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Property and Equipment

Real Property Acquired With Formula Funds

Block/formula funds cannot be used for land acquisition.

  • Subject to the obligations and conditions in the award, title to real property acquired under an award or subaward upon acquisition settles on you as the recipient, or your subrecipient.
  • You and your subrecipients may use real property acquired, in whole or in part, with Federal funds for the authorized purposes of the original grant or subaward as long as needed for that purpose.
  • Subrecipients should maintain an inventory report which identifies real property acquired, in whole or in part, with block or formula funds.
  • You or your subrecipient should not dispose of or encumber its title or other interests.
  • When your subrecipient determines that real property is no longer needed for the original grant purposes, it should obtain approval for the use of the real property in other projects.
  • Use in other projects should be limited to those under other federally sponsored projects or programs that have purposes consistent with those authorized for support by the State.
  • When the real property is no longer needed as provided above, the subrecipient should request disposition instructions from the State. The State should exercise one of the following:
  • Direct the real property to be transferred to another subrecipient or a criminal justice activity needing the property, provided that use of such real property is consistent with those objectives authorized for support by the State.
  • Return all real property furnished or purchased wholly with Federal funds to the control of the awarding agency.
  • In the case of real property purchased in part with Federal funds, the subrecipient may be permitted to retain title upon compensating the awarding agency for its fair share of the property.
  • To compute the Federal share of the property, apply the percentage of the Federal participation in the total cost of the project for which the property was acquired to the current fair market value of the property.
  • In those instances where the subrecipient does not wish to purchase real property originally purchased in part with Federal funds, disposition instructions should be obtained from the awarding agency.