§ 1942.510 - Restrictions.

(a) Grant funds may not be used to:

(1) Section 306A—Assist any city or town with a population in excess of 15,000 inhabitants according to the most recent decennial census of the United States.

(2) Section 306B—Assist any city or town with a population in excess of 5,000 inhabitants according to the most recent decennial census of the United States.

(3) Assist a rural area that has a median household income in excess of the statewide nonmetropolitan median household income according to the most recent decennial census of the United States.

(4) Finance facilities which are not modest in size, design, cost, and are not directly related to correcting the potable water quantity or quality problem.

(5) Pay loan or grant finder's fees.

(6) Pay any annual recurring costs that are considered to be operational expenses.

(7) Pay rental for the use of equipment or machinery owned by the rural community.

(8) Purchase existing systems.

(9) Refinance existing indebtness, except for short-term debt incurred in accordance with § 1942.509 (h) of this subpart.

(10) Make reimbursement for projects developed with other grant funds.

(11) Finance facilities that are not for public use.

(b) Nothing in paragraphs (a)(1) or (a)(2) of this section shall preclude rural areas from submitting joint proposals for assistance under this subpart. Each entity applying for financial assistance under this subpart to fund their share of a joint project will be considered individually.