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In September 2023, the U.S. Department of Education awarded PCSD a significant $20 million in credit enhancement funds. This grant is more than just a financial boost; it’s a strategic tool that helps us expand educational opportunities for students in under-resourced communities by making facility financing more accessible to charter schools.

Why Credit Enhancement Matters

Credit enhancement is essential in the charter school facilities sector, where access to traditional financing can be a significant barrier. Many lenders hesitate to offer loans to charter schools due to perceived risks and the unique nature of these institutions. By providing a debt service reserve—essentially a safety net that ensures a portion of the loan payments is covered—credit enhancement lowers the risk for lenders and makes them more willing to invest in these transformative projects.

Supporting Our Partners

We’ve already put these funds to work, directly supporting several of our key partners:

1. RYSS STEM Academy Pasadena (TX): We provided debt service reserve for the Raul Yzaguirre Schools for Success (RYSS) STEM Academy Pasadena facility project. This support was crucial as it reduced the financial risk for the lender in a complex financing structure for a brand new school who might otherwise be unwilling to fund such a critical educational space.
2. CWC West Valley (CA): In Los Angeles, we extended debt service reserve to support the financing and development of CWC West Valley. The lender was already supporting other CWC schools and reaching the edge of its concentration limits, and PCSD’s pledge of credit enhancement was critical in providing a level of assurance to get the loan closed. The affordable financing sourced by PCSD not only facilitates smoother financial operations but also helps the school focus on its mission to deliver high-quality education without the constant worry of financial constraints.
3. UP Excellence (TX): We provided debt service reserve for UP Excellence, a newly authorized charter school in Houston that welcomed its first cohort of students this Fall. Without a track record of enrollment and academic outcomes to measure, new start-ups are especially challenged in acquiring financing. PCSD’s pledge of credit enhancement provided the assurance needed for the lender to close financing so that improvements could be completed in time for the new school year, ensuring the school had a welcoming space for its inaugural students and the stability needed to establish itself and thrive in its early years.

Making a Difference

Our credit enhancement program plays a pivotal role in bringing high-quality educational facilities to life. By mitigating financial risk for lenders, we unlock doors that were previously closed, allowing more students to learn in environments designed to support their success.

This $20 million award is a testament to the trust and confidence placed in PCSD’s ability to create lasting change. We’re excited to continue leveraging these funds to support our partners and, ultimately, to build a more equitable educational landscape for all.

For more information on the award and how we’re using it to support our partners, read more here.

At PCSD/TCSD, we believe that access to high-quality education begins with providing students and teachers the spaces they need to learn, grow, and succeed. We’re thrilled to announce that PCSD/TCSD has been awarded a $3M grant from Houston Endowment to further this mission by supporting charter school facility development in the Greater Houston area. This is the second grant the Houston Endowment has awarded PCSD, reinforcing their commitment to expanding educational opportunities across the city.

This significant investment is part of the Texas Charter School Development Facilities Fund and will enable us to continue our work with new and existing charter schools, ensuring they have the resources and spaces required to meet their growing needs. Houston is home to a dynamic and rapidly expanding charter school sector, and this grant comes at a pivotal moment as demand for charter schools continues to rise.

Supporting Under-resourced Communities

The Houston Endowment grant will directly impact under-resourced communities by making it possible for more students to access high-quality, mission-driven learning environments. With this support, we can work alongside charter schools to develop affordable, sustainable, and scalable facilities that reflect each school’s unique vision and needs. These new projects will not only meet current demand but also lay the foundation for long-term growth and success in the years to come.

Why Facilities Matter

We know that a well-designed school facility isn’t just about providing a building—it’s about creating an environment that fosters educational equity. A school’s physical space plays a crucial role in student achievement, teacher retention, and overall community engagement. This grant empowers us to expand our impact in Houston and ensure that every student, no matter their zip code, has access to the quality learning spaces they deserve.

Looking Ahead

As we embark on this next phase of development in Houston and beyond, we’re excited to partner with more charter schools to make a meaningful difference. Whether it’s building new campuses, expanding existing ones, or converting spaces into innovative learning hubs, we’re committed to providing solutions that enable schools to focus on what matters most—educating the next generation.

A huge thank you to the Houston Endowment for their belief in our work and their dedication to advancing educational equity. This grant represents a major step forward for both PCSD/TCSD and the students, families, and communities we serve in Houston.

Stay tuned for updates as we begin rolling out new projects and watch our vision for Houston’s charter school landscape continue to grow!