The provisions of these regulations apply to applicants for grants under the Loan Act of 1990 and subsequent similar Loan Acts. Use of Federal Grants. Federal grants available for a project shall be applied first to the cost of construction, expansion, renovation, and equipping of an eligible nursing home, before a State grant is expended. Limits on State Grant. For a project without federal participation, a State grant may not be more than: 50 percent of eligible costs, unless the project is approved for poverty funding; or 75 percent of eligible costs, if a project is approved for poverty funding. For a project with federal participation, a State grant may not be more than: 50 percent of the eligible costs remaining after the federal grant has been applied, unless the project is approved for poverty funding; or 75 percent of the eligible costs remaining after the federal grant has been applied, if a project is approved for poverty funding. An applicant may not be eligible for retroactive participation in the cost of acquisition, construction, renovation, or purchase of equipment. The grant shall include only those expenditures incurred or contracted for after the grant award is approved by the Board of Public Works, except as provided in §E of this regulation. Poverty Funding. An applicant is eligible for poverty funding for a nursing home, if the majority of individuals served by the nursing home: Are certified by a local department of social services as eligible for the Disability Assistance and Loan Program (DALP) or Medical Assistance; Are eligible for Supplemental Security Income benefits; or Have income levels which do not exceed 150 percent of the federal poverty level. Application Costs. An applicant shall pay the costs necessary to file the application, such as the costs for appraisals, architects' fees, surveys, and test borings. If the project is recommended for funding by the Department, the Department shall review the costs expended under §E(1) of this regulation, and may recommend those costs to the Board of Public Works for inclusion in the grant award. Matching Funds. An applicant shall provide from other sources matching funds equal to the total eligible cost of the project less the State grant award. An applicant may not expend matching funds before the State grant award, unless the Board of Public Works approves otherwise. The Department may not consider real or personal property, in-kind contributions, or funds expended before the date a grant award is approved by the Board of Public Works as matching funds. Prohibition Against Use of Funds for Religious Purposes. A grantee may not use any portion of the proceeds of a State grant: For the furtherance of sectarian religious instruction; or In connection with the design or construction of any building used or 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. Upon the request of the Board of Public Works, the grantee shall submit evidence satisfactory to the Board that none of the proceeds of the grant has been or is being used for a purpose prohibited by the Loan Act.