Qualified Zone Academy Bonds (QZAB)

General Information

*The QZAB program is currently suspended, and applications are not being accepted* 

The QZAB program is a way for school districts to obtain interest-free financing for renovation, repair projects, and other needs. CDE does not administer the funding, but provides authorization to school districts for obtaining the interest-free financing if the district qualifies. Some of the requirements are as follows:

• 35% or more of the school's students must qualify for free and reduced lunch;

• Programs established with QZAB funds must have these goals: enhancing the academic curriculum, increasing graduation and employment rates, and more effectively preparing students for college and the workforce;

• Each school must enter into a partnership with a private entity or entities. The partner must contribute at least 10% of the net present value of the amount of money borrowed;

• NEW: At least 10% of the financing must be contracted within 6 months after issuance. 100% of the QZAB funds must be spent within 3 years of the issuance date.

• NEW: Arbitrage restrictions have been modified in 2008 so that reserve accounts may be created provided they meet the criteria requirements per H.R. 1424.

For additional information please contact [email protected]

Links

QZAB Application 

QZAB Allocation Tracking

QZAB by Definition

QZAB Statutory References

QZAB PowerPoint Presentation

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