The department shall administer the fund.__The fund must be held separate and apart from all other money, funds and accounts.

§6204.__Uses of fund

Except as otherwise provided by this section and section 5681, subsection 3, the fund is available solely for grants for qualifying projects. The department may use the fund to cover its costs of administration, including contracting for services to administer the grants.

Grant funds may not be used for reimbursement of costs or expenses incurred prior to an award from the fund.

§6205.__Eligibility; intergovernmental cooperation

In accordance with the request for proposals issued by the department under section 6209, an eligible applicant may apply for a planning grant or a cooperative services grant from the fund.__ In order to be eligible for a planning grant or a cooperative services grant, an eligible applicant must demonstrate in its application that the project for which it seeks a grant will be undertaken in cooperation with one or more municipalities, counties or regional government subdivisions.

An eligible applicant may contract with nongovernmental organizations and individuals for the purpose of carrying out projects supported by the fund.

In applying for a cooperative services grant, an eligible applicant must specify the type of qualifying project for which assistance is sought and how the project will reduce demand for property tax revenues.

§6206.__Local match

The department may not require an eligible applicant to provide matching funds to be eligible for a cooperative services grant and may not give preference or priority to an eligible applicant whose proposal provides matching funds.

The department may require an eligible applicant to provide matching funds for a planning grant in an amount not to exceed 50% of the total grant award requested, as determined by the department in accordance with a request for proposals issued under section 6209, and may give preference or priority to an eligible applicant whose proposal provides matching funds.