An LEA is eligible to apply for a modernization grant under the fourth priority of section 8007(b) of the Act if it—

1. (a)

   1. (1) Is eligible to receive funds for the fiscal year under section 8003(b) of the Act; and

      1. (i) Enrolls children living on Indian lands equal to at least 40 percent of the total number of children in ADA in its schools; or
      2. (ii) Enrolls children with a parent in the U.S. uniformed services equal to at least 40 percent of the total number of children in ADA in its schools; or
   2. (2) Is eligible to receive assistance for the fiscal year under section 8002 of the Act;
2. (b) Has used at least 75 percent of its bond limit;
3. (c) Has an average per-student assessed value of real property available to be taxed for school purposes that is below its State average; and

4. (d) Has facility needs resulting from the presence of the Federal Government, such as the enrollment of federally connected children, the presence of Federal property, or an increase in enrollment due to expanded Federal activities, housing privatization, or the acquisition of Federal property.

   (Authority: 20 U.S.C. 7707(b))