[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1309.23]

[Page 194]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1309_HEAD START FACILITIES PURCHASE, MAJOR RENOVATION AND 
CONSTRUCTION--Table of Contents
 
                Subpart C_Protection of Federal Interest
 
Sec. 1309.23  Insurance, bonding and maintenance.

    (a) At the time of acquiring or undertaking a major renovation of a 
facility or receiving approval for the use of Head Start funds to 
continue purchase the grantee shall obtain insurance coverage for the 
facility which is not lower in value than coverage it has obtained for 
other real property it owns, and which at least meets the requirements 
of the coverage specified in paragraphs (a)(1) and (2) of this section. 
For facilities, which have been constructed or renovated, insurance 
coverage must begin at the commencement of the expenditure of costs in 
fulfillment of construction or renovation work.
    (1) A title insurance policy which insures the fee interest in the 
facility for an amount not less than the full appraised value as 
approved by ACF, or the amount of the purchase price, whichever is 
greater, and which contains an endorsement identifying ACF as a loss 
payee to be reimbursed if the title fails. If no endorsement naming ACF 
as loss payee is made, the grantee is required to pay ACF the title 
insurance proceeds it receives in the event of title failure; and
    (2) A physical destruction insurance policy, including flood 
insurance where appropriate, which insures the full replacement value of 
the facility from risk of partial and total physical destruction. The 
insurance policy is to be maintained for the period of time the facility 
is owned by the grantee.
    (b) The grantee shall submit copies of such insurance policies to 
ACF within five days of acquiring the facility or receiving approval for 
the previous purchase of a facility. If the grantee has not received the 
policies in time to submit copies within this period, it shall submit 
evidence that it has obtained the appropriate insurance policies within 
five days of acquiring the facility or receiving approval for the 
previous purchase of a facility, and it shall submit copies of the 
policies within five days of its receipt of them.
    (c) The grantee must maintain facilities acquired with grant funds 
in a manner consistent with the purposes for which the funds were 
provided and in compliance with State and local government property 
standards and building codes.

[64 FR 5945, Feb. 8, 1999, as amended at 68 FR 23222, May 1, 2003]