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14 CFR Ch. I (1–1–19 Edition) 

§ 151.41 

takeoff of aircraft or is otherwise haz-
ardous to the landing or takeoff of air-
craft. For the purposes of paragraph 
(b)(13) of this section, land acquisition 
includes the acquiring of land that is 
already developed as a private airport 
and the structures, fixtures, and im-
provements that are a part of realty 
(other than hangars, other ineligible 
structures and parts thereof, fixtures, 
and improvements). 

(c) A project for acquiring land that 

has been or will be donated to the spon-
sor is not eligible for inclusion in the 
Federal-aid Airport Program, unless 
the project also includes other items of 
airport development that would require 
a sponsor’s contribution equal to or 
more than the United States share of 
the value of the donated land as ap-
praised by the Administrator. 

[Doc. No. 1329, 27 FR 12351, Dec. 13, 1962, as 
amended by Amdt. 151–8, 30 FR 8040, June 23, 
1965; Amdt. 151–17, 31 FR 16524, Dec. 28, 1966; 
Amdt. 151–37, 35 FR 5112, Mar. 26, 1970; Amdt. 
151–39, 35 FR 5537, Apr. 3, 1970] 

§ 151.41

Project costs. 

(a) For the purposes of subparts B 

and C, project costs consist of any 
costs involved in accomplishing a 
project, including those of— 

(1) Making field surveys; 
(2) Preparing plans and specifica-

tions; 

(3) Accomplishing or procuring the 

accomplishing of the work; 

(4) Supervising and inspecting con-

struction work; 

(5) Acquiring land, or an interest 

therein, or any casement through or 
other interest in airspace; and 

(6) Administrative and other inci-

dental costs incurred specifically in 
connection with accomplishing a 
project, and that would not have other-
wise been incurred. 

(b) The costs described in paragraph 

(a) of this section, including the value 
of land, labor, materials, and equip-
ment donated or loaned to the sponsor 
and appropriated to the project by the 
sponsor, are eligible for consideration 
as to their allowability, except for— 

(1) That part of the cost of rehabilita-

tion or repair for which funds have 
been appropriated under section 17 of 
the Federal Airport Act (49 U.S.C. 
1116); 

(2) That part of the cost of acquiring 

an existing private airport that rep-
resents the cost of acquiring passenger 
automobile parking facilities, build-
ings to be used as hangars, living quar-
ters, or for nonairport purposes, at the 
airport, and those buildings or parts of 
buildings the construction of which is 
not airport development within the 
meaning of § 151.35(a); 

(3) The cost of materials and supplies 

owned by the sponsor or furnished from 
a source of supply owned by the spon-
sor if— 

(i) Those materials and supplies were 

used for airport development before the 
grant agreement was executed; or 

(ii) The cost is not supported by prop-

er evidence of quantity and value; 

(4) The cost of nonexpendable ma-

chinery, tools, or equipment owned by 
the sponsor and used under a project by 
the sponsors force account, except to 
the extent of the fair rental value of 
that machinery, tools, or equipment 
for the period it is used on the project; 

(5) The costs of general area, urban, 

or statewide planning of airports, as 
distinguished from planning a specific 
project; 

(6) The value of any land, including 

improvements, donated to the sponsor 
by another public agency; and 

(7) Any costs incurred in connection 

with raising funds by the sponsor, in-
cluding interest and premium charges 
and administrative expenses involved 
in conducting bond elections and in the 
sale of bonds. 

(c) To be an allowable project cost, 

for the purposes of computing the 
amount of a grant, an item that is paid 
or incurred must, in the opinion of the 
Administrator— 

(1) Have been necessary to accom-

plish airport development in con-
formity with the approved plans and 
specifications for an approved project 
and with the terms of the grant agree-
ment for the project; 

(2) Be reasonable in amount (or be 

subject to partial disallowance under 
section 13(a)(3) of the Federal Airport 
Act (49 U.S.C. 1112(a)(3)); 

(3) Have been incurred after the date 

the grant agreement was executed, ex-
cept that costs of land acquisition, 
field surveys, planning, preparing plans 
and specifications, and administrative 

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