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does not own the building;

(E) the grantee has executed a security agreement that the facilities manager has approved, and that protects the state’s interest in any asset purchased with grant money as part of the building alteration or renovation; and

(F) the cost is approved by the facilities manager;

(8) the cost of the acquisition of a building, including principal and interest costs, if

(A) the grantee is not an individual;

(B) the building has a usable life consistent with the objectives of the grant project, is architecturally suitable, and conforms with federal statutes and regulations governing access by individuals with disabilities;

(C) the space involved will be occupied by the grant project;

(D) the grantee provides a long-term plan demonstrating to the department’s satisfaction that the acquisition is economically feasible and that the building is, or will be, architecturally sound;

(E) the grantee has executed a security agreement that protects the state’s interest in the asset, and that the facilities manager has approved; and

(F) the cost is approved by the facilities manager. (m) If an employee of a grantee performs for the grantee both duties that are under the grant project and duties that are not under the grant project, the grantee shall determine the amount of a payment under ( l)(5) of this section on the basis of the amount of time spent by the employee in performing the grant project duties. If the employee concurrently performs the same duty for two or more grant projects or for one grant project for which the grantee receives money under two or more grants, the grantee may allocate payments under ( l)(5) of this section among the grants or grant projects in a manner that the grantee considers appropriate. However, the allocation may not result in payments that exceed the amount owed to the employee. (n) As part of a payment under ( l)(5) of this section, the grantee may include payment for leave taken by an employee in accordance with the written employee leave policy established by the grantee under 7 AAC 78.170. (o) The total amount of true lease or rental payments made by a grantee under ( l)(6) of this section may not exceed the maximum amount allowed by the department for lease or rental agreements entered into by the department. Upon request, the department will provide a copy of the applicable cost principles to an applicant for a grant or a grantee. Before a grantee renews a true lease or rental agreement for which the grantee has made payments under ( l)(6) of this section, the grantee must receive department approval. (p) Except for capital grant projects, a grantee may use grant money to pay indirect costs of the grant project in accordance with an indirect cost rate agreed upon by the federal government