Sec. 32.03.01.14. Recovery of State Grant Funds

A. Under the conditions of §B of this regulation, the State may recover State grant funds.

B. The State may recover State grant funds if, within 15 years of the completion of a project:

(1) An interest in property with respect to which funds have been paid under this program is assigned, transferred, or conveyed:

(a) To any person, agency, or organization which has not been approved by the Board of Public Works as a transferee, or

(b) For use other than as a senior center; or

(2) Property with respect to which funds have been paid under this program ceases to be operated as a senior center.

C. The amount of State recovery shall be:

(1) An amount bearing the same ratio to the then current value of so much of the property as constituted a project, as the amount of the State funds bore to the total cost of all eligible work; and

(2) All costs and reasonable attorney fees incurred by the State in recovery proceedings.

D. Notice Recordation.

(1) Before the payment of State funds under this program, the grantee shall record the notice of the State's right to recovery required by the Authorization Act under which the grant has been made.

(2) The notice shall be recorded in the land records of the jurisdiction in which the senior center or proposed senior center is or will be located.

(3) The grantee shall provide evidence of the recordation to the Department.