Examples of Ineligible Projects and Expenditures
Define the types of projects and expenditures that are ineligible for funding. Ensure that ineligible projects and expenditures are clearly distinguished from eligible ones and explain why they do not align with the program's objectives. Examples of ineligible projects and expenditures may include, but are not limited to:
Ineligible Project Examples
- Projects that have already been completed.
- Projects that do not comply with local regulations, zoning, or building codes.
- Projects that primarily benefit private interests with limited public benefit.
- Projects that are not financially feasible or sustainable.
- Projects that involve refinancing existing debt.
Ineligible Expenditure Examples
- Routine maintenance: Regular upkeep and repairs that do not significantly improve or enhance the value or functionality of a property.
- Examples: Painting (unless part of a larger renovation), landscaping, and minor repairs.
- General business operating expenses (payroll, utilities): Day-to-day costs of running a business that are not directly related to a specific project.
- Debt refinancing: Using grant funds to pay off existing loans or other financial obligations.
- Interior decorations for temporary use: Cosmetic improvements that are easily removable and do not add long-term value to the property.
- Examples: Temporary signage, non-permanent fixtures such as tables and chairs.
- Purchase price of property: The cost of acquiring land or buildings.
- Worker support: Costs associated with supporting workers, such as meals, transportation, or uniforms.
- Insurance and taxes: Ongoing costs of property ownership or business operation.
- Inventory: Costs associated with purchasing goods for resale.
- Soft Costs: Expenses that are not directly related to the physical construction or improvement of a project.
- Examples: Architectural, structural, electrical, or mechanical design fees; construction site amenities; surveying and staking; traffic controls; profit and overhead.