PRIA, Government Policy, Made Personal

Summary

If a building was built with a federal grant under part A (as it was before October 7, 1998) or part B (as it was before July 23, 1992) and is used as an academic facility for 20 years after construction, the United States counts the public benefit as equal to the grant. That 20-year span is treated as the period the federal government has an interest in the building. If, within those 20 years, the original grantee or its later owner stops being a public or nonprofit institution, or stops using the building as an academic facility (or uses it for a use excluded by the old rules), the government can recover money. The amount recovered is the building’s current value times the share of the cost paid by the federal grant (grant ÷ facility cost). The value is set by agreement or by a U.S. district court where the building is located. No project funded under the old subchapter may be used for religious worship, sectarian activity, or a school or department of divinity.

Title 20, §1011k

Education, Source: USLM XML via OLRC

(a)Public benefit

Congress declares that, if a facility constructed with the aid of a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of such subchapter as part B was in effect prior to July 23, 1992, is used as an academic facility for 20 years following completion of such construction, the public benefit accruing to the United States will equal in value the amount of the grant. The period of 20 years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of such subchapter as so in effect.

(b)Recovery upon cessation of public benefit

If, within 20 years after completion of construction of an academic facility which has been constructed, in part with a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of subchapter VII as such part B was in effect prior to July 23, 1992—

(1)the applicant under such parts as so in effect (or the applicant’s successor in title or possession) ceases or fails to be a public or nonprofit institution; or

(2)the facility ceases to be used as an academic facility, or the facility is used as a facility excluded from the term “academic facility” (as such term was defined under subchapter VII, as so in effect), unless the Secretary determines that there is good cause for releasing the institution from its obligation,

the United States shall be entitled to recover from such applicant (or successor) an amount which bears to the value of the facility at that time (or so much thereof as constituted an approved project or projects) the same ratio as the amount of Federal grant bore to the cost of the facility financed with the aid of such grant. The value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated.

(c)Prohibition on use for religion

Notwithstanding the provisions of subsections (a) and (b), no project assisted with funds under subchapter VII (as in effect prior to October 7, 1998) shall ever be used for religious worship or a sectarian activity or for a school or department of divinity.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Subchapter VII, referred to in text, was amended, effective Oct. 1, 1992, by Pub. L. 102–325, title VII, §§ 703–707(a), July 23, 1992, 106 Stat. 738–753, by amending parts A to C generally, repealing part D, and redesignating former part E as D, and was further amended generally, effective Oct. 1, 1998, by Pub. L. 105–244, title VII, § 701, Oct. 7, 1998, 112 Stat. 1786, by substituting provisions relating to graduate and post-secondary improvement programs for former provisions relating to

Construction

, re

Construction

, and renovation of academic facilities.

Prior Provisions

Provisions similar to this section were contained in section 1132i of this title prior to the general amendment of subchapter VII of this chapter by Pub. L. 105–244. A prior section 122 of Pub. L. 89–329, title I, as added Pub. L. 99–498, title I, § 101, Oct. 17, 1986, 100 Stat. 1286, limited funds authorized to be appropriated and was classified to section 1016a of this title, prior to the general amendment of this subchapter by Pub. L. 102–325.

§1011k Recovery of Payments

Summary

Title 20, §1011k

Notes & Related Subsidiaries

Editorial Notes

References in Text

Construction

Construction

Prior Provisions

Citations & Metadata