Subpart A—General

Sec.
1309.1 Purpose and application.
1309.2 Approval of the use of Head Start funds to continue purchase of facilities.
1309.3 Definitions.
1309.4 Eligibility—Construction.
1309.5 Eligibility—Major Renovations.

Subpart B—Application Procedures

1309.10 Applications for the purchase, construction and major renovation of facilities.
1309.11 Cost comparison for purchase, construction and major renovation of facilities.
1309.12 Timely decisions.

Subpart C—Protection of Federal Interest

1309.20 Title.
1309.21 Recording of Federal interest and other protection of Federal interest.
1309.22 Rights and responsibilities in the event of grantee’s default on mortgage, or withdrawal or termination.
1309.23 Insurance, bonding, and maintenance.

Subpart D—Modular Units

1309.30 General.
1309.31 Site description.
1309.32 Statement of procurement procedure for modular units.
1309.33 Inspection.
1309.34 Costs of installation of modular unit.

Subpart E—Other Administrative Provisions

1309.40 Copies of documents.
1309.41 Record retention.
1309.42 Audit of mortgage.
1309.43 Use of grant funds to pay fees.
1309.44 Independent analysis.

Subpart F—Construction and Major Renovation

1309.51 Submission of drawings and specifications.
1309.52 Procurement procedures.
1309.53 Inspection of work.
1309.54 Davis-Bacon Act.

AUTHORITY: 42 U.S.C. 9801 et seq.

SOURCE: 64 FR 5945, Feb. 8, 1999, unless otherwise noted.

(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]