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 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 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]
