[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR437.31]

[Page 1166-1167]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 437_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 
AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents
 
                    Subpart C_Post-Award Requirements
 
Sec. 437.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a

[[Page 1167]]

grant or subgrant will vest upon acquisition in the grantee or 
subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purpose, and the grantee or subgrantee may not dispose 
of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee must request 
disposition instructions from SSA. The instructions must provide for one 
of the following alternatives:
    (1) Retention of title. Retain title after compensating SSA. The 
amount paid to SSA is computed by applying SSA's percentage of 
participation in the cost of the original purchase to the fair market 
value of the property. However, in those situations where a grantee or 
subgrantee is disposing of real property acquired with grant funds and 
acquiring replacement real property under the same program, the net 
proceeds from the disposition may be used as an offset to the cost of 
the replacement property.
    (2) Sale of property. Sell the property and compensate SSA. The 
amount due SSA is calculated by applying SSA's percentage of 
participation in the cost of the original purchase to the proceeds of 
the sale after deduction of any actual and reasonable selling and 
fixing-up expenses. If the grant is still active, the net proceeds from 
sale may be offset against the original cost of the property. When a 
grantee or subgrantee is directed to sell property, sales procedures 
must be followed that provide for competition to the extent practicable 
and result in the highest possible return.
    (3) Transfer of title. Transfer title to SSA or to a third-party 
designated/approved by SSA. The grantee or subgrantee must be paid an 
amount calculated by applying the grantee or subgrantee's percentage of 
participation in the purchase of the real property to the current fair 
market value of the property.