3314

LAWS OF MARYLAND

Ch. 534

(e) Any public or other nonprofit entity
sponsoring the construction of a new facility or the
expansion of an existing facility in this State may apply to
the State Department of Health and Mental Hygiene for a
State grant toward the cost of that project. The allocation
and use of State funds under this Act shall be subject to
the following provisions:

(i) State funds may be used only for the
construction, acquisition, renovation, and equipment of
facilities; for reports, plans, and specifications in
connection therewith; and for site improvements, survey, and
programs in connection therewith.

(ii) Any federal grant which may be
available for this purpose shall be applied first to the
cost of construction, acquisition, renovation, and equipment
of a facility. State grants shall provide 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. For the
purposes of this Act, community development block grant
funds shall be considered as local matching funds and may
not be considered as federal grant funds.

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

(iv) If, at any time within 15 years after
completion of construction, acquisition, renovation, and
equipment, a community mental health center component,
addiction facility, mental retardation facility, or
developmental disabilities facility with respect to which
funds have been paid under the provisions of this Act:

1.  Is sold or transferred to any
entity 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 facility as
defined in this Act, then the State may recover from either
the transferor or transferee or, in the case of a community
mental health center component, addiction facility, mental
retardation facility, or developmental disabilities facility
which has ceased to be a facility as defined in this Act,
from the owner, an amount bearing the same ratio to the then
current value (as determined by agreement of the State and