(2) A grantee shall prosecute insurance claims promptly and fully. (Authority: 20 U.S.C. 241-1(a)(b)) § 219.42 Eligible costs for restoration or replacement of school facilities (Section 16 of Pub. L. 81-815). (a) Secretary's approval. A grantee may apply grant funds only to items described in its project application that the Secretary approves as eligible for payment. (b) Eligible costs. (1) The Secretary approves reasonable costs to restore or replace any of the following minimum school facilities to a condition similar to that before the disaster: (i) Classrooms and related facilities. (ii) Fixed equipment, machinery, and utilities. (iii)(A) An auditorium or gymnasium or both if it is justified by the size and educational program of the LEA and by standards and practices in the State. (B) The capacity of the facility may exceed the membership of the school only if the LEA pays all additional costs associated with the increased capacity. (iv) Air conditioning if it is justified by standards and practices in the State. (2) The Secretary also approves reasonable costs related to the following items: (i) Works of art-if their cost does not exceed one percent of a project's cost. (ii) Design features that provide appropriate access and use by handicapped persons. (iii) Design features that afford appropriate protection against personal injuries from future disasters. (c) Ineligible costs. The Secretary does not approve any costs related to: (1) Purchase of an interest in land; (2) Off-site improvements; (3) A gymnasium, stadium, or similar facility primarily intended for events that include an admission charge to the general public; or (4) Emergency repairs to prevent further damage to a facility or to make it immediately available for education. NOTE: However, that these costs related to emergency repairs are eligible under § 219.41(b)(13) (Eligible costs for assistance related to replacement of instructional and maintenance supplies, equipment, and materials; minor repairs; or provision of temporary facilities (Section 7(b) of Pub. L. 81874)). (5) Latent damages not reported to the Secretary within six months of the date the Secretary receives the LEA's application. (Authority: 20 U.S.C. 645(9)(10), 646(a)) (d)(1) Effect of insurance coverage. Eligible costs include only the amount of the LEA's expenses that exceeds any insurance proceeds on the damaged or destroyed facilities. (2) A grantee shall prosecute insurance claims promptly and fully. (Authority: 20 U.S.C. 646(a)) Subpart F-Hearings § 219.51 Hearings relating to assistance for restoration or replacement of school facilities (Section 16 of Pub. L. 81-815). (a) Right to an administrative hearing. This section applies to an LEA that is an applicant or grantee for assistance for restoration or replacement of school facilities. This LEA has a right to an administrative hearing in either or both of the following circumstances: (1) If the Secretary proposes in whole or in part to disapprove the LEA's application. (2) If, after a grant has been made, the Secretary acts to withhold payments to the LEA (the circumstances in which this occurs are specified in Section 11(a) of Pub. L. 81-815). (b) Hearing procedures. The procedures described in 34 CFR Part 218 govern these administrative hearings. (Authority: 20 U.S.C. 636(c), 641(b)) § 219.52 Hearings relating to assistance other than restoration or replacement of school facilities (Sections 7(a) and 7(b) of Pub. L. 81-874). (a) Right to an administrative hearing. This section applies to an LEA that is an applicant or grantee for assistance for other than restoration or Subpart B-What Are the Specific Eligibility Requirements for Assistance Under the School Construction Program? ELIGIBILITY UNDER SECTION 5 OF THE ACT 221.10 What are the requirements for eligibility under section 5 of the Act? 221.11 What children may be counted as federally connected? 221.12 How does an LEA measure an increase? 221.13 What is the required minimum in crease in the number or percentage of an LEA's federally connected children? 221.14 How does an LEA demonstrate financial need if it claims children in Category 6? 221.15 Under what circumstances may an LEA request a waiver or reduction of the minimum increase in the number or percentage of federally connected children? ELIGIBILITY UNDER SECTION 9 OF THE ACT 221.20 What are the requirements for eligibility under section 9 of the Act? 221.21 What other requirements apply to eligibility under section 9? ELIGIBILITY UNDER SECTION 14(A) OF THE ACT 221.24 What are the requirements for eligibility under section 14(a) of the Act? 221.25 What requirements for eligibility under section 14(a) are subject to waiver or exemption? ELIGIBILITY UNDER SECTION 14(B) OF THE ACT 221.28 What are the requirements for eligibility under section 14(b) of the Act? 221.29 What requirements for eligibility under section 14(d) are subject to waiver or exemption? ELIGIBILITY UNDER SECTION 14(c) OF THE ACT 221.32 What are the requirements for eligibility under section 14(c) of the Act? 221.33 What requirement for eligibility under section 14(c) is subject to waiver? ELIGIBILITY UNDER SECTION 8(1) OF THE ACT 221.36 What are the requirements for eligibility under section 8(1) of the Act? ELIGIBILITY UNDER SECTION 8(2) OF THE ACT 221.38 What are the requirements for eligibility under section 8(2) of the Act? Subpart C-How Does an LEA Apply for Assistance Under the School Construction Program? 221.40 What are the general requirements for submitting a preapplication and an application under the School Construction Program? 221.41 During what year must an LEA file its preapplication? 221.51 How does the Secretary compute priority indices and rank preapplications? 221.52 What procedures does the Secretary follow if two or more preapplications in the same group have identical indices? 221.53 What effect may a delay in the starting date of construction have on an applicant's priority ranking? Subpart E-How Much Assistance is Available Under the Act? 221.60 What assistance may the Secretary make available under section 5 of the Act? 221.61 What assistance may the Secretary make available under section 9 of the Act? 221.62 What assistance may the Secretary make available under section 14 of the Act? 221.63 What assistance may the Secretary make available under section 8 of the Act? 221.64 In what order does the Secretary fund applications? 221.65 When may the Secretary make payments under the Act? Subpart F-What Conditions Must be Met by a Grantee? 221.70 What activities by a grantee require prior approval by the Secretary? 221.71 What provisions of the Indian SelfDetermination and Education Assistance Act apply to the School Construction Program? Subpart G-What Requirements Govern Administrative Hearings Under the School Construction Programs? 221.80 Under what circumstances may an LEA request an administrative hearing? 221.81 How does an LEA request a hearing? 221.82 How does the Secretary treat a request for a hearing? Subpart H-What Special Provisions Govern Assistance Under Section 10 of the Act? 221.90 Under what circumstances does the Secretary make arrangements for the provision of minimum school facilities under section 10 of the Act? 221.91 What criteria does the Secretary use in determining whether a free public education is "suitable"? 221.92 For what types of children does the Secretary make arrangements for the provision of facilities under section 10? 221.93 For what types of projects may the Secretary provide assistance under section 10? 221.94 How does the Secretary compute priority indices and rank non-emergency request for new facilities under section 10? 221.95 What terms and conditions apply to minimum school facilities operated under section 10 by another agency? 221.96 What terms and conditions apply to the transfer of minimum school facilities by the Secretary to an LEA? AUTHORITY: 20 U.S.C. 631-647. SOURCE: 52 FR 16750, May 5, 1987, unless otherwise noted. § 221.1 Subpart A-General Assistance for School Construction in Areas Affected by Federal Activities. (a) The program of Assistance for School Construction in Areas Affected by Federal Activities-referred to in these regulations as the School Construction Program-provides Federal financial assistance to help local educational agencies (LEAs) construct urgently needed minimum school facilities in school districts that have been affected by various Federal activities. (b)(1) Under the School Construction Program the Secretary-as authorized in section 10 of the Act (Pub. L. 81-815)-may also make arrangements with another Department or agency to provide minimum school facilities for certain federally connected children in cases in which no LEA is able to provide a suitable free public education for these children. (2)(i) The provisions governing these arrangements are contained in Subpart H of these regulations. (ii) These arrangements do not provide assistance directly to an LEA. (Authority 20 U.S.C. 631-645, 647) § 221.2 Who is eligible under the School Construction Program? (a) Assistance. (1) The types of LEAS listed in paragraphs (b) through (i) of this section are eligible for assistance under the School Construction Program. (2) Each paragraph refers to a specific section of Pub. L. 81-815, entitled School Construction in Areas Affected by Federal Activities, referred to in these regulations as "the Act." 20-125 0-89--20 (b) Eligibility under section 5. (1) An LEA is eligible under section 5 of the Act because of an increased number of federally connected children. (2) The requirements for eligibility under section 5 are contained in §§ 221.10 through 221.15. (c) Eligibility under section 9. (1) An LEA is eligible under section 9 of the Act because a temporary Federal activity has caused an increase in the number of federally connected children. (2) The requirements for eligibility under section 9 are contained in §§ 221.20 and 221.21. (d) Eligibility under sections 14(a) and 14(b). (1) An LEA is eligible under section 14(a) or 14(b) of the Act if it: (i) Serves children residing on Indian lands; and (ii) Has financial need. (2) The requirements for eligibility under section 14(a) are contained in §§ 221.24 and 221.25. (3) The requirements for eligibility under section 14(b) are contained in §§ 221.28 and 221.29. (e) Eligibility under section 14(c). (1) An LEA is eligible under section 14(c) of the Act if: (i) A substantial portion of the land area in the LEA's school district is Federal property; and (ii) The LEA has financial need. (2) The requirements for eligibility under section 14(c) are contained in §§ 221.32 and 221.33. (f) Eligibility under section 8(1) and 8(2). (1) An LEA is eligible for supplementary assistance under section 8 of the Act if the LEA has already established its eligibility under section 5, 9, or 14 of the Act. (2) The requirements for eligibility under section 8(1) are contained in § 221.36. (3) The requirements for eligibility under section 8(2) are contained in § 221.38 (g) Arrangements. Another Department or agency is eligible to enter into an arrangement with the Secretary for the provision of minimum school facilities under section 10 of the Act if the requirements for an arrangement under § 221.90 are satisfied. (Authority: 20 U.S.C. 635, 638-640, 644) § 221.3 What regulations apply to the School Construction Program? The following regulations apply to the School Construction Program: (a) The Education Department General Administrative Regulations (EDGAR) as follows: (1) 34 CFR Part 74 (Administration of Grants) except for the following: (i) Section 74.94 (Payment methods under construction grants). (ii) Subpart 0 (Property). (2) 34 CFR Part 75 (Direct Grant Programs) except for the following: (i) Section 75.603 (Grantee's title to site). (ii) Section 75.605 (Beginning the construction). (3) 34 CFR Part 77 (Definitions that Apply to Department Regulations) except for the following terms: (4) 34 CFR Part 78 (Education Appeal Board) if the Secretary refers to the Education Appeal Board a request for an administrative hearing under section 11(a) of the Act. (5) 34 CFR Part 79 (Intergovernmental Review of Department of Education Programs and Activities). (b) The regulations in 34 CFR Part 218 (Hearings in Connection with School Construction and Financial Assistance in Federally Impacted Areas). (c) The regulations in this Part 221. (Authority: 20 U.S.C. 3474) § 221.4 Under what circumstances may the Secretary waive or reduce requirements? (a) The Secretary may waive or reduce certain requirements of this part-governing an LEA's eligibility to participate in the School Construction Program or limiting the amount of payment an LEA may receive under the program-if the Secretary determines that a waiver or reduction is necessary: (1) To avoid inequity; and (2) To avoid defeating the purposes of the Act. (b) The general provisions that apply to the waiver or reduction of certain requirements are in § 221.43. (c) The specific requirements that the Secretary may waive or reduce and the circumstances under which the Secretary may waive or reduce these requirements are identified in applicable provisions of this part. (Authority: 20 U.S.C. 635, 639, 644) § 221.5 What definitions apply to the School Construction Program? (a) Definitions in the Act. The following terms used in this part are defined in section 15 of the Act: Base year Child Construct, Constructing, Construction Federal property Free public education Increase period Indian lands (included in the definition of "Federal property") Local educational agency (LEA) Low-rent housing (included in the definition of "Federal property") Parent School facilities State State educational agency (SEA) (b) Definitions in EDGAR. The following terms used in this part are defined in 34 CFR Part 77 (Definitions that Apply to Department Regulations): Applicant Application Award Department EDGAR Equipment Grantee Project Secretary Work of art (c) Definitions that apply to this part. The following definitions also apply to this part: "Act" means Pub. L. 81-815, as amended, 20 U.S.C. 631647. "Attendance area" means the geographic area in which the children normally served by a school reside. (Authority: 20 U.S.C. 635(e), 644 (a), (b), (c)) "Average daily membership means: (1) The definition given to that term by State law; or (2) If State law does not define the term, the total days of membership of all pupils in an LEA's schools divided by the total number of days the schools were in session. (Authority: 20 U.S.C. 645(5)) "Facilities available to the LEA." (1) This term means classrooms and related facilities, such as the following, which the Secretary considers in determining an LEA's need for assistance under this part: (i) Existing school facilities constructed for educational purposes and currently suitable for instruction. (ii) All school facilities for which a construction contract has been awarded before the contracts-let-date-that is, the date on which the Secretary files with the Office of the Federal Register a notice setting a closing date for receipt of preapplications. (iii) Facilities constructed or to be constructed, contracted for, or supported with financial assistance under any other grant under the Act-that is, under the School Construction Program or under the Program of School Construction Assistance in Cases of Certain Disasters (section 16 of the Act-or under any other type of assist ance. (iv) Portable facilities used for instruction if: (A) The facilities were purchased with funds under the Act; or (B) The State counts the facilities as instructional facilities for the purpose of computing State construction aid. (v) If the LEA is applying under section 8, 14(a), or 14(c) of the Act, potential facilities available to the LEA that could be built using, local, State, or other Federal sources, including other funds under the Act. (2) This term does not mean: (i) Areas unsuitable for education, such as hallways and basement rooms not constructed for educational purposes; and (ii) Facilities that must be abandoned by the end of the second year following the increase period, for applicants under sections 5, 8(1), and 9, or by the end of the second year following the school year for which the |