(a) The Director rejects an application if:
(1) The applicant is not eligible;
(2) The applicant fails to comply with procedural rules that govern the submission of the application;
(3) The application does not contain the information required;
(4) The application cannot be funded under the authorizing statute or implementing regulations.
(b) If the Director rejects an application under this section, the Director informs the applicant and explains why the application was rejected.