[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR12.12]



[Page 35-36]

 

                           TITLE 34--EDUCATION

 

PART 12_DISPOSAL AND UTILIZATION OF SURPLUS FEDERAL REAL PROPERTY FOR 

EDUCATIONAL PURPOSES--Table of Contents

 

         Subpart C_Conditions Applicable to Transfers or Leases

 

Sec. 12.12  What are the terms and conditions of transfers or leases of 

surplus Federal real property?



    (a) General terms and conditions for transfers and leases. The 

following general terms and conditions apply to transfers and leases of 

surplus Federal real property under this part:

    (1) For the period provided in the transfer or lease instrument, the 

transferee or lessee shall use all of the surplus Federal real property 

it receives solely and continuously for its approved program and plan of 

use, in accordance with the Act and these regulations, except that--

    (i) The transferee or lessee has twelve (12) months from the date of 

transfer to place this surplus Federal real property into use, if the 

Secretary did not, at the time of transfer, approve in writing 

construction of major new facilities or major renovation of the 

property;

    (ii) The transferee or lessee has thirty-six (36) months from the 

date of transfer to place the surplus Federal real property into use, if 

the transferee or lessee proposes construction of major new facilities 

or major renovation of the property and the Secretary approves it in 

writing at the time of transfer; and

    (iii) The Secretary may permit use of the surplus Federal real 

property at any time during the period of restriction by an entity other 

than the transferee or lessee in accordance with Sec. 12.13.

    (2) The transferee or lessee may not modify its approved program and 

plan of use without the prior written consent of the Secretary.

    (3) The transferee or lessee may not sell, lease or sublease, rent, 

mortgage, encumber, or otherwise dispose of all or a portion of the 

surplus Federal real property or any interest therein without the prior 

written consent of the Secretary.

    (4) A transferee or lessee shall pay all administrative costs 

incidental to the transfer or lease including, but not limited to--

    (i) Transfer taxes;

    (ii) Surveys;

    (iii) Appraisals;

    (iv) Inventory costs;

    (v) Legal fees;

    (vi) Title search;

    (vii) Certificate or abstract expenses;

    (viii) Decontamination costs;

    (ix) Moving costs;

    (x) Recordation expenses;

    (xi) Other closing costs; and

    (xii) Service charges, if any, provided for by an agreement between 

the Secretary and the applicable State agency for Federal Property 

Assistance.

    (5) The transferee or lessee shall protect the residual financial 

interest of the United States in the surplus Federal real property by 

insurance or such other means as the Secretary directs.

    (6) The transferee or lessee shall file with the Secretary reports 

on its maintenance and use of the surplus Federal real property and any 

other reports required by the Secretary in accordance with the transfer 

or lease instrument.

    (7) Any other term or condition that the Secretary determines 

appropriate or necessary.

    (b) Additional terms and conditions for on-site transfers. The terms 

and conditions in the transfer, including those in paragraph (a) of this 

section, apply for a period not to exceed thirty (30) years.

    (c) Additional terms and conditions for off-site transfers. (1) The 

terms and conditions in the transfer, including those in paragraph (a) 

of this section, apply for a period equivalent to the estimated economic 

life of the property conveyed for a transfer of off-site surplus Federal 

real property.

    (2) In addition to the terms and conditions contained in paragraph 

(c) of this section, the Secretary may also require the transferee of 

off-site surplus Federal real property--

    (i) To post performance bonds;



[[Page 36]]



    (ii) To post performance guarantee deposits; or

    (iii) To give such other assurances as may be required by the 

Secretary or the holding agency to ensure adequate site clearance.

    (d) Additional terms and conditions for leases. In addition to the 

terms and conditions contained in paragraph (a) of this section, the 

Secretary requires, for leases of surplus Federal real property, that 

all terms and conditions apply to the initial lease agreement, and any 

renewal periods, unless specifically excluded in writing by the 

Secretary.



(Authority: 40 U.S.C. 484(k)(1))



(Approved by the Office of Management and Budget under control number 

1880-0524)