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<regulation prefix="Regulation" num=".07" citation="COMAR 14.39.02.07" title_num="14" subtitle_num="39" chapter_num="02" heading="Maximum State Construction Allocation.">
  <paragraph num="A.">
    <text>The maximum State construction allocation is the maximum amount the State may fund of eligible costs for each public school construction project.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The maximum State construction allocation for each approved public school construction project is set in the State capital improvement program.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The maximum State construction allocation is set at the first year of construction funding approval.</text>
  </paragraph>
  <paragraph num="D.">
    <text>The actual funding is based on the costs of approved contracts and may be less than the maximum State construction allocation.</text>
  </paragraph>
  <paragraph num="E.">
    <text>Gross Area Baselines.</text>
    <paragraph num="(1)">
      <text>The gross area baseline is the product of the approved student enrollment and the baseline gross square footage per student, and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The approved student enrollment may be reduced only if the sum of available seat count in all adjacent schools is 15 percent or more of the project school’s enrollment.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The baseline gross square footage per student is set by the IAC and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Gross Area Baseline Concentration of Poverty Add-On. School projects with a concentration of poverty level above 55 percent are eligible for a concentration of poverty square footage add-on, upon submission of a concentration of poverty square footage usage plan, based upon the following:</text>
      <paragraph num="(a)">
        <text>School projects with an eligible enrollment of fewer than 600 students are eligible for a concentration of poverty add-on of up to 1,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 1,500 square feet.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>School projects with an eligible enrollment between 600 and 900 students are eligible for a concentration of poverty add-on of up to 1,500 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,000 square feet.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>School projects with an eligible enrollment of more than 900 students are eligible for a concentration of poverty add-on of up to 2,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,500 square feet.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Gross Area Baseline English Learner Add-On. School projects with an English learner population above 10 percent are eligible for an English learner square footage add-on, based upon the following:</text>
      <paragraph num="(a)">
        <text>School projects with an eligible enrollment of fewer than 600 students are eligible for an English learner add-on of 500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 1,500 square feet.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>School projects with an eligible enrollment between 600 and 900 students are eligible for an English learner add-on of 1,000 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,000 square feet.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>School projects with an eligible enrollment of more than 900 students are eligible for an English learner add-on of 1,500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,500 square feet.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>Gross Area Baseline Career and Technology Education Add-On. School projects approved for Career and Technology Education programs are eligible for a Career and Technology Education square footage add-on based upon the program size. Program sizes shall be regularly reviewed and updated by the IAC and published to the IAC website. Square footage allocations for program sizes are as follows:</text>
      <paragraph num="(a)">
        <text>Extra small Career and Technology Education programs receive an add-on of 500 gross square feet.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Small Career and Technology Education programs receive an add-on of 1,000 gross square feet.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Medium Career and Technology Education programs receive an add-on of 3,000 gross square feet.</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Large Career and Technology Education programs receive an add-on of 4,000 gross square feet.</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Extra large Career and Technology Education programs receive an add-on of 6,000 gross square feet.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>The average Statewide per-square-foot school building cost that applies to each annual capital improvement program:</text>
    <paragraph num="(1)">
      <text>Is established by July of the calendar year in which applications are submitted;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Is based on:</text>
      <paragraph num="(a)">
        <text>Bids received for new school construction in the prior year; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Cost information derived from industry sources;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>May be adjusted by the IAC to reflect market conditions before submission of the final State capital improvement program; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Projects that qualify for the Net-zero State Cost Share add-on pursuant to COMAR 14.39.02.06E(4) for which the applicant project receives a State cost share of 96 percent or greater in accordance with COMAR 14.39.02.06F and including the State Cost Share add-ons pursuant to COMAR 14.39.02.06E(1)—(3), may be eligible for an increase to the cost-per-square-foot described in this regulation equal to the value of a 5 percentage point increase in the State Cost Share for the project minus the value of the difference between 100 percent and the applicant project State cost share including add-ons pursuant to COMAR 14.39.02.06E(1)—(3).</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>New Construction. The maximum State construction allocation for new construction is calculated according to either:</text>
    <paragraph num="(1)">
      <text>The following formula:</text>
      <paragraph num="(a)">
        <text>Multiply the lesser of the gross area baseline or the actual project gross area by the average Statewide per square foot school building cost, which is based on bids received for new school construction in the prior year and cost information derived from industry sources;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Next, add site development costs, figured as a percentage of the building cost set forth in §F(1)(a) of this regulation;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Finally, multiply by the State cost share percentage; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §G(1) of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Renewal.</text>
    <paragraph num="(1)">
      <text>The maximum State construction allocation for projects proposed to renew buildings or portions of buildings, 16 years or older, is calculated according to either:</text>
      <paragraph num="(a)">
        <text>The following formula:</text>
        <paragraph num="(i)">
          <text>Beginning with the oldest portion of the building, and using the gross area baseline as the upper limit, determine the eligible square footage of the renewal categorized according to the age group of the building portion containing the renewal;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Multiply the eligible square footage for each age group by the average Statewide per square-foot building cost, and then multiply each product by the percentage in §H(1)(a)(iii) of this regulation;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Age of building portion containing the renewal as measured from January 1 following the IAC December 31 submission of the preliminary State capital improvement program: 40 years or older—100 percent;31 to 39 years—85 percent; 26 to 30 years—75 percent; 21 to 25 years—65 percent; 16 to 20 years—50 percent; and 0 to 15 years—0 percent.</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Add the products calculated in §H(1)(a)(ii) of this regulation;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Next, add site development costs, figured as a percentage of total building costs set forth in §H(1)(a)(iv) of this regulation; and</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>Finally, multiply by the State cost share percentage; or</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §H(1)(a) of this regulation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Adjustments to the Maximum State Construction Allocation for Renovation Projects. The IAC may:</text>
      <paragraph num="(a)">
        <text>Subtract funding from the maximum State construction allocation that the State has approved for other projects less than 16 years old at that school; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Adjust the maximum State construction allocation for renovation of a building that exceeds the gross area baseline.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The State may not further participate in funding projects in the school within 15 years after the project is placed in service.</text>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>Renovation.</text>
    <paragraph num="(1)">
      <text>The estimated cost of construction of a renovation may not exceed the estimated cost of construction for a renewal.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The maximum State construction allocation for a renovation is calculated by multiplying the estimated costs of construction, including site work, by the State cost share percentage.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>At the time of contract award, the actual funding is based on the costs of items eligible for State participation, up to the maximum State construction allocation.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Adjustments to Maximum State Construction Allocation for a Renovation.</text>
      <paragraph num="(a)">
        <text>The IAC may subtract from the maximum State construction allocation funding approved for other projects not older than 15 years old at that school.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>If projects in the school have been funded within the previous 15 years, the LEA shall provide documentation to identify all previously funded scopes of work that may be replaced or upgraded in the renovation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>For a renovation, the new average year of completed construction of the building or portion of the building is determined by the average year of completed construction of the original building, plus the year of completed construction of the renovation, divided by 2.</text>
    </paragraph>
    <paragraph num="(6)">
      <text>The State may further participate in funding projects in the school within 15 years after the project is placed in service.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>Addition. When a project involves an addition only, the IAC at its discretion may calculate the maximum State construction allocation according to either:</text>
    <paragraph num="(1)">
      <text>The following formula:</text>
      <paragraph num="(a)">
        <text>Subtract the existing square footage from the gross area baseline; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Then use the lesser of that amount or the actual area of the addition when calculating the maximum State construction allocation according to §E of this regulation; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The estimated or actual cost of construction multiplied by the State cost share percentage.</text>
    </paragraph>
  </paragraph>
  <paragraph num="K.">
    <text>Addition in Conjunction with Renewal or Renovation. When an addition involves both an addition and a renovation or a renewal, the maximum State construction allocation is established by adding the renewal or renovation maximum State construction allocation calculated according to §G or H of this regulation and the addition (new construction) maximum State construction allocation calculated according to §J of this regulation.</text>
  </paragraph>
  <paragraph num="L.">
    <text>Replacement.</text>
    <paragraph num="(1)">
      <text>An LEA that proposes to abandon a facility or demolish more than 50 percent of the gross square footage of a facility shall submit a feasibility study to the reasonable satisfaction of the IAC.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Based on the review of the feasibility study, the IAC may set the maximum State construction allocation for a replacement school based on the cost of renovating an existing school according to §H of this regulation, or the cost of building a new school according to §G of this regulation.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>If the State approves renovating or renewing an existing school and the LEA builds a replacement school, the IAC may reduce the maximum State construction allocation for that project by 15 percent.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The IAC or its designee may waive the requirement for a feasibility study on submission of supporting documentation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="M.">
    <text>Forward-Funded Project. If the maximum State construction allocation for a forward-funded project is calculated according to the formulas in §G, H, or I of this regulation, the following factors shall be applied:</text>
    <paragraph num="(1)">
      <text>Gross area baseline that applied on the bid-opening date, using the 7-year enrollment projections applied as follows:</text>
      <paragraph num="(a)">
        <text>If the bid opening was between October 1 and March 31, the prior September 30 enrollment is used as the approved student enrollment; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>If the bid opening was between April 1 and September 30, the September 30 enrollment at the end of that time frame is used as the approved student enrollment;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Average square foot school building cost published by the IAC or its designee for the July that falls within the calendar year of the bid-opening date;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>State cost share percentage that applied on the bid-opening date; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>For a renovation project, the amount of the awarded scope of work, not to exceed the maximum State construction allocation as developed in §H(1)(a) of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="N.">
    <text>Cooperative Use Space.</text>
    <paragraph num="(1)">
      <text>The maximum State construction allocation for an approved project may include the State's share of eligible costs to construct or renovate up to 3,000 gross square feet of co-located or shared space to support LEA or community initiatives to serve school children and the general community.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>This cooperative use space is in addition to the size of typical school-function areas provided by the LEA.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>There shall be a written agreement between the county board and the space occupant that establishes the term and conditions.</text>
    </paragraph>
  </paragraph>
</regulation>