§ 200.311 - Real property.

§ 200.311 Real property.

(a) Title. Subject to the requirements and conditions set forth in this section, title to real property acquired or improved under a the Federal award will vest upon acquisition in the non-Federal entityrecipient or subrecipient.

(b) Use. Except as otherwise provided by Federal statutes or by the Federal awarding agency, real property will must be used for the originally authorized purpose as long as it is needed for that purpose, during which time the non-Federal entity . While the property is being used for the originally authorized purpose, the recipient or subrecipient must not dispose of or encumber its title or other interests except as provided by the Federal agency. Easements for utility, cable, and similar services that benefit the real property and are consistent with the authorized use are not considered an encumbrance.

(c) Appraisals. When an appraisal of real property is required and obtained by the recipient or subrecipient, it must be conducted by an independent appraiser (for example, certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient or subrecipient as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601-4655) except as provided in the implementing regulations at 49 CFR part 24, “Uniform Relocation Assistance And Real Property Acquisition For Federal And Federally-Assisted Programs.”

(d) Disposition. When real property is no longer needed for the originally authorized purpose, the

non-Federal entity

recipient or subrecipient must obtain disposition instructions from the Federal

awarding

agency or pass-through entity. The instructions must

provide for

specify one of the following

alternatives

disposition methods:

(1) Retain title after compensating the Federal

awarding

agency.

The amount paid to the Federal awarding agency will be computed by applying the Federal awarding agency's percentage of participation in the cost of the

When the recipient or subrecipient retains title to the property, it must pay the Federal agency an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase (and costs of any improvements)

to

by the current fair market value of the property. However, in

those

situations where the

non-Federal entity

recipient or subrecipient is disposing of real property acquired or improved with

a

the Federal award and acquiring replacement real property under the same Federal award, the net proceeds from the disposition may be used as an offset to the cost of the replacement property.

(2) Sell the property and compensate the Federal

awarding

agency.

The amount due to the Federal awarding agency will be calculated by applying the Federal awarding agency's percentage of participation in the cost of the

When a recipient or subrecipient sells the property, it must pay the Federal agency an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase (and cost of any improvements)

to

by the proceeds of the sale after

deduction of

deducting any actual and reasonable

selling and fixing-up expenses. If

expenses paid to sell or fix up the property for sale. When the Federal award has not been closed out, the net proceeds from the sale may be offset against the original cost of the property. When

the non-Federal entity is

directed to sell the property,

sales procedures must be followed

the recipient or subrecipient must sell the property utilizing procedures that provide for competition to the extent practicable and that result in the highest possible return.

(3) Transfer title to the Federal

awarding

agency or

to

a third party designated/approved by the Federal

awarding

agency.

The non-Federal entity

When a recipient or subrecipient transfers title to the property to a Federal agency or third party designated or approved by the Federal agency, the recipient or subrecipient is entitled to be paid an amount calculated by

applying the non-Federal entity's

multiplying the percentage of

participation in the

the recipient's or subrecipient's contribution towards the original purchase of the real property (and cost of any improvements)

to

by the current fair market value of the property.