1. A. The maximum State construction allocation is the maximum amount the State may fund of eligible costs for each public school construction project.
2. B. The maximum State construction allocation for each approved public school construction project is set in the State capital improvement program.
3. C. The maximum State construction allocation is set at the first year of construction funding approval.
4. D. The actual funding is based on the costs of approved contracts and may be less than the maximum State construction allocation.

5. E. Gross Area Baselines.

   1. (1) The gross area baseline is the product of the approved student enrollment and the baseline gross square footage per student, and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.
   2. (2) The approved student enrollment may be reduced only if the sum of available seat count in all adjacent schools is 15 percent or more of the project school’s enrollment.
   3. (3) The baseline gross square footage per student is set by the IAC and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.

   4. (4) Gross Area Baseline Concentration of Poverty Add-On. School projects with a concentration of poverty level above 55 percent are eligible for a concentration of poverty square footage add-on, upon submission of a concentration of poverty square footage usage plan, based upon the following:

      1. (a) School projects with an eligible enrollment of fewer than 600 students are eligible for a concentration of poverty add-on of up to 1,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 1,500 square feet.
      2. (b) School projects with an eligible enrollment between 600 and 900 students are eligible for a concentration of poverty add-on of up to 1,500 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,000 square feet.
      3. (c) School projects with an eligible enrollment of more than 900 students are eligible for a concentration of poverty add-on of up to 2,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,500 square feet.

   5. (5) Gross Area Baseline English Learner Add-On. School projects with an English learner population above 10 percent are eligible for an English learner square footage add-on, based upon the following:

      1. (a) School projects with an eligible enrollment of fewer than 600 students are eligible for an English learner add-on of 500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 1,500 square feet.
      2. (b) School projects with an eligible enrollment between 600 and 900 students are eligible for an English learner add-on of 1,000 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,000 square feet.
      3. (c) School projects with an eligible enrollment of more than 900 students are eligible for an English learner add-on of 1,500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,500 square feet.

   6. (6) Gross Area Baseline Career and Technology Education Add-On. School projects approved for Career and Technology Education programs are eligible for a Career and Technology Education square footage add-on based upon the program size. Program sizes shall be regularly reviewed and updated by the IAC and published to the IAC website. Square footage allocations for program sizes are as follows:

      1. (a) Extra small Career and Technology Education programs receive an add-on of 500 gross square feet.
      2. (b) Small Career and Technology Education programs receive an add-on of 1,000 gross square feet.
      3. (c) Medium Career and Technology Education programs receive an add-on of 3,000 gross square feet.
      4. (d) Large Career and Technology Education programs receive an add-on of 4,000 gross square feet.
      5. (e) Extra large Career and Technology Education programs receive an add-on of 6,000 gross square feet.

6. F. The average Statewide per-square-foot school building cost that applies to each annual capital improvement program:

   1. (1) Is established by July of the calendar year in which applications are submitted;

   2. (2) Is based on:

      1. (a) Bids received for new school construction in the prior year; and
      2. (b) Cost information derived from industry sources;
   3. (3) May be adjusted by the IAC to reflect market conditions before submission of the final State capital improvement program; and
   4. (4) Projects that qualify for the Net-zero State Cost Share add-on pursuant to COMAR 14.39.02.06E(4) for which the applicant project receives a State cost share of 96 percent or greater in accordance with COMAR 14.39.02.06F and including the State Cost Share add-ons pursuant to COMAR 14.39.02.06E(1)—(3), may be eligible for an increase to the cost-per-square-foot described in this regulation equal to the value of a 5 percentage point increase in the State Cost Share for the project minus the value of the difference between 100 percent and the applicant project State cost share including add-ons pursuant to COMAR 14.39.02.06E(1)—(3).

7. G. New Construction. The maximum State construction allocation for new construction is calculated according to either:

   1. (1) The following formula:

      1. (a) Multiply the lesser of the gross area baseline or the actual project gross area by the average Statewide per square foot school building cost, which is based on bids received for new school construction in the prior year and cost information derived from industry sources;
      2. (b) Next, add site development costs, figured as a percentage of the building cost set forth in §F(1)(a) of this regulation;
      3. (c) Finally, multiply by the State cost share percentage; or
   2. (2) The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §G(1) of this regulation.

8. H. Renewal.

   1. (1) The maximum State construction allocation for projects proposed to renew buildings or portions of buildings, 16 years or older, is calculated according to either:

      1. (a) The following formula:

         1. (i) Beginning with the oldest portion of the building, and using the gross area baseline as the upper limit, determine the eligible square footage of the renewal categorized according to the age group of the building portion containing the renewal;
         2. (ii) Multiply the eligible square footage for each age group by the average Statewide per square-foot building cost, and then multiply each product by the percentage in §H(1)(a)(iii) of this regulation;
         3. (iii) Age of building portion containing the renewal as measured from January 1 following the IAC December 31 submission of the preliminary State capital improvement program: 40 years or older—100 percent;31 to 39 years—85 percent; 26 to 30 years—75 percent; 21 to 25 years—65 percent; 16 to 20 years—50 percent; and 0 to 15 years—0 percent.
         4. (iv) Add the products calculated in §H(1)(a)(ii) of this regulation;
         5. (v) Next, add site development costs, figured as a percentage of total building costs set forth in §H(1)(a)(iv) of this regulation; and
         6. (vi) Finally, multiply by the State cost share percentage; or
      2. (b) The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §H(1)(a) of this regulation.

   2. (2) Adjustments to the Maximum State Construction Allocation for Renovation Projects. The IAC may:

      1. (a) Subtract funding from the maximum State construction allocation that the State has approved for other projects less than 16 years old at that school; and
      2. (b) Adjust the maximum State construction allocation for renovation of a building that exceeds the gross area baseline.
   3. (3) The State may not further participate in funding projects in the school within 15 years after the project is placed in service.

9. I. Renovation.

   1. (1) The estimated cost of construction of a renovation may not exceed the estimated cost of construction for a renewal.
   2. (2) The maximum State construction allocation for a renovation is calculated by multiplying the estimated costs of construction, including site work, by the State cost share percentage.
   3. (3) At the time of contract award, the actual funding is based on the costs of items eligible for State participation, up to the maximum State construction allocation.

   4. (4) Adjustments to Maximum State Construction Allocation for a Renovation.

      1. (a) The IAC may subtract from the maximum State construction allocation funding approved for other projects not older than 15 years old at that school.
      2. (b) If projects in the school have been funded within the previous 15 years, the LEA shall provide documentation to identify all previously funded scopes of work that may be replaced or upgraded in the renovation.
   5. (5) For a renovation, the new average year of completed construction of the building or portion of the building is determined by the average year of completed construction of the original building, plus the year of completed construction of the renovation, divided by 2.
   6. (6) The State may further participate in funding projects in the school within 15 years after the project is placed in service.

10. J. Addition. When a project involves an addition only, the IAC at its discretion may calculate the maximum State construction allocation according to either:

    1. (1) The following formula:

       1. (a) Subtract the existing square footage from the gross area baseline; and
       2. (b) Then use the lesser of that amount or the actual area of the addition when calculating the maximum State construction allocation according to §E of this regulation; or
    2. (2) The estimated or actual cost of construction multiplied by the State cost share percentage.
11. K. Addition in Conjunction with Renewal or Renovation. When an addition involves both an addition and a renovation or a renewal, the maximum State construction allocation is established by adding the renewal or renovation maximum State construction allocation calculated according to §G or H of this regulation and the addition (new construction) maximum State construction allocation calculated according to §J of this regulation.

12. L. Replacement.

    1. (1) An LEA that proposes to abandon a facility or demolish more than 50 percent of the gross square footage of a facility shall submit a feasibility study to the reasonable satisfaction of the IAC.
    2. (2) Based on the review of the feasibility study, the IAC may set the maximum State construction allocation for a replacement school based on the cost of renovating an existing school according to §H of this regulation, or the cost of building a new school according to §G of this regulation.
    3. (3) If the State approves renovating or renewing an existing school and the LEA builds a replacement school, the IAC may reduce the maximum State construction allocation for that project by 15 percent.
    4. (4) The IAC or its designee may waive the requirement for a feasibility study on submission of supporting documentation.

13. M. Forward-Funded Project. If the maximum State construction allocation for a forward-funded project is calculated according to the formulas in §G, H, or I of this regulation, the following factors shall be applied:

    1. (1) Gross area baseline that applied on the bid-opening date, using the 7-year enrollment projections applied as follows:

       1. (a) If the bid opening was between October 1 and March 31, the prior September 30 enrollment is used as the approved student enrollment; and
       2. (b) If the bid opening was between April 1 and September 30, the September 30 enrollment at the end of that time frame is used as the approved student enrollment;
    2. (2) Average square foot school building cost published by the IAC or its designee for the July that falls within the calendar year of the bid-opening date;
    3. (3) State cost share percentage that applied on the bid-opening date; and
    4. (4) For a renovation project, the amount of the awarded scope of work, not to exceed the maximum State construction allocation as developed in §H(1)(a) of this regulation.

14. N. Cooperative Use Space.

    1. (1) The maximum State construction allocation for an approved project may include the State's share of eligible costs to construct or renovate up to 3,000 gross square feet of co-located or shared space to support LEA or community initiatives to serve school children and the general community.
    2. (2) This cooperative use space is in addition to the size of typical school-function areas provided by the LEA.
    3. (3) There shall be a written agreement between the county board and the space occupant that establishes the term and conditions.

Authority: Education Article, §§2-303, 4-126, 5-112, and 5-303 and 5-308; State Finance and Procurement Article, §5-7B-07; Annotated Code of Maryland;
Ch. 32, §5, Acts of 2022

Effective date: May 21, 2007 (34:10 Md. R. 891)

Regulation .01B amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .01-1 adopted effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .02A amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .03 amended effective November 2, 2009 (36:22 Md. R. 1725); November 14, 2011 (38:23 Md. R. 1423)

Regulation .04C amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .04F adopted effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .05B amended effective November 14, 2011 (38:23 Md. R. 1423); September 28, 2015 (42:19 Md. R. 1229)

Regulation .05B, C amended effective November 2, 2009 (36:22 Md. R. 1725); February 26, 2018 (45:4 Md. R. 208)

Regulation .06 amended effective March 22, 2010 (37:6 Md. R. 480)

Regulation .06H amended effective September 28, 2015 (42:19 Md. R. 1229)

Regulation .11 amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .11I amended effective August 1, 2016 (43:15 Md. R. 865)

Regulation .11J adopted effective September 11, 2017 (44:18 Md. R. 866)

Regulation .12 amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .12B amended effective September 11, 2017 (44:18 Md. R. 866)

Regulation .13 amended effective November 14, 2011 (38:23 Md. R. 1423)

Regulation .13A, B amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .14 amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .15B amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .16 amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .23D amended effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .24E, F repealed effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .24-1 adopted effective November 2, 2009 (36:22 Md. R. 1725)

Regulation .28 adopted effective November 14, 2011 (38:23 Md. R. 1423)

Regulation .29 adopted effective November 14, 2011 (38:23 Md. R. 1423)

Regulation .29 amended effective November 24, 2014 (41:23 Md. R. 1376)

COMAR 23.03.02 recodified to be COMAR 14.39.02 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)

Chapter revised effective November 4, 2019 (46:22 Md. R. 979)

Regulation .05B, C amended effective October 5, 2020 (47:20 Md. R. 876)

Regulation .06 amended effective October 5, 2020 (47:20 Md. R. 876)

Chapter revised effective June 28, 2021 (48:13 Md. R. 509)

Regulation .05 amended effective October 17, 2022 (49:21 Md. R. 951)

Regulation .05B, F amended effective November 13, 2023 (50:22 Md. R. 977)

Regulation .06 amended effective February 6, 2023 (50:2 Md. R. 51)

Chapter revised effective August 5, 2024 (51:15 Md. R. 711)

Regulation .04 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .05B, C amended effective July 7, 2025 (52:13 Md. R. 656); May 11, 2026 (53:9 Md. R. 414)

Regulation .05F amended effective January 20, 2025 (52:1 Md. R. 19)

Regulation .07 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .08A, C amended effective May 11, 2026 (53:9 Md. R. 414)

Regulation .08B, C amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .08D adopted effective May 11, 2026 (53:9 Md. R. 414)

Regulation .09 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .10A amended effective May 11, 2026 (53:9 Md. R. 414)

Regulation .11A amended effective May 11, 2026 (53:9 Md. R. 414)

Regulation .12 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .13D, E amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .14 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .15 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .16 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .17D, H amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .18D amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .20 amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .32D amended effective July 7, 2025 (52:13 Md. R. 656)

Regulation .33 adopted effective July 7, 2025 (52:13 Md. R. 656):