Mortgage costs are allowable only for long-term, first mortgages of at least 15 years, based on the assessed value of the property at the time the mortgage was financed. term mortgage costs for renovations of space related to the DOE-funded preschool program are allowable, not to exceed the market value of the space. The payment schedule for an allowable mortgage expense must tie back to the original purchase amount of the space. Mortgage refinancing is allowable only to obtain a lower interest rate for the same principal amount. Refinancing costs are not chargeable to the DOE-funded program and the provider must make closing materials available for inspection upon request. Providers who own their facility with no outstanding loan obligations may budget up to the fair market value of the space in the center used for the DOE-funded preschool program. An annual written agreement between the provider and district must establish the amount budgeted. It is not then necessary for these providers to produce documentation of expenditures for this line. For Providers with Donated Facilities Providers who operate within space that is owned as a result of a donation may budget up to the fair market value of the space used for the DOE-funded preschool program. An annual written agreement between the provider and district must establish the amount budgeted. It is not then necessary for these providers to produce documentation of expenditures for this line. For Providers who Lease their Facility Providers who lease their facility may submit expenses only up to the actual amount of their lease. Providers may not expense funds on buildings and grounds maintenance when the lease states that such costs are included in the rental agreement. Rental agreements should be negotiated for multiple years whenever possible. party leases may not increase by more than the cost-of-living as determined by the State. Non-allowable Rent/Mortgage/Other Space Costs include the following: Costs related to transactions between related parties in which one to the transaction is able to control or substantially influence the actions of the other. Such transactions are defined by the relationship of the parties and include, but are not limited to, those between divisions of an institution; institutions or organizations under common control through common officers, directors, or members; and an institution and a director, trustee, officer, or key employee of the institution or his or her immediate family either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest. Such costs shall include, but are not limited to:
Mortgage costs are allowable only for long-term, first mortgages of at least 15 years, based on the assessed value of the property at the time the mortgage was financed. mortgage costs for renovations of space related to the DOE-funded preschool program are allowable, not to exceed the market value of the space. The payment schedule for an allowable mortgage expense must tie back to the original purchase amount of the space. Mortgage refinancing is allowable only to obtain a lower interest rate for the same principal amount. Refinancing costs are not chargeable to the DOE-funded program and the provider must make closing materials available for inspection upon request. Providers who own their facility with no outstanding loan obligations may budget up to the fair market value of the space in the center used for the DOE-funded preschool program. An annual written agreement between the provider and district must establish the amount budgeted. It is not then necessary for these providers to produce documentation of expenditures for this line. For Providers with Donated Facilities Providers who operate within space that is owned as a result of a donation may budget up to the fair market value of the space used for the DOE-funded preschool program. An annual written agreement between the provider and district must establish the amount budgeted. It is not then necessary for these providers to produce documentation of expenditures for this line. For Providers who Lease their Facility Providers who lease their facility may submit expenses only up to the actual amount of their lease. Providers may not expense funds on buildings and grounds maintenance when the lease states that such costs are included in the rental agreement. Rental agreements should be negotiated for multiple years whenever possible. leases may not increase by more than the cost-of-living as determined by the State. Non-allowable Rent/Mortgage/Other Space Costs include the following: Costs related to transactions between related parties in which one party to the transaction is able to control or substantially influence the actions of the other. Such transactions are defined by the relationship of the parties and include, but are not limited to, those between divisions of an institution; institutions or organizations under common control through common officers, directors, or members; and an institution and a director, trustee, officer, or key employee of the institution or his or her immediate family either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest. Such costs shall include, but are not limited to: term