NC S511

Allows local school boards to use state funds allocated for noninstructional support personnel to pay for operating leases of school buildings in counties designated as development tier one areas, with the county responsible for payments if state funding decreases.

Expands operating lease authority for school boards to include leases with private developers on sites owned by the board or county, requiring board resolution justification and a competitive selection process based on developer qualifications.

Establishes procedures for private developers undertaking construction or renovation work, including requirements to select general contractors through prescribed methods and provide payment bonds equal to 100% of design and contracting service fees.

Allows counties to borrow money for purposes permitted under federal qualified zone academy bond law (26 USC § 54E(d)(3)) when a local board enters into an operating lease of real property for school buildings or facilities with a minimum 10-year term.

Modifies the qualified zone academy bond program to prioritize bond allocation to counties with greater economic distress and expands allowable uses of bond proceeds for facilities under operating leases.