Section Ed 321.25 - Substantial Renovation Eligibility for school building aid for substantial renovations as authorized by RSA 198:15-b, II(f) shall be determined as follows:
(a) The construction cost of the renovation project shall be compared to the construction cost of a complete new building equal in size to the building to be renovated using the maximum allowable construction cost as set by Ed 321.24.(b) The construction cost of the renovation project shall exceed 25 percent of the construction cost of a new building or $5 million, whichever is lower.(c) In order to allow school districts to complete large renovation projects without borrowing, school districts may propose projects to be funded over several years through direct appropriations. A complete building aid application identified in Ed 321.21(e), including design drawings and technical specifications for all phases of the project shall be submitted in the fiscal year prior to the start of construction. The scope of work and estimated cost of each phase shall be attached to the building aid application. The total cost of all phases shall be used to determine the eligibility of projects which are scheduled to be phased over 2 or more consecutive years, subject to the approval of funding for subsequent phases by the legislative body of the school district. In the event the district fails to fund subsequent phases of the project, school building aid payments shall cease and the district shall return all state funds received for the project. A lapse of one year shall be approved upon request of the district. Multi-year projects shall be evaluated for prioritization under Ed 321.21(g)-(n) in the first year in which funding is requested. Grants shall be calculated each year based on the amount appropriated by the district in that year.(d) If the construction cost of the renovation project exceeds 60 percent of the cost of new construction, the following additional criteria shall be met: (1) The school district shall provide documentation that new construction was considered in lieu of renovation and explain why the renovation alternative was chosen; and(2) The scope of the renovation project shall provide that all building systems shall be upgraded to the most current codes and standards and that the building shall be fully accessible to individuals with disabilities.(e) Renovation work done in conjunction with additions to existing buildings shall not be subject to paragraphs (a) through (c) above, but shall be subject to paragraphs (f) through (j) below.(f) School districts shall maintain adequate property insurance to pay for damages resulting from weather and other natural events. School building aid shall not be provided for work that is covered by insurance or that should reasonably be expected to be covered by insurance.(g) School building aid shall not be paid for repairs to equipment or structures that are covered by a valid warranty or guarantee. If a warranty has been invalidated by the actions of a school district or its staff, school building aid shall not be paid for damages incurred during the warranty period.(h) School building aid shall not be paid for repairs to buildings, systems, or components that result from failure to perform proper maintenance. In making this determination, the department shall compare the age of the damaged materials or equipment to the expected useful life of the materials or equipment based on commonly accepted industry standards. School districts shall provide maintenance records and other documentation concerning their maintenance program if necessary for the department to clearly understand the cause of equipment or system damage.(i) School building aid shall not be paid for work that results from failure to follow building codes or previous guidance from the department.(j) School building aid shall not be paid for repairs for which the school district makes a legal claim for damages until the legal proceeding has been resolved. In such cases, any portion of the claim that is not satisfied by the legal proceeding shall be eligible for school building aid subject to the limitations in Ed 321.25(a) to (i).(k) A school district may request a waiver under Ed 321.28 for how eligibility for school building aid for substantial renovations is determined under Ed 321.25.N.H. Admin. Code § Ed 321.25
#8265, eff 1-22-05; ss by #10363, eff 6-15-13
Amended by Volume XL Number 28, Filed July 9, 2020, Proposed by #13054, Effective 6/12/2020, Expires 6/12/2030.