Ineligible purposes for grant funds and any matching funds include, but are not limited to:
(a) Duplicate services, such as those previously performed by an association's consultant in developing a Project, including feasibility, design, Professional Services, and cost estimates prior to receiving the grant award.
(b) Purchase real estate or vehicles, improve or renovate office space, or repair and maintain privately owned property.
(c) Pay the costs for construction, improvement, rehabilitation, modification, or operation and maintenance of an Essential Community Facility.
(d) Procure applications for the Agency's community facilities or other loan or grant program. Grant funds cannot be used to generate new applications; however, as stated in § 3570.263(a)(4) funds can be used to assist with application preparation for Agency programs.
(e) Pay for other costs that are not allowed under 2 CFR part 200.
(f) Pay an outstanding judgment obtained by the U.S. in a Federal Court (other than in the United States Tax Court), which has been recorded. An Applicant will be ineligible to receive a grant until the judgment is paid in full or otherwise satisfied.
(g) Intervene in Federal or adjudicatory proceedings.
(h) Fund political or lobbying activities.
(i) Conduct an income survey associated with developing a complete application for a potential Applicant.
(j) Pay for indirect or administrative costs in excess of 10% of the amount of grant.
(k) [Reserved]
(l) Provide assistance to an Ultimate Recipient, or a Project, that is not located in a Rural Area.
(m) Pay for expenses incurred more than three years after the date of the grant agreement.
(n) Provide assistance to a Project that primarily serves an area that is not considered Low Income.
(o) Fund a project where a Conflict of Interest exists.
[81 FR 1866, Jan. 14, 2016, as amended at 81 FR 27295, May 6, 2016]