DOL shall prescribe requirements for recipients concerning the use
and disposition of real property acquired in whole or in part under
awards. Unless otherwise provided by statute, such requirements, at a
minimum, shall contain the following:
(a) Title to real property shall vest in the recipient subject to
the condition
that the recipient shall use the real property for the authorized
purpose of the project as long as it is needed and shall not encumber
the property without approval of DOL.
(b) The recipient shall obtain prior written approval from the grant
officer for the use of real property in other federally-sponsored
projects when the recipient determines that the property is no longer
needed for the purpose of the original project. Use in other projects
shall be limited to those under federally-sponsored projects (i.e.,
awards) or programs that have purposes consistent with those authorized
for support by DOL.
(c) When the real property is no longer needed as provided in
paragraphs (a) and (b) of this section, the recipient shall request
disposition instructions from the grant officer. The grant officer shall
issue one or more of the following disposition instructions:
(1) The recipient may be permitted to retain title without further
obligation to the Federal Government after it compensates the Federal
Government for that percentage of the current fair market value of the
property attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the property under
guidelines provided by DOL and pay DOL for that percentage of the
current fair market value of the property attributable to the Federal
participation in the project (after deducting actual and reasonable
selling and fix-up expenses, if any, from the sales proceeds). When the
recipient is authorized or required to sell the property, proper sales
procedures shall be established that provide for competition to the
extent practicable and result in the highest possible return.
(3) The recipient may be directed to transfer title to the property
to the Federal Government or to an eligible third party provided that,
in such cases, the recipient shall be entitled to compensation for its
attributable percentage of the current fair market value of the
property.
