North American Wetlands Conservation Act and Neotropical Migratory Brid Conservation Act January 2006

Home Browse Search

U.S. GRANT ADMINISTRATION STANDARDS - JANUARY 2006 North American Wetlands Conservation Act and Neotropical Migratory Bird Conservation Act E -4 May the Recipient or subrecipient dispose of supplies and other expendable property purchased with grant or matching funds? If the residual inventory of unused supplies is worth less than $5000, these items belong to the Recipient or subrecipient who may chose how to dispose of them. However, at the termination or completion of the Project, if there is a residual inventory of unused supplies which in aggregate is worth $5,000 or more, and is not needed for any other federally sponsored project or program, the Recipient or subrecipient may either retain the supplies or sell them, but in either case must compensate the Federal government for its share. F. REAL PROPERTY ACQUISITION F -1 What costs of acquiring real property can the Recipient or subrecipient pay with grant or matching funds? Federal grant or matching funds may be used to pay for the following costs of acquiring real property: (a) the market value of the interest in real property; (b) real property valuation, appraisals, appraisal reviews, and relocation expenses (if qualified and required under 49 CFR, part 24); (c) title insurance (types and extent of coverage must be in accordance with sound business practice and the rates and premiums must be reasonable under the circumstances); (d) costs of compliance with the National Environmental Policy Act, the Endangered Species Act, and the National Historic Preservation Act; (e) recording fees, transfer taxes, documentary stamps, evidence of title, boundary surveys, legal descriptions of the real property, and similar expenses incidental to conveying the real property to the Recipient or subrecipient (the Recipient or subrecipient is not required to pay costs solely required to perfect the owner's title to the real property); (f) penalty costs and other charges for prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property; and (g) the pro -rata portion of any prepaid real property taxes which are allocable to the period after the grant Recipient or subrecipient obtains title to the property or effective possession of it, whichever is earlier (taxes for which exemptions are available are unallowable). F -2 When does the Recipient or subrecipient incur the costs of acquiring real property? Costs are incurred at the time of transfer of title. The grantee's contractual obligation to purchase real property does not constitute a cost incurred by the Federal government. A contractual obligation to purchase real property (purchase agreement, etc.) may be made 13