(a) Assurances. An applicant for Federal financial assistance for a
program or activity to which this part applies shall submit an
assurance, on a form specified by the Assistant Secretary, that the
program will be operated in compliance with this part. An applicant may
incorporate these assurances by reference in subsequent applications to
the Department.
(b) Duration of obligation. (1) In the case of Federal financial
assistance extended in the form of real property or structures on the
property, the assurance will obligate the recipient or, in the case of a
subsequent transfer, the transferee, for the period during which the
real property or structures are used for the purpose involving the
provision of similar services or benefits.
(2) In the case of Federal financial assistance extended to provide
personal property, the assurance will obligate the recipient for the
period during which it retains ownership or possession of the property.
(3) In all other cases the assurance will obligate the recipient for
the period during which Federal financial assistance is extended or the
federally-funded program is operated, whichever is longer.
(c) Covenants. (1) Where Federal financial assistance is provided in
the form of real property or interest in the property from the
Department, the instrument effecting or recording this transfer shall
contain a covenant running with the land to assure 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.
(2) Where no Federal transfer of property is involved but property
is purchased or improved with Federal financial assistance, the
recipient shall agree to include the covenant described in paragraph
(c)(1) of this section in the instrument effecting or recording any
subsequent transfer of the property.
(3) Where Federal financial assistance is provided in the form of
real property or interest in the property from the Department, the
covenant shall 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. If a transferee of real property proposes
to mortgage or otherwise encumber the real property as security to
finance construction of new, or improvement of existing, facilities on
the property for the purposes for which the property was transferred,
the Assistant Secretary may agree to forbear the exercise of such right
to revert title for so long as the lien of such mortgage or other
encumbrance remains effective. Such an agreement by the Assistant
Secretary may be entered into only upon the request of the transferee
(recipient) if it is necessary to accomplish such financing and upon
such terms and conditions as the Assistant Secretary deems appropriate.
(d) Interagency agreements. Where funds are granted by the
Department to another Federal agency to carry out a program under a law
administered by the Department, and where the grant obligates the
recipient agency to comply with the rules and regulations of the
Department applicable to that grant the provisions of this part shall
apply to programs and activities operated with such funds.
