Federal Aviation Administration, DOT
Section 151.31

Section 151.33

Procedures: Grant agreement.

(a) An offer by the Administrator,
and acceptance by the sponsor, as set
forth in Section 151.29, constitute a grant
agreement between the sponsor and the
United States. Except as provided in
Section 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 sponsor 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 airport development that meets the requirements 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 supplemental agreement in the manner provided in Section 151.29(c).
[Doc. No. 1329, 27 FR 12351, Dec. 13, 1962, as
amended by Amdt. 151-8, 30 FR 8040, June 23,
1965]

Section 151.33

Cosponsorship and agency.

(a) Any two or more public agencies
that desire to participate either in accomplishing 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
Section 151.37; and
(2) The submission of a single project
application, executed by each sponsor,
clearly stating the certifications, representations, warranties, and obligations made or assumed by each, or a
separate application by each that does
not meet all the requirements of subparts 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 single sponsor.
(b) A public agency that desires to
participate in a project only by contributing 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 subparts B and C requires a sponsor to assume, they must send a true copy of an
agreement between them, satisfactory
to the Administrator, to be incorporated into the grant agreement.
Each agreement must state - 
(1) The responsibilities of each sponsor to the others with respect to accomplishing the proposed development
and operating and maintaining the airport;
(2) The obligations that each will assume to the United States; and
(3) The name of the sponsor or sponsors who will accept, receipt for, and
disburse grant payments.
If an offer is made to the sponsors of a
joint project, as provided in Section 151.29, it
contains a specific condition that it is
made in accordance with the agreement between the sponsors (and the
agreement is incorporated therein by
reference) and that, by accepting the
offer, each sponsor assumes only its respective obligations as set forth in the
agreement.
(d) A public agency may, if it is authorized 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 agreement that is satisfactory to the Administrator. 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 Section 151.29, only if that
acceptance has been specifically and legally authorized by the sponsor-s governing body and the authority is specifically set forth in the agency agreement.
(e) When the cosponsors of an airport
are not located in the same area, they
must submit a joint request to the

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