(a) A local government (see glossary, section 621.17 of this Part) or a voluntary agency (see glossary) may apply for a State aid grant for the capital costs of construction.

(b) A completed application must be submitted to the commissioner (see glossary, section 621.17) in the format and on the forms prescribed by the commissioner. The application must include a statement to the effect that, if the applicant is a voluntary agency, the applicant and OPWDD intend that the State aid grant must be repaid when and if the applicant receives an FDC mortgage loan pursuant to this Part; provided that such repayment shall be intended only for that portion of the State aid grant represented by underlying costs for which the FDC mortgage loan is made.

(c) Companies and sponsors or proposed incorporators of such companies, may apply for State aid, an HFA mortgage loan, or for both.

(d) A certification of need application pursuant to the commissioner's regulations must be completed and approved prior to the payment of State aid grant funds.

(e) The applicant must provide copies of existing contracts, if any, relating to the acquisition, construction and operation of the proposed facility.

(f) All applicants receiving State aid are required to establish and maintain accounting and fiscal records in a manner approved by the commissioner to reflect the receipt and expenditure of funds allotted and paid for capital costs. Similar suitable accounts shall be maintained to show receipt and disbursement of Federal, local or other funds used for matching purposes.

(g) The applicant for a State aid grant must have or will have, prior to receiving State aid funds, a fee simple or such other estate or interest in the site including necessary easements and rights-of-way, sufficient to assure for a period not less than 50 years undisturbed use and possession for the purpose of the facility. At the commissioner's discretion, a limited amount of grant funds may be provided to the applicant prior to the applicant taking fee simple to the site, provided that such funds are placed in escrow and are used solely for the purpose of acquiring title to the site.

(h) The nature and extent of the applicant's present or anticipated property rights in the proposed site must be established by a survey of the site, the surveyor's metes and bounds property description and an acceptable policy of title insurance.

(i) The commissioner shall have access to the books, records and physical site of any facility receiving a State aid grant.