State grant funds for assisted living facilities may be used for the following: The conversion of public buildings or parts of buildings; The acquisition of existing buildings or parts of buildings; The renovation of assisted living facilities; The purchase of initial capital equipment; or The plan, design, and construction of an assisted living facility. State grant funds may be used to acquire an existing building or part of a building or to plan, design, and construct an assisted living facility only 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 proposed assisted living facility is to be located.