[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR74.32]



[Page 115]

 

                           TITLE 34--EDUCATION

 

PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 

HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table 

of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  74.32  Real property.



    The Secretary prescribes requirements for recipients concerning the 

use and disposition of real property acquired in whole or in part under 

awards. Unless otherwise provided by statute, the minimum requirements 

provide the following:

    (a) Title to real property must 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 shall not 

encumber the property without approval of the Secretary.

    (b) The recipient shall obtain written approval by the Secretary 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) that have 

purposes consistent with those authorized for support by the Secretary.

    (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 ED or its successor Federal awarding 

agency. The Secretary observes 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 Secretary 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 must 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. The recipient 

is entitled to compensation for its attributable percentage of the 

current fair market value of the property.



(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)