---
kind: "section"
citation: "7 C.F.R. § 3570.264"
title: "7"
number: "3570.264"
heading: "Ineligible project purposes."
url: "https://uscodex.org/cfr/7/3570.264"
---

# §3570.264. Ineligible project purposes.


Ineligible purposes for grant funds and any matching funds include, but are not limited to:

- (a) Duplicate services, such as those previously performed by an association's consultant in developing a Project, including feasibility, design, Professional Services, and cost estimates prior to receiving the grant award.
- (b) Purchase real estate or vehicles, improve or renovate office space, or repair and maintain privately owned property.
- (c) Pay the costs for construction, improvement, rehabilitation, modification, or operation and maintenance of an Essential Community Facility.
- (d) **Procure applications for the Agency's community facilities or other loan or grant program.** Grant funds cannot be used to generate new applications; however, as stated in [§ 3570.263(a)(4)](/cfr/7/3570.263.md?p=a-4) funds can be used to assist with application preparation for Agency programs.
- (e) **Pay for other costs that are not allowed under 2 CFR part 200.**
- (f) Pay an outstanding judgment obtained by the U.S. in a Federal Court (other than in the United States Tax Court), which has been recorded. An Applicant will be ineligible to receive a grant until the judgment is paid in full or otherwise satisfied.
- (g) **Intervene in Federal or adjudicatory proceedings.**
- (h) **Fund political or lobbying activities.**
- (i) **Conduct an income survey associated with developing a complete application for a potential Applicant.**
- (j) **Pay for indirect or administrative costs in excess of 10% of the amount of grant.**
- (k) [Reserved]
- (l) **Provide assistance to an Ultimate Recipient, or a Project, that is not located in a Rural Area.**
- (m) **Pay for expenses incurred more than three years after the date of the grant agreement.**
- (n) **Provide assistance to a Project that primarily serves an area that is not considered Low Income.**
- (o) **Fund a project where a Conflict of Interest exists.**

## Notes

### Amendments

[81 FR 1866, Jan. 14, 2016, as amended at 81 FR 27295, May 6, 2016]

### Source

Source: 81 FR 1866, Jan. 14, 2016, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989.

### Source

Source: 62 FR 16469, Apr. 7, 1997, unless otherwise noted.

### Amendments

[81 FR 1866, Jan. 14, 2016, as amended at 81 FR 27295, May 6, 2016]