Q&A: Will the New Charter School Bill Impact Commercial Real Estate? WTF is a PRIVATE CHARTER SCHOOL?
A new school law, the controversial House Bill 7069, has been causing quite a stir in Florida since coming into effect in 2017. The recent change in legislation targets charter schools and includes a series of provisions that support the creation of an expansive educational system outside of the public school districts’ control. In other words, county school boards are now required to share local tax revenues—such as their construction budget—with private charter schools, among other clauses.
Another significant change brought on by the bill is the creation of Schools of Hope—a new charter school network. More precisely, the legislation encourages out-of-state charter school operators to move into regions where the nearest traditional public schools have persistent low ratings. Construction work, renovations or repairs at the new facilities get funded through local tax revenue granted by school districts. Board approval is not required for the allocations.
Joey Blakley, vice president of the Religious, Education & Not-For-Profit Group at Foundry Commercial, believes the new legislation could impact the commercial real estate market by empowering smaller operators to build or expand their charter schools due to funding from the county. Blakely told Commercial Property Executive how the bill influences new construction and what type of real estate assets developers might target.
What was the status of charter school development before the passing of HB 7069 and how has it changed since?
Blakely: It’s difficult to track charter school development, but according to the state, 34 new charter schools opened in the fall of 2017. Schools just started getting the new share of property tax funds, so it may be a year or two before we see significant changes. We expect to see charter schools use the funds to help expand and upgrade current facilities and develop new ones.
How does the new legislation impact the commercial real estate market? Continue reading: Q&A: Will the New Charter School Bill Impact CRE?
