HARRY HUGHES, Governor

1631

equipment acquisition, renovation, and/or equipping of each
community mental health center component, addiction
facility, or mental retardation facility. State grants
shall amount to up to 50 percent of the eligible cost
remaining after the federal grant has been applied. For
those projects designated under federal regulations. State
plans and regulations provided for by this Act as eligible
for poverty area funding. State grants shall amount to up to
75 percent of the eligible cost remaining after the federal
grant has been applied.

(iii) The amount of the State grant to be
made for any facility shall be determined after due
consideration of all pending eligible applicants, the total
of unallocated State funds available at the time the
application is received, and such priorities of area need as
may have been established by the State Department of Health
and Mental Hygiene.

(iv) If, at any time within 15 years after
completion of construction, a facility with respect to which
funds have been paid under the provisions of this Act:

1.  Is sold or transferred to any
person, agency, or organization which would not itself
qualify as an applicant under the terms of this Act, or
which is not approved as a transferee by the Secretary of
Health and Mental Hygiene, or

2.  Ceases to be a public or
nonprofit facility, as defined in this Act, then the State
shall be entitled to recover from either the transferor or
transferee thereof or, in the case of an institution which
has ceased to be a public or nonprofit facility, from the
owner thereof, an mount amount bearing the same ratio to the
then value (as determined by agreement of the State and such
transferor, transferee, or owner or by action brought in a
court of competent jurisdiction) of so much of the
institution as constituted an approved project, as the
amount of the State participation bore to the cost of the
construction under that project. This right of recovery
shall be recorded in the land records of the political
subdivision in which the facility is located prior to the
release of any grant funds to the facility. This recording
of the State's right of recovery shall not constitute a lien
against the property. When a facility is determined to be
in default then the Secretary of Health and Mental Hygiene
shall cause to be recorded among the land records of the
political subdivision in which the facility is located a
notice of the amount which the State is entitled to recover;
and such amount shall constitute a lien upon the real
property of the institution from the date of the
determination. All funds recovered pursuant to this right
of recovery shall be deposited in the Annuity Bond Fund and
shall be applied to the debt service requirements of the
State. The Secretary of Health and Mental Hygiene may waive
the State's right of recovery if he determines that there is