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19. Complying with Federal Grant Assurances
general
Key Po i nt
Airport sponsors must make certain assurances to the federal government when federal grant funds are received. These
assurances are part of the contract between the FAA and the airport sponsor and are based on federal law.
The airport owner agrees to accept certain obligations in exchange for federal money or land. Airport owners risk loss
of future federal funds and civil action if they fail to comply with these obligations.
The Airport
D i s cu s s i on
Typical federal grant agreements contain over 30 assurances. Below are a few of the more important ones that relate
to the use, operation, and maintenance of the airport. These remain in effect throughout the useful life of the facilities,
normally 20 years. Obligations related to the funding of land acquisition remain in force in perpetuity. See Issue Paper
14 Financial: Funding Capital Improvements for more information about how to get grant funds and what kinds of
projects are eligible. These grant assurances are found within the specific grant agreements retained in the airport office
and the local FAA office that administers the grants.
Exclusive Rights Prohibition. Do not grant or permit any exclusive right to conduct any aeronautical activity at the
airport, such as sale of aviation fuel, air taxi and charter operations, aircraft storage, etc. However, the airport sponsor as
airport owner may provide these activities exclusively.
Maintenance of the Airport. Preserve and maintain the airport in a safe and serviceable condition.
F INAN C IAL
Operation of the Airport. Operate the airport in a safe manner and for the benefit of the public.
Protection of Approaches. Prevent the growth or establishment of obstructions (e.g., trees, cell towers, buildings, etc.)
to the aircraft approaches to the extent reasonably possible (see Issue Paper #11 The Airport: Protecting and Preserving
the Airport and Its Environs).
Part 77 Clearance Slope
Tree obstructions to be removed
rules
Runway
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Compatible Land Use. Take appropriate action, to the greatest extent possible, to restrict the use of lands in the vicinity of
the airport to activities and purposes that are compatible with normal aeronautical operations (see Issue Paper #11 The
GENERAL
Airport: Protecting and Preserving the Airport and Its Environs).
Availability on Fair and Reasonable Terms. Operate the airport for the use and benefit of the public and make it available
to all types, kinds, and classes of aeronautical activity on fair and reasonable terms and without unjust discrimination (see
Issue Paper #18 Rules: What's Expected of Airport Tenants and Users).
Adherence to the ALP. Develop, operate, and maintain the airport in accordance with the latest approved ALP (see Issue
Paper 10 The Airport: Planning and Developing Your Airport). In addition, airport land shown on the latest property
map (referred to by FAA as an "Exhibit A" property Map) cannot be disposed of or encumbered without prior FAA
approval.
Use of Airport Revenue. Use all airport revenues for the capital or operating costs of the airport. If the airport is owned
by a municipal agency instead of an authority, separate accounts are required for audit purposes (see Issue Paper 17
Financial: Use of Airport Revenue for a more complete discussion of this important grant assurance).
THE AIRPORT
Fee and Rental Structure. Maintain a fee and rental structure for airport facilities and services to make the airport as
self-sustaining as possible. This must be fair market value for non-aeronautical activities.
Pavement Preventive Maintenance. Implement a proactive and responsible pavement maintenancemanagement
program to maximize the useful life of all federally funded airfield pavement areas. These programs ensure maximum life
expectancy for pavements so scarce dollars can be effectively utilized.
App l i c at i o n
Become familiar with the formal grant assurances with which airport sponsors agree to comply when accepting
federal grant funds. Your airport manager or the FAA Airports District Office can provide the full text of the
current assurances. They also can be found in the AIP Handbook, Order 5100.38.
FINANCIAL
Anticipate from time to time having to say "no" to proposals that conflict with the grant assurances. Examples:
»» Spending airport revenue to help build or operate the city's animal control facility;
»» Giving a local businessperson exclusive right to sell fuel at the airport;
»» Deeding airport land over to a third party without FAA approval;
»» Deeding airport land to a furniture company and not receiving fair market value.
RULES
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