RD 5002-1 Community Facilities Grant Agreement

Form RD 5002-1
(Rev. 00-00)

FORM APPROVED
OMB No. 0575-NEW

United States Department of Agriculture
Rural Housing Service
COMMUNITY FACILITIES GRANT AGREEMENT

THIS GRANT AGREEMENT (Agreement) dated _______________ , _______, is a contract for
receipt of grant funds under the Community Facility Grant program (7 CFR part 5002). These requirements do
not supersede the applicable requirements for receipt of Federal funds stated in 7 CFR parts 3015, “Uniform
Federal Assistance Regulations,” 3016 “Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments,” or 3019, “Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations.” Further, 7 CFR
part 5002, and all relevant regulatory requirements apply to applicants whether contained in here or not.
BETWEEN ______________________________________________________________________________
a public body, nonprofit corporation, or Indian tribe (Grantee) and the United States of America acting through
the Rural Housing Service (RHS), Department of Agriculture, (Grantor)
WITNESSETH:
All references herein to “Project” refer to a community facility to serve a rural community generally known as
____________________________________________________________________________. The principal
amount of the grant is $______________________________ (Grant Funds) which is ____________________
percent of Project costs.
WHEREAS
Grantee has determined to undertake the acquisition, construction, enlargement, capital improvement, or
purchase of equipment for a project with a total estimated cost of $ _________________________. Grantee
is able to finance and has committed $ ___________________________ of Project costs.
The Grantor has agreed to give the Grantee the Grant Funds, subject to the terms and conditions established
by the Grantor. Provided, however, that any Grant Funds actually advanced and not needed for grant purposes shall be returned immediately to the Grantor. The Grantor may terminate the grant in whole, or in part,
at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with
the conditions of this Agreement or the applicable regulation.
As a condition of this Agreement, the Grantee assures and certifies that it is in compliance with and will comply
in the course of the Agreement with all applicable laws, regulations, Executive Orders, and other generally
applicable requirements, including those contained in 7 CFR § 3015.205(b), which are incorporated into this
agreement by reference, and such other statutory provisions as are specifically contained herein.
NOW, THEREFORE, in consideration of said grant;
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it
displays a valid OMB control number. The valid OMB control number for this information collection is 0575-NEW. The time required to complete this information
collection is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the
data needed, and completing and reviewing the collection of information.

Form RD 5002-1
Page 2
Grantee agrees that Grantee will:
A. Cause said Project to be constructed within the total sums available to it, including Grant Funds, in
accordance with any architectural or engineering reports, and any necessary modifications, prepared by
Grantee and approved by Grantor;
B. Provide periodic reports as required by Grantor and permit periodic inspection of the Project
by
a representative of the Grantor. For grant-only Projects, Form SF-269, “Financial Status Report,” and a
project performance report will be required on a quarterly basis (due 15 working days after each of each
calendar quarter). A final project performance report will be required with the last “Financial Status
Report.” The final report may serve as the last quarterly report. Grantees shall constantly monitor
performance to ensure that time schedules are being met, projected work by time periods is being
accomplished, and other performance objectives are being achieved. The project performance reports
shall include, but not limited to, the following:
1. A comparison of actual accomplishments to the objectives established for that period;
2. Reasons why established objectives were not met;
3. Problems, delays, or adverse conditions which will affect attainment of
overall project
objectives, prevent meeting time schedules or objectives, or preclude the attainment of particular
project work elements during established time periods. This disclosure shall be accomplished by a
statement of the action taken or planned to resolve the situation; and
4. Objectives and timetables established for the next reporting period.
C. Manage, operate, and maintain the facility, including this Project if less than the whole of said facility,
continuously in an efficient and economical manner;
D. Not use grant funds to replace any financial support previously provided or assured from any other
source. The Grantee agrees that the Grantee’s level of expenditure for the Project shall be maintained
and not reduced as a result of Grant Funds;
E. Make the public facility or services available to all persons in Grantee’s service area without discrimination as to race, color, religion, sex, national origin, age, marital status, or physical or mental disability
at reasonable rates, including assessments, taxes, or fees. Grantee may make modifications as long as
they are reasonable and nondiscriminatory;
F. To execute any agreements required by Grantor which Grantee is legally authorized to execute. If
any such agreement has been executed by Grantee as a result of a loan being made to Grantee by
Grantor contemporaneously with the making of this grant, that agreement applies equally to the grant
and another identical agreement need not be executed in connection with this grant;
G. Upon any default under its representations or agreements contained in this instrument, Grantee, at
the option and demand of Grantor, will immediately repay to Grantor the Grant Funds with any legally
permitted interest from the date of the default. Default by the Grantee will constitute termination of the
grant thereby causing cancellation of Federal assistance under the grant. The provisions of this Agreement may be enforced by Grantor, at its option and without regard to prior waivers of previous defaults
by Grantee, by judicial proceedings to require specific performance of the terms of this Agreement or by
such other proceedings in law or equity, in either Federal or State courts, as may be deemed necessary
by Grantor to assure compliance with the provisions of this Agreement and the laws and regulations
under which this grant is made;

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H. Collect race, national origin and color data in accordance with Title VI of the Civil Rights Act of 1964.
I. Comply with Title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973 and
Title IX of the Education Amendments Act.
J. Use the real property including land, improvements, structures, and appurtenances thereto, for
authorized purposes of the grant as long as needed;
1. Title to real property shall vest in the Grantee subject to the condition that the Grantee shall
use the real property for the authorized purpose of the original grant as long as needed.
2. The Grantee shall obtain Grantor’s approval to use the real property in other projects when
the Grantee determines that the property is no longer needed for the original grant purposes.
Use in other projects shall be limited to those under other Federal grant programs or programs
that have purposes consistent with those authorized for support by the Grantor.
3. When the real property is no longer needed, as provided in paragraphs 1 and 2 above, the
Grantee shall request disposition instructions from the Grantor. The Grantor will observe the
following rules in the disposition instructions:
(a) The Grantee may be permitted to retain title after it compensates the Federal government in an amount computed by applying the Federal percentage of participation in the cost
of the original Project to the fair market value of the property;
(b) The Grantee may be directed to sell the property under guidelines provided by the
Grantor and pay the Federal government an amount computed by applying the Federal
percentage of participation in the cost of the original Project to the proceeds from sale (after
deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds). When the Grantee 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;
(c) The Grantee may be directed to transfer title to the property to the Federal government
provided that in such cases the Grantee shall be entitled to compensation computed by
applying the Grantee’s percentage of participation in the cost of the program or Project to the
current fair market value of the property;
This Grant Agreement covers the following described real property (use continuation sheets as necessary).

K. Abide by the following conditions pertaining to equipment which is furnished by the Grantor or acquired
wholly or in part with Grant Funds. Equipment means tangible, non-expendable personal property having
a useful life of more than one year and an acquisition cost of $5,000 or more per unit. A Grantee may use
its own definition of equipment provided that such definition would at least include all equipment as
defined below:

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1. Use of equipment.
(a) The Grantee shall use the equipment in the Project for which it was acquired as long as
needed. When no longer needed for the original project, the Grantee shall use the equipment
in connection with its other federally sponsored activities, if any, in the following order of
priority:
(i) Activities sponsored by the Grantor.
(ii) Activities sponsored by other Federal agencies.
(b) During the time that equipment is held for use on the project for which it was acquired, the
Grantee shall make it available for use on other projects if such other use will not interfere with
the work on the project for which the property was originally acquired. First preference for
such other use shall be given to Grantor sponsored projects. Second preference will be given
to other federally sponsored projects.
2. Disposition of equipment. When the Grantee no longer needs the property as provided in
paragraph 1 (a) and (b) above, the equipment may be sold or used for other activities in accordance with the following standards:
(a) Equipment with a current fair market value of less than $5,000. The Grantee may use
the property for other activities without reimbursement to the Federal government or sell the
property and retain the proceeds.
(b) Equipment with a current fair market value of $5,000 or more. The Grantee may retain
the property for other uses provided that compensation is made to the Grantor. The amount
of compensation shall be computed by applying the percentage of Federal participation in the
cost of the original Project to the current fair market value of the property. If the Grantee has
no need for the equipment and the equipment has further use value, the Grantee shall
request disposition instructions from the Grantor.
(c) The Grantor shall determine whether the equipment can be used to meet RHS or its
successor agency’s requirements. If no such requirements exist, the availability of the
property shall be reported, in accordance with the guidelines of the Federal Property Management Regulations (FPMR), to the General Services Administration by the Grantor to
determine whether a requirement for the equipment exists in other Federal agencies. The
Grantor shall issue instructions to the Grantee no later than 120 days after the Grantee’s
request and the following procedures shall govern:
(i) If so instructed or if disposition instructions are not issued within 120 calendar days
after the Grantee’s request, the Grantee shall sell the equipment and reimburse the
Grantor an amount computed by applying to the sales proceeds the percentage of
Federal participation in the cost of the original project or program. However, the Grantee
shall be permitted to deduct and retain from the Federal share 10 percent of the proceeds or $500, whichever is less, for the Grantee’s selling and handling expenses.
(ii) If the Grantee is instructed to ship the property elsewhere, the Grantee shall be
reimbursed by the benefiting Federal agency with an amount which is computed by
applying the percentage of the Grantee participation in the cost of the original grant
Project or program to the current fair market value of the equipment plus any reasonable
shipping or interim storage costs incurred.

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(iii) If the Grantee is instructed to otherwise dispose of the equipment, the Grantee shall
be reimbursed by the Grantor for such costs incurred in its disposition.
3. The Grantee’s property management standards for equipment shall include:
(a) Property records which accurately provide for: a description of the equipment;
manufacturer’s serial number or other identification number; acquisition date and cost; source of
the equipment; percentage (at the end of budget year) of Federal participation in the cost of the
Project for which the equipment was acquired; location, use, and condition of the equipment
and the date the information was reported; and ultimate disposition data including sales price or
the method used to determine current fair market value if the Grantee reimburses the Grantor for
its share.
(b) A physical inventory of equipment shall be taken and the results reconciled with the
equipment records at least once every two years to verify the existence, current utilization,
and continued need for the equipment.
(c) A control system shall be in effect to ensure adequate safeguards to prevent loss, damage,
or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and
fully documented.
(d) Adequate maintenance procedures shall be implemented to keep the equipment in good
condition.
(e) Proper sales procedures shall be established for unneeded equipment which would provide
for competition to the extent practicable and result in the highest possible return;
This Grant Agreement covers the following described equipment (use continuation sheets as necessary).

L. Provide Financial Management Systems which will include:
1. Accurate, current, and complete disclosure of the financial results of each grant. Financial reporting
will be on an accrual basis.
2. Records which identify adequately the source and application of funds for grant-supported activities. Those records shall contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income.
3. Effective control over and accountability for all funds, property, and other assets. Grantees shall
adequately safeguard all such assets and shall ensure that they are used solely for authorized
purposes.
4. Accounting records supported by source documentation.

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M. Retain financial records, supporting documents, statistical records, and all other records pertinent to
the grant for a period of at least three years after grant closing except that the records shall be retained
beyond the three-year period if audit findings have not been resolved. Microfilm or photo copies or similar
methods may be substituted in lieu of original records. The Grantor and the Comptroller General of the
United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records of the Grantee’s which are pertinent to the specific grant program for the
purpose of making audits, examinations, excerpts, and transcripts;
N. Provide either an audit report, annual financial statements, or other documentation prepared in accordance with Grantor regulations to allow the Grantor to determine that funds have been used in compliance
with the proposal, any applicable laws and regulations, and this Agreement;
O. Agree to account for and to return to Grantor interest earned on grant funds pending their disbursement for program purposes when the Grantee is a unit of local government. States and agencies or an
instrumentality of a State shall not be held accountable for interest earned on Grant Funds pending their
disbursement;
P. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or
acquired wholly or in part with Grantor funds without the written consent of the Grantor except as
provided in item H and I; and
Q. Not duplicate other Project purposes for which monies have been received, are committed, or are
applied to from other sources (public or private).
Grantor Agrees That It:
A. Will make available to Grantee for the purpose of this Agreement not to exceed $__________ which
it will advance to Grantee to meet not to exceed _______ percent of the Project development costs in
accordance with the actual needs of Grantee as determined by Grantor.
B. Will assist Grantee, within available appropriations, with such technical assistance as Grantor deems
appropriate in planning the Project and coordinating the plan with local official comprehensive plans for
essential community facilities and with any State or area plans for the area in which the project is
located.
C. At its sole discretion and at any time may give any consent, deferment, subordination, release,
satisfaction, or termination of any or all of Grantee’s grant obligations, with or without valuable consideration, upon such terms and conditions as Grantor may determine to be (1) advisable to further the
purpose of the grant or to protect Grantor’s financial interest therein and (2) consistent with both the
statutory purposes of the grant and the limitations of the statutory authority under which it is made.
Termination of This Agreement
This Agreement may be terminated for cause in the event of default on the part of the Grantee or for
convenience of the Grantor and Grantee prior to the date of completion of the grant purpose. Termination for
convenience will occur when both the Grantee and Grantor agree that the continuation of the Project will not
produce beneficial results commensurate with the further expenditure of funds.

IN WITNESS WHEREOF, Grantee has this day authorized and caused this Agreement to be executed by
_________________________________________________________________________
and attested with its corporate seal affixed (if applicable) by
_________________________________________________________________________
Attest:
_________________________________________________________________________
By _____________________________________________________________________
(Title) ___________________________________________________________________

UNITED STATES OF AMERICA
RURAL HOUSING SERVICE
By _____________________________________________________________________
(Name)
(Title)