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Qualified Zone Academy Bonds (QZAB)
*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 provide the funding, but provides authorization to a school district to obtain the interest free financing if the school 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 must have the goal of enhancing the academic curriculum, increasing graduation and employment rates or better 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 percent 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 must be spent within 3 years of date of issuance.
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 Julia Fitzpatrick at: fitzpatrick_J@cde.state.co.us or at 303-866-6492