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• Fire, tornadoes, earthquakes, or other natural disasters that destroy school buildings; or
• Condemnation of a school building pursuant to Section 3-14.22 of the School Code. (The Regional Superintendent has the authority to condemn a building or temporary facilities upon inspection and recommendations made by the Office of the State Fire Marshall, the Department of Public Health or the State Superintendent​​

Qualifying event: the destruction of a building as a result of a natural or man-made disaster or condemnation.

Relocation: the movement of students, equipment necessary for temporary relocation purposes, personnel, and records to a facility other than that to which they were assigned.

Temporary: persisting only from the date of the qualifying event until permanent facilities are available.​​

• A resolution levying the tax provided for by Section 17-2.2c of the School Code at the maximum rate permitted thereunder to repay the State of Illinois for the funds. The district school board must adopt a resolution to levy an annual tax, not to exceed .05 percent for a period of up to seven years for repayment of the loan amount.
• A resolution encumbering all insurance proceeds payable to the district for relocation expenses for the affected facility.

NOTE: School districts under tax caps may be required to seek referendum approval to levy the tax. Applications will be considered on first-come, first-served basis as long as funds are available. Eligible districts that do not receive a loan or grant due to insufficient funds, will receive first consideration in the subsequent fiscal year.​​​

• Lease/Rental: Temporary attendance centers for displaced students, securing necessary equipment, transportation services to attendance centers.
• Renovation: Expenses only to the extent to bring Lease/Rental facilities into Health/List Safety Code compliance.
• Utilities: expenses allowed only to the extent that they exceed normal utility expenses.
• Transportation: Expenses only to the extent that they exceed the normal costs of transportation incurred.
• Salaries: Salaries only to the extent that they exceed normal operating salaries of the district.
• Architect and Attorney Fees: Fees allowed only to the extent that they are documented as necessary for relocation.
• Interest: Expenses incurred due to borrowing in anticipation of the receipt of program funds.
• Other expenses (if they exceed normal expenses): Insurance, equipment maintenance, sanitary services, property services, supplies, etc.

Note: Exceeding Normal Expenses - Those items exceeding normal expenses incurred by the district in the year prior to the qualifying event.