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14 CFR Ch. I (1–1–24 Edition) 

§ 151.31 

§ 151.31 Procedures: Grant agreement. 

(a) An offer by the Administrator, 

and acceptance by the sponsor, as set 
forth in § 151.29, constitute a grant 
agreement between the sponsor and the 
United States. Except as provided in 
§ 151.41(c)(3), the United States does not 
pay, and is not obligated to pay, any 
part of the project costs that have been 
or may be incurred, before the grant 
agreement is executed. 

(b) The Administrator and the spon-

sor may agree to a change in a grant 
agreement if— 

(1) The change does not increase the 

maximum obligation of the United 
States under the grant agreement by 
more than 10 percent; 

(2) The change provides only for air-

port development that meets the re-
quirements of subparts B and C; and 

(3) The change does not prejudice the 

interests of the United States. 

(c) When a change is agreed to, the 

Administrator issues a supplemental 
agreement incorporating the change. 
The sponsor must accept the supple-
mental agreement in the manner pro-
vided in § 151.29(c). 

[Doc. No. 1329, 27 FR 12351, Dec. 13, 1962, as 
amended by Amdt. 151–8, 30 FR 8040, June 23, 
1965] 

§ 151.33 Cosponsorship and agency. 

(a) Any two or more public agencies 

that desire to participate either in ac-
complishing development under a 
project or in maintaining or operating 
the airport, may cosponsor it if they 
meet the requirements of subparts B 
and C, including— 

(1) The eligibility requirements of 

§ 151.37; and 

(2) The submission of a single project 

application, executed by each sponsor, 
clearly stating the certifications, rep-
resentations, warranties, and obliga-
tions made or assumed by each, or a 
separate application by each that does 
not meet all the requirements of sub-
parts B and C if in the Administrator’s 
opinion, the applications collectively 
meet the requirements of subparts B 
and C as applied to a project with a sin-
gle sponsor. 

(b) A public agency that desires to 

participate in a project only by con-
tributing funds to a sponsor need not 

become a sponsor or an agent of the 
sponsor, as provided in this section. 
However, any funds that it contributes 
are considered as funds of the sponsor 
for the purposes of the Federal Airport 
Act and this part. 

(c) If the sponsors of a joint project 

are not each willing to assume, jointly 
and severally, the obligations that sub-
parts B and C requires a sponsor to as-
sume, they must send a true copy of an 
agreement between them, satisfactory 
to the Administrator, to be incor-
porated into the grant agreement. 
Each agreement must state— 

(1) The responsibilities of each spon-

sor to the others with respect to ac-
complishing the proposed development 
and operating and maintaining the air-
port; 

(2) The obligations that each will as-

sume to the United States; and 

(3) The name of the sponsor or spon-

sors who will accept, receipt for, and 
disburse grant payments. 

If an offer is made to the sponsors of a 
joint project, as provided in § 151.29, it 
contains a specific condition that it is 
made in accordance with the agree-
ment between the sponsors (and the 
agreement is incorporated therein by 
reference) and that, by accepting the 
offer, each sponsor assumes only its re-
spective obligations as set forth in the 
agreement. 

(d) A public agency may, if it is au-

thorized by local law, act as agent of 
the public agency that is to own and 
operate the airport, with or without 
participating financially and without 
becoming a sponsor. The terms and 
conditions of the agency and the 
agent’s authority to act for the sponsor 
must be set forth in an agency agree-
ment that is satisfactory to the Ad-
ministrator. The sponsor must submit 
a true copy of the agreement with the 
project application. Such an agent may 
accept, on behalf of the sponsor, an 
offer made under § 151.29, only if that 
acceptance has been specifically and le-
gally authorized by the sponsor’s gov-
erning body and the authority is spe-
cifically set forth in the agency agree-
ment. 

(e) When the cosponsors of an airport 

are not located in the same area, they 
must submit a joint request to the