C. School districts that receive monies from the building renewal grant fund shall use these monies on projects for buildings or any part of a building in the division's database for any of the following:

1. 1. Major renovations and repairs to a building that is used for student instruction or other academic purposes.
2. 2. Upgrading systems and areas that will maintain or extend the useful life of the building.
3. 3. Infrastructure costs.

D. Monies received from the fund shall not be used for any of the following purposes:

1. 1. New construction.
2. 2. Remodeling interior space for aesthetic or preferential reasons.
3. 3. Exterior beautification.
4. 4. Demolition.
5. 5. Routine preventive maintenance.
6. 6. Any project in a building, or part of a building, that is being leased to another entity.

J. The division shall do both of the following:

1. 1. Implement policies and procedures to require a school district to report the preventive maintenance activities completed during the previous twelve months for the facility for which the monies are being requested.
2. 2. Submit a monthly report to the school facilities oversight board that details how monies from the building renewal grant fund have been distributed.

K. In addition to establishing a project eligibility assessment under section 41-5702, subsection A, paragraph 5, subdivision (b), the division shall adopt rules regarding both of the following:

1. 1. The approval of building renewal grants pursuant to this section.

2. 2. Time frames for the division regarding all of the following with respect to this section:

   1. (a) Approving or denying grant requests for critical projects.
   2. (b) Notifying an applicant if the applicant's application is incomplete.
   3. (c) Providing regular updates to applicants regarding completed applications.
   4. (d) Distributing monies from the building renewal grant fund.

O. For the purposes of this section:

1. 1. "Primary building renewal projects" means projects that are necessary for buildings owned by school districts that are required to meet the minimum adequacy standards for student capacity and that fall below the minimum school facility adequacy guidelines, as adopted by the board pursuant to section 41-5711, for school districts that have provided routine preventive maintenance to the school facility.
2. 2. "Routine preventive maintenance" means services that are performed on a regular schedule at intervals ranging from four times a year to once every three years, or on the schedule of services recommended by the manufacturer of the specific building system or equipment, and that are intended to extend the useful life of a building system and reduce the need for major repairs.
3. 3. "Student capacity" has the same meaning prescribed in section 41-5711.