(c) Payment of the State funds for a project shall be on a reimbursement basis only. The municipality shall submit periodic billings for reimbursement of the State share as work is performed and costs incurred.

1. (1) The municipal share of the cost of a project may consist of funds or the value of services, materials, equipment or real property provided by the municipality or donated to the municipality for the particular project which is the subject of the State grant. The sources and amounts of the municipal share shall have the prior approval of the commissioner.

2. (2) Real property may be property purchased by or donated to the municipality for the particular park project which is the subject of the grant, or may be property already owned by the municipality which has not been previously operated for park purposes. The value of real property will be the fair market value as established by appraisal in accordance with the requirements of the office.

   (e) Waivers of retroactivity.

   To be eligible for reimbursement as part of the State grant, or for approval as part of the municipal share, all services, materials and equipment must be provided during the term of the grant. An exception will be made only when an immediate action on a project is necessary and the time required to process an application would result in an opportunity being lost. Credit for work performed prior to the approval of an application will be granted according to the following conditions:

3. (1) Waivers of retroactivity will be granted only for acquisition projects or for the acquisition of real property whose value may be used as all or part of the municipal share of the cost of the project.
4. (2) The municipality shall notify the office in writing of the necessity for a waiver of retroactivity and provide such information about the proposed action, including environmental data, as is requested by the office.
5. (3) If the office grants a waiver, the retroactive costs will be eligible for assistance or use as a match only if the project is subsequently approved. The retroactive costs are incurred at the municipality's risk, since the granting of a waiver by the office is only an acknowledgment of the need for immediate action; it does not insure that the project will be approved.
6. (4) In order for retroactive costs to be eligible for assistance or use as a match, the municipality must submit a preliminary application for the project in the grant cycle following the one in which the waiver is granted.
7. (5) A finding by the office that the activity for which a retroactive waiver is sought will have a significant adverse environmental effect may preclude the granting of such waiver.

(d) Municipal share of cost.