(a) Charter schools that receive grant funds through their State must use the funds for facilities. Except as provided in paragraph (b) of this section, allowable expenditures include:

1. (1) Rent.
2. (2) Purchase of building or land.
3. (3) Construction.
4. (4) Renovation of an existing school facility.
5. (5) Leasehold improvements.
6. (6) Debt service on a school facility.

(b) Charter schools may not use these grant funds for purchasing land when they have no immediate plans to construct a building on that land.

(Authority: 20 U.S.C. 7221d(b))