(a) Grant funds shall be used for the immediate needs of the designated project. Grant funds must be obligated and expended by the dates specified in the grant agreement. The funding period will be no more than three (3) years, which means that all funds must be obligated no more than three (3) years from when a grant is awarded and all funds must be liquidated no more than three (3) years and 90 days from when the grant was awarded by the Authority. The grant is deemed awarded and the grant period begins on the date stated in the Grant Agreement.

(b) The end of the funding periods for the first five (5) funding rounds is designated by the U.S. Department of Education:

(c) No extensions of the funding period will be considered or allowed unless approved in writing by the U.S. Department of Education. Grants to subgrantees that are made within three (3) years of the end of the funding period will be awarded based on the amount of time remaining in the funding period.

(d) Within one year of the grant award date, subgrantees that receive an award for purchase, construction, or renovation shall provide, in form and substance satisfactory to the Authority, any and all documents necessary to establish that the approved project has been initiated. Such subgrantees shall also provide the Authority with semi-annual progress reports and shall annually provide sufficient documentation, as determined by the Authority, to approve disbursements equal to one-third of the total award. Failure to draw down an amount equal to one-third of the total award annually will result in the loss of one-third of the total award, less any funds previously distributed in the applicable year. Funds will immediately revert to the Authority.

(e) If Authority staff determines at its discretion that the subgrantee does not demonstrate timeliness, readiness, or feasibility in providing verification of continued eligibility for each disbursement, the subgrantee will not be eligible for disbursement of Grant funds.

(f) Subgrantees who fail to respond to inquiries and/or requests from Authority staff may be declared ineligible to continue participation in the Program. Should the Authority, at its sole discretion, deem a subgrantee nonresponsive, it shall be given 90 days to cure all outstanding issues to the satisfaction of the Authority. If all issues are not resolved to the full satisfaction of the Authority within this time, the subgrantee may be declared ineligible to receive all remaining disbursements under the Program and the forfeited funds will immediately revert back to the Authority.

(g) For lease or Proposition 39 subgrantees only, the Authority may increase an award in any year of the three (3) year grant term should the subgrantee's lease costs go up and additional funding become available.