The provisions of these regulations apply to applicants for grants under the Act. Use of Federal Grants. Federal grant funds available for a project shall be applied first to the cost of construction, acquisition, renovation, and initial capital equipment of the facility, before a State grant is expended. Community Development Block Grants. Community development block grants are considered as local matching funds and are not considered as federal grant funds. 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; and 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 §F of this regulation. Poverty Funding. An applicant is eligible for poverty funding for a facility, if the majority of individuals served by the facility: Are certified by a local department of social services as eligible for Family Investment Program (FIP) 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 §F(1) of this regulation, and may recommend those costs to the Board of Public Works for inclusion in the grant award. Matching Funds. The 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, acquisition, 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 Act.