[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR32.32]



[Page 161-162]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  32.32  Real property.



    Each DoD Component that makes awards under which real property is 

acquired in whole or in part with Federal funds shall prescribe 

requirements for recipients concerning the use and disposition of such 

property. Unless otherwise provided by statute, such requirements, at a 

minimum, shall contain the following:

    (a) Title to real property shall vest in the recipient subject to 

the condition that the recipient shall use the real property for the 

authorized purpose of the project as long as it is needed and



[[Page 162]]



shall not encumber the property without approval of the DoD Component.

    (b) The recipient shall obtain written approval by the grants 

officer for the use of real property in other federally sponsored 

projects when the recipient determines that the property is no longer 

needed for the purpose of the original project. Use in other projects 

shall be limited to those under federally sponsored projects (i.e., 

awards) or programs that have purposes consistent with those authorized 

for support by the DoD Component.

    (c) When the real property is no longer needed as provided in 

paragraphs (a) and (b) of this section, the recipient shall request 

disposition instructions from the DoD Component or its successor Federal 

agency. The responsible Federal agency shall observe one or more of the 

following disposition instructions:

    (1) The recipient may be permitted to retain title without further 

obligation to the Federal Government after it compensates the Federal 

Government for that percentage of the current fair market value of the 

property attributable to the Federal participation in the project.

    (2) The recipient may be directed to sell the property under 

guidelines provided by the DoD Component and pay the Federal Government 

for that percentage of the current fair market value of the property 

attributable to the Federal participation in the project (after 

deducting actual and reasonable selling and fix-up expenses, if any, 

from the sales proceeds). When the recipient is authorized or required 

to sell the property, proper sales procedures shall be established that 

provide for competition to the extent practicable and result in the 

highest possible return.

    (3) The recipient may be directed to transfer title to the property 

to the Federal Government or to an eligible third party provided that, 

in such cases, the recipient shall be entitled to compensation for its 

attributable percentage of the current fair market value of the 

property.