HR 10 RFS
‘‘(6) the number of subgrants awarded under 
this section to carry out each of the following: 
‘‘(A) The opening of new charter schools. 
‘‘(B) The opening of replicated, high-qual-
ity charter school models. 
‘‘(C) The opening of expanded, high-qual-
ity charter schools; and 
‘‘(7) how the State entity has worked with char-
ter schools receiving funds under the State entity’s 
program to foster community involvement in the 
planning for and opening of such schools. 
‘‘(i) STATE ENTITY DEFINED.—For purposes of this 
section, the term ‘State entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) a State charter school board; 
‘‘(3) a Governor of a State; or 
‘‘(4) a charter school support organization.’’. 
SEC. 6. FACILITIES FINANCING ASSISTANCE. 
Section 5204 (20 U.S.C. 7221c) is amended to read 
as follows: 
‘‘SEC. 5204. FACILITIES FINANCING ASSISTANCE. 
‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—From the amount reserved 
under section 5202(b)(1), the Secretary shall not 
use less than 50 percent to award grants to eligible 
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entities that have the highest-quality applications 
approved under subsection (d), after considering the 
diversity of such applications, to demonstrate inno-
vative methods of assisting charter schools to ad-
dress the cost of acquiring, constructing, and ren-
ovating facilities by enhancing the availability of 
loans or bond financing. 
‘‘(2) ELIGIBLE
ENTITY
DEFINED.—For pur-
poses of this section, 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). 
‘‘(b) GRANTEE SELECTION.—The Secretary shall 
evaluate each application submitted under subsection (d), 
and shall determine whether the application is sufficient 
to merit approval. 
‘‘(c) GRANT CHARACTERISTICS.—Grants under sub-
section (a) 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) APPLICATIONS.— 
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‘‘(1) IN GENERAL.—To receive a grant under 
subsection (a), an eligible entity shall submit to the 
Secretary an application in such form as the Sec-
retary may reasonably require. 
‘‘(2) CONTENTS.—An application submitted 
under paragraph (1) shall contain— 
‘‘(A) a statement identifying the activities 
proposed to be undertaken with funds received 
under subsection (a), 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; 
‘‘(B) a description of the involvement of 
charter schools in the application’s development 
and the design of the proposed activities; 
‘‘(C) a description of the eligible entity’s 
expertise in capital market financing; 
‘‘(D) a description of how the proposed ac-
tivities will leverage the maximum amount of 
private-sector financing capital relative to the 
amount of public funding used and otherwise 
enhance credit available to charter schools, in-
cluding how the eligible entity will offer a com-
bination of rates and terms more favorable than 
the rates and terms that a charter school could 
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receive without assistance from the eligible enti-
ty under this section; 
‘‘(E) a description of how the eligible enti-
ty possesses sufficient expertise in education to 
evaluate the likelihood of success of a charter 
school program for which facilities financing is 
sought; and 
‘‘(F) in the case of an application sub-
mitted by a State governmental entity, a de-
scription 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. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 
entity receiving a grant under this section shall use the 
funds deposited in the reserve account established under 
subsection (f) to assist one or more charter schools to ac-
cess private sector capital to accomplish one or more of 
the following objectives: 
‘‘(1) The acquisition (by purchase, lease, dona-
tion, or otherwise) of an interest (including an inter-
est 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 oper-
ation of a charter school. 
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‘‘(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. 
‘‘(3) The predevelopment costs required to as-
sess sites for purposes of paragraph (1) or (2) and 
which are necessary to commence or continue the 
operation of a charter school. 
‘‘(f) RESERVE ACCOUNT.— 
‘‘(1) USE OF FUNDS.—To assist charter schools 
to accomplish the objectives described in subsection 
(e), an eligible entity receiving a grant under sub-
section (a) shall, in accordance with State and local 
law, directly or indirectly, alone or in collaboration 
with others, deposit the funds received under sub-
section (a) (other than funds used for administrative 
costs in accordance with subsection (g)) 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: 
‘‘(A) Guaranteeing, insuring, and rein-
suring bonds, notes, evidences of debt, loans, 
and interests therein, the proceeds of which are 
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