PfISD explores option to create PFC to purchase real estate
PfISD is exploring the option to create a Public Facility Corporation (PFC) to finance the purchase of a preexisting building that will be used as a backup for technology infrastructure, a professional development training center, and as a central district support center.
A PFC is a non-profit corporation that can issue lease revenue bonds allowing school districts to establish a lease-purchase agreement to finance real estate purchases. The PFC holds title to the land and facility and at the end of the payment period, the title would be transferred back to the district. The Texas Attorney General’s Office must approve a PFC and the Texas Legislature allows the use of PFC’s to give districts flexibility in funding facilities. Chapter 303, Texas Local Gov’t Code provides for the creation of PFC’s by political subdivisions such as municipalities, counties, housing authorities, special districts, and school districts.
The district has currently outgrown its technology space and has limited professional development meeting spaces available. The creation of a PFC would allow the district to use its strong AA+ credit rating in the investment market to obtain the lowest financing interest rate as compared to a traditional long-term lease.