[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR18.405]

[Page 19-20]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 18--NONDISCRIMINATION IN FEDERALLY-ASSISTED PROGRAMS OF THE DEPARTMENT 
OF VETERANS AFFAIRS--EFFECTUATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF 
1964--Table of Contents
 
   Subpart D--Nondiscrimination in Federally-Assisted Programs of the 
 Department of Veterans Affairs--Effectuation of Title VI of the Civil 
                           Rights Act of 1964
 
Sec. 18.405  Assurances required.

    (a) Assurances. An applicant for Federal financial assistance for a 
program or activity to which this part applies shall submit an assurance 
on a form specified by the Secretary, that the program will be operated 
in compliance with this part.
    (b) Duration of obligation. (1) When Federal financial assistance is 
extended in the form of real property or structures on the property, the 
assurance will obligate the recipient or, in the case of a subsequent 
transfer, the transferee, for the period during which the real property 
or structures are used for the purpose for which Federal financial 
assistance is extended or for another purpose involving the provisions 
of similar services or benefits.
    (2) Where Federal financial assistance is extended to provide 
personal property, the assurance will obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases the assurance will obligate the recipient for 
the period during which Federal financial assistance is extended.
    (c) Extent of application to institution or facility. An assurance 
shall apply to the entire institution or facility unless the applicant 
establishes, to the satisfaction of the Secretary, that the 
institution's practices in designated parts or programs of the 
institution will in no way affect its practices in the program of the 
institution for which Federal financial assistance is sought, or the 
beneficiaries of or participants in such a program. If the assistance is 
being received or requested for the construction of a facility or part 
of a facility, the assurance shall apply to the entire facility and to 
other facilities operated in connection with the facility.
    (d) Covenants. (1) Where Federal financial assistance is provided in 
the form of real property or interest in the property from the Agency, 
the instrument effecting or recording this transfer shall contain a 
covenant running with the land to assure nondiscrimination for the 
period during which the real property is used for a purpose for which 
the Federal financial assistance is extended or for another purpose 
involving the provisions of similar services or benefits.
    (2) Where no transfer of property is involved but property is 
purchased or improved with Federal financial assistance, the recipient 
shall agree to include the covenant described in paragraph (b)(2) of 
this section in the instrument effecting or recording any subsequent 
transfer of property.
    (3) Where Federal financial assistance is provided in the form of 
real property or interest in the property

[[Page 20]]

from the Agency, the covenant shall also include a condition coupled 
with a right to be reserved by the Agency to revert title to the 
property if there is a breach of the covenant. If a transferree of real 
property proposes to mortgage or otherwise encumber the real property as 
security for financing construction of new, or improvement of existing, 
facilities on the property for the purpose for which the property was 
transferred, the Secretary may, upon request of the transferee and if 
necessary to accomplish such financing and upon such conditions as 
considered appropriate, agree to forbear the exercise of the right to 
revert title for as long as the lien of the mortgage or other 
encumbrance remains effective.
    (e) Other methods of enforcement. (1) Recipients are required to 
keep such records as the responsible VA official deems necessary for 
complete and accurate compliance reports. VA can specify intervals for 
reporting and prescribe the form and content of information required to 
ascertain whether the recipient has complied or is complying with the 
law.
    (2) Periodic compliance reviews of training establishments will be 
conducted by VA compliance officers. During these reviews recipients are 
required to permit access by VA compliance officers during normal 
business hours to such of their books, records, accounts, facilities and 
other sources of information including interviews with personnel and 
trainees as may be pertinent to ascertain compliance with the law.
    (3) From study of documentation, results of interviews, and 
observation of activities during tours of facilities, compliance 
officers will evaluate recipients' compliance status.

[45 FR 63268, Sept. 24, 1980, as amended at 51 FR 10385, Mar. 26, 1986]