CFR > Title 42 - Public Health > CHAPTER I—PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER K—HEALTH RESOURCES DEVELOPMENT (parts 121 to 125) > PART 124—MEDICAL FACILITY CONSTRUCTION AND MODERNIZATION > SUBPART A—Project Grants for Public Medical Facility Construction and Modernization (§124.1 to §124.11) > 124.3—Eligibility.

124.3—Eligibility.

(a) Eligible applicants. A grant under section 1625 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) 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 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.