Grant Assurances

Grant assurances are a method the Federal Aviation Administration (FAA) regulates and controls locally owned airports to ensure a return on their investment. By accepting Federal money, the Airport Sponsor is agreeing to abide by the Grant Assurances for a specified amount of time. The most common funding source that requires accepting the Grant Assurances is the Airport Improvement Program (AIP). The most recent modifications to Grant Assurances were published in the Federal Register.

Grant Assurances are a continuation of the agreements that the US military used to transfer property to local entities after World War II. The agreements were known as AP-4 agreements and contained language that the local entity agreed to support, operate, and maintain the airport as a condition of the property transfer. The concept has morphed into the Grant Assurance program for modern management of the US civil aviation system.

In reality, Grant Assurances are the Federal governments way of ensuring that an Airport Operator maintains the airport in a good and working condition, uses the land to generate revenue to support the airport, keep the airport operating in the interest of the public, and ensure fair and equal access for aviation. Regulatory oversight of Grant Assurances are managed through the FAA Part 13 and Part 16 process.

Grant Assurances:

• Grant Assurance 1 – General Federal Requirements
• Grant Assurance 2 – Responsibility and Authority of the Sponsor
• Grant Assurance 3 – Sponsor Fund Availability
• Grant Assurance 4 – Good Title
• Grant Assurance 5 – Preserving Rights and Powers
• Grant Assurance 6 – Consistency with Local Plans
• Grant Assurance 7 – Consideration of Local Interest
• Grant Assurance 8 – Consultation with Users
• Grant Assurance 9 – Public Hearings
• Grant Assurance 10 – Air and Water Quality Standards
• Grant Assurance 11 – Pavement Preventative Maintenance
• Grant Assurance 12 – Terminal Development Prerequisites
• Grant Assurance 13 – Accounting System, Audit, and Record-Keeping Requirements
• Grant Assurance 14 – Minimum Wage Rules
• Grant Assurance 15 – Veteran’s Preferences
• Grant Assurance 16 – Conformity to Plans and Specifications
• Grant Assurance 17 – Construction Inspection and Approval
• Grant Assurance 18 – Planning Projects
• Grant Assurance 19 – Operation and Maintenance
• Grant Assurance 20 – Hazard Removal and Mitigation
• Grant Assurance 21 – Compatible Land Use
• Grant Assurance 22 – Economic Nondiscrimination
• Grant Assurance 23 – Exclusive Rights
• Grant Assurance 24 – Fee and Rental Structure
• Grant Assurance 25 – Airport Revenues
• Grant Assurance 26 – Reports and Inspections
• Grant Assurance 27 – Use by Government Aircraft
• Grant Assurance 28 – Land for Federal facilities
• Grant Assurance 29 – Airport Layout Plan
• Grant Assurance 30 – Civil Rights
• Grant Assurance 31 – Disposal of Land
• Grant Assurance 32 – Engineering and Design Services
• Grant Assurance 33 – Foreign Market Restrictions
• Grant Assurance 34 – Policies, Standards, and Specifications
• Grant Assurance 35 – Relocation and Real Property Acquisition
• Grant Assurance 36 – Access by Intercity Buses
• Grant Assurance 37 – Disadvantaged Business Enterprises
• Grant Assurance 38 – Hangar Construction
• Grant Assurance 39 – Competitive Access

Airport Compliance Manual (FAA Order 5190.6B)

Application of Grant Assurances

Airport obligations to Grant Assurances include:

• Grant agreements issued under the Federal Airport Act of 1946, the Airport and Airway Development Act of 1970, or the Airport and Airway Improvement Act of 1982.
• Surplus property as guided by the Surplus Property Act of 1944.
• AP-4 agreements from 1939-1944 (some caveats apply)
• Environmental provisions addressed by the FAA in relation to the National Environmental Policy Act of 1969.
• Written agreements between the airport sponsor and the FAA.

Airports Obligated by Grant Assurances

The FAA maintains a list of airports that are obligated to adhere to Grant Assurances. This list is FAA Order 5190.2R, List of Public Airports Affected by Agreements with the Federal Government. The Airport Master Record (FAA 5010 Form) also notes if the airport is obligated.

Airport Noncompliance List

The FAA maintains an Airport Noncompliance List (ANL) for airports with egregious violations of Grant Assurances. Once an airport is on the ANL, they will not receive Federal funding until compliant. There are several way that an airport could find itself on the ANL.

• Title 14 CFR Part 16 formal finding of noncompliance.
• Violations of certain US Code.
• Noncompliance after requests by the FAA to resolve.

Length of Grant Assurance Obligations

The length of time that Grant Assurances apply vary on the type of property or improvement funded.

Infrastucture Development

For improvements such as pavement and facilities, the Grant Assurance will typically apply for 20 years. Equipment that typically has a lifespan of less than 20 years may have a shorter Grant Assurance time requirement. Examples of equipment could be an ARFF vehicle or snow removal equipment.

Land Purchase

If you use AIP funds to purchase property, the Grant Assurance can be assumed to be in perpetuity. Since property can continue to be used, the Grant Assurance assumes that you will continue using the property for aviation purposes. Some early Federal Aid to Airport (FAAP) and Airport Development Aid Program (ADAP) grants did not have this requirement however.

Surplus property deeds and nonsurplus land conveyance

Typically, federal property that was deeded to a local government for the purpose of aviation do not have expirations. The owner of the property shall accept the obligations as part of any transfers. Use caution when considering not applying obligations to federal transfers.

Enforcement Actions

The FAA has a process established for complaints against an airport sponsor. The type of complaint determines the actions taken. Either way, a Title 14 CFR Part 13 or Title 14 CFR Part 16 complain may be initiated against the sponsor. One is informal, the latter formal. The lesser Part 13 complaint can be filed with the Air District Office (ADO), where a formal Part 16 complaint must be filed with the Office of the Chief Counsel of the FAA in Washington, D.C.

Part 13 and Part 16 will be covered more in depth.

Grant Assurances Grouped By Type

• General Requirements
  • Grant Assurance 1 – General Federal Requirements
• Airport Access, Leasing, and User Relations
  • Grant Assurance 22 – Economic Nondiscrimination
  • Grant Assurance 23 – Exclusive Rights
  • Grant Assurance 36 – Access by Intercity Buses
  • Grant Assurance 38 – Hangar Construction
  • Grant Assurance 39 – Competitive Access
• Finance and Revenue
  • Grant Assurance 13 – Accounting System, Audit, and Record-Keeping Requirements
  • Grant Assurance 24 – Fee and Rental Structure
  • Grant Assurance 25 – Airport Revenues
  • Grant Assurance 26 – Reports and Inspections
  • Grant Assurance 33 – Foreign Market Restrictions
• Operations and Safety
  • Grant Assurance 19 – Operation and Maintenance
  • Grant Assurance 20 – Hazard Removal and Mitigation
  • Grant Assurance 21 – Compatible Land Use
  • Grant Assurance 29 – Airport Layout Plan
  • Grant Assurance 30 – Civil Rights
  • Grant Assurance 37 – Disadvantaged Business Enterprises
• Ownership, Control, and Capability
  • Grant Assurance 2 – Responsibility and Authority of Sponsor
  • Grant Assurance 3 – Sponsor Fund Availability
  • Grant Assurance 4 – Good Title
  • Grant Assurance 5 – Preserving Rights and Powers
  • Grant Assurance 31 – Disposal of Land
• Federal Aircraft and Facilities
  • Grant Assurance 27 – Use by Government Aircraft
  • Grant Assurance 28 – Land for Federal Facilities
• Local Involvement
  • Grant Assurance 6 – Consistency with Local Plans
  • Grant Assurance 7 – Consideration of Local Interests
  • Grant Assurance 8 – Consultation with Users
  • Grant Assurance 9 – Public Hearings
  • Grant Assurance 10 – Metropolitan Planning Organization
• Projects
  • Grant Assurance 12 – Terminal Development Prerequisites
  • Grant Assurance 14 – Minimum Wage Rates
  • Grant Assurance 15 – Veteran’s Preference
  • Grant Assurance 16 – Conformity to Plans and Specifications
  • Grant Assurance 17 – Construction Inspection and Approval
  • Grant Assurance 18 – Planning Projects
  • Grant Assurance 32 – Engineering and Design Services
  • Grant Assurance 34 – Policies, Standards, and Specifications
  • Grant Assurance 35 – Relocation and Real Property Acquisition
  • Grant Assurance 37 – Disadvantaged Business Enterprises

This is a summary of the Grant Assurance for basic understanding only. This is not legal advice. Seek legal counsel before entering into any agreement with the FAA for a Grant Assurance.