1. (a) The local funding match is a cash match or a combination of cash and in-kind contribution provided by or through the project sponsor. An in-kind contribution may include only actual and documented costs incurred by the project sponsor for the development of project plans, specifications, and estimates that would otherwise be eligible for reimbursement under applicable statutes and regulations.
2. (b) Costs incurred prior to execution of the local agreement or prior to federal and state approval and authorization to proceed are not eligible for consideration as in-kind contributions.
3. (c) Funds from other federal programs may be used as a local funding match only when specifically authorized by federal law or regulation.
4. (d) Donated services may not be accepted as a local funding match, but may be used to reduce the overall cost of the project.
5. (e) If a project selected by the commission is implemented by the department, the project sponsor must provide the local funding match prior to the commencement of project activities for each phase of work.
6. (f) Projects selected by the commission will include an administrative cost for the department's oversight. The local funding match associated with this administrative cost must be provided in cash.

Source Note:The provisions of this §11.406 adopted to be effective January 4, 2017, 41 TexReg 10664.