(a) General. (1) Every application for Federal financial assistance
to carry out a program to which this part applies, and every contract,
subcontact, agreement or arrangement to carry out such program except a
program to which paragraph (b) of this section applies, and every
application for Federal financial assistance to provide a facility, and
every contract, subcontract, agreement or arrangement to provide such a
facility shall as a condition to its approval and the extension of any
Federal financial assistance pursuant to the application, contract,
subcontract, agreement or arrangement contain or be accompanied by an
assurance that the program will be conducted or the facility operated in
compliance with all requirements imposed by or pursuant to this part.
Every program of Federal financial assistance shall require the
submission of such an assurance. In the case where the Federal financial
assistance is to provide or is in the form of personal property, or real
property or interest therein or structures thereon, the assurance shall
obligate the recipient, or, in the case of a subsequent transfer, the
transferee, for the period during which the property is used for a
purpose for which the Federal financial assistance is extended or for
another purpose involving the provision of similar services or benefits,
or for as long as the recipient retains ownership or possession of the
property, whichever is longer. In all cases the assurance shall obligate
the recipient for the period during which Federal financial assistance
is extended to the program. In the case where the assistance is sought
for the construction of a facility or part of a facility, the assurance
shall in any event extend to the entire facility and to facilities
operated in connection therewith. The Secretary shall specify the form
of the foregoing assurances for each program, and the extent to which
like assurances will be required of subgrantees, contractors and
subcontractors, transferees, successors in interest, and other
participants in this program. Any such assurance shall include
provisions which give the United States a right to seek its judicial
enforcement.
(2) In the case where Federal assistance is provided in the form of
a transfer of real property, structures, or improvements thereon, or
interest therein, from the Federal Government, the instrument effecting
or recording the transfer shall contain a covenant running with the land
assuring nondiscrimination for the period during which the real property
is used for a purpose for which the Federal financial assistance is
extended or for another purpose involving the provision of similar
services or benefits. Where no transfer of property or interest therein
from the Federal Government is involved, but property is acquired under
a program of Federal financial assistance, the recipient shall agree to
include such covenant in any subsequent transfer of such property. When
the property is obtained from the Federal Government, such covenant may
also include a condition coupled with a right to be reserved by the
Department to revert title to the property in the event of a breach of
the covenant where, in the discretion of the Secretary, such a condition
and right of reverter is appropriate to the program under which the real
property is obtained and to the nature of the grant and the grantee. In
such event if a transferee of real property proposes to mortgage or
otherwise encumber the real property as security for financing
construction of new, or improvement of existing facilities on such
property for the purpose for which the property was transferred, the
Secretary may agree, upon request of the transferee and if necessary to
accomplish such financing and upon such conditions as he deems
appropriate, to subordinate such rights of reversion to the sum of such
mortgage or other encumbrance.
(b) Continuing State programs. Every application by a State or a
State agency to carry out a program involving continuing federal
financial assistance to which this part applies shall as a condition to
its approval and the extension of any Federal financial assistance
pursuant to the application
(1) Contain or be accompanied by a statement that the program is
(or, in the case of a new program, will be) conducted in compliance with
all requirements imposed by or pursuant to this part, and
(2) Provide or be accompanied by provision for such methods of
administration for the program as are found by the Secretary to give
reasonable guarantee that the applicant and all recipients of Federal
financial assistance under such program will comply with all
requirements imposed by or pursuant to this part.
[38 FR 17957, July 5, 1973]
