(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 to acquire an existing building or part of a building for use as an adult day care center, or to plan, design, and construct an adult day care center, only if the local government and the Department certify to the Board of Public Works that no surplus school building or other public building appropriate for use as an adult day care center exists in the area where it is desired to locate a center.

(c) Any federal or other grant that is received for an eligible project shall be applied first to the cost of the project.

(d) Except as provided in subsections (e) and (f) of this section, a State grant may not exceed $400,000 or 50 percent of the cost of eligible work remaining unpaid after all federal and other grants have been applied, whichever is less.

(e) At the discretion of the Board of Public Works, a State grant may exceed 50 percent of the cost of eligible work remaining unpaid after all federal and other grants have been applied, if:

(f) For a project designated under federal regulations, State plans, or departmental regulations as eligible for poverty area funding, a State grant may cover up to 75 percent of the cost of eligible work remaining unpaid after all federal and other grants have been applied.

(g) 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.

(h) No portion of the proceeds of a State grant may be used for the furtherance of sectarian religious instruction, or 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. Upon 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.