To be eligible to apply for State grant funds under the Act, an applicant shall: Be a county, municipal corporation, or a nonprofit organization; Have a proposed project that is in accord with the priorities of the Secretary; Be licensed by the Department; Be eligible for certification under, and agree to participate in, Title XVIII and Title XIX of the Social Security Act; Certify that the proposed facility will meet the accessibility requirements of 42 U.S.C. 12101 et seq., or provide a certified waiver from the Department of Housing and Community Development; Not have had any of the following deficiencies cited in any survey conducted by the Department's Office of Health Care Quality during the calendar year preceding the grant application year, using the scope and severity matrix found in the Centers for Medicare and Medicaid Services State Operations Manual for Survey and Certification, Part 7, §7400E: Two or more “G” level deficiencies; or One or more “H” or higher-level deficiencies; and Be approved by the Secretary to receive a grant award. A provider operating a facility with any of the deficiencies described in §A(6) of this regulation may be eligible to apply for a grant if the facility has undergone a change in ownership as a result of an arm's length transaction as determined by the Department, since the latest survey that resulted in the deficiencies.