The allocation and use of State funds under this subtitle are subject to the following terms and conditions. If the local government and the Department certify to the Board of Public Works that a surplus public building appropriate for use as an assisted living facility does not exist in the area in which the facility is to be located, State funds may be used to: Acquire an existing building or part of a building for use as an assisted living facility; or Plan, design, and construct an assisted living facility. Any federal or other grant that is received for an eligible project shall be applied first to the cost of the project. Except as provided in subsections (e) and (f) of this section, a State grant may not exceed 50% of the cost of eligible work remaining unpaid after all federal and other grants have been applied. At the discretion of the Board of Public Works, a State grant may exceed 50% of the cost of eligible work remaining unpaid after all federal and other grants have been applied, if: The project involves the conversion of a public building or part of a building to an assisted living facility, the renovation of an assisted living facility, or the planning, design, and construction of an assisted living facility; The value of real property and improvements made available by the local government, or the value of the center to be renovated, equals or exceeds the amount of the State grant; State funds have not been used for the acquisition, construction, or maintenance of any real property and improvements made available by the local government or any building to be converted or renovated; and The State is not responsible for any bonded indebtedness in connection with any real property and improvements made available by the local government or any building to be converted or renovated. For a project designated as eligible for poverty area funding under federal regulations, State plans, or departmental regulations, a State grant may cover up to 75% of the cost of eligible work remaining unpaid after all federal and other grants have been applied. The amount of the State grant for any project shall be determined after consideration of: All eligible applications; The total of unallocated State funds available at the time the application is received; and The priorities of area need established by the Department. No portion of the proceeds of a State grant may be used: To further sectarian religious instruction; In connection with the design, acquisition, or construction of any building to be used as a place of sectarian religious worship or instruction; or In connection with any program or department of divinity for any religious denomination. On the request of the Board of Public Works, the applicant shall submit evidence satisfactory to the Board that the proceeds of the grant are not being used for a purpose prohibited under this subsection.