(a) Survival of federal interest. A grantee that receives funds under this subpart must file notices of federal interest
as set forth in paragraph (b) of this section. Federal interest cannot be defeated by a grantee's failure to file a notice of federal
(b) Recording notices of federal interest.
(1) If a grantee uses federal funds to purchase real property or a facility, excluding
modular units, appurtenant to real property, it must record a notice of federal interest
in the official real property records for the jurisdiction where the facility is or
will be located. The grantee must file the notice of federal interest as soon as it uses Head Start
funds to either fully or partially purchase a facility or real property where a facility
will be constructed or as soon as it receives permission from the responsible HHS
official to use Head Start funds to continue purchase on a facility.
(2) If a grantee uses federal funds in whole or in part to construct a facility, it must
record the notice of federal interest in the official real property records for the
jurisdiction in which the facility is located as soon as it receives the notice of
award to construct the facility.
(3) If a grantee uses federal funds to renovate a facility that it, or a third party
owns, the grantee must record the notice of federal interest in the official real
property records for the jurisdiction in which the facility is located as soon as
it receives the notice of award to renovate the facility.
(4) If a grantee uses federal funds in whole or in part to purchase a modular unit or
to renovate a modular unit, the grantee must post the notice of federal interest,
in clearly visible locations, on the exterior of the modular unit and inside the modular
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