School facilities: leasing real property

The law extends for five years a financing and delivery option that lets districts lease district land to a developer that builds facilities for district use, with ownership transferring to the district.

What the law does ​

• Extends through June 30, 2032, authority for districts to lease district real property for at least $1 annually when the lessee constructs school-use buildings and title ultimately vests in the district.
• Retains competitive best-value solicitation, proposer prequalification, public-notice, pricing, subcontracting, and public-award disclosure requirements for these agreements.
• Allows districts to contract for preconstruction services before Division of the State Architect approval, but bars regulated construction work requiring that approval until it is received.
• Repeals the extended provisions on January 1, 2033, after which the underlying lease authority continues without the expiring special procurement provisions.

Who it affects ​

• School districts and their governing boards.
• Developers, contractors, and subcontractors seeking school-facility lease-to-build work.
• Students, staff, and communities served by facilities built under these agreements.

Context ​

The prior version of these special procedures was set to end July 1, 2027.