2200                                               LAWS OF MARYLAND                         [Ch. 648

Certificates of Indebtedness authorized under this Act.

(d)    State funds granted under this Act shall be
used in furtherance of public or nonprofit Community
Mental Health Center and Mental Retardation Programs
approved by the State Department of Health and Mental
Hygiene and shall be limited to:

(1)    Where the sponsor owns a land site on which it
is proposed to construct and equip a new facility, the
State may participate only in the construction costs,
equipment costs and whatever site improvement costs as
are deemed necessary;

(2)    Where the sponsor proposes to acquire a land
site on which to construct a new facility, the State may
participate in the costs of construction, equipment and
site improvement but not in the cost of the site;

(3)    Where a sponsor proposes to acquire a land
site on which a building exists, capable of renovation,
to meet the requirements of the programmed service, the
State may participate in the total costs of the land,
site improvements, the cost of structural renovation, and
equipping costs of the existing buildings.

(e)    If within fifteen (15) years after completion
of construction the sponsor defaults in the terms of the
grant, the State may exercise its right of recovery of a
portion of the original grant, such portion to be
determined on a pro—rata basis in relation to the years
remaining in the fifteen (15) year life of the bonds.
This right of recovery may be waived if the Secretary of
Health and Mental Hygiene determines there is good cause
for releasing the sponsor from his obligation.

(f)    Any public or other nonprofit group sponsoring
or operating Community Mental Health Center Components or
Mental Retardation Facilities in this State eligible for
a state grant under the provisions of this Act may apply
to the secretary of Health and Mental Hygiene for a grant
toward the cost of the proposed project. Grants shall be
subject to the following limitations:

(1) Any Federal grant which may be available for
this purpose shall be applied first to the cost of
construction, acquisition and/or renovation and equipment
of each Community Mental Health Center Component or
Mental Retardation Facility. State grants shall be used
to supplement Federal grants when available in such a
manner that grants from these combined State and Federal
sources provide not more than 67% of the total eligible
cost of the project, except that for those projects
designated under Federal regulations. State Plans, and