When airport owners/ sponsors, planning agencies, or other organizations accept funds from FAA-administered airport financial assistance programs, they enter into a contract which includes certain obligations. These obligations, also called grant assurances, require the recipients of Federal funds to maintain and operate their facilities safely and efficiently and in accordance with the conditions included in the grant assurances. The assurances may be attached to the grant for Federal assistance and become part of the final grant offer or in restrictive covenants to property deeds. The duration of these obligations depends on the type of recipient and the useful life of the facility being developed. Grant Assurances are codified in Title 49 Code of Federal Regulations Section 47107. The airport sponsor is required to abide by the Grant Assurances or face a penalty.
Assurances include provisions that the sponsor certify, that the sponsor will abide by certain Federal legislation, Executive Orders, Federal Regulations, Veteran’s Preference and a number of other more or less administrative items. But more importantly, assurances also include a number of provisions for the actual operation and availability of the airport for public use.
So why should you care about Grant Assurances? Whether an FBO, hangar tenant, tie-down tenant or other user of the airport, Grant Assurances provide a level of protection.
Assurance 20 requires the airport sponsor to remove and mitigate hazards to the terminal airspace of the airport. The sponsor is also required to remove, relocate, mark or otherwise mitigate the obstruction to keep approaches to the airport clear.
Assurance 21 requires the airport sponsor to take whatever action is necessary to ensure that land use at or near the airport is compatible with airport operations.
There are grant assurances dealing with Economic Nondiscrimination (22), Exclusive Rights (23), Fee and Rental Structures (24), Airport Revenue (25), Airport Layout Plans (29) and much more.
Why are these important? If an airport sponsor fails to abide by Federal grant assurances, there are remedies available both to the FAA and to users of the airport to force the airport sponsor to comply. Penalties can be severe.
We’ll explore the provisions of the Part 13 and Part 16 complaint process in a later column. But if you need assistance now, feel free to contact us at 913-498-9393.
