45 CFR § 1303.50 - Third party leases and occupancy arrangements.

---
identifier: "/us/cfr/t45/s1303.50"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 1303.50 - Third party leases and occupancy arrangements."
title_number: 45
title_name: "Public Welfare"
section_number: "1303.50"
section_name: "Third party leases and occupancy arrangements."
chapter_name: "ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "THE ADMINISTRATION FOR CHILDREN AND FAMILIES, HEAD START PROGRAM"
part_number: "1303"
part_name: "FINANCIAL AND ADMINISTRATIVE REQUIREMENTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 9801"
regulatory_source: "81 FR 61412, Sept. 6, 2016, unless otherwise noted."
cfr_part: "1303"
---


# 1303.50 Third party leases and occupancy arrangements.

(a) After November 7, 2016, if a grant recipient receives federal funds to purchase, construct or renovate a facility on real property the grant recipient does not own or to purchase or renovate a modular unit on real property the grant recipient does not own, the grant recipient must have a lease or other occupancy agreement of at least 30 years for purchase or construction of a facility and at least 15 years for a major renovation or placement of a modular unit.

(b) The lease or occupancy agreement must:

(1) Provide for the grant recipient's right of continued use and occupancy of the leased or occupied premises during the entire term of the lease;

(2) Designate the regional grants management officer to receive a copy of any notice of default given to the grant recipient under the terms of the agreement and include the regional grants management officer's current address;

(3) Specify that the responsible HHS official has the right to cure any default under the lease or occupancy agreement within the designated period to cure default; and,

(4) Specify that the responsible HHS official has the right to transfer the lease to another interim or replacement grant recipient.