Why Charter Schools Need a Facility Ecosystem

23 May Why Charter Schools Need a Facility Ecosystem

The Hidden Bottleneck in Education: Why Facility Ecosystems Matter

In the world of education reform, we obsess over leadership, curriculum, accountability, and autonomy. We debate instructional models and argue for teacher development. But here’s the secret that’s been quietly strangling the growth of high-quality schools: real estate.

It’s not a flashy problem. It’s not something that makes headlines. But the reality is that the facility challenge is the invisible force dictating how fast—and how well—innovative schools can expand. Charter schools aren’t being held back by a lack of great teachers or visionary school leaders. They’re being held back by the simple fact that they can’t find (or afford) the buildings to house their students.

Traditional public school systems have built-in mechanisms for acquiring and managing facilities. Charter schools don’t. And because the people running charter schools are educators, not real estate developers, they often find themselves in over their heads, forced to navigate a world of financing, zoning laws, and construction that has nothing to do with their actual mission.

The Facility Squeeze: What’s Happening and Why

The facility problem is real, and it plays out in three key ways:

1. Locked Out of Public Buildings: Many school districts have underutilized buildings, yet charter schools struggle to gain access to them due to political and bureaucratic roadblocks.
2. A Financing Nightmare: Securing affordable financing for school facilities is a Herculean task. Most traditional lenders won’t accommodate the charter school model, leaving schools scrambling for mission-aligned investors. On top of this, public agencies continue to shortchange charter schools for funding.
3. A Steep Learning Curve: Educators who open charter schools suddenly find themselves needing to become experts in real estate, navigating leases, bond markets, and development projects they never anticipated.

If we want to scale access to great schools, we need a new way of thinking. Enter the Facility Ecosystem.

What is a Facility Ecosystem?

A Facility Ecosystem isn’t just about buildings. It’s an interconnected network of resources, policies, and expertise that make it easier for schools to secure, develop, and maintain high-quality learning environments. Done right, it transforms facilities from a barrier into an enabler of growth.

A strong Facility Ecosystem has four key components:

1. A Community of Practice: A network of organizations—including school leaders, charter support groups, foundations, policymakers, and real estate professionals—that collectively work to solve the facility challenge.
2. A Specialized Marketplace: A set of mission-aligned real estate professionals, developers, and technical experts who understand the unique needs of charter schools.
3. Systemic Financing Solutions: Moving beyond one-off real estate deals to develop scalable, repeatable models that address facility needs for cities and states.
4. Smart Policy Frameworks: Laws and regulations that provide fair funding, access to public buildings, and financing support for school facilities.

Facility Ecosystems in Action: What’s Working (and What’s Not)

Some cities have made progress in building out a Facility Ecosystem. Others are still struggling. Let’s take a look:

• Washington, D.C.: C. built one of the most advanced Facility Ecosystems in the country. Charter schools receive a per-pupil facilities allowance, they used to have access to surplus district buildings, and they still benefit from a network of nonprofits that provide financing and development services. The result? A thriving charter sector that serves nearly half the city’s students. But its growth has plateaued as policies have changed.
• New York City: In NYC, some charter schools operate in public buildings through co-location arrangements, while others scramble to find private space. The city provides a per-pupil facilities allowance for some schools, but the real estate market is brutally competitive. Nonprofit developers and technical assistance providers have helped, but major challenges remain as costs soar.
• Los Angeles: A.’s facility challenges are legendary. State laws require districts to share space with charter schools, but implementation has been contentious. Limited access to funding and high real estate costs make things even tougher. Despite this, philanthropic investments have helped create organizations that support school facility development.

Each of these cities has tackled pieces of the facility challenge, but none have fully cracked the code. And in many places across the country, the problem remains almost entirely unaddressed.

Building a Better Facility Ecosystem: Where Do We Go from Here?

If we’re serious about solving the facility crisis, we need to take a holistic approach. Based on what’s worked (and what hasn’t), here’s a roadmap for building a first-class Facility Ecosystem:

Step 1. Build a Community of Practice

Every city needs a coordinated group of stakeholders committed to solving the facility problem. This should include:

• Charter school operators
• State and city charter support organizations
• Financial institutions
• Real estate developers
• Government agencies
• Philanthropic and social impact investors

This group should identify strengths and gaps, drive public awareness, influence policy, and create resources that make it easier for schools to navigate facility challenges.

Step 2. Develop a Specialized Marketplace

Schools shouldn’t have to figure this out on their own. A strong Facility Ecosystem connects schools with a team of specialized professionals, including:

• Architects, brokers and real estate developers experienced in school projects
• Financial advisors who understand charter school funding
• Technical experts to support master plans and individual projects
• Legal experts in school facility transactions

Step 3. Invest in Scalable Financing Solutions

Instead of treating every charter school facility as a one-off real estate project, we need systemic solutions, such as:

• Mission-aligned lenders and investors creating more financial models including pooled funds or new financial institutions
• Financing portfolios of school buildings such as non-profit real estate trusts or Incubators
• Leveraging schools as community anchors and economic development engines to attract investment and spur mixed-use approaches.

Step 4. Fix Public Policy

The government has historically provided public school facilities, but charter schools have been left out. We need policies that level the playing field, including:

• Guaranteed access to surplus school buildings
• Dedicated facility funding through per-pupil allowances or grants
• Inclusion in local and state school bond measures
• Loan guarantees and credit enhancements for charter school facility projects
• Zoning and land-use policies that treat charter schools fairly

Conclusion: The Time to Act is Now

We’ve made huge strides in education reform by building great school models, designing leadership programs, and refining accountability systems. But none of it matters if schools can’t secure the buildings they need. We’ve seen this problem coming for many years. Now, it’s at our doorstep.

We can’t continue to let facility challenges limit access to high-quality schools. The good news? We already know what needs to be done. The path forward is clear. It’s time to start building real, scalable solutions because at the end of the day, a great education starts with a great school—and a great school needs a place to call home.