following shall be excluded from the eligible development cost:

(1) Any cost for movable equipment incurred before the date of receipt by either the Office of Education or a State commission of an application covering the project; and

(2) Any cost incurred under a construction contract or a contract for the purchase and installation of built-in equipment which did not, when let, meet the requirements set forth in sections 170.2 and 170.3.

(c) For a project for which an application is filed for the first time (under any title of the Act) on or after July 1, 1966, the following shall be excluded from the eligible development cost:

(1) Any cost for movable equipment incurred before the date of receipt by either the Office of Education or a State commission of an application covering the project; and

(2) Any cost incurred under a construction contract or a contract for the purchase and installation of built-in equipment which was entered into before the date of concurrence by the Commissioner in the award of such contract. While such concurrence normally will be given only after a grant or loan for a project has been approved, circumstances occasionally may warrant the beginning of construction in advance of grant or loan approval in order to meet scheduled needs for expansion of enrollment capacity. In any such case, where an application for a project has been filed and the applicant can justify the necessity of beginning construction in advance of the award of the grant or approval of the loan, the Commissioner may, after an appropriate review of the bidding documents, authorize bidding and concur in the award of the contract. However, such concurrence shall in no way provide any advantage for the project in priority determinations by a State commission under Title I and shall in no way commit the Commissioner subsequently to approve a grant or loan under any Title for any such application. Subpart B-Grants for Construction of Academic Facilities

§ 170.11 Institutional eligibility

for

grants under section 103 of the Act. To qualify for a grant from funds allotted pursuant to section 103 of the Act, an institution or a branch campus of an institution shall meet the requirements

specified in sections 401(f) and 401(g) of the Act.

(a) An institution which is not accredited by a nationally recognized accrediting agency or association listed pursuant to section 401 (f) of the Act may qualify, alternatively, by obtaining a certification from the Commissioner (dated no earlier than two years prior to the date of filing of the application for a grant) that the institution meets requirements set forth in subsection 401 (f) (5) of the Act.

(b) An institution or a branch campus of an institution shall be determined to be organized and administered principally to provide a 2-year program as specified in section 401(g) of the Act, if:

(1) More than 50 percent of the fulltime equivalent student enrollment at the institution or branch campus is in 2-year programs of the types specified in section 401 (g) of the Act; and

(2) The application for a grant pursuant to section 103 of the Act contains a statement that the institution or branch campus is organized and administered principally to provide such programs, and such statement is supported by information available to or obtained by the State commission.

§ 170.12 Institutional eligibility for grants under section 104 of the Act.

To qualify for a grant from funds allotted pursuant to section 104 of the Act, an institution shall meet requirements specified in section 401 (f) of the Act. An institution which is not accredited by a nationally recognized accrediting agency or association listed pursuant to section 401 (f) of the Act may qualify, alternatively, by obtaining a certification from the Commissioner (dated no earlier than 2 years prior to the date of filing of the application for a grant) that the institution meets requirements set forth in subsection 401(f) (5) of the Act.

§ 170.13

Conditions for grant approval.

(a) An application for a grant under Title I of the Act shall be approved only if: (1) The Commissioner is satisfied, on the basis of information submitted with the application, that (i) the facilities included in the Title I project are intended for use predominantly in undergraduate instruction and/or extension and continuing education programs; and that (ii) the requirements of section 106 of the Act will be met; and (2) the application meets all requirements of

: section 108(b) of the Act; and (3) the application contains or is supported by: (i) Satisfactory assurances that the applicant has the necessary legal authority to finance, construct, and maintain the proposed facilities, and to apply for and receive the proposed grant; and (ii) satisfactory evidence that the applicant has or will have a fee simple or such other estate or interest in the facilities and site, including access thereto, sufficient in the opinion of the Commissioner to assure undisturbed use and possession for the purpose of the construction and operation of the facilities for not less than 75 years from the date of the application.

(b) In determining whether a project, either alone or together with other construction to be undertaken within a reasonable time, will result in an urgently needed substantial expansion or creation of student enrollment capacity or capacity to carry out on-campus extension and : continuing education programs, consideration will be given to statewide and institutional planning data, projected undergraduate enrollment increases and increases in on-campus extension and continuing education programs, any serious deficiencies in the quality of existing undergraduate instruction programs because of inadequacies in existing academic facilities, and the contribution of the project in providing for new or increased enrollments or remedying existing deficiencies.

§ 170.14

Submission and processing of Title I applications.

(a) Closing dates for filing of applications. Closing dates by which applications may be filed with and accepted by the State commission shall be established in the State plan. For each category of applications (1.e., applications for public community colleges and public technical institutes; and applications for institutions of higher education other than public community colleges and public technical institutes) the State plan shall provide at least two closing dates for any Federal fiscal year, and all such closing dates shall be between July 31 and February 15. Each State plan may provide for apportionment of the State allotments under section 103 and section 104 of the Act, so that specified portions of either or both allotments become available for grants as of specified closing dates, but such apportionment shall not be required, and in the absence of

such a provision in the State plan, the total of each allotment shall be available as of the first applicable closing date in each Federal fiscal year.

(b) Submission of project applications. Applications for grants under Title I of the Act shall be submitted on forms supplied by the Commissioner, and shall contain such assurances as are required pursuant to the Act and the regulations in this part. Applications shall be submitted directly to the appropriate State commission, together with any supplemental information which may be required by the State commission. The State commission shall accept all applications for grants under Title I for institutions of higher education in the State, provided such applications are submitted on forms provided by the Commissioner, and shall officially record the date of receipt of each application by the State commission.

(c) Verification of application data and institutional and project eligibility. Before determining the relative priority or Federal share for any application for grant assistance under Title I of the Act, the State commission shall satisfy itself that the data contained in the application appear to be valid, and that the institution and the project appear to meet basic eligibility requirements set forth in the Act and the regulations governing the administration of the Act. In any case where in the opinion of the State commission a question may be raised as to the eligibility of an institution or of a project, the State commission shall promptly forward a copy of the application to the Office of Education for a clarification of such eligibility. In any such case, the State commission shall continue to process and rank such application as if it were eligible, but shall delay final action on all applications under the same category considered as of the same closing date until receipt of notification by the Office of Education of the disposition of the eligibility question.

(d) Determination of relative priorities and Federal shares. All eligible applications received by each specified closing date shall be considered by the State commission together with others of the same category (i.e., applications for public community colleges and public technical institutes for funds allotted under section 103 of the Act; and applications for all other institutions of higher

education for funds allotted under section 104 of the Act) and assigned relative priorities and recommended Federal shares in accordance with the provisions of the State plan.

(e) Procedures where funds are insuficient to provide full Federal shares for all eligible projects. (1) In any case where the funds available in a State allotment for projects considered as of a particular closing date are insufficient to cover all eligible applications, the State commission shall nevertheless determine the full Federal share, calculated according to the State plan, for all projects in their order of relative priority, until the remaining available funds are insufficient to provide the full Federal share as calculated for the next project in order of priority.

(2) If the State plan provides for apportionment of the State allotment among closing dates, the State plan may provide also that sufficient funds will be made available immediately, from such funds as were apportioned to later closing dates in the same fiscal year, so that the full Federal share as initially calculated will be available for the first project for which only a part of the Federal share would otherwise have been available. any case where the State allotment is apportioned among closing dates and no such provision is included in the State plan, all projects for which the full Federal share, as calculated, cannot be provided for by the available funds shall be carried over to any subsequent closing dates in the same fiscal year.

In

(3) If the State allotment is not apportioned among closing dates, or in the case of the last closing date in the fiscal year, the amount of the remaining funds shall be offered as a partial Federal share for the first project in order of relative priority for which less than the full Federal share as calculated is available. The offer and acceptance of such a lesser Federal share shall in no way be deemed to diminish the scope of the project. An applicant which agrees to accept such a partial Federal share shall in all cases have the option to submit a supplemental application as provided in paragraph (1) of this section. If the applicant offered such a partial Federal share declines to accept it, the remaining funds and the application for which the partial Federal share was declined shall be carried over to the next closing date, if any, in the same fiscal year.

(f) Recommendation by State commissions. Promptly upon completing its consideration of applications as of each closing date, and no later than March 31 of each Federal fiscal year, each State commission will forward to the Commissioner: (1) A current project report. on forms supplied by the Commissioner, for the pertinent category of applications, listing each application received or carried over from the previous closing date, each application returned to the applicant and the reason for return of such application, each application considered as of the closing date, and the priority and Federal share determined according to the State plan for each project considered; (2) the application form and exhibits in the number of copies requested by the Commissioner, for each project assigned a priority high enough to qualify for a Federal grant within the amount of funds available in the allotment for the State; and (3) copies of correspondence documenting the offering and either acceptance or rejection of partial Federal shares pursuant to paragraph (e) of this section.

(g) Notification to applicants. The State commission shall promptly notify each applicant of the results of all determinations regarding its application as of each closing date, and any applicant shall, upon request in accordance with such orderly procedures as are established by the State commission, be furnished access to the records of official State commission proceedings on the basis of which relative priorities and Federal shares of all applications were determined.

(h) Disposition of applications which are not recommended for grants. Applications which are not recommended for a grant within the fiscal year in which they are filed, shall be retained by the State commission until notified that there are no longer any funds available in the State allotments for the fiscal year. New applications shall be filed each fiscal year for any project which does not receive a recommendation for a grant and which the applicant desires to have reconsidered in a subsequent year. In addition, whenever any application is carried over from one closing date to the next within a fiscal year, and the fall term opened between such closing dates, those portions of the application containing data as of the most recent opening fall term shall be revised to show the most recent data on enrollments and

available instructional and library facilities. Any applications which are still on file with State commissions after the completion of approvals for fiscal year 1966 shall be refiled on new application forms to be supplied by the Commissioner, if the applicant desires to have such applications considered by the State commission during fiscal year 1967.

(i) Grant award. For a Title I project application which meets all eligibility requirements the Commissioner will approve the application and reserve Federal funds from the appropriate State allotment and will prepare and send to the applicant a grant award, which sets forth the pertinent terms and conditions of the grant.

(j) Amendment of project applications. Any time prior to a closing date for which an application is to be considered, the applicant may make changes in the application by written notification to the State commission. After any such closing date, no changes in applications shall be permitted, except corrections or submission of additional data as requested by the State commission.

(k) Project changes. After a project has been forwarded to the Commissioner by the State commission, no substantial changes in the nature or scope of the project shall be approved by the Commissioner without first verifying that such changes would not have affected the State commission's original recommendation of the project for a grant.

(1) Supplemental applications. Any time after an application has been forwarded to the Commissioner by the State commission with a recommendation for a Federal grant, an applicant desiring to apply: (1) For an increase in the amount of the Federal share on the basis of an increase in development cost; and/or (2) for the balance of the original eligible grant amount when a partial Federal share was recommended pursuant to paragraph (e) of this section, shall submit a supplemental application on forms supplied by the Commissioner together with any additional information which may be required by the State commission. Supplemental applications shall be considered for the assignment of relative priority together with all other applications eligible for consideration as of the next applicable closing date. Supplemental applications which are assigned sufficiently high priorities to be recommended for additional grant funds shall, unless otherwise provided in the

applicable State plan, be recommended for the balance of the Federal share for which the project would have qualified pursuant to Federal share criteria in effect for the closing date for which the project originally was recommended, or for the balance of the Federal share calculated according to State plan provisions in effect as of the current closing date, whichever is the lesser. In no event shall a supplemental application be considered by a State commission or approved by the Commissioner after final settlement has been made on the completed project.

§ 170.15 Criteria for standards and methods to determine relative priorities of eligible projects.

(a) The State plan shall set forth separately the standards and methods for determining the relative priorities of eligible projects for the construction of academic facilities (1) for public community colleges and public technical institutes and (2) for institutions of higher education other than public community colleges and public technical institutes. The standards and methods set forth for each of the two categories of eligible projects shall provide separately for new institutions or new branch campuses and for established institutions or campuses. Unless otherwise defined in the State plan, a new institution or branch campus (as distinguished from an established institution or branch campus) shall be one which was not in operation and admitting students as of the fourth fall term preceding the date of application for assistance under Title I.

(b) The standards for determining relative priorities for established institutions or branch campuses shall include each of the following, each of which shall be assigned at least the indicated percentage of the total weight assigned to all standards for established institutions or branch campuses:

(1) One or more standards dealing with the planned for and reasonably expected numerical and/or percentage increase in full-time equivalent undergraduate student enrollment at the campus at which the facilities are to be constructed, between the opening of the fall term which opened preceding the closing date for which the application is being considered and the opening of either the third, fourth, or fifth term thereafter (at least 20 percent of total weight, with

priority advantage given to higher numerical and/or percentage increases).

(2) One or more standards dealing with the amount and/or percentage by which the construction of the project for which a Title I grant is requested will increase the square feet of assignable area in instructional and library facilities at the campus at which the facilities are to be constructed (at least 10 percent of total weight, with priority advantage given to higher numerical and/or percentage increases).

(3) One or more standards designed to favor projects for institutions or branch campuses which are most effectively utilizing their existing academic facilities (at least 10 percent of total weight).

(c) The standards for determining relative priorities for new institutions or branch campuses shall include each of the following, each of which shall be assigned at least the indicated percentage of the total weight assigned to all standards for new institutions or branch campuses:

(1) A standard dealing with the planned for and reasonably expected numerical increase in full-time equivalent undergraduate student enrollment at the campus at which the facilities are to be constructed, between the opening of the fall term which opened preceding the closing date for which the application is being considered and the opening of either the third, fourth, or fifth fall term thereafter (at least 30 percent of total weight, with priority advantage given to higher numerical increases).

(2) A standard dealing with the amount by which the construction of the project for which a Title I grant is requested will increase the square feet of assignable area in instructional and library facilities at the campus at which the facilities are to be constructed (at least 10 percent of total weight, with priority advantage given to higher numerical increases).

(d) The State plan may include additional standards for determining relative priorities which are not inconsistent with the standards set forth in paragraphs (b) and (c) of this section and which will carry out the purposes of the Act.

(e) The methods for application of the standards for determining relative priorities shall provide for the assignment of point scores for each standard applied,

such that the potential total score for each project will be the same whether the project is for a new institution or branch campus or for an established institution or branch campus. The assignment of points for each standard may be by any one of the following methods or by similar objective methods, a different one of which may be used in connection with each standard:

(1) Applications may be ranked according to relative performance for the standard, and assigned a point score for relative rank (e.g., 10 points for placement in the highest 10 percent, 9 points for placement in the second highest 10 percent, 8 points for placement in the third highest 10 percent, etc.).

(2) Applications may be compared to a scoring table for the standard, and assigned points accordingly (e.g., for numerical increase in full-time equivalent undergraduate enrollment, a scoring table might provide for 10 points for an increase of 1,000 or more, 8 points for an increase of 800-999, 6 points for an increase of 600-799, etc.).

(3) Applications may be compared to a fixed requirement for the standard, and assigned points if they meet the requirement or denied points if they do not. This type of scoring should be used where comparison against the standard involves a "yes"-"no" decision (e.g., Is the proposed project located in a geographic area of the State in which an unfilled need for creation or expansion of undergraduate enrollment capacity has been documented in a statewide study? If "yes," award 5 points, if "no," award 0 points).

(f) The methods for application of the standards shall provide for determination of relative priorities on the basis of the total of the points earned by each application for each applicable standard and shall specify factors to be applied in determining which application shall receive the higher priority in the case of identical scores.

(g) The standards and methods for determining relative priorities must be developed on the basis of information which is to be submitted on the application form prescribed by the Commissioner, or required by the State commission to be submitted on supplemental State forms to accompany the application, or contained in published reports or publications readily available to the