov homepage
[http://www.grants.gov](http://www.grants.gov/).

# 

# Dial-Up Internet Connections

When using a dial-up connection to upload and submit your application,
it can take significantly longer than when you are connected to the
Internet with a high-speed connection, e.g. cable modem/DSL/T1. While
times will vary depending upon the size of your application, it can take
a few minutes to a few hours to complete your grant submission using a
dial up connection.

**If you do not have access to a high-speed connection and electronic
submission is required, you may want to consider following the
instructions in the [Federal Register]{.underline} notice to obtain an
exception to the electronic submission requirement [no later than two
weeks before the application deadline date]{.underline}.** (Refer to the
[Federal Register]{.underline} notice for detailed instructions.)

# 

# MAC Users

If you do not have a Windows operating System, you will need to use a
Windows Emulation program to submit an application using Grants.gov. For
additional information, review the [PureEdge Support for
Macintosh](http://www.grants.gov/GrantsGov_UST_Grantee/!SSL!/WebHelp/MacSupportforPureEdge.pdf)
white paper published by Pure Edge:
<http://www.grants.gov/GrantsGov_UST_Grantee/!SSL!/WebHelp/MacSupportforPureEdge.pdf>,
and/or contact Grants.gov Customer Support
(<http://www.grants.gov/CustomerSupport>) for more information.

**If you do not have a Windows emulation program and electronic
submission is required, please follow instructions in the Federal
Register notice to obtain an exception to the electronic submission
requirement [no later than two weeks before the application deadline
date.]{.underline}** (Refer to the [Federal Register]{.underline} notice
for detailed instructions.)

**PLEASE NOTE -- NEW ELECTRONIC SUBMISSION POLICY**

**[Electronic Submission is Required]{.underline}** -- As outlined in
the Federal Register notice for this grant competition, applications
must be submitted electronically. You must submit your application using
the electronic application system designated in the Federal Register
notice. (The notice will designate whether you will use e-Application or
Grants.gov). You may not e-mail an electronic copy to us. We will reject
your application if you submit it in paper format unless you qualify for
one of the exceptions to the electronic submission requirement described
below [and]{.underline} submit, no later than two weeks before the
application deadline date, a written statement to the Department that
you qualify for one of these exceptions.

Under mandatory submission, electronic applications must be received by
4:30 pm Washington, DC time on the application deadline date. **Under
this new policy, Education does not allow for any last minute waiver
requests from applications, which is a change from the previous policy
for mandatory electronic submission. Consequently, we strongly encourage
you to review the registration and submission procedures for the
designated electronic application system right away. In addition, we
strongly suggest that you do not wait until the deadline date to submit
your application.**

[Exception to Electronic Submission Requirement]{.underline}: You
qualify for an exception to the electronic submission requirement, and
may submit your application in paper format, by mail or hand delivery,
if you are unable to submit an application through the electronic
application system designated in the Federal Register notice because --

-   You do not have access to the Internet; or

-   You do not have the capacity to upload large documents to the
    system;

> [and]{.underline}

-   No later than two weeks before the application deadline date (14
    calendar days or, if the fourteenth calendar day before the
    application deadline date falls on a Federal holiday, the next
    business day following the Federal holiday), you mail or fax a
    written statement to the Department, explaining which of the two
    grounds for an exception prevent you from using the Internet to
    submit your application. If you mail your written statement to the
    Department, it must be postmarked no later than two weeks before the
    application deadline date. If you fax your written statement to the
    Department, we must receive the faxed statement no later than two
    weeks before the application deadline date. (Please follow the fax
    instructions found in the Federal Register notice for this
    competition. Also, your paper application must be submitted in
    accordance with the mail or hand delivery instructions also
    described in the Federal Register notice for this grant
    competition.)

For detailed information on the electronic submission requirement for
this competition, please refer to the Federal Register notice.

Application Transmittal Instructions

##### **ATTENTION ELECTRONIC APPLICANTS: Please note that you must follow the Application Procedures as described in the [Federal Register]{.underline} notice announcing the grant competition.** 

##### **[This program requires the electronic submission of]{.underline} applications; specific requirements and waiver instructions can be found in the [Federal Register]{.underline} notice.** 

**According to the instructions found in the [Federal
Register]{.underline} notice, those requesting and qualifying for an
exception to the electronic submission requirement may submit an
application via mail, commercial carrier or by hand delivery.**

###  {#section-3 .unnumbered}

### If you want to apply for a grant and be considered for funding, you must meet the following deadline requirements: {#if-you-want-to-apply-for-a-grant-and-be-considered-for-funding-you-must-meet-the-following-deadline-requirements .unnumbered}

### [Applications Submitted Electronically]{.underline}

**You must submit your grant application through the Internet using the
software provided on the Grants.gov Web site
([http://www.grants.gov](http://www.grants.gov/)) by 4:30 p.m.
(Washington, D.C. time) on or before the application deadline date**.

If you submit your application through the Internet via the Grants.gov
Web site, you will receive an automatic acknowledgment when we receive
your application.

For more information on using Grants.gov, please refer to the "Notice
Inviting Applications" that was published in the [Federal
Register]{.underline}, or visit
[http://www.grants.gov](http://www.grants.gov/).

### [Applications Delivered by Mail]{.underline}

You must receive approval at least two weeks before the closing date
notice in order to submit your application by mail.

**If you receive approval to submit by mail**, you must mail the
original and two copies of your application on or before the application
deadline date to:

##  {#section-4 .unnumbered}

## **U.S. Department of Education**  {#u.s.-department-of-education .unnumbered}

**Application Control Center**

**Attention: (CFDA Number 84.354A)**

**400 Maryland Avenue, S.W.**

**Washington, DC 20202 -- 4260**

You must show one of the following as proof of mailing:

1.  A legibly dated U. S. Postal Service Postmark

2.  A legible mail receipt with the date of mailing stamped by the U. S.
    Postal Service

3.  A dated shipping label, invoice, or receipt from a commercial
    carrier

4.  Any other proof of mailing acceptable to the U. S. Secretary of
    Education

If you mail an application through the U.S. Postal Service, we do not
accept either of the following as proof of mailing:

1.  A private metered postmark, or

2.  A mail receipt that is not dated by the U.S. Postal Services

An applicant should note that the U.S. Postal Service does not uniformly
provide a dated postmark. Before relying on this method, an applicant
should check with its local post office.

**Special Note: Due to potential disruptions to normal mail delivery,
the Department encourages you to consider using an alternative delivery
method (for example, a commercial carrier, such as Federal Express or
United Parcel Service; U. S. Postal Service Express Mail; or a courier
service) to transmit your application for this competition to the
Department. If you use an alternative delivery method, please obtain the
appropriate proof of mailing under "Applications Delivered by Mail,"
then follow the instructions for "Applications Delivered by Hand."**

**[Applications Delivered by Commercial Carrier:]{.underline}**

If you use an alternative delivery method, please obtain the appropriate
proof of mailing under "Applications Sent by Mail," then follow the
instructions under the appropriate delivery method.

You must mail the original and two copies of your application on or
before the application deadline date to:

**U.S. Department of Education**

##### **Application Control Center -- Stop 4260**

**Attention: (CFDA Number 84.354A)**

**7100 Old Landover Road**

**Landover, MD 20785-1506**

### [Applications Delivered by Hand]{.underline}

You or your courier must hand deliver the original and two copies of the
application by 4:30 p.m. (Washington, D.C. time) on or before the
deadline date to the following address:

**U.S. Department of Education**

##### **Application Control Center** 

**Attention: (CFDA Number - 84.354A)**

**550 12^th^ Street, SW**

**Potomac Center Plaza -- Room 7067**

**Washington, D.C. 20202 - 4260**

####### Application Control Center Hours of Operation

The Application Control Center accepts application deliveries daily
between 8:00 a.m. and 4:30 p.m. (Washington, D.C. time), except
Saturdays, Sundays and Federal holidays.

####### Grant Application Receipt from the Application Control Center

If you send your application by mail or if you or your courier delivers
it by hand, the Application Control Center will mail a Grant Application
Receipt Acknowledgment to you.

If you do not receive the notification of application receipt within 15
days from the mailing of the application, you should call the U.S.
Department of Education Application Control Center at (202) 245-6288.

**[Late Applications]{.underline}**

If your application is late, we will notify you that we will not
consider the application.

**APPLICATION NOTICE, PROGRAM**

**STATUTE, AND**

**REGULATIONS**

4000-01-U

DEPARTMENT OF EDUCATION

Office of Innovation and Improvement

Overview Information

Credit Enhancement for Charter School Facilities Program

Notice inviting applications for new awards for fiscal year (FY) 2007.

[Catalog of Federal Domestic Assistance (CFDA) Number]{.underline}:
84.354A

[Dates]{.underline}:

Applications Available: February 1, 2007.

Date of Pre-Application Meeting: March 20, 2007.

Deadline for Transmittal of Applications: April 2, 2007.

Deadline for Intergovernmental Review: June 1, 2007.

[Eligible Applicants]{.underline}: (A) A public entity, such as a State
or local governmental entity; (B) A private, nonprofit entity; or (C) A
consortium of entities described in (A) and (B).

[Note]{.underline}: The Secretary will make, if possible, at least one
award in each of the three categories of eligible applicants.

[Estimated Available Funds]{.underline}: The Administration has
requested \$36,611,190 for this program for FY 2007. The actual level of
funding, if any, depends on final congressional action. However, we are
inviting applications to allow enough time to complete the grant process
if Congress appropriates funds for this program.

Contingent upon the availability of funds and the quality of
applications, we may make additional awards in future years from the
list of unfunded applications from this competition.

[Note]{.underline}: The Department is not bound by any estimates in this
notice.

[Project Period]{.underline}: From the start date indicated on the grant
award document until the Federal funds and earnings on those funds have
been expended for the grant purposes or until financing facilitated by
the grant has been retired, whichever is later.

Full Text of Announcement

I. Funding Opportunity Description

[Purpose of Program]{.underline}: This program provides grants to
eligible entities to permit them to enhance the credit of charter
schools so that they can access private-sector and other non-Federal
capital in order to acquire, construct, and renovate facilities at a
reasonable cost. Grant projects awarded under this program will be of
sufficient size, scope, and quality to enable the grantees to implement
effective strategies for reaching that objective.

[Priority]{.underline}: In accordance with 34 CFR 75.105(b)(2)(ii), this
priority is from the regulations for this program (34 CFR 225.12).

[Competitive Preference Priority]{.underline}: For FY 2007 and any
subsequent year in which we make awards based on the list of unfunded
applications from this competition, this priority is a competitive
preference priority. Under 34 CFR 75.105(c)(2)(i) we award up to an
additional 15 points to an application, depending on how well the
application meets this priority.

This priority is:

The capacity of charter schools to offer public school choice in those
communities with the greatest need for school choice based on\--

\(1\) The extent to which the applicant would target services to
geographic areas in which a large proportion or number of public schools
have been identified for improvement, corrective action, or
restructuring under Title I of the Elementary and Secondary Education
Act of 1965 (ESEA), as amended by the No Child Left Behind Act of 2001;

\(2\) The extent to which the applicant would target services to
geographic areas in which a large proportion of students perform below
proficient on State academic assessments; and

\(3\) The extent to which the applicant would target services to
communities with large proportions of students from low-income families.

[Program Authority]{.underline}: 20 U.S.C. 7223-7223j.

[Applicable Regulations]{.underline}: (a) The Education Department
General Administrative Regulations (EDGAR) in 34 CFR parts 74, 75, 77,
79, 80, 81, 82, 84, 85, 86, 97, 98, and 99. (b) The regulations for this
program in 34 CFR part 225.

[Note]{.underline}: The regulations in 34 CFR part 79 apply to all
applicants except federally recognized Indian tribes.

[Note]{.underline}: The regulations in 34 CFR part 86 apply only to
institutions of higher education.

II\. Award Information

[Type of Award]{.underline}: Discretionary grants.

[Estimated Available Funds]{.underline}: The Administration has
requested \$36,611,190 for this program for FY 2007. The actual level of
funding, if any, depends on final congressional action. However, we are
inviting applications to allow enough time to complete the grant process
if Congress appropriates funds for this program.

Contingent upon the availability of funds and the quality of
applications, we may make additional awards in future years from the
list of unfunded applications from this competition.

[Note]{.underline}: The Department is not bound by any estimates in this
notice.

[Project Period]{.underline}: From the start date indicated on the grant
award document until the Federal funds and earnings on those funds have
been expended for the grant purposes or until financing facilitated by
the grant has been retired, whichever is later.

III\. Eligibility Information

1\. [Eligible Applicants]{.underline}: (A) A public entity, such as a
State or local governmental entity; (B) A private, nonprofit entity; or
(C) A consortium of entities described in (A) and (B).

[Note]{.underline}: The Secretary will make, if possible, at least one
award in each of the three categories of eligible applicants.

2\. [Cost Sharing or Matching]{.underline}: This program does not
involve any cost sharing or matching.

3\. [Other]{.underline}: The charter schools that a grantee selects to
benefit from this program must meet the definition of a charter school,
as defined in section 5210(1) of the ESEA, as amended.

IV\. Application and Submission Information

1\. [Address to Request Application Package]{.underline}: Education
Publications Center (ED Pubs), P.O. Box 1398, Jessup, MD 20794-1398.
Telephone (toll free): 1-877-433-7827. FAX: (301) 470-1244. If you use a
telecommunications device for the deaf (TDD), you may call the Federal
Relay Service (FRS) at 1-800-877-8339.

You may also contact ED Pubs at its Web site:
www.ed.gov/pubs/edpubs.html or you may contact ED Pubs at its e-mail
address: edpubs@inet.ed.gov

If you request an application from ED Pubs, be sure to identify this
competition as follows: CFDA number 84.354A.

Individuals with disabilities may obtain a copy of the application
package in an alternative format (e.g., Braille, large print, audiotape,
or computer diskette) by contacting one of the program contact persons
listed under For Further Information Contact in section VII of this
notice.

In addition, applications will be available at
http://www.ed.gov/programs/charterfacilities/applicant.html

2\. [Content and Form of Application Submission]{.underline}: Each
Credit Enhancement for Charter School Facilities program application
must include the following specific elements:

\(a\) A statement identifying the activities proposed to be undertaken
with grant funds (the \"grant project\"), including how the applicant
will determine which charter schools will receive assistance, and how
much and what types of assistance these schools will receive.

\(b\) A description of the involvement of charter schools in the
application\'s development and in the design of the proposed grant
project.

\(c\) A description of the applicant\'s expertise in capital markets
financing. (Consortium applicants must provide this information for each
of the participating organizations.)

\(d\) A description of how the proposed grant project will leverage the
maximum amount of private-sector and other non-Federal capital relative
to the amount of Credit Enhancement for Charter School Facilities
program funding used and how the proposed grant project will otherwise
enhance credit available to charter schools.

\(e\) A description of how the eligible entity possesses sufficient
expertise in education to evaluate the likelihood of success of a
charter school program for which facilities financing is sought.

\(f\) In the case of an application submitted by a State governmental
entity, a description of current and planned State funding actions
including other forms of financial assistance that ensure that charter
schools within the State receive the funding they need to have adequate
facilities.

Additional requirements concerning the content of an application,
together with the forms you must submit, are in the application package
for this program.

Page Limit: We have found that reviewers are able to conduct the
highest-quality review when applications are concise and easy to read.
Applicants are encouraged to limit their applications to no more than 40
double-spaced pages (not including the required forms and tables), to
use a 12-point or larger-size font with one-inch margins at the top,
bottom, and both sides, and to number pages consecutively. Furthermore,
applicants are strongly encouraged to include a table of contents that
specifies where each required part of the application is located.

3\. [Submission Dates and Times]{.underline}:

Applications Available: February 1, 2007.

Date of Pre-Application Meeting: March 20, 2007.

Deadline for Transmittal of Applications: April 2, 2007.

Applications for grants under this program must be submitted
electronically using the Grants.gov Apply site (Grants.gov). For
information (including dates and times) about how to submit your
application electronically, or by mail or hand delivery if you qualify
for an exception to the electronic submission requirement, please refer
to section IV. 6. [Other Submission Requirements]{.underline} in this
notice.

We do not consider an application that does not comply with the deadline
requirements.

Individuals with disabilities who need an accommodation or auxiliary aid
in connection with the application process should contact the person
listed under [For Further Information Contact]{.underline}.

Deadline for Intergovernmental Review: June 1, 2007.

4\. [Intergovernmental Review]{.underline}: This program is subject to
Executive Order 12372 and the regulations in 34 CFR part 79. Information
about Intergovernmental Review of Federal Programs under Executive Order
12372 is in the application package for this program.

5\. [Funding Restrictions]{.underline}:

\(a\) [Reserve accounts]{.underline}. Grant recipients, in accordance
with State and local law, must deposit the grant funds they receive
under this program (other than funds used for administrative costs) in a
reserve account established and maintained by the grantee for this
purpose. Amounts deposited in such account shall be used by the grantee
for one or more of the following purposes in order to assist charter
schools in accessing private-sector and other non-Federal capital:

\(1\) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of
debt, loans, and interests therein.

\(2\) Guaranteeing and insuring leases of personal and real property.

\(3\) Facilitating financing by identifying potential lending sources,
encouraging private lending, and other similar activities that directly
promote lending to, or for the benefit of, charter schools.

\(4\) Facilitating the issuance of bonds by charter schools or by other
public entities for the benefit of charter schools, by providing
technical, administrative, and other appropriate assistance (such as the
recruitment of bond counsel, underwriters, and potential investors and
the consolidation of multiple charter school projects within a single
bond issue).

Funds received under this program and deposited in the reserve account
must be invested in obligations issued or guaranteed by the United
States or a State, or in other similarly low-risk securities. Any
earnings on funds, including fees, received under this program must be
deposited in the reserve account and be used in accordance with the
requirements of this program.

\(b\) [Charter school objectives]{.underline}. An eligible entity
receiving a grant under this program must use the funds deposited in the
reserve account to assist charter schools in accessing capital to
accomplish one or both of the following objectives:

\(1\) The acquisition (by purchase, lease, donation, or otherwise) of an
interest (which may be an interest held by a third party for the benefit
of a charter school) in improved or unimproved real property that is
necessary to commence or continue the operation of a charter school.

\(2\) The construction of new facilities, or the renovation, repair, or
alteration of existing facilities, necessary to commence or continue the
operation of a charter school.

\(c\) [Other]{.underline}. Grantees must ensure that all costs incurred
using funds from the reserve account are reasonable. The full faith and
credit of the United States are [not]{.underline} pledged to the payment
of funds under such obligation.

Applicants that are selected to receive an award must enter into a
written Performance Agreement with the Department prior to drawing down
funds, unless the grantee receives written permission from the
Department in the interim to draw down a specific limited amount of
funds. Grantees must maintain and enforce standards of conduct governing
the performance of their employees, officers, directors, trustees, and
agents engaged in the selection, award, and administration of contracts
or agreements related to this grant. The standards of conduct must
mandate disinterested decision-making.

A grantee may use not more than 0.25 percent (one quarter of one
percent) of the grant funds for the administrative costs of the grant.

The Secretary, in accordance with chapter 37 of title 31, United States
Code, will collect all of the funds in the reserve account established
with grant funds (including any earnings on those funds) if the
Secretary determines that the grantee has permanently ceased to use all
or a portion of the funds in such account to accomplish the purposes
described in the authorizing statute and the Performance Agreement or,
if not earlier than two years after the date on which the entity first
receives these funds, the entity has failed to make substantial progress
in undertaking the grant project.

The charter schools that a grantee selects to benefit from this program
must meet the definition of a charter school, as defined in section
5210(1) of the ESEA, as amended.

\(d\) We reference additional regulations outlining funding restrictions
in the [Applicable Regulations]{.underline} section of this notice.

6\. [Other Submission Requirements]{.underline}: Applications for grants
under this program must be submitted electronically unless you qualify
for an exception to this requirement in accordance with the instructions
in this section.

a\. [Electronic Submission of Applications]{.underline}.

Applications for grants under the Credit Enhancement for Charter School
Facilities Program --- CFDA Number 84.354A must be submitted
electronically using the Governmentwide Grants.gov Apply site at
http://www.Grants.gov. Through this site, you will be able to download a
copy of the application package, complete it offline, and then upload
and submit your application. You may not e-mail an electronic copy of a
grant application to us.

We will reject your application if you submit it in paper format unless,
as described elsewhere in this section, you qualify for one of the
exceptions to the electronic submission requirement [and]{.underline}
submit, no later than two weeks before the application deadline date, a
written statement to the Department that you qualify for one of these
exceptions. Further information regarding calculation of the date that
is two weeks before the application deadline date is provided later in
this section under [Exception to Electronic Submission
Requirement]{.underline}.

You may access the electronic grant application for the Credit
Enhancement for Charter School Facilities Program at
http://www.Grants.gov. You must search for the downloadable application
package for this program or competition by the CFDA number. Do not
include the CFDA number's alpha suffix in your search (e.g., search for
84.354, not 84.354A).

Please note the following:

• When you enter the Grants.gov site, you will find information about
submitting an application electronically through the site, as well as
the hours of operation.

• Applications received by Grants.gov are date and time stamped. Your
application must be fully uploaded and submitted, and must be date and
time stamped by the Grants.gov system no later than 4:30 p.m.,
Washington, DC time, on the application deadline date. Except as
otherwise noted in this section, we will not consider your application
if it is date and time stamped by the Grants.gov system later than 4:30
p.m., Washington, DC time, on the application deadline date. When we
retrieve your application from Grants.gov, we will notify you if we are
rejecting your application because it was date and time stamped by the
Grants.gov system after 4:30 p.m., Washington, DC time, on the
application deadline date.

• The amount of time it can take to upload an application will vary
depending on a variety of factors including the size of the application
and the speed of your Internet connection. Therefore, we strongly
recommend that you do not wait until the application deadline date to
begin the submission process through Grants.gov.

• You should review and follow the Education Submission Procedures for
submitting an application through Grants.gov that are included in the
application package for this program to ensure that you submit your
application in a timely manner to the Grants.gov system. You can also
find the Education Submission Procedures pertaining to Grants.gov at
http://e-Grants.ed.gov/help/GrantsgovSubmissionProcedures.pdf

• To submit your application via Grants.gov, you must complete all steps
in the Grants.gov registration process (see
http://www.grants.gov/applicants/get_registered.jsp). These steps
include (1) registering your organization, a multi-part process that
includes registration with the Central Contractor Registry (CCR); (2)
registering yourself as an Authorized Organization Representative (AOR);
and (3) getting authorized as an AOR by your organization. Details on
these steps are outlined in the Grants.gov 3-Step Registration Guide
(see
http://www.grants.gov/section910/Grants.govRegistrationBrochure.pdf).
You also must provide on your application the same D-U-N-S Number used
with this registration. Please note that the registration process may
take five or more business days to complete, and you must have completed
all registration steps to allow you to submit successfully an
application via Grants.gov. In addition you will need to update your CCR
registration on an annual basis. This may take three or more business
days to complete.

• You will not receive additional point value because you submit your
application in electronic format, nor will we penalize you if you
qualify for an exception to the electronic submission requirement, as
described elsewhere in this section, and submit your application in
paper format.

• You must submit all documents electronically, including all
information you typically provide on the following forms: Application
for Federal Assistance (SF 424), the Department of Education
Supplemental Information for SF 424, Budget Information Non-Construction
Programs (ED 524), and all necessary assurances and certifications.
Please note that two of these forms\--the SF 424 and the Department of
Education Supplemental Information for SF 424\--have replaced the ED 424
(Application for Federal Education Assistance).

• You must attach any narrative sections of your application as files in
a .DOC (document), .RTF (rich text), or .PDF (Portable Document) format.
If you upload a file type other than the three file types specified in
this paragraph or submit a password-protected file, we will not review
that material.

• Your electronic application must comply with any page-limit
requirements described in this notice.

• After you electronically submit your application, you will receive
from Grants.gov an automatic notification of receipt that contains a
Grants.gov tracking number. (This notification indicates receipt by
Grants.gov only, not receipt by the Department.) The Department then
will retrieve your application from Grants.gov and send a second
notification to you by e-mail. This second notification indicates that
the Department has received your application and has assigned your
application a PR/Award number (an ED-specified identifying number unique
to your application).

• We may request that you provide us original signatures on forms at a
later date.

[Application Deadline Date Extension in Case of Technical Issues with
the Grants.gov System]{.underline}: If you are experiencing problems
submitting your application through Grants.gov, please contact the
Grants.gov Support Desk at 1-800-518-4726. You must obtain a Grants.gov
Support Desk Case Number and must keep a record of it.

If you are prevented from electronically submitting your application on
the application deadline date because of technical problems with the
Grants.gov system, we will grant you an extension until 4:30 p.m.,
Washington, DC time, the following business day to enable you to
transmit your application electronically or by hand delivery. You also
may mail your application by following the mailing instructions
described elsewhere in this notice.

If you submit an application after 4:30 p.m., Washington, DC time, on
the application deadline date, please contact the person listed
elsewhere in this notice under [For Further Information
Contact]{.underline} and provide an explanation of the technical problem
you experienced with Grants.gov, along with the Grants.gov Support Desk
Case Number. We will accept your application if we can confirm that a
technical problem occurred with the Grants.gov system and that that
problem affected your ability to submit your application by 4:30 p.m.,
Washington, DC time, on the application deadline date. The Department
will contact you after a determination is made on whether your
application will be accepted.

[Note]{.underline}: The extensions to which we refer in this section
apply only to the unavailability of, or technical problems with, the
Grants.gov system. We will not grant you an extension if you failed to
fully register to submit your application to Grants.gov before the
application deadline date and time or if the technical problem you
experienced is unrelated to the Grants.gov system.

[Exception to Electronic Submission Requirement]{.underline}: You
qualify for an exception to the electronic submission requirement, and
may submit your application in paper format, if you are unable to submit
an application through the Grants.gov system because----

• You do not have access to the Internet; or

• You do not have the capacity to upload large documents to the
Grants.gov system;

[and]{.underline}

• No later than two weeks before the application deadline date (14
calendar days or, if the fourteenth calendar day before the application
deadline date falls on a Federal holiday, the next business day
following the Federal holiday), you mail or fax a written statement to
the Department, explaining which of the two grounds for an exception
prevent you from using the Internet to submit your application.

If you mail your written statement to the Department, it must be
postmarked no later than two weeks before the application deadline date.
If you fax your written statement to the Department, we must receive the
faxed statement no later than two weeks before the application deadline
date.

Address and mail or fax your statement to: Ann Margaret Galiatsos or Jim
Houser, U.S. Department of Education, 400 Maryland Avenue, SW., room
4W245, Washington, DC 20202-6140. FAX: (202) 205-5630.

Your paper application must be submitted in accordance with the mail or
hand delivery instructions described in this notice.

b\. [Submission of Paper Applications by Mail]{.underline}.

If you qualify for an exception to the electronic submission
requirement, you may mail (through the U.S. Postal Service or a
commercial carrier) your application to the Department. You must mail
the original and two copies of your application, on or before the
application deadline date, to the Department at the applicable following
address:

[By mail through the U.S. Postal Service]{.underline}:

> U.S. Department of Education
>
> Application Control Center
>
> Attention: (CFDA Number 84.354A)

400 Maryland Avenue, SW.

> Washington, DC 20202-4260

or

[By mail through a commercial carrier]{.underline}:

> U.S. Department of Education
>
> Application Control Center, Stop 4260
>
> Attention: (CFDA Number 84.354A)
>
> 7100 Old Landover Road
>
> Landover, MD 20785-1506

Regardless of which address you use, you must show proof of mailing
consisting of one of the following:

\(1\) A legibly dated U.S. Postal Service postmark.

\(2\) A legible mail receipt with the date of mailing stamped by the
U.S. Postal Service.

\(3\) A dated shipping label, invoice, or receipt from a commercial
carrier.

\(4\) Any other proof of mailing acceptable to the Secretary of the U.S.
Department of Education.

If you mail your application through the U.S. Postal Service, we do not
accept either of the following as proof of mailing:

\(1\) A private metered postmark.

\(2\) A mail receipt that is not dated by the U.S. Postal Service.

If your application is postmarked after the application deadline date,
we will not consider your application.

[Note]{.underline}: The U.S. Postal Service does not uniformly provide a
dated postmark. Before relying on this method, you should check with
your local post office.

c\. [Submission of Paper Applications by Hand Delivery]{.underline}.

If you qualify for an exception to the electronic submission
requirement, you (or a courier service) may deliver your paper
application to the Department by hand. You must deliver the original and
two copies of your application by hand, on or before the application
deadline date, to the Department at the following address:

> U.S. Department of Education
>
> Application Control Center
>
> Attention: (CFDA Number 84.354A)
>
> 550 12th Street, SW.
>
> Room 7041, Potomac Center Plaza
>
> Washington, DC 20202-4260

The Application Control Center accepts hand deliveries daily between
8:00 a.m. and 4:30 p.m., Washington, DC time, except Saturdays, Sundays,
and Federal holidays.

[Note for Mail or Hand Delivery of Paper Applications]{.underline}: If
you mail or hand deliver your application to the Department\--

\(1\) You must indicate on the envelope and\--if not provided by the
Department\--in Item 11 of the SF 424 the CFDA number, including suffix
letter, if any, of the competition under which you are submitting your
application; and

\(2\) The Application Control Center will mail to you a notification of
receipt of your grant application. If you do not receive this
notification within 15 business days from the application deadline date,
you should call the U.S. Department of Education Application Control
Center at (202) 245-6288.

V. Application Review Information

1\. [Selection Criteria]{.underline}: The selection criteria for this
program are from 34 CFR 225.11 and are listed in this section. The
maximum score for all the selection criteria is 100 points. The maximum
score for each criterion is indicated in parentheses. Each criterion
also includes the factors that the reviewers will consider to determine
how well an application meets the criterion. We encourage applicants to
make explicit connections to the selection criteria and factors in their
applications.

A. [Quality of project design and significance]{.underline}. (35 points)

In determining the quality of project design and significance, the
Secretary considers\--

\(1\) The extent to which the grant proposal would provide financing to
charter schools at better rates and terms than they can receive absent
assistance through the program;

\(2\) The extent to which the project goals, objectives, and timeline
are clearly specified, measurable, and appropriate for the purpose of
the program;

\(3\) The extent to which the project implementation plan and
activities, including the partnerships established, are likely to
achieve measurable objectives that further the purposes of the program;

\(4\) The extent to which the project is likely to produce results that
are replicable;

\(5\) The extent to which the project will use appropriate criteria for
selecting charter schools for assistance and for determining the type
and amount of assistance to be given;

\(6\) The extent to which the proposed activities will leverage private
or public-sector funding and increase the number and variety of charter
schools assisted in meeting their facilities needs more than would be
accomplished absent the program;

\(7\) The extent to which the project will serve charter schools in
States with strong charter laws, consistent with the criteria for such
laws in section 5202(e)(3) of the Elementary and Secondary Education Act
of 1965; and

\(8\) The extent to which the requested grant amount and the project
costs are reasonable in relation to the objectives, design, and
potential significance of the project.

> B. [Quality of project services]{.underline}. (15 points)

In determining the quality of the project services, the Secretary
considers\--

\(1\) The extent to which the services to be provided by the project
reflect the identified needs of the charter schools to be served;

\(2\) The extent to which charter schools and chartering agencies were
involved in the design of, and demonstrate support for, the project;

\(3\) The extent to which the technical assistance and other services to
be provided by the proposed grant project involve the use of
cost-effective strategies for increasing charter schools' access to
facilities financing, including the reasonableness of fees and lending
terms; and

\(4\) The extent to which the services to be provided by the proposed
grant project are focused on assisting charter schools with a likelihood
of success and the greatest demonstrated need for assistance under the
program.

C. [Capacity]{.underline}. (35 points)

In determining an applicant's business and organizational capacity to
carry out the project, the Secretary considers\--

\(1\) The amount and quality of experience of the applicant in carrying
out the activities it proposes to undertake in its application, such as
enhancing the credit on debt issuances, guaranteeing leases, and
facilitating financing;

\(2\) The applicant's financial stability;

\(3\) The ability of the applicant to protect against unwarranted risk
in its loan underwriting, portfolio monitoring, and financial
management;

\(4\) The applicant's expertise in education to evaluate the likelihood
of success of a charter school;

\(5\) The ability of the applicant to prevent conflicts of interest,
including conflicts of interest by employees and members of the board of
directors in a decision-making role;

\(6\) If the applicant has co-applicants (consortium members), partners,
or other grant project participants, the specific resources to be
contributed by each co-applicant (consortium member), partner, or other
grant project participant to the implementation and success of the grant
project;

\(7\) For State governmental entities, the extent to which steps have
been or will be taken to ensure that charter schools within the State
receive the funding needed to obtain adequate facilities; and

\(8\) For previous grantees under the charter school facilities
programs, their performance in implementing these grants.

> D. [Quality of project personnel]{.underline}. (15 points)

In determining the quality of project personnel, the Secretary
considers\--

\(1\) The qualifications of project personnel, including relevant
training and experience, of the project manager and other members of the
project team, including consultants or subcontractors; and

\(2\) The staffing plan for the grant project.

2\. [Review and Selection Process]{.underline}: Additional factors we
consider in selecting an application for an award are in 34 CFR 225.12.

VI\. Award Administration Information

1\. [Award Notices]{.underline}: If your application is successful, we
notify your U.S. Representative and U.S. Senators and send you a Grant
Award Notice (GAN). We may also notify you informally.

If your application is not evaluated or not selected for funding, we
notify you.

2\. [Administrative and National Policy Requirements]{.underline}: We
identify administrative and national policy requirements in the
application package and reference these and other requirements in the
[Applicable Regulations]{.underline} section of this notice.

We reference the regulations outlining the terms and conditions of an
award in the [Applicable Regulations]{.underline} section of this notice
and include these and other specific conditions in the GAN. The GAN also
incorporates your approved application as part of your binding
commitments under the grant.

3\. [Reporting]{.underline}: Applicants selected for funding will be
required to submit the following reports to the Department:

\(a\) An annual report that includes the information from section
5227(b) of the ESEA and any other information the Secretary may require
in the performance report.

\(b\) A semiannual report that includes internal financial statements
and other information as the Secretary may require.

Grantees must also cooperate and assist the Department with any periodic
financial and compliance audits of the grantee, as determined necessary
by the Department. The specific Performance Agreement between the
grantee and the Department may contain additional reporting
requirements.

\(c\) At the end of your project period, you must submit a final
performance report, including financial information, as directed by the
Secretary.

4\. [Performance Measures]{.underline}: The performance measures for
this program are: (1) the amount of funding grantees leverage for
charter schools to acquire, construct, and renovate school facilities
and (2) the number of charter schools served. Grantees must provide this
information as part of their annual performance reports.

VII\. Agency Contacts

[For Further Information Contact]{.underline}: Ann Margaret Galiatsos or
Jim Houser, U.S. Department of Education, 400 Maryland Avenue, SW., room
4W245, Washington, DC 20202-6140. Telephone: (202) 205-9765 or by
e-mail: charter.facilities@ed.gov

If you use a telecommunications device for the deaf (TDD), you may call
the Federal Relay Service (FRS) at 1-800-877-8339.

Individuals with disabilities may obtain this document in an alternative
format (e.g., Braille, large print, audiotape, or computer diskette) on
request to the program contact persons listed in this section.

VIII\. Other Information

[Electronic Access to This Document]{.underline}: You may view this
document, as well as all other documents of this Department published in
the [Federal Register]{.underline}, in text or Adobe Portable Document
Format (PDF) on the Internet at the following site:
www.ed.gov/news/fedregister

To use PDF you must have Adobe Acrobat Reader, which is available free
at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.

[Note]{.underline}: The official version of this document is the
document published in the [Federal Register]{.underline}. Free Internet
access to the official edition of the [Federal Register]{.underline} and
the Code of Federal Regulations is available on GPO Access at:
[www.gpoaccess.gov/nara/index.html]{.underline}

Dated:

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Morgan S. Brown,
>
> [Assistant Deputy Secretary for]{.underline}
>
> [Innovation and Improvement]{.underline}

**[Program Statute]{.smallcaps}**

+-----------------------------------------------------------------------+
| **Subpart 2 --- Credit Enhancement Initiatives To Assist Charter      |
| School Facility Acquisition, Construction, and Renovation**           |
+-----------------------------------------------------------------------+
| **SEC. 5221. PURPOSE.**                                               |
|                                                                       |
| > The purpose of this subpart is to provide grants to eligible        |
| > entities to permit the eligible entities to demonstrate innovative  |
| > credit enhancement initiatives that assist charter schools to       |
| > address the cost of acquiring, constructing, and renovating         |
| > facilities.                                                         |
|                                                                       |
| ### SEC. 5222. GRANTS TO ELIG                                         |
| IBLE ENTITIES. {#sec.-5222.-grants-to-eligible-entities. .unnumbered} |
|                                                                       |
| > \(a\) GRANTS- The Secretary shall use 100 percent of the amount     |
| > available to carry out this subpart to award not less than three    |
| > grants to eligible entities that have applications approved under   |
| > this subpart to demonstrate innovative methods of assisting charter |
| > schools to address the cost of acquiring, constructing, and         |
| > renovating facilities by enhancing the availability of loans or     |
| > bond financing.                                                     |
| >                                                                     |
| > \(b\) GRANTEE SELECTION-                                            |
| >                                                                     |
| > \(1\) EVALUATION OF APPLICATION- The Secretary shall evaluate each  |
| > application submitted under section 5223, and shall determine       |
| > whether the application is sufficient to merit approval.            |
| >                                                                     |
| > \(2\) DISTRIBUTION OF GRANTS- The Secretary shall award at least    |
| > one grant to an eligible entity described in section 5230(2)(A), at |
| > least one grant to an eligible entity described in section          |
| > 5230(2)(B), and at least one grant to an eligible entity described  |
| > in section 5230(2)(C), if applications are submitted that permit    |
| > the Secretary to do so without approving an application that is not |
| > of sufficient quality to merit approval.                            |
| >                                                                     |
| > \(c\) GRANT CHARACTERISTICS- Grants under this subpart shall be of  |
| > a sufficient size, scope, and quality so as to ensure an effective  |
| > demonstration of an innovative means of enhancing credit for the    |
| > financing of charter school acquisition, construction, or           |
| > renovation.                                                         |
| >                                                                     |
| > \(d\) SPECIAL RULE- In the event the Secretary determines that the  |
| > funds made available under this subpart are insufficient to permit  |
| > the Secretary to award not less than three grants in accordance     |
| > with subsections (a) through (c), such three-grant minimum and      |
| > subsection (b)(2) shall not apply, and the Secretary may determine  |
| > the appropriate number of grants to be awarded in accordance with   |
| > subsection (c).                                                     |
|                                                                       |
| ### SEC. 5223. APPLICATIONS. {#sec.-5223.-applications. .unnumbered}  |
|                                                                       |
| > \(a\) IN GENERAL- To receive a grant under this subpart, an         |
| > eligible entity shall submit to the Secretary an application in     |
| > such form as the Secretary may reasonably require.                  |
| >                                                                     |
| > \(b\) CONTENTS- An application submitted under subsection (a) shall |
| > contain ---                                                         |
| >                                                                     |
| > \(1\) a statement identifying the activities proposed to be         |
| > undertaken with funds received under this subpart, including how    |
| > the eligible entity will determine which charter schools will       |
| > receive assistance, and how much and what types of assistance       |
| > charter schools will receive;                                       |
| >                                                                     |
| > \(2\) a description of the involvement of charter schools in the    |
| > application\'s development and the design of the proposed           |
| > activities;                                                         |
| >                                                                     |
| > \(3\) a description of the eligible entity\'s expertise in capital  |
| > market financing;                                                   |
| >                                                                     |
| > \(4\) a description of how the proposed activities will leverage    |
| > the maximum amount of private-sector financing capital relative to  |
| > the amount of government funding used and otherwise enhance credit  |
| > available to charter schools;                                       |
| >                                                                     |
| > \(5\) a description of how the eligible entity possesses sufficient |
| > expertise in education to evaluate the likelihood of success of a   |
| > charter school program for which facilities financing is sought;    |
| >                                                                     |
| > \(6\) in the case of an application submitted by a State            |
| > governmental entity, a description of the actions that the entity   |
| > has taken, or will take, to ensure that charter schools within the  |
| > State receive the funding the charter schools need to have adequate |
| > facilities; and                                                     |
| >                                                                     |
| > \(7\) such other information as the Secretary may reasonably        |
| > require.                                                            |
|                                                                       |
| ### SEC. 5224. CHARTER SC                                             |
| HOOL OBJECTIVES. {#sec.-5224.-charter-school-objectives. .unnumbered} |
|                                                                       |
| > An eligible entity receiving a grant under this subpart shall use   |
| > the funds deposited in the reserve account established under        |
| > section 5225(a) to assist one or more charter schools to access     |
| > private sector capital to accomplish one or both of the following   |
| > objectives:                                                         |
| >                                                                     |
| > \(1\) The acquisition (by purchase, lease, donation, or otherwise)  |
| > of an interest (including an interest held by a third party for the |
| > benefit of a charter school) in improved or unimproved real         |
| > property that is necessary to commence or continue the operation of |
| > a charter school.                                                   |
| >                                                                     |
| > \(2\) The construction of new facilities, or the renovation,        |
| > repair, or alteration of existing facilities, necessary to commence |
| > or continue the operation of a charter school.                      |
|                                                                       |
| ### S                                                                 |
| EC. 5225. RESERVE ACCOUNT. {#sec.-5225.-reserve-account. .unnumbered} |
|                                                                       |
| > \(a\) USE OF FUNDS- To assist charter schools to accomplish the     |
| > objectives described in section 5224, an eligible entity receiving  |
| > a grant under this subpart shall, in accordance with State and      |
| > local law, directly or indirectly, alone or in collaboration with   |
| > others, deposit the funds received under this subpart (other than   |
| > funds used for administrative costs in accordance with section      |
| > 5226) in a reserve account established and maintained by the        |
| > eligible entity for this purpose. Amounts deposited in such account |
| > shall be used by the eligible entity for one or more of the         |
| > following purposes:                                                 |
| >                                                                     |
| > \(1\) Guaranteeing, insuring, and reinsuring bonds, notes,          |
| > evidences of debt, loans, and interests therein, the proceeds of    |
| > which are used for an objective described in section 5224.          |
| >                                                                     |
| > \(2\) Guaranteeing and insuring leases of personal and real         |
| > property for an objective described in section 5224.                |
| >                                                                     |
| > \(3\) Facilitating financing by identifying potential lending       |
| > sources, encouraging private lending, and other similar activities  |
| > that directly promote lending to, or for the benefit of, charter    |
| > schools.                                                            |
| >                                                                     |
| > \(4\) Facilitating the issuance of bonds by charter schools, or by  |
| > other public entities for the benefit of charter schools, by        |
| > providing technical, administrative, and other appropriate          |
| > assistance (including the recruitment of bond counsel,              |
| > underwriters, and potential investors and the consolidation of      |
| > multiple charter school projects within a single bond issue).       |
| >                                                                     |
| > \(b\) INVESTMENT- Funds received under this subpart and deposited   |
| > in the reserve account established under subsection (a) shall be    |
| > invested in obligations issued or guaranteed by the United States   |
| > or a State, or in other similarly low-risk securities.              |
| >                                                                     |
| > \(c\) REINVESTMENT OF EARNINGS- Any earnings on funds received      |
| > under this subpart shall be deposited in the reserve account        |
| > established under subsection (a) and used in accordance with such   |
| > subsection.                                                         |
|                                                                       |
| ### SEC. 5226. LIMITATION ON ADMINISTRATIVE                           |
|  COSTS. {#sec.-5226.-limitation-on-administrative-costs. .unnumbered} |
|                                                                       |
| > An eligible entity may use not more than 0.25 percent of the funds  |
| > received under this subpart for the administrative costs of         |
| > carrying out its responsibilities under this subpart.               |
|                                                                       |
| ### SEC. 52                                                           |
| 27. AUDITS AND REPORTS. {#sec.-5227.-audits-and-reports. .unnumbered} |
|                                                                       |
| (a) FINANCIAL RECORD MAINTENANCE AND AUDIT- The financial records of  |
|     each eligible entity receiving a grant under this subpart shall   |
|     be maintained in accordance with generally accepted accounting    |
|     principles and shall be subject to an annual audit by an          |
|     independent public accountant.                                    |
|                                                                       |
| > \(b\) REPORTS-                                                      |
| >                                                                     |
| > \(1\) GRANTEE ANNUAL REPORTS- Each eligible entity receiving a      |
| > grant under this subpart annually shall submit to the Secretary a   |
| > report of its operations and activities under this subpart.         |
| >                                                                     |
| > \(2\) CONTENTS- Each annual report submitted under paragraph (1)    |
| > shall include ---                                                   |
| >                                                                     |
| > \(A\) a copy of the most recent financial statements, and any       |
| > accompanying opinion on such statements, prepared by the            |
| > independent public accountant reviewing the financial records of    |
| > the eligible entity;                                                |
| >                                                                     |
| > \(B\) a copy of any report made on an audit of the financial        |
| > records of the eligible entity that was conducted under subsection  |
| > (a) during the reporting period;                                    |
| >                                                                     |
| > \(C\) an evaluation by the eligible entity of the effectiveness of  |
| > its use of the Federal funds provided under this subpart in         |
| > leveraging private funds;                                           |
| >                                                                     |
| > \(D\) a listing and description of the charter schools served       |
| > during the reporting period;                                        |
| >                                                                     |
| > \(E\) a description of the activities carried out by the eligible   |
| > entity to assist charter schools in meeting the objectives set      |
| > forth in section 5224; and                                          |
| >                                                                     |
| > \(F\) a description of the characteristics of lenders and other     |
| > financial institutions participating in the activities undertaken   |
| > by the eligible entity under this subpart during the reporting      |
| > period.                                                             |
| >                                                                     |
| > \(3\) SECRETARIAL REPORT- The Secretary shall review the reports    |
| > submitted under paragraph (1) and shall provide a comprehensive     |
| > annual report to Congress on the activities conducted under this    |
| > subpart.                                                            |
|                                                                       |
| ##                                                                    |
| # SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS. {#sec. |
| -5228.-no-full-faith-and-credit-for-grantee-obligations. .unnumbered} |
|                                                                       |
| > No financial obligation of an eligible entity entered into pursuant |
| > to this subpart (such as an obligation under a guarantee, bond,     |
| > note, evidence of debt, or loan) shall be an obligation of, or      |
| > guaranteed in any respect by, the United States. The full faith and |
| > credit of the United States is not pledged to the payment of funds  |
| > which may be required to be paid under any obligation made by an    |
| > eligible entity pursuant to any provision of this subpart.          |
|                                                                       |
| ### SEC.                                                              |
| 5229. RECOVERY OF FUNDS. {#sec.-5229.-recovery-of-funds. .unnumbered} |
|                                                                       |
| > \(a\) IN GENERAL- The Secretary, in accordance with chapter 37 of   |
| > title 31, United States Code, shall collect ---                     |
| >                                                                     |
| > \(1\) all of the funds in a reserve account established by an       |
| > eligible entity under section 5225(a) if the Secretary determines,  |
| > not earlier than 2 years after the date on which the eligible       |
| > entity first received funds under this subpart, that the eligible   |
| > entity has failed to make substantial progress in carrying out the  |
| > purposes described in section 5225(a); or                           |
| >                                                                     |
| > \(2\) all or a portion of the funds in a reserve account            |
| > established by an eligible entity under section 5225(a) if the      |
| > Secretary determines that the eligible entity has permanently       |
| > ceased to use all or a portion of the funds in such account to      |
| > accomplish any purpose described in section 5225(a).                |
| >                                                                     |
| > \(b\) EXERCISE OF AUTHORITY- The Secretary shall not exercise the   |
| > authority provided in subsection (a) to collect from any eligible   |
| > entity any funds that are being properly used to achieve one or     |
| > more of the purposes described in section 5225(a).                  |
| >                                                                     |
| > \(c\) PROCEDURES- The provisions of sections 451, 452, and 458 of   |
| > the General Education Provisions Act shall apply to the recovery of |
| > funds under subsection (a).                                         |
| >                                                                     |
| > \(d\) CONSTRUCTION- This section shall not be construed to impair   |
| > or affect the authority of the Secretary to recover funds under     |
| > part D of the General Education Provisions Act.                     |
|                                                                       |
| ### SEC. 5230. DEFINITIONS. {#sec.-5230.-definitions. .unnumbered}    |
|                                                                       |
| > In this subpart:                                                    |
| >                                                                     |
| > \(1\) CHARTER SCHOOL- The term charter school\' has the meaning     |
| > given such term in section 5210.                                    |
| >                                                                     |
| > \(2\) ELIGIBLE ENTITY- The term eligible entity\' means ---         |
| >                                                                     |
| > \(A\) a public entity, such as a State or local governmental        |
| > entity;                                                             |
| >                                                                     |
| > \(B\) a private nonprofit entity; or                                |
| >                                                                     |
| > \(C\) a consortium of entities described in subparagraphs (A) and   |
| > (B).                                                                |
|                                                                       |
| ### SEC. 5231. AUTHORIZATION OF APPRO                                 |
| PRIATIONS. {#sec.-5231.-authorization-of-appropriations. .unnumbered} |
|                                                                       |
| For the purpose of carrying out this subpart, there are authorized to |
| be appropriated \$150,000,000 for fiscal year 2002 and such sums as   |
| may be necessary for fiscal year 2003.                                |
+-----------------------------------------------------------------------+

CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM REGULATIONS

Subpart A\--General

Sec.

225.1 What is the Credit Enhancement for Charter School Facilities
Program?

225.2 Who is eligible to receive a grant?

225.3 What regulations apply to the Credit Enhancement for Charter
School Facilities Program?

225.4 What definitions apply to the Credit Enhancement for Charter
School Facilities Program?

Subpart B\--How Does the Secretary Award a Grant?

225.10 How does the Secretary evaluate an application?

225.11 What selection criteria does the Secretary use in evaluating an
application for a Credit Enhancement for Charter Schools Facilities
grant?

225.12 What funding priority may the Secretary use in making a grant
award?

Subpart C\--What Conditions Must Be Met by a Grantee?

225.20 When may a grantee draw down funds?

225.21 What are some examples of impermissible uses of reserve account
funds?

> AUTHORITY: 20 U.S.C. 7223, unless otherwise noted.

Subpart A - General

[§225.1 What is the Credit Enhancement for Charter School Facilities
Program?]{.underline}

\(a\) The Credit Enhancement for Charter School Facilities Program
provides grants to eligible entities to assist charter schools in
obtaining facilities.

\(b\) Grantees use these grants to do the following:

\(1\) Assist charter schools in obtaining loans, bonds, and other debt
instruments for the purpose of obtaining, constructing, and renovating
facilities.

\(2\) Assist charter schools in obtaining leases of facilities.

\(c\) Grantees may demonstrate innovative credit enhancement initiatives
while meeting the program purposes under paragraph (b) of this section.

\(d\) For the purposes of these regulations, the Credit Enhancement for
Charter School Facilities Program includes grants made under the Charter
School Facilities Financing Demonstration Grant Program.

(Authority: 20 U.S.C. 7223)

[§225.2 Who is eligible to receive a grant]{.underline}?

The following are eligible to receive a grant under this part:

\(a\) A public entity, such as a State or local governmental entity;

\(b\) A private nonprofit entity; or

\(c\) A consortium of entities described in paragraphs (a) and (b) of
this section.

(Authority: 20 U.S.C. 7223a; 7223i(2))

[§225.3 What regulations apply to the Credit Enhancement for Charter
School Facilities Program]{.underline}?

The following regulations apply to the Credit Enhancement for Charter
School Facilities Program:

\(a\) The Education Department General Administrative Regulations
(EDGAR) as follows:

\(1\) 34 CFR part 74 (Administration of Grants and Agreements with
Institutions of Higher Education, Hospitals, and other Non-Profit
Organizations).

\(2\) 34 CFR part 75 (Direct Grant Programs).

\(3\) 34 CFR part 77 (Definitions that Apply to Department Regulations).

\(4\) 34 CFR part 79 (Intergovernmental Review of Department of
Education Programs and Activities).

\(5\) 34 CFR part 80 (Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments).

\(6\) 34 CFR part 81 (General Educational Provisions Act\--Enforcement).

\(7\) 34 CFR part 82 (New Restrictions on Lobbying).

\(8\) 34 CFR part 84 (Governmentwide Requirements for Drug-Free
Workplace (Grants)).

\(9\) 34 CFR part 85 (Governmentwide Debarment and Suspension
(Nonprocurement)).

\(10\) 34 CFR part 97 (Protection of Human Subjects).

\(11\) 34 CFR part 98 (Student Rights in Research, Experimental
Programs, and Testing).

\(12\) 34 CFR part 99 (Family Educational Rights and Privacy).

\(b\) The regulations in this part 225.

(Authority: 20 U.S.C. 1221e-3; 1232)

[§225.4 What definitions apply to the Credit Enhancement for Charter
School Facilities Program?]{.underline}

\(a\) Definitions in the Act. The following term used in this part is
defined in section 5210 of the Elementary and Secondary Education Act of
1965, as amended by the No Child Left Behind Act of 2001:

Charter school

\(b\) Definitions in EDGAR. The following terms used in this part are
defined in 34 CFR 77.1:

Acquisition

Applicant

Application

Award

Department

EDGAR

Facilities

Grant

Grantee

Nonprofit

Private

Project

Public

Secretary

(Authority: 20 U.S.C. 7221(i)(1); 7223d)

Subpart B \-- How Does the Secretary Award a Grant?

[§225.]{.underline}10 How does the Secretary evaluate an application?

\(a\) The Secretary evaluates an application on the basis of the
criteria in §225.11.

\(b\) The Secretary awards up to 100 points for these criteria.

\(c\) The maximum possible score for each criterion is indicated in
parentheses.

(Authority: 20 U.S.C. 7223; 1232)

[§225.11 What selection criteria does the Secretary use in evaluating an
application for a Credit Enhancement for Charter School Facilities
grant]{.underline}?

The Secretary uses the following criteria to evaluate an application for
a Credit Enhancement for Charter School Facilities grant:

\(a\) Quality of project design and significance. (35 points) In
determining the quality of project design and significance, the
Secretary considers\--

\(1\) The extent to which the grant proposal would provide financing to
charter schools at better rates and terms than they can receive absent
assistance through the program;

\(2\) The extent to which the project goals, objectives, and timeline
are clearly specified, measurable, and appropriate for the purpose of
the program;

\(3\) The extent to which the project implementation plan and
activities, including the partnerships established, are likely to
achieve measurable objectives that further the purposes of the program;

\(4\) The extent to which the project is likely to produce results that
are replicable;

\(5\) The extent to which the project will use appropriate criteria for
selecting charter schools for assistance and for determining the type
and amount of assistance to be given;

\(6\) The extent to which the proposed activities will leverage private
or public-sector funding and increase the number and variety of charter
schools assisted in meeting their facilities needs more than would be
accomplished absent the program;

\(7\) The extent to which the project will serve charter schools in
States with strong charter laws, consistent with the criteria for such
laws in section 5202(e)(3) of the Elementary and Secondary Education Act
of 1965; and

\(8\) The extent to which the requested grant amount and the project
costs are reasonable in relation to the objectives, design, and
potential significance of the project.

\(b\) [Quality of project services]{.underline}. (15 points) In
determining the quality of the project services, the Secretary
considers\--

\(1\) The extent to which the services to be provided by the project
reflect the identified needs of the charter schools to be served;

\(2\) The extent to which charter schools and chartering agencies were
involved in the design of, and demonstrate support for, the project;

\(3\) The extent to which the technical assistance and other services to
be provided by the proposed grant project involve the use of
cost-effective strategies for increasing charter schools' access to
facilities financing, including the reasonableness of fees and lending
terms; and

\(4\) The extent to which the services to be provided by the proposed
grant project are focused on assisting charter schools with a likelihood
of success and the greatest demonstrated need for assistance under the
program.

\(c\) [Capacity]{.underline}. (35 points) In determining an applicant's
business and organizational capacity to carry out the project, the
Secretary considers\--

\(1\) The amount and quality of experience of the applicant in carrying
out the activities it proposes to undertake in its application, such as
enhancing the credit on debt issuances, guaranteeing leases, and
facilitating financing;

\(2\) The applicant's financial stability;

\(3\) The ability of the applicant to protect against unwarranted risk
in its loan underwriting, portfolio monitoring, and financial
management;

\(4\) The applicant's expertise in education to evaluate the likelihood
of success of a charter school;

\(5\) The ability of the applicant to prevent conflicts of interest,
including conflicts of interest by employees and members of the board of
directors in a decision-making role;

\(6\) If the applicant has co-applicants (consortium members), partners,
or other grant project participants, the specific resources to be
contributed by each co-applicant (consortium member), partner, or other
grant project participant to the implementation and success of the grant
project;

\(7\) For State governmental entities, the extent to which steps have
been or will be taken to ensure that charter schools within the State
receive the funding needed to obtain adequate facilities; and

\(8\) For previous grantees under the charter school facilities
programs, their performance in implementing these grants.

\(d\) [Quality of project personnel]{.underline}. (15 points) In
determining the quality of project personnel, the Secretary considers\--

\(1\) The qualifications of project personnel, including relevant
training and experience, of the project manager and other members of the
project team, including consultants or subcontractors; and

\(2\) The staffing plan for the grant project.

(Approved by the Office of Management and Budget under control number
1855-0007)

(Authority: 20 U.S.C. 7223; 1232)

[§225.12 What funding priority may the Secretary use in making a grant
award?]{.underline}

\(a\) The Secretary may award up to 15 additional points under a
competitive priority related to the capacity of charter schools to offer
public school choice in those communities with the greatest need for
this choice based on\--

\(1\) The extent to which the applicant would target services to
geographic areas in which a large proportion or number of public schools
have been identified for improvement, corrective action, or
restructuring under Title I of the Elementary and Secondary Education
Act of 1965, as amended by the No Child Left Behind Act of 2001;

\(2\) The extent to which the applicant would target services to
geographic areas in which a large proportion of students perform below
proficient on State academic assessments; and

\(3\) The extent to which the applicant would target services to
communities with large proportions of students from low-income families.

\(b\) The Secretary may elect to\--

\(1\) Use this competitive priority only in certain years; and

\(2\) Consider the points awarded under this priority only for proposals
that exhibit sufficient quality to warrant funding under the selection
criteria in §225.11.

(Approved by the Office of Management and Budget under control number
1855-0007)

(Authority: 20 U.S.C. 7223; 1232)

Subpart C\--What Conditions Must Be Met by a Grantee?

[§225.20 When may a grantee draw down funds?]{.underline}

\(a\) A grantee may draw down funds after it has signed a performance
agreement acceptable to the Department of Education and the grantee.

\(b\) A grantee may draw down and spend a limited amount of funds prior
to reaching an acceptable performance agreement provided that the
grantee requests to draw down and spend a specific amount of funds and
the Department of Education approves the request in writing.

(Authority: 20 U.S.C. 7223d)

[§225.21 What are some examples of impermissible uses of reserve account
funds]{.underline}?

\(a\) Grantees must not use reserve account funds to\--

\(1\) Directly pay for a charter school's construction, renovation,
repair, or acquisition; or

\(2\) Provide a down payment on facilities in order to secure loans for
charter schools. A grantee may, however, use funds to guarantee a loan
for the portion of the loan that would otherwise have to be funded with
a down payment.

\(b\) In the event of a default of payment to lenders or contractors by
a charter school whose loan or lease is guaranteed by reserve account
funds, a grantee may use these funds to cover defaulted payments that
are referenced under paragraph (a)(1) of this section.

(Authority: 20 U.S.C. 7223d)

GENERAL APPLICATION INSTRUCTIONS AND INFORMATION

**[General Instructions]{.smallcaps}**

**Part I: Grants.gov narrative forms**

Applicants applying for the Credit Enhancement Program via Grants.gov
will use the following Grants.gov narrative forms.

[ED Abstract Form -]{.underline} The abstract is to be attached to the
"ED Abstract Form" in the application package in Grants.gov. The
abstract narrative must include the name and address of your
organization and the name, phone number, and e-mail address of the
contact person for this project. The abstract narrative must not exceed
one page and should use language that will be understood by a range of
audiences. For all projects, include the project title (if applicable),
goals, expected outcomes and contributions for research, policy,
practice, etc. Address how your application meets the purpose of the
Credit Enhancement for Charter School Facilities program as stated in
the Notice Inviting Applications for New Awards.

# [Project Narrative Attachment Form]{.underline} -- (found in the Grants.gov application package) is where applicants will attach their narrative responses to the application requirements and selection criteria that will be used to evaluate applications submitted for this competition. This section has a suggested page limit of 40 pages. 

Also included in this section, but not subject to the suggested 40 page
limit, will be a table of contents and response to the competitive
priorities.

[Other Attachments Form]{.underline} -- (found in the Grants.gov
application package) is where applicants will attach additional
documents, including resumes/curriculum vitae and appendices.

Electronic submission requires that narratives and other files be
attached to the following attachment forms as per the instruction in
this document such as:

-   One page Abstract must be attached to the "Department of Education
    Abstract Form"

-   Program Narratives must be attached to the "Program Narrative
    Attachment Form"

-   All vitas, resumes, table of contents, letters, certifications,
    supplementary statements; and other requested appendices must be
    attached to the "Other Attachment Forms"

    **NOTE: *Please do not attach any narratives, supporting files, or
    application components to the Standard Form (SF 424). Although this
    form accepts attachments, the Department of Education will only
    review materials/files attached to the attachment forms listed
    above.***

Applicants applying via Grants.gov will use their own word-processing
software to complete the Credit Enhancement application. If you have
received an exemption to the mandatory electronic submission requirement
and are submitting a hard copy application, you will not use these
forms, but will prepare a narrative incorporating each element.

**Part II:** **Standard Forms and Application Requirements**

**Supplemental instructions for the SF 424 Cover Sheet and the ED
Supplement to the SF 424**

All applicants must obtain and use a DUNS number, and all applicants
applying through Grants.gov must register with Grants.gov. The DUNS
number used on the application must be the same number that the
applicant's organization used to register with Grants.gov. If the
numbers are not the same, Grants.gov will reject the application.

# DUNS Number Instructions

DUNS #: Please provide the applicant's DUNS Number. **You can obtain the
DUNS \# at no charge by calling 1-800-333-0505** or by completing the
DUNS Number Request Form. The form can be obtained via the Internet at
the following URL:

<http://www.dnb.com/US/duns_update/index.html>

The DUNS Number is a unique nine-digit number that does not convey any
information about the recipient. A built in check digit helps assure the
accuracy of the DUNS Number. The ninth digit of each number is the check
digit, which is mathematically related to the other digits. It lets
computer systems determine if a DUNS Number has been entered correctly.

Duns & Bradstreet, a global information provider, has assigned DUNS
Number to over 43 million companies worldwide. **Live help Monday-Friday
8am-6pm (EST) Dial 1-888-814-1435.**

*For applicants applying through Grants.gov*: Please complete the SF424
first. Grants.gov will automatically insert the correct CFDA and program
name automatically wherever needed thereafter.

*For applicants applying by hardcopy application*: Applicants need to
insert the correct CFDA number and program name wherever requested.

This part of your application consists of the standard application face
page on which you provide basic identifying information about the
applicant and the application. Specific instructions for completing this
form are located on the back of the form.

**Forms*,* Assurances, and Certifications**

Applicants must complete all forms included in the application package.
Instructions for the following forms are included in this document:

-   SF 424

-   Department of Education Supplemental Information for SF 424

-   Assurance for Non-Construction Programs (SF 424B)

-   Grants.gov Lobbying Form (Certification Regarding Lobbying ED
    80-0013)

-   SF-LLL, Disclosure of Lobbying Activities

-   GEPA Statement

In order to submit your application through Grants.gov, you must
register with Grants.gov. The registration is a one-time process that
may take 5 days or more to complete. You may begin working on your
application while completing the registration process, but you cannot
submit an application until all of the registration steps are completed.
For detailed information on registering with Grants.gov, please go to:
<http://www.grants.gov/applicants/get_registered.jsp>.

If you qualify for an exception to the mandatory electronic submission,
and have requested one no later than two weeks before the application
deadline date, please follow the instructions for submitting a hard copy
of the application in the Federal Register Notice. To help facilitate
the review of a hard copy application, please arrange the required
elements in the same order they are listed here.

**Part III:** **Program Narrative Addressing the Project Selection
Criteria and the Application Content Requirements**

Instructions for Project Narrative:

This part of your application contains information responsive to the
Project Selection Criteria and the Application Content Requirements.
Make sure that your narrative addresses all of the elements. *We
strongly recommend that the information be organized around and appear
in the same sequence as the Project Selection Criteria.* Please upload
the program narrative as one document and then upload Table 1, Table 2,
and Table 3 each separately.

**Please also include the following applicable tables:**

-   Table 1- Non-Grant Funds Projected to be Generated

-   Table 2- Applicant Activity Table for the Most Recently Completed

> Fiscal Year

[Consortium agreements]{.underline}:

Consortium applicants must also submit consortium agreements as part of
their application package. These applicants must either designate one
member of the group to apply for the grant or establish a separate legal
entity to apply for the grant. All members of the consortium must then
enter into an agreement that details the activities that each member of
the group plans to perform and that binds each member to the application
statements and assurances. This consortium agreement must be submitted
as part of the consortium's application. The Department\'s
administrative regulations at 34 CFR sections 75.127\--129 provide more
details about the requirements that govern group/consortium
applications.

**Part IV: Budget Form and Related Information**

This part of the application contains information about the Federal
funding you are requesting. You must fill in the budget form and provide
explanations and comments necessary to interpret the information you
provide on this form.

Please include the following table:

-   Table 3 \-- Budget Form: Grant Funds Expenditures

**[Competitive Priority and]{.smallcaps}** **[Project Selection
Criteria]{.smallcaps}**

**The Challenge: Helping Charter Schools and Promoting School Choice**

Charter schools have difficulty obtaining adequate facilities in part
because lenders, investors, and landlords tend to perceive them as a
financial risk. These perceived risks sometimes mean that charter
schools pay premium interest or rent or that lenders, investors, and
landlords refuse to do business with them.

Charter schools are unique public schools in that they are held
accountable and face the threat of being closed if they fail to perform
at a level high enough to justify renewal of their charter. Charters for
these schools must typically be renewed every 3-5 years, and a charter
school that is not renewed would likely not be able to continue making
payments on long-term debt. While the vast majority of charter schools
meet their performance goals and continue to operate, performance-based
accountability presents a potential threat to investors.

Unlike traditional local educational agencies (LEAs), charter school
LEAs generally lack the ability to issue general obligation bonds backed
by property taxes. Investors consider these bonds to have far less risk
than bonds that are backed only by per-pupil revenue flows, which is the
only debt some charters schools can issue.

Many factors affect the extent to which charter schools have equitable
access to private-sector and other capital for financing. The length of
time the school has been in operation, its size, and the populations
being served all play into the school's ability to obtain financing and
a reasonable rate. For example, lenders may feel more comfortable
working with well-established schools with proven track records than
with start-ups, and they may find schools working with high- achieving
populations a safer risk than those serving low-performing students.

Charter schools serve as a key to providing meaningful public school
choice. In addition, the number of charter schools that grantees will be
able to serve with these funds is limited. Consequently, proposals that
focus funds on areas that need school choice the most will score higher
than other proposals.

The Secretary will select for funding under the Credit Enhancement for
Charter School Facilities Program those applications that are deemed of
highest overall quality. Experts in finance, including school facilities
finance and credit enhancement, will review the applications and assign
to each application up to 115 points using the Project Selection
Criteria and corresponding weights described in this section and the
Competitive Priority. Each criterion includes factors the reviewers will
consider in determining how well an application meets the criterion.

Reviewers will use their own professional judgment to assess the quality
of each application against these criteria. To be competitive,
applicants must address each of the selection criteria fully and
clearly. The kind of information needed to accomplish this for each
criterion is discussed below. Since much of the information needed to
address fully each criterion is also information that is required for
other purposes (see the Application Content Requirements section of this
package), we recommend that applicants organize their application
narrative around the Competitive Priority and the Project Selection
Criteria.

The Competitive Priority is for applicants that propose a grant project
that increases the capacity of charter schools to offer school choice in
those communities with the greatest need for public school choice.

Project Selection Criteria that will be used by the application
reviewers address two important questions:

> A. Has the applicant proposed a grant project that will make a
> significant contribution toward meeting the purpose of the Credit
> Enhancement for Charter School Facilities Program and thereby increase
> charter schools' access to facilities financing?
>
> B. Does the applicant have the ability to carry out the proposed grant
> project?

***The Competitive Priority related to the applicant increasing the
capacity of charter schools to offer school choice in those communities
with the greatest need for public school choice (15 points):***

> This criterion focuses on the likelihood that the proposed project
> will increase the capacity of charter schools to provide public school
> choice in those geographic areas where school choice is needed most.
> Part of this need to provide public school choice is related to Title
> I of the Elementary and Secondary Act as amended by the No Child Left
> Behind (NCLB) Act. Under NCLB, school districts are required to
> provide public school choice to students in schools that have failed
> to make adequate yearly progress for two years. School districts
> indicate they are having difficulty finding sufficient space in
> schools so that students can transfer to quality schools.
>
> Factors that will be considered in assessing the applicant's proposal
> to address school facility capacity issues related to increasing the
> capacity of charter schools to provide public school choice in those
> communities with the greatest need for such choice, including:

-   The extent to which the applicant would target services to
    geographic areas in which a large proportion or number of public
    schools have been identified for improvement, corrective action, or
    restructuring under Title I of the Elementary and Secondary
    Education Act of 1965, as amended by the No Child Left Behind Act;

-   The extent to which the applicant would target services to
    geographic areas in which a large proportion of students perform
    below proficient on State academic assessments; and

-   The extent to which the applicant would target services to
    communities with large proportions of students from low-income
    families.

**A. The selection criteria related to the potential contribution of the
proposed grant project to achieving the purpose of the Credit
Enhancement for Charter School Facilities Program include:**

1)  The quality of the design and potential significance of the proposed
    grant project (35 points).

This criterion addresses the goals, objectives, and activities of the
grant project, how the applicant will determine the viability of an
individual school as an educational enterprise and therefore as a target
for investment, the number and type of charter schools that it
anticipates will obtain facilities as a result of the grant project, the
amount and type of assistance they will receive, and the degree to which
projects would serve charter schools in States with strong charter
school laws. Successful applicants will provide comprehensive plans with
clear goals, objectives, and activities that have specific timelines and
that are aligned with the four statutory purposes for which reserve
account funds may be used. They will describe the partnerships they plan
to develop to help further the purposes of the program and how they will
leverage private-sector and other non-Federal capital for financing
charter school facilities. They will give their projections for the
amounts to be leveraged relative to the amount of government funding
used. They also will discuss how they will invest funds from the reserve
account, and provide an estimate of the earnings they expect from these
investments, and from fees, interest, or other sources.

> This criterion also addresses the grant project's potential impact on
> the national need for charter school facilities and, in that regard,
> its potential as a model for others**.** The most successful
> applicants are likely to provide services to a number of charter
> schools, including start-ups. They will accomplish this, in part, by
> leveraging a significant amount of capital for investment in charter
> school facilities. They will clearly document their activities and the
> resulting outcomes for the different types of schools served, and will
> demonstrate that their grant projects are likely to help many other
> charter schools acquire appropriate facilities in the future.
>
> The materials reviewers will take into account when rating against
> this selection criterion include:

-   The budget form and other budget information (including the
    consistency of numbers, the accuracy of any mathematical functions,
    and the clarity of any explanations)

-   Information on fees and lending terms, including how they might vary
    with interest rate fluctuations and

-   The cash flow pro forma.

> Factors used to assess the project's quality of design and
> significance include:

-   The extent to which the grant proposal would provide financing to
    charter schools at better rates and terms than they can receive
    absent assistance through the program;

-   The extent to which the grant project goals, objectives, and
    timeline are clearly specified, measurable, and appropriate for the
    purpose of the program;

-   The extent to which the grant project implementation plan and
    activities, including the partnerships established, are likely to
    achieve measurable objectives that further the purposes of the
    program;

-   The extent to which the proposed grant project is likely to produce
    results that are replicable;

-   The extent to which the grant project will use appropriate criteria
    for selecting charter schools for assistance and for determining the
    type and amount of assistance to be given;

-   The extent to which the proposed activities will leverage the
    private or public sector funding and increase the number and variety
    of charter schools assisted in meeting their facilities needs absent
    the program;

-   The extent to which the project will serve charter schools in States
    with strong charter laws, consistent with the criteria for such laws
    in Section 5202(e)(3) of the Elementary and Secondary Education Act
    of 1965; and

-   The extent to which the requested grant amount and project costs are
    reasonable in relation to the objectives, design, and potential
    significance of the project.

2)  The quality of the services (15 points).

> This criterion is concerned with the immediate benefits to be provided
> to charter schools as a result of the grant project. In this regard it
> addresses questions about the fit between the assistance to be
> provided and the needs of the recipients of the services. It also
> considers the cost-effectiveness of the services to be provided.
> Successful applicants will demonstrate that charter schools
> participated in the development of the grant project and in the
> identification of the specific needs to be addressed by the grant
> project. These applicants may have letters of endorsement from charter
> schools or otherwise document charter school support. In addition,
> these applicants will focus on quality charter schools with the
> greatest need for facilities and an inability to access private-sector
> capital. They are likely to succeed in meeting the needs of charter
> schools that are just starting up as well as more established charter
> schools. Applicants also should describe how their services would
> affect the charter schools in terms of burdens (such as fees and
> paperwork) and benefits \-- financial and otherwise.
>
> The materials reviewers will take into account when rating against
> this selection criterion include:

-   Support letters and

-   Information on fees and lending terms, including how they might vary
    with interest rate fluctuations

> Factors used to assess the quality of the services include:

-   The extent to which the services to be provided by the project
    reflect the identified needs of the charter schools to be served;

-   The extent to which charter schools and chartering agencies were
    involved in the design of, and demonstrate support for, the grant
    project;

-   The extent to which the technical assistance and other services to
    be provided by the proposed grant project involve the use of
    cost-effective strategies for increasing charter schools' access to
    facilities financing, including the reasonableness of fees and
    lending terms; and

-   The extent to which the services to be provided by the proposed
    grant project are focused on assisting charter schools that have the
    greatest needs for assistance under the program.

**B. The selection criteria related to the applicant's capacity to carry
out the proposed grant project include:**

1)  The business and organizational capacity of the applicant to carry
    out the grant project (35 points).

> This criterion focuses on the applicant's expertise in capital market
> financing and its organizational capacity to implement the proposed
> project. The applicant will need to document its financial track
> record and strength; its ability to protect against unwarranted
> financial risk; its expertise in assessing credit and evaluating the
> success of charter schools; and its ability to prevent conflicts of
> interest. The Application Content Requirements section of this package
> describes some of the specific data and documents to be provided
> regarding business and organizational capacity. The materials that
> reviewers will take into account when rating against this selection
> criterion include:

-   Table 1 -- Non-Grant Funds Projected to be Generated

-   Table 2 -- Applicant Activity Table for the Most Recently Completed
    Fiscal Year

-   Audited Financial Statements

-   Credit Rating Reports

-   Standards of Conduct

-   Non-profits: Articles of Incorporation and By-Laws

-   Non-profits: IRS Form 990

-   Public entities: Enabling Statutes and Other Relevant Legislation

-   Letters of commitment from financial partners

-   Previous grantees (both Credit Enhancement for Charter School
    Facilities Program and Charter School Facility Financing
    Demonstration Grant Program Grantees): the most recent annual
    performance report (if the grant has not been in place long enough
    to have an annual performance report, the most recent half-year
    report)

-   Applicable experience financing charter schools (if any), including
    the number of schools served, the total amount of financing
    provided, the total amount of financing credit enhanced

-   A description of how the applicant intends to meet any
    administrative costs in excess of one-quarter of one percent

Factors that will be considered in assessing the applicant's business
and organizational capacity include:

-   The amount and quality of experience of the applicant in carrying
    out the activities it proposes to undertake in its application, such
    as enhancing the credit on debt issuances, guaranteeing leases, and
    facilitating financing;

-   The applicant's financial stability;

-   The ability of the applicant to protect against unwarranted risk in
    its loan underwriting, portfolio monitoring, and financial
    management;

-   The applicant's expertise in education to evaluate the likelihood of
    success of a charter school;

-   The ability of the applicant to prevent conflicts of interest,
    including conflicts of interest by employees and members of the
    board of directors in a decision-making role; and

-   If the applicant has co-applicants (consortium members), partners or
    other grant project participants, the specific resources to be
    contributed by each co-applicant (consortium member), partner, or
    other grant project participant to the implementation and success of
    the grant project.

-   For State governmental entities, the extent to which steps have been
    or will be taken to ensure charter schools within the State receive
    the funding needed to obtain adequate facilities.

-   For previous grantees under the charter school facilities programs,
    their performance in implementing these grants.

-   

-   

2)  The grant project team (15 points).

This factor focuses on the relevant training and experience of key grant
project personnel, consultants, subcontractors, and, for nonprofits,
members of the board of directors holding key positions. Successful
applicants will plan to use the services of individuals with substantial
experience and expertise in facilities financing, charter schools, and
other appropriate areas. They will provide the information requested in
the Application Content Requirements section of this package. This
information will include, among other things, a description of current
job responsibilities, the educational background, and the experience and
skills of each member of the grant project team as described in current
resumes or detailed biographical statements. The applicant also should
describe its staffing plan for the project, including a description of
the assignments by activity or service and the match between the
proposed staff and the skills necessary to execute the specific
proposal.

> Factors used to assess the grant project team include:

-   The qualifications, including relevant training and experience, of
    the project manager and other members of the grant project team,
    including consultants or subcontractors; and

> \- The staffing plan for the grant project.

**[Application Content requirements]{.smallcaps}**

[Application Content]{.underline}

Each Credit Enhancement for Charter School Facilities Program
application must include the following specific program elements:

(1) **A statement identifying the activities proposed to be undertaken
    with grant funds (the "grant project") and the timeline for the
    activities, including how the applicant will determine which charter
    schools will receive assistance, how much and what types of
    assistance these schools will receive, the type of schools to be
    served, and what procedures the applicant will use for documenting
    grant project procedures and results.**

(2) **A description of the involvement of charter schools in the
    application\'s development and design of the proposed grant
    project.**

(3) **A description of the applicant's expertise in capital markets
    financing and organizational capacity to implement the proposed
    grant project successfully. (Consortium applicants must list
    information for each of the participating organizations.)**

This description must include the applicant's:

A.  Operational Capacity and Risk Mitigation Strategies as evidenced by:

    1.  Age of Organization

> Identify how long the organization has been in existence. (Consortiums
> should identify the ages of each of the participating organizations.)

2.  Policies and Procedures

> Provide a brief summary of the following applicant policies and
> procedures, indicating whether they are approved by the applicant's
> governing board and when they were implemented. If they are not
> currently in place, describe what steps the organization will take to
> develop and implement such policies and procedures. If the practices
> differ from the policies and procedures, explain.

a.  Underwriting Standards for Participants: Process for evaluating the
    creditworthiness of charter school participants, including criteria
    for providing guarantees or other credit enhancement.

b.  Portfolio Monitoring: Monitoring process, risk rating methodologies,
    and debt restructuring, collections, and write-off policies.

c.  Financial Management/Risk Mitigation: Internal controls and
    operating policies for safeguarding assets, including cash
    management; maintaining liquidity and operating reserves; likely
    reserve account investments; and risk mitigation strategies (e.g.
    portfolio diversification, adopting internal lending limits,
    establishing and adjusting debt loss reserves, and seeking
    third-party insurance against default by the applicant).

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3.  Standards of Conduct

> Provide a copy of the ***standards of conduct*** for your
> organization, if they exist. The standards of conduct must, at a
> minimum, require disclosure of direct and indirect financial or other
> interests, mandate disinterested decision-making, and indicate
> corrective actions to be taken in the event of violation.

B.  Financial Track Record and Strength as evidenced by:

    1.  Credit Rating

> Submit the most recent ***credit rating and report*** prepared for the
> organization by a major bond rating agency, such as Standard and
> Poor's, Moody's Investors Service, or Fitch IBCA. If the organization
> does not have a credit rating, please indicate.

2.  Financial Statements

> Submit ***audited financial statements*** for the applicant's three
> most recently completed fiscal years. If audited statements are not
> available, please provide ***financial statements*** for the
> applicant's three most recently completed fiscal years that have been
> reviewed by an independent Certified Public Accountant (C.P.A.).
>
> Such documents must include:

a.  Balance sheets or statements of financial position;

b.  Income statements or statements of activities;

c.  Statements of cash flows; and

d.  Notes to the financial statements and, if applicable, the auditor's
    opinion letter and any reports of findings.

> If neither audited nor C.P.A.-reviewed financial statements are
> available, submit internal financial statements and explain why
> audited or C.P.A.-reviewed financial statements are not available. If
> the audited financial statements of the applicant are consolidated
> with those of its affiliates and do not include separate schedules on
> the applicant's financial position and separate income statements for
> the applicant, also submit a separate set of internal financial
> statements that clearly distinguish the applicant's financial
> information from that of the affiliates.

3.  Non-profits: IRS Form 990

> Provide a copy of the most recently filed IRS Form 990.

4.  Portfolio Quality

> Provide a narrative explanation of portfolio performance, particularly
> explaining the circumstances of any unusually high levels of
> delinquencies and losses, or loss reserves that appear inconsistent
> with actual losses. Such explanations should include any steps the
> organization is taking to remedy identified problems.
>
> Also include an explanation of any debt-loss experience with high-risk
> borrowers.

5.  Financial Track Record

> Complete the ***Applicant Activity Table** **for the Most Recently
> Completed Fiscal Year**.*

6.  Financial Projections

> Applicants must submit a ***cash flow pro forma*** for the grant
> project. The pro forma should include both a statement of sources and
> uses of funds and a projection of annual cash flows during the Project
> Period. All amounts should be expressed on a cash
> (year-of-expenditure) basis and should include a narrative describing
> key assumptions in the business model used to arrive at such
> estimates. The pro forma should include:

-   Projected cash flows (receipts and disbursements) through the
    Project Period, including separate line items for each category of
    allowable uses of reserve account funds (such as facilitating
    financing or guaranteeing leases). The cash flow must indicate the
    projected reserve account balance at the end of each year;

-   Administrative cost charges covered by the Federal funds (a maximum
    of 0.25%) and non-grant sources such as donations;

-   An explanation of the amount and nature of all fees and expenses
    (including interest on loans) payable by the charter school
    participants associated with the grant project; and

-   Anticipated interest and other earnings expected to be gained on
    grant funds.

> If applicable, the applicant also should calculate the estimated
> effective financing rate (true interest cost) for charter schools
> participating in the grant project, and compare such percentage rate
> to other available financing sources.
>
> In the event that the applicant proposes to charge fees (including
> interest on loans) to charter schools, the applicant must:

-   Indicate whether the fees and interest are in excess of the direct
    cost to the applicant,

-   Identify the size of this excess amount, and

-   Describe how this excess amount will be used.

> Furthermore, the applicant must explain how these fees and interest
> rates are reasonable.

1.  Financial Stability

> Discuss the applicant's strategy for sustaining its projected
> operations through earned income, grants, contributions, or other
> resources. Discuss the applicant's strategy for capitalizing its loan,
> guarantee, or investment fund through debt, equity, secondary markets,
> or other resources. Discuss the extent to which funding sources are
> diversified and any plans to maintain or increase the diversification
> of funding sources.
>
> Complete the ***Non-Grant Funds Projected to be Generated Table***.

2.  Legal Background

> Non-profit entities: Submit a copy of ***articles of incorporation and
> by-laws.***
>
> Public entities: Submit a copy of ***enabling statute and other
> relevant legislation***.

3.  Previous grantees (both Credit Enhancement for Charter School
    Facilities Program and Charter School Facility Financing
    Demonstration Grant Program Grantees): the most recent annual
    performance report (if the grant has not been in place long enough
    to have a annual performance report, the most recent half-year
    report).

4.  Applicable experience financing charter schools (if any), including
    the number of schools served, the total amount of financing
    provided, the total amount of financing credit enhanced.

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A.  Skills and Experience of the Grant Project Management Team as
    evidenced by:

    1.  Management and Staff Experience

> For each member of the management team and other key staff, submit:

a.  a description of current and past job responsibilities, and
    education, experience, and skills, with particular attention to
    experiences in the fields of finance and education. The description
    of the individuals' experience in education must include a
    discussion of their expertise in assessing the programs of charter
    schools. This information may be provided in the form of current
    resumes or detailed biographical statements. Position qualification
    statements should be included for staff the applicant plans to hire
    for the project.

b.  A description of the duties of the management team and key staff
    working on the project. Include any staff the applicant anticipates
    hiring, including through contracts, to work on the project.

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2.  Board of Directors:

> Non-profit applicants only: Submit a current list of the governing
> board members that indicates their tenure and organizational
> affiliations. Discuss the role(s) of the board of directors with
> respect to the grant project and their qualifications in that regard.
> Disclose any business and personal relationships between board members
> and personnel working for the applicant's organization.

(4) **A description of how the proposed grant project will leverage the
    maximum amount of private-sector and other non-Federal capital
    relative to the amount of Credit Enhancement for Charter School
    Facilities Program funding used, the definition of "leverage" the
    applicant has used in developing that description, the type of
    assistance to be provided, how the assistance would sufficiently
    reduce the costs that charter schools face so that it would enable
    them to obtain or improve school facilities that they would not be
    able to obtain or improve absent the assistance, and how the
    proposed activities will otherwise enhance credit available to
    charter schools. Also:**

> Provide a ratio of Federal funds to the anticipated amount of capital
> leveraged. For instance, if the size of the reserve account is \$1
> million and \$5 million in bonds would be guaranteed using funds in
> the reserve account, the ratio is 5:1. Describe how the leveraging
> ratio is calculated and how the assistance provided to charters
> schools will be sufficient to assist them in meeting their school
> facility needs that could not have been met absent this assistance.
>
> Provide an explanation of the number and characteristics of charter
> schools to be served by the Project (e.g. size, demographics, and age
> of school \-- start-up or experienced, etc.) Include an explanation of
> the types of services they will receive.

(5) **In the case of an application submitted by a State governmental
    entity, a description of current and planned State funding policy
    and other forms of financial assistance that will help charter
    schools meet their facility needs.**

Table 1 -- Non-Grant Funds Projected to be Generated

  ------------------------ ----------- ----------- ----------- ----------- ----------- ------------- -----------
  **Source**               **Project   **Project   **Project   **Project   **Project   **Remaining   **Total**
                           year 1**    year 2**    year 3**    year 4**    year 5**    years**       

  1\. Donations                                                                                      

  2\. Fees not associated                                                                            
  with grant                                                                                         

  3\. Interest not                                                                                   
  associated with grant                                                                              

  4\. Borrowed funds                                                                                 
  (including lines of                                                                                
  credit to be used)                                                                                 

  5\. Appropriated funds                                                                             

  6\. Other                                                                                          

  Total                                                                                              
  ------------------------ ----------- ----------- ----------- ----------- ----------- ------------- -----------

The purpose of this table is to determine amount and expected source of
revenues for the applicant.

**Table 2 --** **Applicant Activity Table for the Most Recently
Completed Fiscal Year**

  ----------------------------------- -----------------------------------
  **Outstanding credit--enhanced      **Total activity**
  debt**                              

  Number of debt issues with credit   
  enhancement                         

  Dollar amount of debt issues with   \$
  credit enhancement (includes debt   
  structured using a                  
  senior/subordinate debt structure)  

  **Outstanding leases guaranteed**   

  Number of leases guaranteed or      
  insured                             

  Dollar amount of leases guaranteed  \$
  or insured                          

  **Other means of facilitating       
  financing (including both lending   
  and the issuance of bonds) for the  
  most recently completed fiscal      
  year**                              

  Number of clients assisted by       
  facilitating financing ^1^          

  Amount of funds spent on            \$
  facilitating financing (including   
  both lending and the issuance of    
  bonds)                              
  ----------------------------------- -----------------------------------

Please provide a narrative associated with this table that briefly
describes the types of assistance provided and the types of clients
served, paying particular attention to any clients related to education,
including charter schools. Each member of a consortium should complete
this table separately.

^1^ Includes activities in Section 5225(a)(3) and (4).

##  {#section-5 .unnumbered}

## **Table 3 -Budget Form: Grant Funds Expenditures** {#table-3--budget-form-grant-funds-expenditures .unnumbered}

+---------------+-------+-------+-------+-------+-------+-----+----+
| **Budget      | **Pr  | **Pr  | **Pr  | **Pr  | **Pr  | **  | *  |
| categories**  | oject | oject | oject | oject | oject | Rem | *T |
|               | year  | year  | year  | year  | year  | ain | ot |
|               | 1**   | 2**   | 3**   | 4**   | 5**   | ing | al |
|               |       |       |       |       |       | y   | ** |
|               |       |       |       |       |       | ear |    |
|               |       |       |       |       |       | s** |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| A.            |       |       |       |       |       |     |    |
| A             |       |       |       |       |       |     |    |
| dministrative |       |       |       |       |       |     |    |
| funds (0.25%) |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| A.1. Indirect |       |       |       |       |       |     |    |
| costs         |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| A.2.          |       |       |       |       |       |     |    |
| A             |       |       |       |       |       |     |    |
| dministrative |       |       |       |       |       |     |    |
| costs other   |       |       |       |       |       |     |    |
| than indirect |       |       |       |       |       |     |    |
| costs         |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| A. Total      |       |       |       |       |       |     |    |
| a             |       |       |       |       |       |     |    |
| dministrative |       |       |       |       |       |     |    |
| costs         |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| **B. Reserve  | []{.  | []{.  | []{.  | []{.  | []{.  | []{ | [  |
| account       | mark} | mark} | mark} | mark} | mark} | .ma | ]{ |
| earnings**    |       |       |       |       |       | rk} | .m |
|               |       |       |       |       |       |     | ar |
|               |       |       |       |       |       |     | k} |
+---------------+-------+-------+-------+-------+-------+-----+----+
| **[C. Reserve |       |       |       |       |       |     |    |
| account       |       |       |       |       |       |     |    |
| (99.7         |       |       |       |       |       |     |    |
| 5%)]{.mark}** |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.1. Grant    |       |       |       |       |       |     |    |
| funds spent   |       |       |       |       |       |     |    |
| on            |       |       |       |       |       |     |    |
| guaranteeing  |       |       |       |       |       |     |    |
| and insuring  |       |       |       |       |       |     |    |
| debt and      |       |       |       |       |       |     |    |
| leases        |       |       |       |       |       |     |    |
| **^1^**       |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.1.a.        |       |       |       |       |       |     |    |
| Personnel and |       |       |       |       |       |     |    |
| fringe        |       |       |       |       |       |     |    |
| benefits      |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.1.b.        |       |       |       |       |       |     |    |
| Payments to   |       |       |       |       |       |     |    |
| third parties |       |       |       |       |       |     |    |
| to guarantee  |       |       |       |       |       |     |    |
| or insure     |       |       |       |       |       |     |    |
| debt          |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.1.c. Other  |       |       |       |       |       |     |    |
| payments      |       |       |       |       |       |     |    |
| associated    |       |       |       |       |       |     |    |
| with          |       |       |       |       |       |     |    |
| guaranteeing  |       |       |       |       |       |     |    |
| and insuring  |       |       |       |       |       |     |    |
| debt and      |       |       |       |       |       |     |    |
| leases        |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.1. Total    |       |       |       |       |       |     |    |
| Guaranteeing  |       |       |       |       |       |     |    |
| and insuring  |       |       |       |       |       |     |    |
| debt and      |       |       |       |       |       |     |    |
| leases        |       |       |       |       |       |     |    |
| payments      |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.2. Grant    |       |       |       |       |       |     |    |
| funds spent   |       |       |       |       |       |     |    |
| on            |       |       |       |       |       |     |    |
| [facilitating |       |       |       |       |       |     |    |
| ]{.underline} |       |       |       |       |       |     |    |
| financing     |       |       |       |       |       |     |    |
| (including    |       |       |       |       |       |     |    |
| facilitating  |       |       |       |       |       |     |    |
| lending and   |       |       |       |       |       |     |    |
| the issuance  |       |       |       |       |       |     |    |
| of bonds) ^2^ |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.2.a.        |       |       |       |       |       |     |    |
| Personnel and |       |       |       |       |       |     |    |
| fringe        |       |       |       |       |       |     |    |
| benefits      |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.2.b.        |       |       |       |       |       |     |    |
| Contractual   |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.2.c. Other  |       |       |       |       |       |     |    |
| payments      |       |       |       |       |       |     |    |
| associated    |       |       |       |       |       |     |    |
| with          |       |       |       |       |       |     |    |
| facilitating  |       |       |       |       |       |     |    |
| financing     |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.2. Total    |       |       |       |       |       |     |    |
| grant funds   |       |       |       |       |       |     |    |
| spent on      |       |       |       |       |       |     |    |
| [facilitating |       |       |       |       |       |     |    |
| ]{.underline} |       |       |       |       |       |     |    |
| financing     |       |       |       |       |       |     |    |
| (including    |       |       |       |       |       |     |    |
| facilitating  |       |       |       |       |       |     |    |
| lending and   |       |       |       |       |       |     |    |
| the issuance  |       |       |       |       |       |     |    |
| of bonds)     |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+
| C.3. Total    |       |       |       |       |       |     |    |
| reserve       |       |       |       |       |       |     |    |
| account costs |       |       |       |       |       |     |    |
|               |       |       |       |       |       |     |    |
| (lines C.1.   |       |       |       |       |       |     |    |
| and C.2.)     |       |       |       |       |       |     |    |
+---------------+-------+-------+-------+-------+-------+-----+----+

The purpose of this table is to determine the amount of Federal grant
funds that the applicant intends to spend on activities to cover costs
associated with the Credit Enhancement for Charter School Facilities
Grant. The table should include funds from the reserve account only in
the year they are spent. The table should not include funds that remain
in the reserve account and are used to directly guarantee or insure debt
or leases.

^1^ Includes activities in Section 5225(a)(1) and (2).

^2^ Includes activities in Section 5225(a)(3) and (4).

[Instructions for Table 3 \-- Budget Form: Grant Funds
Expenditures]{.underline}

[A. Administrative funds:]{.underline}

> [A.1. Indirect costs:]{.underline} Many organizations have indirect
> cost rates established with the U.S. Department of Education which
> allow those organizations to spend a portion of their grant funds on a
> share of the total organization costs such as rent and utilities. For
> this grant you may choose to claim indirect costs, but the total
> amount may not exceed the ¼ of 1% allowed by statute. Also, if you
> choose to claim indirect costs, the sum of your indirect costs and
> your other administrative costs (line A.2.) combined may not exceed
> the allowable ¼ of 1%.
>
> [A.2. Administrative costs other than indirect costs:]{.underline}
> Administrative costs include such items as preparing reports.
> Administrative cost funds are capped by the program's authorizing
> statute at ¼ of 1% (0.25%) of the award amount. Administrative costs
> may be spread out over the project period, but the total amount may
> not exceed ¼ of 1% in total. Also, if you choose to claim indirect
> costs, the sum of your indirect costs and your other administrative
> costs (line A.2.) combined may not exceed the allowable ¼ of 1%.

[A. Total administrative costs:]{.underline} The total for this line
should include the sum of lines A, A.1. and A.2. This line cannot exceed
¼ of 1% of the requested amount for the entire project period.

[B. Reserve account earnings:]{.underline} Earnings include the total
interest earned per year on reserve account funds as well as all fees
charged in association with the project, because fees must also be added
to the reserve account and used for the four allowable purposes of the
grant.

C. Reserve account expenditures

[C.1. Grant funds spent on guaranteeing and insuring debt and
leases]{.underline}

> [C.1.a. Personnel and fringe benefits:]{.underline} All costs
> associated with paying personnel who will receive reserve account
> funds for their direct involvement with guaranteeing and insuring debt
> and leases. (We expect that this will not be a significant portion of
> the total request.)
>
> [C.1.b. Payments to third parties to guarantee or insure
> debt:]{.underline} All payments made with reserve account funds to
> third parties such as fees for guaranteeing or insuring debt.
>
> [C.1.c. Other payments associated with guaranteeing and insuring debt
> and leases:]{.underline} Any other costs paid for with reserve account
> funds that are not covered in C.1. a-b that can be directly attributed
> to guaranteeing and insuring debt and leases.

[C.1. Total Guaranteeing and insuring debt and leases
payments:]{.underline} The sum of lines C.1.a., C.1.b., and C.1.c.

[C.2. Grant funds spent on facilitating financing (including
facilitating lending and the issuance of bonds)]{.underline}

> [C.2.a. Personnel and fringe benefits:]{.underline} All costs
> associated with paying personnel who will receive reserve account
> funds for their direct involvement with facilitating financing. (We
> expect that this will not be a significant portion of the total
> request.)
>
> [C.2.b. Contractual:]{.underline} All costs associated with paying
> contractors that will receive reserve account funds for their work
> facilitating financing.
>
> [C.2.c. Other payments associated with facilitating
> financing:]{.underline} Any other costs paid for with reserve account
> funds that are not covered in lines C.2. a-b that can be directly
> attributed to facilitating financing.

[C.2. Total grant funds spent on facilitating financing (including
facilitating lending and the issuance of bonds):]{.underline} The sum of
lines C.2.a., C.2.b., and C.2.c.

[C.3. Total reserve account costs (lines C.1. and C.2.):]{.underline}
The sum of lines C.1. and C.2. The amount in the total column for this
row cannot exceed the sum of the request on Form ED 424 (the Application
for Federal Education Assistance) plus reserve account earnings, and
would likely be less.

**[Other Attachments Instructions: Additional documents are to be
attached to the "Other Attachments Form" in the application package in
Grants.gov.]{.underline}**

In addition to the program narrative, applications should include
resumes for key personnel. Before preparing additional documentation,
**applicants should review the Federal Register notice**, the Dear
Applicant Letter, and the program statute for specific guidance and
requirements. Note that applications will be evaluated according to the
specific selection criteria specified in the Federal Register notice.

To facilitate the review of the application, please organize your
attachments in the following order:

1.  **Resumes/Curriculum Vitae**

Provide resumes/curriculum vitae for the project director as well as any
key personnel identified in the application.

2.  **Appendices**

Supplementary statements and other requested information.

**INSTRUCTIONS TO STANDARD FORMS AND GRANT APPLICATION REQUIREMENTS**

## INSTRUCTIONS FOR THE SF-424

Public reporting burden for this collection of information is estimated
to average 60 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other
aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork
Reduction Project (0348-0043), Washington, DC 20503.

**PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT
AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.**

> This is a standard form (including the continuation sheet) required
> for use as a cover sheet for submission of preapplications and
> applications and related information under discretionary programs.
> Some of the items are required and some are optional at the discretion
> of the applicant or the Federal agency (agency). Required items are
> identified with an asterisk on the form and are specified in the
> instructions below. In addition to the instructions provided below,
> applicants must consult agency instructions to determine specific
> requirements.

+---+-----------------+---------------+---+---------------------------+
| I | Entry:          |               | I | Entry:                    |
| t |                 |               | t |                           |
| e |                 |               | e |                           |
| m |                 |               | m |                           |
+---+-----------------+---------------+---+---------------------------+
| 1 | **Type of       |               | 1 | **Name Of Federal         |
| \ | Submission:**   |               | 0 | Agency**: (Required)      |
| . | (Required):     |               | \ | Enter the name of the     |
|   | Select one type |               | . | Federal agency from which |
|   | of submission   |               |   | assistance is being       |
|   | in accordance   |               |   | requested with this       |
|   | with agency     |               |   | application.              |
|   | instructions.   |               |   |                           |
|   |                 |               |   |                           |
|   | -               |               |   |                           |
|   |  Preapplication |               |   |                           |
|   |                 |               |   |                           |
|   | -   Application |               |   |                           |
|   |                 |               |   |                           |
|   | -   Ch          |               |   |                           |
|   | anged/Corrected |               |   |                           |
|   |     Application |               |   |                           |
|   |     -- If       |               |   |                           |
|   |     requested   |               |   |                           |
|   |     by the      |               |   |                           |
|   |     agency,     |               |   |                           |
|   |     check if    |               |   |                           |
|   |     this        |               |   |                           |
|   |     submission  |               |   |                           |
|   |     is to       |               |   |                           |
|   |     change or   |               |   |                           |
|   |     correct a   |               |   |                           |
|   |     previously  |               |   |                           |
|   |     submitted   |               |   |                           |
|   |                 |               |   |                           |
|   |    application. |               |   |                           |
|   |     Unless      |               |   |                           |
|   |     requested   |               |   |                           |
|   |     by the      |               |   |                           |
|   |     agency,     |               |   |                           |
|   |     applicants  |               |   |                           |
|   |     may not use |               |   |                           |
|   |     this to     |               |   |                           |
|   |     submit      |               |   |                           |
|   |     changes     |               |   |                           |
|   |     after the   |               |   |                           |
|   |     closing     |               |   |                           |
|   |     date.       |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Catalog Of Federal      |
|   |                 |               | 1 | Domestic Assistance       |
|   |                 |               | \ | Number/Title:** Enter the |
|   |                 |               | . | Catalog of Federal        |
|   |                 |               |   | Domestic Assistance       |
|   |                 |               |   | number and title of the   |
|   |                 |               |   | program under which       |
|   |                 |               |   | assistance is requested,  |
|   |                 |               |   | as found in the program   |
|   |                 |               |   | announcement, if          |
|   |                 |               |   | applicable.               |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 2 | **Type of       |               | 1 | **Funding Opportunity     |
| \ | Application**:  |               | 2 | Number/Title:**           |
| . | (Required)      |               | \ | (Required) Enter the      |
|   | Select one type |               | . | Funding Opportunity       |
|   | of application  |               |   | Number and title of the   |
|   | in accordance   |               |   | opportunity under which   |
|   | with agency     |               |   | assistance is requested,  |
|   | instructions.   |               |   | as found in the program   |
|   |                 |               |   | announcement.             |
|   | -   New -- An   |               |   |                           |
|   |     application |               |   |                           |
|   |     that is     |               |   |                           |
|   |     being       |               |   |                           |
|   |     submitted   |               |   |                           |
|   |     to an       |               |   |                           |
|   |     agency for  |               |   |                           |
|   |     the first   |               |   |                           |
|   |     time.       |               |   |                           |
|   |                 |               |   |                           |
|   | -               |               |   |                           |
|   |  Continuation - |               |   |                           |
|   |     An          |               |   |                           |
|   |     extension   |               |   |                           |
|   |     for an      |               |   |                           |
|   |     additional  |               |   |                           |
|   |                 |               |   |                           |
|   |  funding/budget |               |   |                           |
|   |     period for  |               |   |                           |
|   |     a project   |               |   |                           |
|   |     with a      |               |   |                           |
|   |     projected   |               |   |                           |
|   |     completion  |               |   |                           |
|   |     date. This  |               |   |                           |
|   |     can include |               |   |                           |
|   |     renewals.   |               |   |                           |
|   |                 |               |   |                           |
|   | ```{=html}      |               |   |                           |
|   | <!-- -->        |               |   |                           |
|   | ```             |               |   |                           |
|   | -   Revision -  |               |   |                           |
|   |     Any change  |               |   |                           |
|   |     in the      |               |   |                           |
|   |     Federal     |               |   |                           |
|   |                 |               |   |                           |
|   |    Government's |               |   |                           |
|   |     financial   |               |   |                           |
|   |     obligation  |               |   |                           |
|   |     or          |               |   |                           |
|   |     contingent  |               |   |                           |
|   |     liability   |               |   |                           |
|   |     from an     |               |   |                           |
|   |     existing    |               |   |                           |
|   |     obligation. |               |   |                           |
|   |     If a        |               |   |                           |
|   |     revision,   |               |   |                           |
|   |     enter the   |               |   |                           |
|   |     appropriate |               |   |                           |
|   |     letter(s).  |               |   |                           |
|   |     More than   |               |   |                           |
|   |     one may be  |               |   |                           |
|   |     selected.   |               |   |                           |
|   |     If          |               |   |                           |
|   |     \"Other\"   |               |   |                           |
|   |     is          |               |   |                           |
|   |     selected,   |               |   |                           |
|   |     please      |               |   |                           |
|   |     specify in  |               |   |                           |
|   |     text box    |               |   |                           |
|   |     provided.   |               |   |                           |
|   |                 |               |   |                           |
|   | > A. Increase   |               |   |                           |
|   | > Award B.      |               |   |                           |
|   | > Decrease      |               |   |                           |
|   | > Award         |               |   |                           |
|   |                 |               |   |                           |
|   | C. Increase     |               |   |                           |
|   | Duration D.     |               |   |                           |
|   | Decrease        |               |   |                           |
|   | Duration        |               |   |                           |
|   |                 |               |   |                           |
|   | E. Other        |               |   |                           |
|   | (specify)       |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Competition             |
|   |                 |               | 3 | Identification            |
|   |                 |               | \ | Number/Title:** Enter the |
|   |                 |               | . | Competition               |
|   |                 |               |   | Identification Number and |
|   |                 |               |   | title of the competition  |
|   |                 |               |   | under which assistance is |
|   |                 |               |   | requested, if applicable. |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Areas Affected By       |
|   |                 |               | 4 | Project:** List the areas |
|   |                 |               | \ | or entities using the     |
|   |                 |               | . | categories (e.g., cities, |
|   |                 |               |   | counties, states, etc.)   |
|   |                 |               |   | specified in agency       |
|   |                 |               |   | instructions. Use the     |
|   |                 |               |   | continuation sheet to     |
|   |                 |               |   | enter additional areas,   |
|   |                 |               |   | if needed.                |
+---+-----------------+---------------+---+---------------------------+
| 3 | **Date          |               | 1 | **Descriptive Title of    |
| \ | Received:**     |               | 5 | Applicant's Project:**    |
| . | Leave this      |               | \ | (Required) Enter a brief  |
|   | field blank.    |               | . | descriptive title of the  |
|   | This date will  |               |   | project. If appropriate,  |
|   | be assigned by  |               |   | attach a map showing      |
|   | the Federal     |               |   | project location (e.g.,   |
|   | agency.         |               |   | construction or real      |
|   |                 |               |   | property projects). For   |
|   |                 |               |   | preapplications, attach a |
|   |                 |               |   | summary description of    |
|   |                 |               |   | the project.              |
+---+-----------------+---------------+---+---------------------------+
| 4 | **Applicant     |               |   |                           |
| \ | Identifier**:   |               |   |                           |
| . | Enter the       |               |   |                           |
|   | entity          |               |   |                           |
|   | identifier      |               |   |                           |
|   | assigned by the |               |   |                           |
|   | Federal agency, |               |   |                           |
|   | if any, or      |               |   |                           |
|   | applicant's     |               |   |                           |
|   | control number, |               |   |                           |
|   | if applicable.  |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 5 | **Federal       |               | 1 | **Congressional Districts |
| a | Entity          |               | 6 | Of**: (Required) 16a.     |
|   | Identifier**:   |               | \ | Enter the applicant's     |
|   | Enter the       |               | . | Congressional District,   |
|   | number assigned |               |   | and 16b. Enter all        |
|   | to your         |               |   | District(s) affected by   |
|   | organization by |               |   | the program or project.   |
|   | the Federal     |               |   | Enter in the format: 2    |
|   | Agency, if any. |               |   | characters State          |
|   |                 |               |   | Abbreviation -- 2-3       |
|   |                 |               |   | characters District       |
|   |                 |               |   | Number, e.g., CA-12 for   |
|   |                 |               |   | California 12^th^         |
|   |                 |               |   | district, NC-103 for      |
|   |                 |               |   | North Carolina's 103^rd^  |
|   |                 |               |   | district.                 |
|   |                 |               |   |                           |
|   |                 |               |   | -   If all congressional  |
|   |                 |               |   |     districts in a state  |
|   |                 |               |   |     are affected, enter   |
|   |                 |               |   |     "all" for the         |
|   |                 |               |   |     district number,      |
|   |                 |               |   |     e.g., MD-all for all  |
|   |                 |               |   |     congressional         |
|   |                 |               |   |     districts in          |
|   |                 |               |   |     Maryland.             |
|   |                 |               |   |                           |
|   |                 |               |   | -   If nationwide, i.e.   |
|   |                 |               |   |     all districts within  |
|   |                 |               |   |     all states are        |
|   |                 |               |   |     affected, enter       |
|   |                 |               |   |     US-all.               |
|   |                 |               |   |                           |
|   |                 |               |   | -   If the                |
|   |                 |               |   |     program/project is    |
|   |                 |               |   |     outside the US, enter |
|   |                 |               |   |     00-000.               |
+---+-----------------+---------------+---+---------------------------+
| 5 | **Federal Award |               |   |                           |
| b | Identifier**:   |               |   |                           |
| . | For new         |               |   |                           |
|   | applications    |               |   |                           |
|   | leave blank.    |               |   |                           |
|   | For a           |               |   |                           |
|   | continuation or |               |   |                           |
|   | revision to an  |               |   |                           |
|   | existing award, |               |   |                           |
|   | enter the       |               |   |                           |
|   | previously      |               |   |                           |
|   | assigned        |               |   |                           |
|   | Federal award   |               |   |                           |
|   | identifier      |               |   |                           |
|   | number. If a    |               |   |                           |
|   | ch              |               |   |                           |
|   | anged/corrected |               |   |                           |
|   | application,    |               |   |                           |
|   | enter the       |               |   |                           |
|   | Federal         |               |   |                           |
|   | Identifier in   |               |   |                           |
|   | accordance with |               |   |                           |
|   | agency          |               |   |                           |
|   | instructions.   |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 6 | **Date Received |               |   |                           |
| \ | by State:**     |               |   |                           |
| . | Leave this      |               |   |                           |
|   | field blank.    |               |   |                           |
|   | This date will  |               |   |                           |
|   | be assigned by  |               |   |                           |
|   | the State, if   |               |   |                           |
|   | applicable.     |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 7 | **State         |               |   |                           |
| \ | Application     |               |   |                           |
| . | Identifier:**   |               |   |                           |
|   | Leave this      |               |   |                           |
|   | field blank.    |               |   |                           |
|   | This identifier |               |   |                           |
|   | will be         |               |   |                           |
|   | assigned by the |               |   |                           |
|   | State, if       |               |   |                           |
|   | applicable.     |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 8 | **Applicant     |               |   |                           |
| \ | Information**:  |               |   |                           |
| . | Enter the       |               |   |                           |
|   | following in    |               |   |                           |
|   | accordance with |               |   |                           |
|   | agency          |               |   |                           |
|   | instructions:   |               |   |                           |
|   |                 |               |   |                           |
|   | **a. Legal      |               |   |                           |
|   | Name**:         |               |   |                           |
|   | (Required):     |               |   |                           |
|   | Enter the legal |               |   |                           |
|   | name of         |               |   |                           |
|   | applicant that  |               |   |                           |
|   | will undertake  |               |   |                           |
|   | the assistance  |               |   |                           |
|   | activity. This  |               |   |                           |
|   | is the name     |               |   |                           |
|   | that the        |               |   |                           |
|   | organization    |               |   |                           |
|   | has registered  |               |   |                           |
|   | with the        |               |   |                           |
|   | Central         |               |   |                           |
|   | Contractor      |               |   |                           |
|   | Registry.       |               |   |                           |
|   | Information on  |               |   |                           |
|   | registering     |               |   |                           |
|   | with CCR may be |               |   |                           |
|   | obtained by     |               |   |                           |
|   | visiting the    |               |   |                           |
|   | Grants.gov      |               |   |                           |
|   | website.        |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Proposed Project Start  |
|   |                 |               | 7 | and End Dates**:          |
|   |                 |               | \ | (Required) Enter the      |
|   |                 |               | . | proposed start date and   |
|   |                 |               |   | end date of the project.  |
+---+-----------------+---------------+---+---------------------------+
|   | **b.            |               |   |                           |
|   | Em              |               |   |                           |
|   | ployer/Taxpayer |               |   |                           |
|   | Number          |               |   |                           |
|   | (EIN/TIN):**    |               |   |                           |
|   | (Required):     |               |   |                           |
|   | Enter the       |               |   |                           |
|   | Employer or     |               |   |                           |
|   | Taxpayer        |               |   |                           |
|   | Identification  |               |   |                           |
|   | Number (EIN or  |               |   |                           |
|   | TIN) as         |               |   |                           |
|   | assigned by the |               |   |                           |
|   | Internal        |               |   |                           |
|   | Revenue         |               |   |                           |
|   | Service. If     |               |   |                           |
|   | your            |               |   |                           |
|   | organization is |               |   |                           |
|   | not in the US,  |               |   |                           |
|   | enter           |               |   |                           |
|   | 44-4444444.     |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Estimated Funding:**    |
|   |                 |               | 8 | (Required) Enter the      |
|   |                 |               | \ | amount requested or to be |
|   |                 |               | . | contributed during the    |
|   |                 |               |   | first funding/budget      |
|   |                 |               |   | period by each            |
|   |                 |               |   | contributor. Value of     |
|   |                 |               |   | in-kind contributions     |
|   |                 |               |   | should be included on     |
|   |                 |               |   | appropriate lines, as     |
|   |                 |               |   | applicable. If the action |
|   |                 |               |   | will result in a dollar   |
|   |                 |               |   | change to an existing     |
|   |                 |               |   | award, indicate only the  |
|   |                 |               |   | amount of the change. For |
|   |                 |               |   | decreases, enclose the    |
|   |                 |               |   | amounts in parentheses.   |
+---+-----------------+---------------+---+---------------------------+
|   | **c.            |               |   |                           |
|   | Organizational  |               |   |                           |
|   | DUNS**:         |               |   |                           |
|   | (Required)      |               |   |                           |
|   | Enter the       |               |   |                           |
|   | organization's  |               |   |                           |
|   | DUNS or DUNS+4  |               |   |                           |
|   | number received |               |   |                           |
|   | from Dun and    |               |   |                           |
|   | Bradstreet.     |               |   |                           |
|   | Information on  |               |   |                           |
|   | obtaining a     |               |   |                           |
|   | DUNS number may |               |   |                           |
|   | be obtained by  |               |   |                           |
|   | visiting the    |               |   |                           |
|   | Grants.gov      |               |   |                           |
|   | website.        |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   | **d. Address**: |               |   |                           |
|   | Enter the       |               |   |                           |
|   | complete        |               |   |                           |
|   | address as      |               |   |                           |
|   | follows: Street |               |   |                           |
|   | address (Line 1 |               |   |                           |
|   | required), City |               |   |                           |
|   | (Required),     |               |   |                           |
|   | County, State   |               |   |                           |
|   | (Required, if   |               |   |                           |
|   | country is US), |               |   |                           |
|   | Province,       |               |   |                           |
|   | Country         |               |   |                           |
|   | (Required),     |               |   |                           |
|   | Zip/Postal Code |               |   |                           |
|   | (Required, if   |               |   |                           |
|   | country is US). |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 1 | **Is Application Subject  |
|   |                 |               | 9 | to Review by State Under  |
|   |                 |               | \ | Executive Order 12372     |
|   |                 |               | . | Process?** Applicants     |
|   |                 |               |   | should contact the State  |
|   |                 |               |   | Single Point of Contact   |
|   |                 |               |   | (SPOC) for Federal        |
|   |                 |               |   | Executive Order 12372 to  |
|   |                 |               |   | determine whether the     |
|   |                 |               |   | application is subject to |
|   |                 |               |   | the State                 |
|   |                 |               |   | intergovernmental review  |
|   |                 |               |   | process. Select the       |
|   |                 |               |   | appropriate box. If "a."  |
|   |                 |               |   | is selected, enter the    |
|   |                 |               |   | date the application was  |
|   |                 |               |   | submitted to the State    |
+---+-----------------+---------------+---+---------------------------+
|   | **e.            |               |   |                           |
|   | Organizational  |               |   |                           |
|   | Unit:** Enter   |               |   |                           |
|   | the name of the |               |   |                           |
|   | primary         |               |   |                           |
|   | organizational  |               |   |                           |
|   | unit (and       |               |   |                           |
|   | department or   |               |   |                           |
|   | division, if    |               |   |                           |
|   | applicable**)** |               |   |                           |
|   | that will       |               |   |                           |
|   | undertake the   |               |   |                           |
|   | assistance      |               |   |                           |
|   | activity, if    |               |   |                           |
|   | applicable.     |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   | **f. Name and   |               |   |                           |
|   | contact         |               |   |                           |
|   | information of  |               |   |                           |
|   | person to be    |               |   |                           |
|   | contacted on    |               |   |                           |
|   | matters         |               |   |                           |
|   | involving this  |               |   |                           |
|   | application**:  |               |   |                           |
|   | Enter the name  |               |   |                           |
|   | (First and last |               |   |                           |
|   | name required), |               |   |                           |
|   | organizational  |               |   |                           |
|   | affiliation (if |               |   |                           |
|   | affiliated with |               |   |                           |
|   | an organization |               |   |                           |
|   | other than the  |               |   |                           |
|   | applicant       |               |   |                           |
|   | organization),  |               |   |                           |
|   | telephone       |               |   |                           |
|   | number          |               |   |                           |
|   | (Required), fax |               |   |                           |
|   | number, and     |               |   |                           |
|   | email address   |               |   |                           |
|   | (Required) of   |               |   |                           |
|   | the person to   |               |   |                           |
|   | contact on      |               |   |                           |
|   | matters related |               |   |                           |
|   | to this         |               |   |                           |
|   | application.    |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               | 2 | **Is the Applicant        |
|   |                 |               | 0 | Delinquent on any Federal |
|   |                 |               | \ | Debt?** (Required) Select |
|   |                 |               | . | the appropriate box. This |
|   |                 |               |   | question applies to the   |
|   |                 |               |   | applicant organization,   |
|   |                 |               |   | not the person who signs  |
|   |                 |               |   | as the authorized         |
|   |                 |               |   | representative.           |
|   |                 |               |   | Categories of debt        |
|   |                 |               |   | include delinquent audit  |
|   |                 |               |   | disallowances, loans and  |
|   |                 |               |   | taxes.                    |
|   |                 |               |   |                           |
|   |                 |               |   | If yes, include an        |
|   |                 |               |   | explanation on the        |
|   |                 |               |   | continuation sheet.       |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
| 9 | Type of         |               | 2 | **Authorized              |
| \ | Applicant:      |               | 1 | Representative**:         |
| . | (Required)      |               | \ | (Required) To be signed   |
|   |                 |               | . | and dated by the          |
|   | Select up to    |               |   | authorized representative |
|   | three applicant |               |   | of the applicant          |
|   | type(s) in      |               |   | organization. Enter the   |
|   | accordance with |               |   | name (First and last name |
|   | agency          |               |   | required) title           |
|   | instructions.   |               |   | (Required), telephone     |
|   |                 |               |   | number (Required), fax    |
|   |                 |               |   | number, and email address |
|   |                 |               |   | (Required) of the person  |
|   |                 |               |   | authorized to sign for    |
|   |                 |               |   | the applicant.            |
|   |                 |               |   |                           |
|   |                 |               |   | A copy of the governing   |
|   |                 |               |   | body's authorization for  |
|   |                 |               |   | you to sign this          |
|   |                 |               |   | application as the        |
|   |                 |               |   | official representative   |
|   |                 |               |   | must be on file in the    |
|   |                 |               |   | applicant's office.       |
|   |                 |               |   | (Certain Federal agencies |
|   |                 |               |   | may require that this     |
|   |                 |               |   | authorization be          |
|   |                 |               |   | submitted as part of the  |
|   |                 |               |   | application.)             |
+---+-----------------+---------------+---+---------------------------+
|   | A.  State       | L.  Nonprofit |   |                           |
|   |     Government  |     with      |   |                           |
|   |                 |     501C3 IRS |   |                           |
|   | ```{=html}      |     Status    |   |                           |
|   | <!-- -->        |     (Other    |   |                           |
|   | ```             |     than      |   |                           |
|   | A.  County      |               |   |                           |
|   |     Government  |   Institution |   |                           |
|   |                 |     of Higher |   |                           |
|   | B.  City or     |               |   |                           |
|   |     Township    |    Education) |   |                           |
|   |     Government  |               |   |                           |
|   |                 | M.  Nonprofit |   |                           |
|   | C.  Special     |     without   |   |                           |
|   |     District    |     501C3 IRS |   |                           |
|   |     Government  |     Status    |   |                           |
|   |                 |     (Other    |   |                           |
|   | D.  Regional    |     than      |   |                           |
|   |                 |               |   |                           |
|   |    Organization |   Institution |   |                           |
|   |                 |     of Higher |   |                           |
|   | E.  U.S.        |               |   |                           |
|   |     Territory   |    Education) |   |                           |
|   |     or          |               |   |                           |
|   |     Possession  | N.  Private   |   |                           |
|   |                 |               |   |                           |
|   | F.  Independent |   Institution |   |                           |
|   |     School      |     of Higher |   |                           |
|   |     District    |     Education |   |                           |
|   |                 |               |   |                           |
|   | G               | O             |   |                           |
|   | .  Public/State | .  Individual |   |                           |
|   |     Controlled  |               |   |                           |
|   |     Institution | P             |   |                           |
|   |     of Higher   | .  For-Profit |   |                           |
|   |     Education   |               |   |                           |
|   |                 |  Organization |   |                           |
|   | H.              |     (Other    |   |                           |
|   |   Indian/Native |     than      |   |                           |
|   |     American    |     Small     |   |                           |
|   |     Tribal      |     Business) |   |                           |
|   |     Government  |               |   |                           |
|   |     (Federally  | Q.  Small     |   |                           |
|   |     Recognized) |     Business  |   |                           |
|   |                 |               |   |                           |
|   | I.              | R.  His       |   |                           |
|   |   Indian/Native | panic-serving |   |                           |
|   |     American    |               |   |                           |
|   |     Tribal      |   Institution |   |                           |
|   |     Government  |               |   |                           |
|   |     (Other than | S.            |   |                           |
|   |     Federally   |  Historically |   |                           |
|   |     Recognized) |     Black     |   |                           |
|   |                 |     Colleges  |   |                           |
|   | J.              |     and       |   |                           |
|   |   Indian/Native |               |   |                           |
|   |     American    |  Universities |   |                           |
|   |     Tribally    |     (HBCUs)   |   |                           |
|   |     Designated  |               |   |                           |
|   |                 | T.  Tribally  |   |                           |
|   |    Organization |               |   |                           |
|   |                 |    Controlled |   |                           |
|   | K.              |     Colleges  |   |                           |
|   |   Public/Indian |     and       |   |                           |
|   |     Housing     |               |   |                           |
|   |     Authority   |  Universities |   |                           |
|   |                 |     (TCCUs)   |   |                           |
|   |                 |               |   |                           |
|   |                 | U.  Alaska    |   |                           |
|   |                 |     Native    |   |                           |
|   |                 |     and       |   |                           |
|   |                 |     Native    |   |                           |
|   |                 |     Hawaiian  |   |                           |
|   |                 |     Serving   |   |                           |
|   |                 |               |   |                           |
|   |                 |  Institutions |   |                           |
|   |                 |               |   |                           |
|   |                 | V.            |   |                           |
|   |                 |  Non-domestic |   |                           |
|   |                 |     (non-US)  |   |                           |
|   |                 |     Entity    |   |                           |
|   |                 |               |   |                           |
|   |                 | W.  Other     |   |                           |
|   |                 |     (specify) |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+
|   |                 |               |   |                           |
+---+-----------------+---------------+---+---------------------------+

# INSTRUCTIONS FOR

**DEPARTMENT OF EDUCATION SUPPLEMENTAL INFORMATION FOR SF 424**

a.  **Project Director.** Name, address, telephone and fax numbers, and
    e-mail address of the person to be contacted on matters involving
    this application.

**2. Novice Applicant.** Check **"Yes"** or "**No**" only if assistance
is being requested under a program that gives special consideration to
novice applicants. Otherwise, **leave blank.**

Check "**Yes"** if you meet the requirements for novice applicants
specified in the regulations in 34 CFR 75.225 and included on the
attached page entitled "Definitions for Department of Education
Supplemental Information for SF 424." By checking "Yes" the applicant
certifies that it meets these novice applicant requirements. Check
"**No**" if you do not meet the requirements for novice applicants**.**

**3. Human Subjects Research.** (See I. A. "Definitions" in attached
page entitled "Definitions for Department of Education Supplemental
Information For SF 424.")

**If Not Human Subjects Research.** Check "**No**" if research
activities involving human subjects are not planned at any time during
the proposed project period. The remaining parts of Item 3 are then not
applicable.

**If Human Subjects Research.** Check "**Yes**" if research activities
involving human subjects are planned at any time during the proposed
project period, either at the applicant organization or at any other
performance site or collaborating institution. Check "**Yes**" even if
the research is exempt from the regulations for the protection of human
subjects. (See I. B. "Exemptions" in attached page entitled "Definitions
for Department of Education Supplemental Information For SF 424.")

**3a. If Human Subjects Research is Exempt from the Human Subjects
Regulations.** Check "**Yes**" if all the research activities proposed
are designated to be exempt from the regulations. Insert the exemption
number(s) corresponding to one or more of the six exemption categories
listed in I. B. "Exemptions." In addition, follow the instructions in
II. A. "Exempt Research Narrative" in the attached page entitled
"Definitions for Department of Education Supplemental Information For SF
424."

**3a. If Human Subjects Research is Not Exempt from Human Subjects
Regulations.** Check "**No**" if some or all of the planned research
activities are covered (not exempt). In addition, follow the
instructions in II. B. "Nonexempt Research Narrative" in the page
entitled "Definitions for Department of Education Supplemental
Information For SF 424

**3a. Human Subjects Assurance Number.** If the applicant has an
approved Federal Wide (FWA) on file with the Office for Human Research
Protections (OHRP), U.S. Department of Health and Human Services, that
covers the specific activity, insert the number in the space provided.
If the applicant does not have an approved assurance on file with OHRP,
enter "None." In this case, the applicant, by signature on the SF-424,
is declaring that it will comply with 34 CFR 97 and proceed to obtain
the human subjects assurance upon request by the designated ED official.
If the application is recommended/selected for funding, the designated
ED official will request that the applicant obtain the assurance within
30 days after the specific formal request.

**Note about Institutional Review Board Approval.** ED does not require
certification of Institutional Review Board approval with the
application. However, if an application that involves non-exempt human
subjects research is recommended/selected for funding, the designated ED
official will request that the applicant obtain and send the
certification to ED within 30 days after the formal request.

## *Paperwork Burden Statement*. ***According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays a valid OMB control number. The valid OMB control number for this information collection is 1890-0017. The time required to complete this information collection is estimated to average between 15 and 45 minutes per response, including the time to review instructions, search existing data resources, gather the data needed, and complete and review the information collection. If you have any comments concerning the accuracy of the estimate(s) or suggestions for improving this form, please write to: U.S. Department of Education, Washington, D.C. 20202-4700. If you have comments or concerns regarding the status of your individual submission of this form write directly to: Joyce I. Mays, Application Control Center, U.S. Department of Education, Potomac Center Plaza, 550 12^th^ Street, S.W. Room 7076, Washington, D.C. 20202-4260***. 

**DEFINITIONS FOR**

# DEPARTMENT OF EDUCATION SUPPLEMENTAL INFORMATION FOR SF 424

# (Attachment to Instructions for Supplemental Information for SF 424)

**Definitions:**

**Novice Applicant (See 34 CFR 75.225**). For discretionary grant
programs under which the Secretary gives special consideration to novice
applications, a novice applicant means any applicant for a grant from ED
that---

-   Has never received a grant or subgrant under the program from which
    it seeks funding;

-   Has never been a member of a group application, submitted in
    accordance with 34 CFR 75.127-75.129, that received a grant under
    the program from which it seeks funding; and

-   Has not had an active discretionary grant from the Federal
    government in the five years before the deadline date for
    applications under the program. For the purposes of this
    requirement, a grant is active until the end of the grant's project
    or funding period, including any extensions of those periods that
    extend the grantee's authority to obligate funds.

In the case of a group application submitted in accordance with 34 CFR
75.127-75.129, a group includes only parties that meet the requirements
listed above.

#### PROTECTION OF HUMAN SUBJECTS IN RESEARCH

**I. Definitions and Exemptions**

**A. Definitions.**

A research activity involves human subjects if the activity is research,
as defined in the Department's regulations, and the research activity
will involve use of human subjects, as defined in the regulations.

---**Research**

The ED Regulations for the Protection of Human Subjects, Title 34, Code
of Federal Regulations, Part 97, define research as "a systematic
investigation, including research development, testing and evaluation,
designed to develop or contribute to generalizable knowledge." *If an
activity follows a deliberate plan whose purpose is to develop or
contribute to generalizable knowledge it is research.* Activities which
meet this definition constitute research whether or not they are
conducted or supported under a program that is considered research for
other purposes. For example, some demonstration and service programs may
include research activities.

**---Human Subject**

The regulations define human subject as "a living individual about whom
an investigator (whether professional or student) conducting research
obtains (1) data through intervention or interaction with the
individual, or (2) identifiable private information." *(1) If an
activity involves obtaining information about a living person by
manipulating that person or that person's environment, as might occur
when a new instructional technique is tested, or by communicating or
interacting with the individual, as occurs with surveys and interviews,
the definition of human subject is met. (2) If an activity involves
obtaining private information about a living person in such a way that
the information can be linked to that individual (the identity of the
subject is or may be readily determined by the investigator or
associated with the information), the definition of human subject is
met.* \[Private information includes information about behavior that
occurs in a context in which an individual can reasonably expect that no
observation or recording is taking place, and information which has been
provided for specific purposes by an individual and which the individual
can reasonably expect will not be made public (for example, a school
health record).\]

**B. Exemptions.**

Research activities in which the **[only]{.underline}** involvement of
human subjects will be in one or more of the following six categories of
***exemptions*** are not covered by the regulations:

\(1\) Research conducted in established or commonly accepted educational
settings, involving normal educational practices, such as (a) research
on regular and special education instructional strategies, or (b)
research on the effectiveness of or the comparison among instructional
techniques, curricula, or classroom management methods.

\(2\) Research involving the use of educational tests (cognitive,
diagnostic, aptitude, achievement), survey procedures, interview
procedures or observation of public behavior, unless: (a) information
obtained is recorded in such a manner that human subjects can be
identified, directly or through identifiers linked to the subjects; and
(b) any disclosure of the human subjects' responses outside the research
could reasonably place the subjects at risk of criminal or civil
liability or be damaging to the subjects' financial standing,
employability, or reputation. ***If the subjects are children, exemption
2 applies only to research involving educational tests and observations
of public behavior when the investigator(s) do not participate in the
activities being observed. Exemption 2 does not apply if children are
surveyed or interviewed or if the research involves observation of
public behavior and the investigator(s) participate in the activities
being observed.*** \[Children are defined as persons who have not
attained the legal age for consent to treatments or procedures involved
in the research, under the applicable law or jurisdiction in which the
research will be conducted.\]

\(3\) Research involving the use of educational tests (cognitive,
diagnostic, aptitude, achievement), survey procedures, interview
procedures or observation of public behavior that is not exempt under
section (2) above, if the human subjects are elected or appointed public
officials or candidates for public office; or federal statute(s)
require(s) without exception that the confidentiality of the personally
identifiable information will be maintained throughout the research and
thereafter.

\(4\) Research involving the collection or study of existing data,
documents, records, pathological specimens, or diagnostic specimens, if
these sources are publicly available or if the information is recorded
by the investigator in a manner that subjects cannot be identified,
directly or through identifiers linked to the subjects.

\(5\) Research and demonstration projects which are conducted by or
subject to the approval of department or agency heads, and which are
designed to study, evaluate, or otherwise examine: (a) public benefit or
service programs; (b) procedures for obtaining benefits or services
under those programs; (c) possible changes in or alternatives to those
programs or procedures; or (d) possible changes in methods or levels of
payment for benefits or services under those programs.

\(6\) Taste and food quality evaluation and consumer acceptance studies,
(a) if wholesome foods without additives are consumed or (b) if a food
is consumed that contains a food ingredient at or below the level and
for a use found to be safe, or agricultural chemical or environmental
contaminant at or below the level found to be safe, by the Food and Drug
Administration or approved by the Environmental Protection Agency or the
Food Safety and Inspection Service of the U.S. Department of
Agriculture.

**II. Instructions for Exempt and Nonexempt Human Subjects Research
Narratives**

If the applicant marked "Yes" for Item 3 of Department of Education
Supplemental Information for SF 424, the applicant must provide a human
subjects "exempt research" or "nonexempt research" narrative. Insert the
narrative(s) in the space provided. If you have multiple projects and
need to provide more than one narrative, be sure to label each set of
responses as to the project they address.

**A. Exempt Research Narrative.**

If you marked "Yes" for item 3 a. and designated exemption numbers(s),
provide the "exempt research" narrative. The narrative must contain
sufficient information about the involvement of human subjects in the
proposed research to allow a determination by ED that the designated
exemption(s) are appropriate. The narrative must be succinct.

**B. Nonexempt Research Narrative.**

If you marked "No" for item 3 a. you must provide the "nonexempt
research" narrative. The narrative must address the following seven
points. Although no specific page limitation applies to this section of
the application, be succinct.

\(1\) **Human Subjects Involvement and Characteristics**: Provide a
detailed description of the proposed involvement of human subjects.
Describe the characteristics of the subject population, including their
anticipated number, age range, and health status. Identify the criteria
for inclusion or exclusion of any subpopulation. Explain the rationale
for the involvement of special classes of subjects, such as children,
children with disabilities, adults with disabilities, persons with
mental disabilities, pregnant women, prisoners, institutionalized
individuals, or others who are likely to be vulnerable

\(2\) **Sources of Materials**: Identify the sources of research
material obtained from individually identifiable living human subjects
in the form of specimens, records, or data. Indicate whether the
material or data will be obtained specifically for research purposes or
whether use will be made of existing specimens, records, or data.

\(3\) **Recruitment and Informed Consent**: Describe plans for the
recruitment of subjects and the consent procedures to be followed.
Include the circumstances under which consent will be sought and
obtained, who will seek it, the nature of the information to be provided
to prospective subjects, and the method of documenting consent. State if
the Institutional Review Board (IRB) has authorized a modification or
waiver of the elements of consent or the requirement for documentation
of consent.

\(4\) **Potential Risks**: Describe potential risks (physical,
psychological, social, legal, or other) and assess their likelihood and
seriousness. Where appropriate, describe alternative treatments and
procedures that might be advantageous to the subjects.

\(5\) **Protection Against Risk**: Describe the procedures for
protecting against or minimizing potential risks, including risks to
confidentiality, and assess their likely effectiveness. Where
appropriate, discuss provisions for ensuring necessary medical or
professional intervention in the event of adverse effects to the
subjects. Also, where appropriate, describe the provisions for
monitoring the data collected to ensure the safety of the subjects.

\(6\) **Importance of the Knowledge to be Gained**: Discuss the
importance of the knowledge gained or to be gained as a result of the
proposed research. Discuss why the risks to subjects are reasonable in
relation to the anticipated benefits to subjects and in relation to the
importance of the knowledge that may reasonably be expected to result.

\(7\) **Collaborating Site(s)**: If research involving human subjects
will take place at collaborating site(s) or other performance site(s),
name the sites and briefly describe their involvement or role in the
research.

***Copies of the Department of Education's Regulations for the
Protection of Human Subjects, 34 CFR Part 97 and other pertinent
materials on the protection of human subjects in research are available
from the Grants Policy and Oversight Staff, Office of the Chief
Financial Officer, U.S. Department of Education, Washington, D.C.
20202-4250, telephone: (202) 245-6120, and on the U.S. Department of
Education's Protection of Human Subjects in Research Web Site:
http://www.ed.gov/about/offices/list/OCFO/humansub.html***

NOTE: The **State Applicant Identifier** on the SF 424 is for State Use
only. Please complete it on the OMB Standard 424 in the upper right
corner of the form (if applicable).

**OMB Approval No. 0348-0040**

**ASSURANCES - NON-CONSTRUCTION PROGRAMS**

Public reporting burden for this collection of information is estimated
to average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other
aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork
Reduction Project (0348-0040), Washington, DC 20503

**PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT
AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.**

**Note:** Certain of these assurances may not be applicable to your
project or program. If you have questions, please contact the awarding
agency. Further, certain Federal awarding agencies may require
applicants to certify to additional assurances. If such is the case, you
will be notified.

As the duly authorized representative of the applicant I certify that
the applicant:

1\. Has the legal authority to apply for Federal assistance, and the
institutional, managerial and financial capability (including funds
sufficient to pay the non-Federal share of project cost) to ensure
proper planning, management, and completion of the project described in
this application.

2\. Will give the awarding agency, the Comptroller General of the United
States, and if appropriate, the State, through any authorized
representative, access to and the right to examine all records, books,
papers, or documents related to the award; and will establish a proper
accounting system in accordance with generally accepted accounting
standards or agency directives.

3\. Will establish safeguards to prohibit employees from using their
positions for a purpose that constitutes or presents the appearance of
personal or organizational conflict of interest, or personal gain.

4\. Will initiate and complete the work within the applicable time frame
after receipt of approval of the awarding agency.

5\. Will comply with the Intergovernmental Personnel Act of 1970 (42
U.S.C. 4728-4763) relating to prescribed standards for merit systems
for programs funded under one of the 19 statutes or regulations
specified in Appendix A of OPM\'s Standards for a Merit System of
Personnel Administration (5 C.F.R. 900, Subpart F).

6\. Will comply with all Federal statutes relating to nondiscrimination.
These include but are not limited to: (a) Title VI of the Civil Rights
Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of
race, color or national origin; (b) Title IX of the Education Amendments
of 1972, as amended (20 U.S.C. 1681-1683, and 1685-1686), which
prohibits discrimination on the basis of sex; (c) Section 504 of the
Rehabilitation Act of 1973, as amended (29 U.S.C. 794), which prohibits
discrimination on the basis of handicaps; (d) the Age Discrimination Act
of 1975, as amended (42 U.S.C.  6101-6107), which prohibits
discrimination on the basis of age; (e) the Drug Abuse Office and
Treatment Act of 1972 (P.L. 92-255), as amended, relating to
nondiscrimination on the basis of drug abuse; (f) the Comprehensive
Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation
Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on
the basis of alcohol abuse or alcoholism; (g)  523 and 527 of the
Public Health Service Act of 1912 (42 U.S.C.  290 dd-3 and 290 ee 3),
as amended, relating to confidentiality of alcohol and drug abuse
patient records; (h) Title VIII of the Civil Rights Act of 1968 (42
U.S.C.  3601 et seq.), as amended, relating to nondiscrimination in the
sale, rental or financing of housing; (i) any other nondiscrimination
provisions in the specific statute(s) under which application for
Federal assistance is being made; and (j) the requirements of any other
nondiscrimination statute(s) which may apply to the application.

7\. Will comply, or has already complied, with the requirements of
Titles II and III of the uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair
and equitable treatment of persons displaced or whose property is
acquired as a result of Federal or federally assisted programs. These
requirements apply to all interests in real property acquired for
project purposes regardless of Federal participation in purchases.

8\. Will comply, as applicable, with the provisions of the Hatch Act (5
U.S.C. 1501-1508 and 7324-7328) which limit the political activities
of employees whose principal employment activities are funded in whole
or in part with Federal funds.

9\. Will comply, as applicable, with the provisions of the Davis-Bacon
Act (40 U.S.C. 276a to 276a-7), the Copeland Act (40 U.S.C. 276c and
18 U.S.C. 874) and the Contract Work Hours and Safety Standards Act
(40 U.S.C.  327-333), regarding labor standards for federally assisted
construction subagreements.

10\. Will comply, if applicable, with flood insurance purchase
requirements of Section 102(a) of the Flood Disaster Protection Act of
1973 (P.L. 93-234) which requires recipients in a special flood hazard
area to participate in the program and to purchase flood insurance if
the total cost of insurable construction and acquisition is \$10,000 or
more.

11\. Will comply with environmental standards which may be prescribed
pursuant to the following: (a) institution of environmental quality
control measures under the National Environmental Policy Act of 1969
(P.L. 91-190) and Executive Order (EO) 11514; (b) notification of
violating facilities pursuant to EO 11738; (c) protection of wetlands
pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in
accordance with EO 11988; (e) assurance of project consistency with the
approved State management program developed under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.); (f) conformity of
Federal actions to State (Clear Air) Implementation Plans under Section
176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. 7401 et
seq.); (g) protection of underground sources of drinking water under the
Safe Drinking Water Act of 1974, as amended, (P.L. 93-523); and (h)
protection of endangered species under the Endangered Species Act of
1973, as amended, (P.L. 93-205).

12 Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C.
1721 et seq.) related to protecting components or potential components
of the national wild and scenic rivers system.

13\. Will assist the awarding agency in assuring compliance with Section
106 of the National Historic Preservation Act of 1966, as amended (16
U.S.C. 470), EO 11593 (identification and protection of historic
properties), and the Archaeological and Historic Preservation Act of
1974 (16 U.S.C. 469a-1 et seq.).

14\. Will comply with P.L. 93-348 regarding the protection of human
subjects involved in research, development, and related activities
supported by this award of assistance.

15\. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L.
89-544, as amended, 7 U.S.C. 2131 et seq.) pertaining to the care,
handling, and treatment of warm blooded animals held for research,
teaching, or other activities supported by this award of assistance.

16\. Will comply with the Lead-Based Paint Poisoning Prevention Act (42
U.S.C. 4801 et seq.) which prohibits the use of lead- based paint in
construction or rehabilitation of residence structures.

17\. Will cause to be performed the required financial and compliance
audits in accordance with the Single Audit Act Amendments of 1996 and
OMB Circular No. A-133, Audits of States, Local Governments, and
Non-Profit Organizations.

18\. Will comply with all applicable requirements of all other Federal
laws, executive orders, regulations and policies governing this program.

  ----------------------------------------- -------- ---------------------
  SIGNATURE OF AUTHORIZED CERTIFYING        TITLE    
  OFFICIAL                                           

  APPLICANT ORGANIZATION                             DATE SUBMITTED
  ----------------------------------------- -------- ---------------------

**Standard Form 424B (Rev. 7-97) Back**

######### CERTIFICATION REGARDING LOBBYING

######### 

::: Definition-Term
Certification for Contracts, Grants, Loans, and Cooperative Agreements
:::

The undersigned certifies, to the best of his or her knowledge and
belief, that:

1.  No Federal appropriated funds have been paid or will be paid, by or
    on behalf of the undersigned, to any person for influencing or
    attempting to influence an officer or employee of an agency, a
    Member of Congress, an officer or employee of Congress, or an
    employee of a Member of Congress in connection with the awarding of
    any Federal contract, the making of any Federal grant, the making of
    any Federal loan, the entering into of any cooperative agreement,
    and the extension, continuation, renewal, amendment, or modification
    of any Federal contract, grant, loan, or cooperative agreement.

2.  If any funds other than Federal appropriated funds have been paid or
    will be paid to any person for influencing or attempting to
    influence an officer or employee of any agency, a Member of
    Congress, an officer or employee of Congress, or an employee of a
    Member of Congress in connection with this Federal contract, grant,
    loan, or cooperative agreement, the undersigned shall complete and
    submit Standard Form-LLL, "Disclosure of Lobbying Activities," in
    accordance with its instructions.

3.  The undersigned shall require that the language of this
    certification be included in the award documents for all subawards
    at all tiers (including subcontracts, subgrants, and contracts under
    grants, loans, and cooperative agreements) and that all
    subrecipients shall certify and disclose accordingly. This
    certification is a material representation of fact upon which
    reliance was placed when this transaction was made or entered into.
    Submission of this certification is a prerequisite for making or
    entering into this transaction imposed by section 1352, title 31,
    U.S. Code. Any person who fails to file the required certification
    shall be subject to a civil penalty of not less than \$10,000 and
    not more than \$100,000 for each such failure.

Statement for Loan Guarantees and Loan Insurance

The undersigned states, to the best of his or her knowledge and belief,
that:

If any funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this commitment
providing for the United States to insure or guarantee a loan, the
undersigned shall complete and submit Standard Form-LLL, "Disclosure of
Lobbying Activities," in accordance with its instructions. Submission of
this statement is a prerequisite for making or entering into this
transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required statement shall be subject to a civil penalty
of not less than \$10,000 and not more than \$100,000 for each such
failure.

**INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING
ACTIVITIES**

This disclosure form shall be completed by the reporting entity, whether
subawardee or prime Federal recipient, at the initiation or receipt of a
covered Federal action, or a material change to a previous filing,
pursuant to title 31 U.S.C. section 1352. The filing of a form is
required for each payment or agreement to make payment to any lobbying
entity for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with a covered
Federal action. Complete all items that apply for both the initial
filing and material change report. Refer to the implementing guidance
published by the Office of Management and Budget for additional
information.

**1. Identify the type of covered Federal action for which lobbying
activity is and/or has been secured to influence the outcome of a
covered Federal action.**

**2. Identify the status of the covered Federal action.**

**3. Identify the appropriate classification of this report. If this is
a follow up report caused by a material change to the information
previously reported, enter the year and quarter in which the change
occurred. Enter the date of the last previously submitted report by this
reporting entity for this covered Federal action.**

**4. Enter the full name, address, city, State and zip code of the
reporting entity. Include Congressional District, if known. Check the
appropriate classification of the reporting entity that designates if it
is, or expects to be, a prime or subaward recipient. Identify the tier
of the subawardee, e.g., the first subawardee of the prime is the 1st
tier. Subawards include but are not limited to subcontracts, subgrants
and contract awards under grants.**

**5. If the organization filing the report in item 4 checks
"Subawardee," then enter the full name, address, city, State and zip
code of the prime Federal recipient. Include Congressional District, if
known.**

**6. Enter the name of the federal agency making the award or loan
commitment. Include at least one organizational level below agency name,
if known. For example, Department of Transportation, United States Coast
Guard.**

**7. Enter the Federal program name or description for the covered
Federal action (item 1). If known, enter the full Catalog of Federal
Domestic Assistance (CFDA) number for grants, cooperative agreements,
loans, and loan commitments.**

**8. Enter the most appropriate Federal identifying number available for
the Federal action identified in item 1 (e.g., Request for Proposal
(RFP) number; Invitations for Bid (IFB) number; grant announcement
number; the contract, grant, or loan award number; the
application/proposal control number assigned by the Federal agency).
Included prefixes, e.g., "RFP-DE-90-001."**

**9. For a covered Federal action where there has been an award or loan
commitment by the Federal agency, enter the Federal amount of the
award/loan commitment for the prime entity identified in item 4 or 5.**

**10. (a) Enter the full name, address, city, State and zip code of the
lobbying registrant under the Lobbying Disclosure Act of 1995 engaged by
the reporting entity identified in item 4 to influence the covered
Federal action.**

> \(b\) **Enter the full names of the individual(s) performing services,
> and include full address if different from 10(a). Enter Last Name,
> First Name, and Middle Initial (MI).**

**11. The certifying official shall sign and date the form, print
his/her name, title, and telephone number.**

According to the Paperwork Reduction Act, as amended, no persons are
required to respond to a collection of information unless it displays a
valid OMB control Number. The valid OMB control number for this
information collection is OMB No. 0348-0046. Public reporting burden for
this collection of information is estimated to average 10 minutes per
response, including time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. Send comments regarding the
burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Office of
Management and Budget, Paperwork Reduction Project (0348-0046),
Washington, DC 20503

# Survey Instructions on Ensuring Equal Opportunity for Applicants

# 

> **Provide the applicant's (organization) name and DUNS number and the
> grant name and CFDA number.**

1\. 501(c)(3) status is a legal designation provided on application to
the Internal Revenue Service by eligible organizations. Some grant
programs may require nonprofit applicants to have 501(c)(3) status.
Other grant programs do not.

2\. For example, two part-time employees who each work half-time equal
one full-time equivalent employee. If the applicant is a local affiliate
of a national organization, the responses to survey questions 2 and 3
should reflect the staff and budget size of the local affiliate.

3\. Annual budget means the amount of money your organization spends
each year on all of its activities.

4\. Self-identify.

5\. An organization is considered a community-based organization if its
headquarters/service location shares the same zip code as the clients
you serve.

6\. An "intermediary" is an organization that enables a group of small
organizations to receive and manage government funds by administering
the grant on their behalf.

7.  Self-explanatory.

8.  Self-explanatory.

**\
**

**Paperwork Burden Statement**

According to the Paperwork Reduction Act of 1995, no persons are
required to respond to a collection of information unless such
collection displays a valid OMB control number. The valid OMB control
number for this information collection is 1890-0014. The time required
to complete this information collection is estimated to average five (5)
minutes per response, including the time to review instructions, search
existing data resources, gather the data needed, and complete and review
the information collection. **If you have any comments concerning the
accuracy of the time estimate(s) or suggestions for improving this form,
please write to:** U.S. Department of Education, Washington, D.C.
2202-4651.

**If you have comments or concerns regarding the status of your
individual submission of this form, write directly to:** Joyce I. Mays,
Application Control Center, U.S. Department of Education, 7^th^ and D
Streets, SW, ROB-3, Room 3671, Washington, D.C. 20202-4725

OMB No. 1890-0014 Exp. 1/31/2006

OMB Control No. 1890-0007 (Exp. 11/30/2007)

**NOTICE TO ALL APPLICANTS**

The purpose of this enclosure is to inform you about a new provision in
the Department of Education\'s General Education Provisions Act (GEPA)
that applies to applicants for new grant awards under Department
programs. This provision is Section 427 of GEPA, enacted as part of the
Improving America\'s Schools Act of 1994 (Public Law (P.L.) 103-382).

**To Whom Does This Provision Apply?**

Section 427 of GEPA affects applicants for new grant awards under this
program. **ALL APPLICANTS FOR NEW AWARDS MUST INCLUDE INFORMATION IN
THEIR APPLICATIONS TO ADDRESS THIS NEW PROVISION IN ORDER TO RECEIVE
FUNDING UNDER THIS PROGRAM.**

(If this program is a State-formula grant program, a State needs to
provide this description only for projects or activities that it carries
out with funds reserved for State-level uses. In addition, local school
districts or other eligible applicants that apply to the State for
funding need to provide this description in their applications to the
State for funding. The State would be responsible for ensuring that the
school district or other local entity has submitted a sufficient section
427 statement as described below.)

**What Does This Provision Require?**

Section 427 requires each applicant for funds (other than an individual
person) to include in its application a description of the steps the
applicant proposes to take to ensure equitable access to, and
participation in, its Federally-assisted program for students, teachers,
and other program beneficiaries with special needs. This provision
allows applicants discretion in developing the required description. The
statute highlights six types of barriers that can impede equitable
access or participation: gender, race, national origin, color,
disability, or age. Based on local circumstances, you should determine
whether these or other barriers may prevent your students, teachers,
etc. from such access or participation in, the Federally-funded project
or activity. The description in your application of steps to be taken to
overcome these barriers need not be lengthy; you may provide a clear and
succinct

description of how you plan to address those barriers that are
applicable to your circumstances. In addition, the information may be
provided in a single narrative, or, if appropriate, may be discussed in
connection with related topics in the application.

Section 427 is not intended to duplicate the requirements of civil
rights statutes, but rather to ensure that, in designing their projects,
applicants for Federal funds address equity concerns that may affect the
ability of certain potential beneficiaries to fully participate in the
project and to achieve to high standards. Consistent with program
requirements and its approved application, an applicant may use the
Federal funds awarded to it to eliminate barriers it identifies.

**What are Examples of How an Applicant Might Satisfy the Requirement of
This Provision?**

The following examples may help illustrate how an applicant may comply
with Section 427.

> \(1\) An applicant that proposes to carry out an adult literacy
> project serving, among others, adults with limited English
> proficiency, might describe in its application how it intends to
> distribute a brochure about the proposed project to such potential
> participants in their native language.
>
> \(2\) An applicant that proposes to develop instructional materials
> for classroom use might describe how it will make the materials
> available on audio tape or in braille for students who are blind.
>
> \(3\) An applicant that proposes to carry out a model science program
> for secondary students and is concerned that girls may be less likely
> than boys to enroll in the course, might indicate how it intends to
> conduct \"outreach\" efforts to girls, to encourage their enrollment.

We recognize that many applicants may already be implementing effective
steps to ensure equity of access and participation in their grant
programs, and we appreciate your cooperation in responding to the
requirements of this provision.

**OTHER**

**IMPORTANT**

**INFORMATION**

**AND NOTICES**

[Intergovernmental Review of Federal Programs]{.smallcaps}

#### Executive Order 12372

**This program is subject to the requirement of the Executive Order
12372 (Intergovernmental Review of Federal Programs) and the regulations
in 34 CFR Part 79. The objective of the Executive Order is to foster an
intergovernmental partnership and to strengthen federalism by relying on
State and local processes for Sate and local government coordination and
review of proposed Federal financial assistance. Applicants must contact
the appropriate State Single Point of Contact to find out about, and to
comply with, the State's process under Executive Order 12372.**

You may locate the name and contact information of State Single Points
of Contact at:

<http://www.whitehouse.gov/omb/grants/spoc.html>

[ESTIMATED PUBLIC REPORTING BURDEN]{.smallcaps}

# Paperwork Burden Statement

According to the Paperwork Reduction Act of 1995, no persons are
required to respond to a collection of information unless such
collection displays a valid OMB control number. The valid OMB control
number for this information collection is 1855-0007. The time required
to complete this information collection is estimated to average 80 hours
per response, including the time to review instructions, search existing
data resources, gather the data needed, and complete and review the
information collection. **If you have any comments concerning the
accuracy of the time estimate(s) or suggestions for improving this form,
please write to:** U.S. Department of Education, Washington, D.C.
20202-4651. **If you have comments or concerns regarding the status of
your individual submission of this form, write directly to:** Credit
Enhancement for Charter School Facilities Program, U.S. Department of
Education, 400 Maryland Avenue, S.W., Room 4W245, Washington D.C.
20202-6140.

**[Application Checklist for Applicants]{.smallcaps}**

As discussed on the following pages, a complete application must include
all of the documents listed below.

\[ \] Cover page (SF 424 Form)

\[ \] Consortium Applicants must attach a copy of consortium agreement

\[ \] Program narrative, including responses to the selection criteria

\[ \] Table 1- Non-Grant Funds Projected to be Generated

\[ \] Table 2- Applicant Activity Table for the Most Recently Completed
Fiscal Year

\[ \] Table 3- Budget form and other budget information

\[ \] All other ***applicable*** documents

\[ \] Standards of Conduct

\[ \] Credit Rating Reports

\[ \] Audited Financial Statements

\[ \] Cash Flow Pro Forma

\[ \] Non-profits: Articles of Incorporation and By-laws

\[ \] Non-profits: IRS Form 990

\[ \] Public entities: Enabling Statutes and Other Relevant Legislation

\[ \] Previous grantees (both Credit Enhancement for Charter School
Facilities Program and Charter School Facility Financing Demonstration
Grant Program Grantees): the most recent annual performance report (if
the grant has not been in place long enough to have a annual performance
report, the most recent half-year report)

\[ \] Assurances and Certifications

\[ \] Assurances──Non-Construction Programs

> \[ \] Certifications Regarding Lobbying; Debarment; Suspension, and
>
> Other Responsibility Matters; Drug-Free Workplace Requirements

\[ \] Certification Regarding Debarment, Suspension, Ineligibility, and

Voluntary Exclusion- Lower Tier Covered Transactions

\[ \] Disclosure of Lobbying Activity

\[ \] Response to Section 427 of GEPA Guidance

\[ \] Did you submit a copy of the application to the State Single Point
of Contact (if applicable)?

If you are not submitting your application electronically, did You \--

\[ \] Provide one (1) original plus three (3) copies of the application
(for a total of **4** copies) if you are not submitting your application
electronically?

\[ \] Include all required forms with original signatures and dates?

\[ \] Include **"Attention: CFDA 84.354A"** on the cover and envelope
containing your application package?