Child Care Facilities Revolving Fund

PLEASE NOTE THE FOLLOWING:

  • New funding opportunities for this fund are no longer available as of December 31, 2019.
  • All outstanding balances from this fund were transferred from the California Department of Education (CDE) to the California Department of Social Services (CDSS) effective July 1, 2021.

Purpose

The Child Care Facilities Revolving Fund (CCFRF) provided funding to eligible child care and development contracting agencies for renovation and repair of existing facilities or the acquisition of relocatable buildings.  These include the following Early Learning and Care Division (ELCD) administered programs: (1) General Child Care and Development; (2) California State Preschool (CSPP); (3) Migrant Child Care and Development; (4) Child Care and Development Services for Children with Exceptional Needs; and (5) California School Age Families Education.  Please note that all aforementioned program types except the CSPP are now administered by the CDSS effective July 1, 2021.

Background

Chapter 32, Statutes of 2014 established the CCFRF to provide funding for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for child care and development services, and for the purchase of new relocatable child care facilities for lease to school districts and contracting agencies that provide child care and development services.  The CDE’s ELCD administered the CCFRF program in accordance with the California Education Code (EC) Section 8278.3.  Effective July 1, 2021, the CCFRF program was transferred to the CDSS until all remaining loans are paid in full.

Program Description

The CCFRF included the State’s lease-purchase program for relocatable child care facilities as well as the California Renovation and Repair Loan (CRRL) program.  All funds advanced from the CCFRF must be repaid by the contracting agency over a period no longer than ten years, with no interest.  In accordance with EC 8278.3, funding is limited to only existing contracting agencies that provide the subsidized child care program services mentioned in the Purpose section of this page.

With the CCFRF General Facilities loan, child care agencies were able to apply for up to $420,000 for each single, freestanding relocatable building (basic building consisting of three 12 by 40-foot modules) and up to $140,000 maximum for each additional module added to the basic building.  Eligible program costs included building expenses, architect and inspection fees, site development, and site improvement costs.

Approved CCFRF General Facilities loan applications were funded in two phases: (1) the initial funding at 60 percent and (2) the final funding at 40 percent (based on project costs or up to the contract’s maximum allowance, whichever is less).  CCFRF General Facilities loan contracting agencies began making lease repayments to the CDE/CDSS 180 days after the final funding was been released.  Payments were amortized over ten years without interest.  Upon full repayment, facility title transferred from the State of California to the CCFRF contracting agencies.

With the CRRL program, the amount that child care agencies were able to apply for was determined by the contractor’s existing maximum reimbursable amount.  Eligible program costs included but were not limited to ADA accessibility signs, children’s bathroom lavatories, fixtures, or controls, and cushioned areas around and under play equipment.

Approved CRRL applications were funded in three phases: (1) the initial funding at 60 percent, (2) the second funding at 30 percent and (3) the final funding at 10 percent (based on project costs or up to the contract’s maximum allowance, whichever is less). The CRRL repayment period varied based on the total loan amount.  Loans were repaid on a monthly schedule, unless otherwise determined by the CDE/CDSS.  The loan repayment period began one year from the start date of the contract.

For more information on this fund, please contact the Child Care and Development Division’s Funding Application Unit at CCFRF@dss.ca.gov.