---
kind: "section"
citation: "42 C.F.R. § 124.3"
title: "42"
number: "124.3"
heading: "Eligibility."
url: "https://uscodex.org/cfr/42/124.3"
---

# §124.3. Eligibility.

- (a) **Eligible applicants.** A grant under [section 1625](/cfr/42/1625.md) may only be made to a State or political subdivision of a State, including any city, town, county, borough, hospital district authority, or public or quasi-public corporation for a project described in [paragraph (b)](#b) of this section for a medical facility owned, operated, or owned and operated by the State or political subdivision.
- (b) **Eligible project.** A grant under [section 1625](/cfr/42/1625.md) may be made only for a construction and/or modernization project designed to:
  - (1) Eliminate or prevent safety hazards which under Federal, State, and/or local fire, building or life safety codes or regulations, will, in the judgment of the Secretary result in one or more of the following:
    - (i) **Loss of licensure for the facility.**
    - (ii) Closing of all or a substantial part of the facility,
    - (iii) Loss of eligibility for reimbursement under title XVIII or title XIX of the Social Security Act; or
  - (2) Avoid noncompliance with State licensure or voluntary accreditation standards where noncompliance will, in the judgment of the Secretary, result in one or both of the following:
    - (i) Loss of licensure for the facility,
    - (ii) Loss of accreditation resulting in loss of eligibility for reimbursement under title XVIII or title XIX of the Social Security Act.

## Notes

### Authority

Authority: Secs. 215, 1602, 1625, Public Health Service Act (42 U.S.C. 216, 300o-1, 300r), unless otherwise noted.

### Source

Source: 42 FR 62270, Dec. 9, 1977, unless otherwise noted.