institutional development except that costs for the implementation of such a plan are allowable only to the extent that they are incurred after that plan has been approved by the Commissioner. However, notwithstanding § 100a.82 of this chapter, indirect costs shall not be charged against the grant.

(b) The institution may not expend more than 10 percent of grant funds for the development or improvement of a planning, management, and evaluation capability.

(c) Purchase of equipment is allowed only if such equipment is necessary to achieve the program objectives. (20 U.S.C. 1054)

funds.

of idle

construction

170.65 Disposal of balance remaining in the

170.71

construction fund.

Subpart E-Annual Interest Grants for
Construction of Academic Facilities

Eligibility for annual interest grants. 170.72 Amount of annual interest grants. Submission of applications. Conditions for approval of annual interest grants.

170.73

170.74

170.75 Limits governing extent of Federal assistance.

170.76 Approval of financing plans. 170.77 Evidence of lowest possible cost of

loan.

170.78

170.79

170.80

Determination of costs eligible for Federal participation.

Annual interest grant agreement. Payment of annual interest grants. Reduction of grant where ref nancing produces lower cost.

170.81

170.82

Urgency of need for projects of public institutions.

Subpart B-Grants for Construction of Academic Facilities

170.11 Institutional eligibility for grants under section 702 of the Act.

170.12 Institutional eligibility for grants under section 703 of the Act.

170.13 Conditions for grant approval. 170.14 Submission and processing of Title VIIA applications.

170.15 Criteria for standards and methods to determine relative priorities of eligible projects.

170.16 Criteria for standards and methods to determine Federal shares of eligible projects.

Priority considerations; closing dates. Preceding provisions not exhaustive of authority of Government. AUTHORITY: Secs. 701-782, Pub. L. 89-329, Title VII, as amended, 86 Stat. 288-303 (20 U.S.C. 1132a-1132e), unless otherwise noted. SOURCE: 39 FR 26724, July 23, 1974, unless otherwise noted.

Subpart A-General Provisions

"Act" means Public Law 89-329, the Higher Education Act of 1965, as amended. Unless otherwise indicated, title references are to titles of the Act. All terms defined in the Act shall have the same meaning as given them in the Act. All references to sections are to sections of this part, unless otherwise indicated.

"Academic facilities," as defined in the Act, are further defined and subdivided into the following categories:

(1) "Instructional and library facilities" means all rooms or areas used

regularly for instruction of students, for faculty offices, or for library purposes, and service areas which adjoin and are used in connection with such rooms or areas.

(2) "Instruction-related facilities" means all rooms or areas other than instructional and library facilities which are used for purposes related to the instruction of students, research, or for the general administration of the educational or research programs of an institution of higher education and service areas which adjoin and are used in conjunction with such rooms or areas.

(3) "Health-care facilities," as authorized under Titles VII A and VII C, means infirmaries and all other rooms or areas designed to be used for medical examination or treatment of students and institutional personnel, and service areas which directly serve such rooms

or areas.

(4) "Related supporting facilities" means all other areas and facilities which are necessary for the utilization, operation, and maintenance of "instructional and library facilities," "instructionrelated facilities," or "health care facilities," as defined above. This term includes building service and circulation areas and central maintenance and utility facilities which serve more than one building, to the degree that such central facilities are designed and used to serve academic facilities of the aforementioned categories, rather than other, nonacademic facilities such as dormitories, chapels, stadiums, or facilities which are excluded by statute from the definition of eligible academic facilities because they are used by ineligible schools or departments.

(20 US.C. 1132e-1)

"Assignable area" means square feet of area in facilities which are designed and available for assignment to specific functional purposes (such as instruction, research, and administration, and including noneligible purposes such as student sleeping rooms, apartments, or chapel rooms). Areas used for general circulation within the building, for public washrooms, for building maintenance and custodial services, or in central maintenance and utility facilities which exist only to support the operation and utilization of other structures on the campus and which are not available for

assignment to other specific functional purposes, as illustrated above, shall be classified as nonassignable area. (20 U.S.C. 1132e-1 (1) and (2))

"Branch campus" means a separately organized unit of an institution of higher education which is located apart from the parent institution and which meets in its own right the definition of an institution of higher education as defined in the Act.

(20 U.S.C. 1141)

"Capacity/enrollment

ratio" means

the ratio of (1) the square feet of assignable area of instructional and library facilities as defined in paragraph (b) (1) of this section to (2) the total student clock-hour enrollment, at a particular campus of an institution. For purposes of this definition, "student clockhour enrollment" means the aggregate clock hours (sometimes called contact hours) per week in classes or supervised laboratory or shop work for which all resident students (i.e., students enrolled for credit courses on the campus) are enrolled as of a particular date. Where formally established independent study programs exist, systematically determined equivalents of class or laboratory hours may be included under "student clock-hour enrollment."

the procedures set out in 45 CFR Part 100a, Subpart I (Procurement standards).

(b) In order to assure the eligibility of costs under § 170.5, recipients must obtain the approval of costs to be incurred both before advertising for or soliciting bids and before awarding any construction contract covered under the Act. Such approval will be given only after Federal assistance has been approved for the facility by an appropriate Federal agency.

(20 U.S.C. 11328-6(a) (2) (F))

§ 170.4 Fiscal control and fund accounting procedures by State commissions. Each State plan shall contain specific information regarding fiscal control and fund accounting procedures as required by the Commissioner to insure proper disbursement of and accounting for Federal funds which may be paid to the State commission for expenses for the proper and efficient administration of the State plan.

(20 U.S.C. 1132a-3)

§ 170.5 Retention of records by State commissions.

State commissions shall establish a complete case file on each Title VII-A application received; inform applicants of official actions and determinations by letter or similar type of correspondence, and shall retain records regarding each case for at least 2 years after final action with respect to any such application. In addition, each State commission shall maintain a full record of all hearings on appeals pursuant to section 704(a) (5) of the Act, and all proceedings by which it establishes relative priorities and recommended Federal shares for eligible projects considered as of each specified closing date and shall retain such records for at least 3 years.

(20 U.S.C. 11328-3(a) (b))

§ 170.6 Determination of costs eligible for Federal participation.

(a) Determination of costs eligible for Federal participation will be based for each individual project, whether application is made under Title VII-A, VII-B, or VII-C of the Act, upon: (1) The date on which a given cost item was incurred or contracted for; (2) whether the cost is an allowable “development cost," as defined in section 782 (3) of the Act, and has been incurred in accordance with the re

quirements set forth in these regulations; (3) the portion of the proposed facility which is eligible under the type of assistance for which the application is submitted; and (4) the amount of any financial assistance under any other Federal program which the applicant has obtained or is assured of obtaining for the project.

(b) For a project for which an application is filed for the first time under any program of the Act on or after July 1, 1972, the following shall be excluded from the eligible development cost:

(1) Any cost for the acquisition of land which was incurred more than 2 years prior to the date an application is filed;

(2) Any cost for the acquisition of an existing structure incurred more than 1 year prior to the date an application is filed;

(3) Any cost for initial equipment incurred before the date an application is filed; or

(4) Any cost for construction (including new construction, remodeling, rehabilitation, or conversion) or for built-in equipment where the contract has been entered into prior to the date an application is filed and prior to the concurrence of the Commissioner in the award of the contract.

(20 U.S.C. 1132e-1 (3) and (4))

(c) With respect to applications for annual interest grants submitted under Subpart E of this part, where the construction contract or contract for the purchase or installation of built-in equipment was entered into on or before July 1, 1966, an exception to the provisions set forth in paragraph (b) of this section may be made by the Commissioner in unusual cases where he finds that the applicant is financially hard pressed and has secured only short-term (not in excess of 5 years) financing of the academic facilities with respect to which the annual interest grant is requested, which short-term financing must be replaced in order to reduce the financial hardships, and where such academic facilities provide significant additional enrollment capacity for disadvantaged students. In making the foregoing findings the Commissioner will take into account:

(1) The number of disadvantaged students enrolled by the college and the percentage of the total enrollment represented by that number,