N.M. Code R. § 9.2.10.11 - FEDERAL REVERSIONARY INTEREST

A. If within 10 years after acquisition, or within 20 years after completion of construction, of any facility for which Title III funds have been paid, the owner of the facility ceases to be a public or nonprofit private agency or organization, or the facility ceases to be used for the purposes for which it was acquired, the United States shall be entitled to recover from the recipient or other owner of the facility an amount which bears to the then value of the facility (or so much thereof as constituted an approved project or projects) the same ratio as the amount of such federal funds bore to the cost of the facility financed with the aid of such funds. Such value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated.

B. Following a meeting with the recipient, the area agency and the state agency, the state agency shall notify the recipient of the amount due for reversion and the negotiated deadline for reversion.

C. The area agency may, on behalf of the recipient, request a waiver of the federal reversionary interest by providing in writing:

(1) an historical background of the senior center;

(2) a statement of the original grant amounts and total project cost;

(3) the fair market value of the facility; and

(4) a description of the nature of the circumstances leading to the request for a waiver.

D. The state agency shall submit the request for a waiver to the U.S. commissioner and shall notify the area agency and the recipient of the outcome. If the waiver is denied, the state agency shall proceed with procedures to recapture the funds.

Notes

N.M. Code R. § 9.2.10.11

Recompiled 10/01/01