Cost Per Square Foot Parameters

The School Bond Qualification and Loan Program’s new cost per square foot parameters, effective for preliminary qualification applications submitted after August 31, 2025 for new construction are as follows:

1. $270 per square foot for school districts located in out-state Michigan. The rate is derived from the average RS Means historical cost indexes for five major Michigan cities.
2. $286 per square foot for school districts located in the Detroit-Warren-Flint Combined Statistical Area (CSA), which includes the following counties: Washtenaw, Lapeer, Livingston, Macomb, Oakland, St. Clair, Wayne, Genesee and Monroe. This rate is based on the RS Means historical cost index for Detroit.

Applications that contain new construction projects where the cost per square foot exceeds these parameters require additional documentation. This documentation should be transmitted in the form of a signed letter from the architect or construction manager. This letter should identify the specific building project and provide an explanation of the special circumstances of that project that caused the variance and be submitted along with the official preliminary qualification application.