Qualified School Construction Bond Program

INFORMATIONAL LETTER: 101
POLICY CODE: FDA

TO: Superintendents of Schools, Business Managers, and Facilities Managers
FROM: Susan A. Gendron, Commissioner
DATE: May 15, 2009
RE: Qualified School Construction Bond Program

The Federal Qualified School Construction Bond (QSCB) program is a new tax credit bond program established through the American Recovery and Reinvestment Act (ARRA). This program allows lenders to receive tax credits from the Federal government in lieu of interest payments from the issuer of the bond. Therefore, school units that issue these bonds are only responsible for repayment of the bond principal.

Funds obtained through issuance of QSCBs must be used for qualified purposes which include construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed. QSCBs are to be issued before January 1, 2010.

Maine has received a bond allocation of $42,074,000 for calendar year 2009 which will be reallocated to school administrative units for financing locally funded projects. In order to take advantage of this financing mechanism, please complete the FY 2009 QSCB application which is available on the Department’s website at: http://www.maine.gov/education/const/ffgrants.htm .

The deadline for submitting QZAB applications is June 26, 2009.

If you have questions about the QSCB program or application, please contact Ann Pinnette at 624-6885 or ann.pinnette@maine.gov .