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Excellent Education Development Receives $50 Million Tax Credit From U.S. Treasury Department
Mon Nov 2, 2009 12:52pm EST
Largest Allocation to Date Will Boost Financing Efforts for Charter Schools inLow-Income Areas of Los Angeles
LOS ANGELES--(Business Wire)--
The U.S. Treasury Department has awarded Excellent Education Development (ExED)with a $50 million allocation of New Markets Tax Credits (NMTCs), which will be used to support high-performing charter schools in Los Angeles. This is ExED`s third NMTC allocation and the largest to date, reflecting the success of the organization`s past efforts to transform schools in the most underserved regions of Los Angeles.
The recent $50 million allocation will allow ExED to continue offering low-interest rate loans to build and improve facilities for charter schools. In addition to providing construction and permanent financing, ExED will also expand its current activities to offer new programs that finance improvements to leased facilities.
"We are thrilled about this new allocation, as it will enhance our efforts to bring great new schools to the lowest-income areas of our city," said ExED Executive Director Anita Landecker. "We look forward to working with more high-achieving charter schools to continue to create affordable facilities in neighborhoods that so desperately need them."
This new allocation marks a significant milestone for the Los Angeles Charter School New Market Tax Fund, an innovative financing mechanism created by ExED in partnership with the U.S. Treasury Department. ExED pioneered the application of this tax credit to charter schools, using it to finance the creation of facilities at 12 charter schools throughout the Los Angeles area. The organization recently finished dispersing the $71 million allocated by the Treasury Department in two funding rounds over the past four years.
One of these new facilities is Stern Math and Science School (MASS), which opened its permanent 34,000-square-foot school in November 2008 on the campus of California State University, Los Angeles (CSULA). Attending school on a college campus every day, Stern MASS students have access to the university`s student teachers, counselors, library and selected courses, for which they receive high school and college credit.
In the nearby Boyle Heights neighborhood, KIPP LA Preparatory School received a $2.75 million tenant-improvement loan through ExED`s NMTC fund to rehabilitate a former tortilla factory into a middle school for 360 students, which opened in February 2009. A high-performing school serving a very low-income population, KIPP LA Prep prepares its students for college with elements such as an extended school day and regular field trips to university campuses.
ExED`s NMTC fund also provided a loan of nearly $12 million to transform a large warehouse property into a new facility for Ánimo Pat Brown School, which is located in an impoverished South Los Angeles community. Last fall the school moved into its new facility - the first likely charter school candidate for LEED-Silver Certification in Los Angeles. Administered by Green Dot Public Schools, Ánimo Pat Brown offers a renowned math and science program, reporting extraordinary math scores for a school with a large underserved student population.
"We are proud to be part of such a ground-breaking program, which puts tax credits to their best use," said Landecker. "This financing enables charter schools to fulfill their mission, creating innovative buildings that foster learning, while revitalizing surrounding neighborhoods in the process."
ExED is the premier non-profit provider of back office and business consulting services to charter schools in Southern California. The organization assists charter schools with the essential functions they often find most difficult: securing affordable facilities, dealing with school districts, complying with state and federal regulations, accounting and payroll. Since its founding in 1998, ExED has served over 25,000 students across more than 75 schools.