The following costs related to physical facility operations for the grant project are allowable:

1. (1) the cost of rental or true lease of facilities and equipment, if it does not exceed the maximum fair market value;
2. (2) the cost of utilities not included in the space rental cost;
3. (3) telephone, postage, telegram, and other communication costs;

4. (4) the cost of altering or renovating a building if

   1. (A) the grantee is not an individual;
   2. (B) the building has a usable life consistent with the objectives of the grant project, and is architecturally suitable for conversion;
   3. (C) the alteration or renovation allows the building to conform with federal law and regulations governing access by a person with a physical disability;
   4. (D) the grant project or part of the grant project will actually occupy the space involved;
   5. (E) the grantee secures a lease for the grant period if the grantee does not own the building; and

   6. (F) the amount budgeted or used for the alteration or renovation during a period of three consecutive fiscal years does not exceed the lesser of

      1. (i) $75,000; or
      2. (ii) 25 percent of the amount approved in the budget for direct costs for the three-year period.

Authority: AS 18.66.050