§ 1942.359 - Use of grant funds.

Funds may be used only for the following purposes:

(a) To construct, enlarge, extend, or otherwise improve community water, sanitary sewage, solid waste disposal, and storm wastewater disposal facilities.

(b) To construct or relocate public buildings, roads, bridges, fences, utilities, and to make such other public improvements necessary to the successful operation or protection of facilities authorized in paragraph (a) of this section.

(c) To relocate private buildings, roads, bridges, fences, utilities, and to make such other private improvements necessary for the successful operation or protection of facilities authorized in paragraph (a) of this section.

(d) When a necessary part of the project relates to those facilities in paragraphs (a), (b), and (c) of this section, the following costs may be considered:

(1) Reasonable fees and costs, such as legal, engineering, architectural, fiscal advisory, recording, environmental impact analyses, archaeological surveys, possible salvage or other mitigation measures, planning, and establishing or acquiring rights.

(2) Costs of acquired interest in land, rights such as water rights, leases, permits, rights-of-way, and other evidence of land or water control which are necessary for development of the facility.

(3) Purchase or rent equipment necessary to install, maintain, extend, protect, operate or utilize facilities (subject to limitations contained in § 1942.361(a) of this subpart).

(4) Payment of tap fees and other utility connection charges as provided in utility purchase contracts prepared in accordance with § 1942.18(f) of subpart A of part 1942 of this chapter.

(e) To use FmHA or its successor agency under Public Law 103-354 grant funds on projects when the applicant's share of the project cost will be available prior to the start of construction. When all or a portion of the funds will come from other agencies, the maximum percentages allowed under other agencies’ authorities will apply to their participation in the project. However, the FmHA or its successor agency under Public Law 103-354 grant may not exceed applicable percentages in § 1942.361(b) of this subpart. The need for FmHA or its successor agency under Public Law 103-354 grant funds must meet the requirements of § 1942.364 of this subpart after considering all project financing.

(f) To restore FmHA or its successor agency under Public Law 103-354 loan funds used in accordance with § 1942.17(d)(1)(iv)(G) of subpart A of part 1942 of this chapter.