In this chapter, the following terms have the meanings indicated. Terms Defined. “Acquisition” means purchasing and obtaining ownership of all or part of an existing building for use as an assisted living facility. “Act” means Health-General Article, §§24-1001—24-1007, Annotated Code of Maryland, which authorizes the disbursement of State grant funds for the purposes of conversion, acquisition, renovation, equipping, and construction of an assisted living facility. “Admission criteria” means criteria established by a facility for admitting individuals including limitations, if any, regarding age or level of functional medical impairment, or both. “Assisted living facility” means a residential facility or facility-based program that: Meets the definitions in Health-General Article, §19-1801, Annotated Code of Maryland; and Is licensed by the Department under COMAR 10.07.14. “Applicant” means a county, municipal corporation, or nonprofit organization that seeks to obtain State grant funds under the Act. “Board of Public Works” means the Board established by Article XII of the Constitution of Maryland, consisting of the Governor, the Treasurer, and the Comptroller of Maryland. “Building” means: All or part of an existing assisted living facility and its surrounding real property; All or part of an existing facility to be converted to assisted living and its surrounding real property; or A facility proposed to be constructed for use as an assisted living facility, and its surrounding real property. Construction. “Construction” means construction of new buildings or additions to existing buildings, including architects' fees and initial capital equipment. “Construction” does not include cost of: Demolition of improvements that return the land to unimproved condition; and Unimproved land acquisition and the cost of off-site infrastructure improvements, such as roads, water, and sewer. “Conversion” means the work required to transform a building or part of a building for effective use as an assisted living facility. “Default” means: Transfer of property to a person, agency, or organization that would not qualify as an applicant, or that is not approved as a transferee by the Board of Public Works; Failure to complete a project and obtain an occupancy permit; Failure to commence operation of a facility within 1 year after obtaining an occupancy permit; or Failure to qualify as a facility, as defined in §B(14) of this regulation. “Department” means the Maryland Department of Health. “Eligible person” means an individual who meets facility admission criteria. “Eligible work” means that work for which the use of State funds is authorized under the Act. “Facility” means an assisted living facility that is wholly owned by and operated under the authority of a: County or municipal corporation; or Nonprofit organization. “Grant” means any funds competitively awarded from any source to the applicant including a State grant. “Grantee” means a county, municipal corporation, or nonprofit organization for which State grant funds under the Act are approved by the Board of Public Works. “Initial capital equipment” means items that: With normal maintenance, have a life expectancy of at least 15 years; Have durable construction; and Are necessary to furnish a new facility. “Nonprofit assisted living facility” means an assisted living facility which is wholly owned by and operated under the authority of a nonprofit organization. “Nonprofit organization” means a bona fide religious organization, or a chartered nonprofit corporation which: Is classified under §501(c)3 of the Internal Revenue Code as a nonprofit; and Has no earnings which inure to the benefit of an individual or is used for any purpose other than the maintenance and operation of the facility, the purchase of equipment to be used in the facility, or the expansion of the facility. “Office of Capital Planning, Budgeting, and Engineering Services” means the office within the Department designated by the Secretary to administer this chapter. “Operating costs” means costs associated with the operation of an assisted living facility. “Project” means an existing or proposed assisted living facility which receives or has received a State grant for conversion, acquisition, renovation, equipping, or construction. “Public facility” means a facility that is wholly owned by and operated under the authority of a county or municipal corporation. “Renovation” means restoration or modernization, or both, to an existing or proposed assisted living facility. “Secretary” means the Secretary of Health, or a designated representative. “State grant” means State funds awarded under the Assisted Living Facilities Grant Program, unless the context clearly implies otherwise. “Wholly owned” includes leased property, if the lease agreement: Is for a minimum of 30 years following the project completion or extends the right of purchase to the lessee; and Includes a consent to the recording of a notice of the State's right of recovery, by the lessor, under Health-General Article, §24-1006, Annotated Code of Maryland, in the land records of the county or Baltimore City in which the facility is located.