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Ch. 570
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1824
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LAWS OF MARYLAND
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(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, surveys, 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 such transferor, transferee, or
owner, or by action brought in a court of competent jurisdiction)
of so much of the property as constituted an approved project as
the amount of the State participation bore to the total eligible
cost of the approved project. A notice of this right of recovery
shall be recorded in the land records of the political
subdivision in which the property is located prior to the payment
of any State funds under the provisions of this Act. The
recording of the notice shall not create any lien against the
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