(a) The allocation and use of State funds under this subtitle are subject to the following terms and conditions.
(b) State funds may be used only for the construction, acquisition, renovation, and equipping of facilities including the reports, plans, specifications, site improvements, surveys, and other related programs.
(1) Any federal grant that is available for this purpose shall be applied first to the cost of construction, acquisition, renovation, or equipping of a facility.
(2) A State grant shall provide up to 75% of the eligible cost remaining after the federal grant has been applied.
(3) For projects designated under federal regulations, State plans, or the departmental regulations as eligible for poverty area funding, State grants shall amount to up to 90% of the eligible cost remaining after the federal grant has been applied.
(4) For purposes of this subtitle, community development block grant funds shall be considered as local matching funds and may not be considered as federal grant funds.
(c) The amount of the State grant for any project shall be determined after consideration of all eligible applications, the total of unallocated State funds available at the time the application is received, and the priorities of area need as may be established by the Department.
(d) (1) No portion of the proceeds of a State grant may be used:
(i) For the furtherance of sectarian religious instruction; or
(ii) In connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction, or in connection with any program or department of divinity for any religious denomination.
(2) On the request of the Board of Public Works, the applicant shall submit evidence satisfactory to the Board that none of the proceeds of the grant have been or are being used for a purpose prohibited by this subtitle.