An LEA that is eligible to receive a payment under Title VIII for the fiscal year but that does not meet the other eligibility criteria described in § 222.181 may apply on behalf of a school located within its geographic boundaries for a modernization grant under the fourth priority of section 8007(b) of the Act if—

1. (a) The school—

   1. (1) Enrolls children living on Indian lands equal to at least 40 percent of the total number of children in ADA; or
   2. (2) 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;
2. (b) The LEA has used at least 75 percent of its bond limit;
3. (c) The LEA 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) The school 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))