a) A recipient of a grant under this Part may use the grant moneys to do any one or more of the following to improve services for Department clients:

1. 1) Acquire a new physical location for the purpose of delivering licensed residential services.

2) Construct or renovate new or existing licensed residential services sites.

1. 3) Support capital rate enhancements for licensed residential services sites' capital projects. [20 ILCS 530/20]
2. b) Disallowable costs for which grant monies may not be used are the same as the disallowable costs set forth in 89 Ill. Adm. Code 356.60 (Rate Setting).