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agreement has been executed for the par- ticular project involved. d. Interest Acquired. The type of interest ac- quired does not affect the eligibility of relocation costs for reimbursement provided the interest ac- quired is sufficient to cause displacement. In a lease- hold situation, terms of the lease agreement and the legality of occupancy on the property should be considered when determining eligibility for Federal participation. e. Losses Due to Negligence. Losses due to negli- gence of the relocated person, his agent, or em- ployees are not eligible project costs. f. Federal Share. The cost to a Sponsor for pro- viding the payments and services outlined in this circular may be included as part of the cost of an ADAP/FAAP project. The Sponsor is eligible for Federal financial assistance with respect to those costs in accordance with the percentage of the proj- ect costs established by the ADAP (FAAP) grant agreement except that: The Federal share of the cost to a Sponsor of providing payments and assistance under the Uniform Act is 100 percent of the first $25,000 of the cost to the Sponsor of providing payments and assistance for a displaced person under sections 206, 210, 215, and 305 of the Uniform Act on account of any displacement occurring after January 1, 1971, and (1) be- fore July 1, 1972, or (2) after June 30, 1972, on account of an acquisition occurring before July 1, 1972. g. Property Not Incorporated Into the Project Area. If a relocation is made necessary by an acqui- sition for the project, even though the property is not used for actual construction, the costs of relo- cation will be an eligible project cost. h. Advisory Services to Adjacent Property Own- ers. Federal funds are authorized for participation in the cost of furnishing relocation advisory services to any person occupying property immediately ad- jacent to property acquired for a project when the Sponsor, with FAA concurrence, determines that such person is caused substantial economic injury because of the acquisition. i. Fixed Base Operator (FRO). Relocation pay- ments may be allowable project costs when relocat- ing an FBO providing the provisions of subpara- graph d above are met. Determination of an FBO's eligibility to receive relocation payments should be considered on a case -by -case basis because of the complexities involved. 6 7. PROJECT ASSURANCES. a. Present Acquisition. A Sponsor will not be authorized to proceed with any project which will result in the acquisition of real property or the re- location of any person until it has furnished to the appropriate FAA official, satisfactory assurances as contained in appendix 1. These assurances will be submitted with the Preapplication for Federal As- sistance. b. Prior Acquisition. Project assurances are also applicable to that land acquired and to those dis- placements that have occurred prior to a grant agreement and are intended to be a part of such grant. These assurances will be submitted with the Preapplication for Federal Assistance. 8. LAST RESORT HOUSING. If a preliminary housing survey indicates that a sufficient number of comparable decent, safe, and sanitary dwellings are not available for replacement purposes for those persons displaced from an airport project, a "last resort housing" project will be programmed and ap- proved if the construction project is to proceed. A "last resort housing" project will authorize the Sponsor to make housing available through pur- chase and/or construction with the aid of Federal financial assistance. A project of this sort may also be necessary if comparable decent, safe and sani- tary dwellings become unavailable during the ac- quisition and relocation phase of a construction proj- ect. The FAA will provide information on "last re- sort housing" procedures whenever the need arises. 9. RECORDS. The Sponsor will maintain ap- praisal reports, acquisition, relocation and property management records and make them available dur- ing regular business hours for inspection by repre- sentatives of the Department of Transportation and the General Accounting Office who have an inter- est or responsibility in matters relative thereto. The records shall be retained by the Sponsor for at least 3 years after date of submission of the final expendi- ture report. 10. REPORTS. Acquisition, relocation assistance and payment statistics as required by FMC 74-8 will be submitted annually by the Sponsor to the FAA for the period ending June 30 showing the informa- tion requested on the GSA report form (see ap- pendix 2). The reports should be furnished to the appropriate FAA office within 30 days after the end of the fiscal year which the report covers. Ac- curacy of this report is of utmost importance since the report statistics are submitted for congressional review. 11-19 RESERVED. • K •