[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1309.10]

[Page 188-190]
 
                        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--
 
                    Subpart B_Application Procedures
 
Sec.  1309.10  Applications for the purchase, construction and major 


renovation of facilities.

    A grantee which proposes to use grant funds to purchase a facility, 
or a grantee found eligible under Sec.  1309.4 to apply for funds to 
construct a facility, or Sec.  1309.5 to undertake major renovation of a 
facility, including facilities purchased for that purpose, must submit a 
written application to the responsible HHS official. The application 
must include the following information:
    (a) A legal description of the site of the facility, and an 
explanation of the appropriateness of the location to the grantee's 
service area, including a statement of the effect that acquisition or 
major renovation of the facility has had or will have on the 
transportation of children to the program, on the grantee's ability to 
collaborate with other child care, early education programs, social 
services and health providers, and on all other program activities and 
services.
    (b) Plans and specifications of the facility to be acquired, 
including information on the size and type of structure, the number and 
a description of the rooms, and the lot on which the building is located 
or will be located (including the space available for a playground and 
for parking). If incidental alterations and renovations or major 
renovations are being proposed to make a facility suitable to carry out 
the Head Start program, a description of the renovations, and the plans 
and specifications submitted, must also describe the facility as it will 
be after renovations are complete. In the case of a proposed major 
renovation or construction project, the applicant must submit a written 
estimate of all costs associated with the project. An architect or 
engineer must prepare the written estimate.
    (c) The cost comparison described in Sec.  1309.11.
    (d) The intended use of the facility proposed for acquisition or 
major renovation, including information showing the percentage of floor 
space that will

[[Page 189]]

be used as a Head Start center or a direct support facility for a Head 
Start program. As provided under section 644(f)(2)(D) of the Act, in the 
case of a request regarding funding for the continuing purchase of a 
facility, the application must include information demonstrating that 
the facility will be used principally as a Head Start center, or a 
direct support facility for a Head Start program.
    (e) An assurance that the facility complies (or will comply when 
constructed or after completion of the renovations described in 
paragraph (b) of this section) with local licensing and code 
requirements, the access requirements of the Americans with Disabilities 
Act (ADA), if applicable, and section 504 of the Rehabilitation Act of 
1973. The grantee will also assure that it has met the requirements of 
the Flood Disaster Protection Act of 1973, if applicable.
    (f) If the grantee proposing to purchase a facility without 
undertaking major renovations is claiming that the lack of alternative 
facilities will prevent or would have prevented operation of the 
program, a statement of how it was determined that there is or was a 
lack of alternative facilities. This statement must be supported, 
whenever possible, by a written statement from a licensed real estate 
professional in the grantee's service area. If a grantee requesting 
approval of the use of Head Start funds to continue purchase of a 
facility is unable to provide such statements based on circumstances 
which existed at the time the purchase began, the grantee and the 
licensed real estate professional may use present conditions as a basis 
for making the determination.
    (g) The terms of any proposed or existing loan(s) related to 
acquisition or major renovation of facility and the repayment plans 
(detailing balloon payments or other unconventional terms, if any), and 
information on all other sources of funding of the acquisition or major 
renovations, including any restrictions or conditions imposed by other 
funding sources.
    (h) A statement of the effect that the acquisition or major 
renovation of the facility would have on the grantee's meeting the non-
Federal share requirement of section 640(b) of the Head Start Act, 
including whether the grantee is seeking a waiver of its non-Federal 
share obligation under that section of the Act.
    (i) Certification by a licensed engineer or architect that the 
building proposed to be purchased or for which Head Start funds will be 
used to continue to purchase is structurally sound and safe for use as a 
Head Start facility. The applicant must certify that, upon completion of 
major renovation to a facility or construction of a facility, that an 
inspection by a licensed engineer or architect will be conducted to 
determine that the facility is structurally sound and safe for use as a 
Head Start facility.
    (j) A statement of the effect that the acquisition or major 
renovation of a facility would have on the grantee's ability to meet the 
limitation on development and administrative costs in section 644(b) of 
the Head Start Act. One-time fees and expenses necessary to the 
acquisition or major renovation, such as the down payment, the cost of 
necessary renovation, loan fees and related expenses, and fees paid to 
attorneys, engineers, and appraisers, are not considered to be 
administrative costs.
    (k) A proposed schedule for acquisition, renovation and occupancy of 
the facility.
    (l) Reasonable assurance that the applicant will obtain, or has 
obtained, a fee simple or such other estate or interest in the site of 
the facility to assure undisturbed use and possession for the purpose of 
operating a Head Start program. A grantee seeking funding for 
acquisition or major renovation of a facility that is sited on land not 
owned by the grantee must establish in its application that there is no 
other feasible alternative to acquisition or leasing of the facility for 
providing a suitable facility appropriate to the needs of the Head Start 
program. If the grantee proposes to acquire a facility without also

[[Page 190]]

purchasing the land on which the facility is or will be situated, the 
application must include a copy of the existing or proposed land lease 
or other document which protects the Federal interest in the facility 
and ensures undisturbed use and possession of the facility by the 
grantee, or other organization designated by ACF, for the purpose of 
operating a Head Start program or other program designated by ACF. A 
grantee applying for funding to make major renovations to a facility it 
does not own must include with its application written permission from 
the owner of the building projected to undergo major renovation and a 
copy of the lease or proposed lease for the facility. A grantee 
receiving funds for acquisition or the major renovation of a facility, 
on land belonging to another party, must have a land lease or other 
similar interest in the underlying land which is long enough to allow 
the Head Start program to receive the full value of those permanent 
grant-supported improvements.
    (m) An assessment of the impact of the proposed project on the human 
environment pursuant to section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and its implementing 
regulations (40 CFR parts 1500 through 1508), as well as a report 
showing the results of tests for environmental hazards present in the 
facility, ground water, and soil (or justification why such testing is 
not necessary). In addition, such information as may be necessary to 
comply with the National Historic Preservation Act of 1966 (16 U.S.C. 
470f) must be included.
    (n) Assurance that the grantee will comply with the requirements of 
the Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended (42 U.S.C. 4601 et seq. and 49 CFR part 24), and 
information about the costs that may be incurred due to compliance with 
this Act.
    (o) A statement of the share of the cost of acquisition or major 
renovation that will be paid with grant funds.
    (p) For a grantee seeking approval of the use of Head Start funds to 
continue purchase of a facility, a statement of the extent to which it 
has attempted to comply and will be able to comply with the provision of 
Sec.  1309.22.
    (q) Such additional information as the responsible HHS official may 
require.

[68 FR 23220, May 1, 2003]