[Code of Federal Regulations]

[Title 45 Volume 4]

[Revised as of October 1, 2006]

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]