Site Acquisition Only. If an applicant proposes to acquire a land site on which to construct a facility, the cost of the land is not eligible for State participation. Site with Improvements—State Funds Only. Subject to §B(2) of this regulation, if an applicant proposes to acquire a site with existing improvements and will not be using any federal funds for site acquisition or renovation, total project costs, including costs applicable to the acquisition of the site and existing improvements, are eligible for State participation. At least two State-approved appraisers shall determine the value of the site and existing improvements, and State participation shall be limited to the lesser of: The average of the approved appraisals; or The actual acquisition cost. Site with Improvements—State and Federal Funds. If an applicant proposes to acquire a site with existing improvements and will be using both State and federal funds for site acquisition and renovation, at least two State-approved appraisers shall determine the portion of the total cost that is applicable to the land site alone. That portion shall be excluded from State participation.