Using HEERF (a)(2) Grant Funds for Construction, Renovation, and Real Property Projects Frequently Asked Questions
Summary
A frequently asked questions document on using Higher Education Emergency Relief Fund (a)(2) grant funds for construction, renovation and real property projects, published May 23, 2022. It explains that the Consolidated Appropriations Act, 2022 (Pub. L. 117-103), signed March 15, 2022, allows (a)(2) grantees to use funds toward construction and real property to prevent, prepare for, and respond to coronavirus after receiving approval from the Department. The (a)(2) programs are those for HBCUs, TCCUs, MSIs and the Strengthening Institutions Program. The flexibility covers funds under the CARES Act, CRRSAA and the American Rescue Plan, but not the (a)(1) Student Portion, Institutional Portion, (a)(3) or (a)(4) funds. The document is organized into general, timing, allowability and grant administration questions.
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“Using HEERF (a)(2) Grant Funds for Construction, Renovation, and Real Property Projects Frequently Asked Questions.”
Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-education-heerf-a-2-faqs-www-ed-gov-52a803f457-887d348573/
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Higher Education Emergency Relief Fund (HEERF)
Using HEERF (a)(2) Grant Funds for Construction, Renovation, and Real
Property Projects 1
Frequently Asked Questions (FAQs)
Published May 23, 2022
1
Other than statutory and regulatory requirements included in the document, the contents of this guidance do
not have the force and effect of law and are not meant to bind the public. This document is intended only to
provide clarity to the public regarding existing requirements under the law or agency policies.
Table of Contents
A. General Questions …………………………………………………………………………… 3
B. Timing Questions …………………………………………………………………………….. 6
C. Allowability Questions ……………………………………………………………………….. 7
D. Grant Administration Questions ……………………………………………………………... 9
2
The following FAQs describe the new flexibilities and requirements related to the use of HEERF
(a)(2) grant funds for construction, renovation, and real property projects in the Consolidated
Appropriations Act, 2022 (Pub. L. 117-103), signed by the President on March 15, 2022. The
Act included language intended to allow HEERF (a)(2) grant recipients to use (a)(2) funds
toward construction and the acquisition of real property to prevent, prepare for, and respond to
coronavirus.
A. General Questions
1. Question: What entities can now use their remaining HEERF grant funds for
construction, renovation, and real property projects?
Answer: After receiving approval for a project from the Department, grantees that have
received grant funds under one or more of the HEERF (a)(2) programs may now use
those funds for construction, renovation, and purchasing of real property to “prevent,
prepare for, and respond to coronavirus.” HEERF (a)(2) includes the following programs:
• Historically Black Colleges and Universities (HBCUs) (ALN 84.425J)
• Tribally Controlled Colleges and Universities (TCCUs) (ALN 84.425K)
• Minority Serving Institutions (MSIs) (ALN 84.425L)
• Strengthening Institutions Program (SIPs) (ALN 84.425M)
For details on receiving project approval, see Question 4.
2. Question: Which HEERF grant funds can those grantees use for construction,
renovation, and purchasing of real property that is meant to “prevent, prepare for, and
respond to coronavirus?”
Answer: This flexibility extends to all HEERF (a)(2) grant funds received under all three
HEERF laws, namely, the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act) (Pub. L. 116–136), the Coronavirus Response and Relief Supplemental
Appropriations Act, 2021 (CRRSAA) (Pub. L. 116-260), and the American Rescue Plan
Act of 2021 (ARP) (Pub. L. 117-2).
The new flexibility does not allow an institution to use its HEERF (a)(1) Student Portion,
(a)(1) Institutional Portion, (a)(3), 2 or (a)(4) grant funds on construction, renovation, or
real property projects. HEERF (a)(3) funds that may not be used for construction,
renovation, or real property projects include awards made under the SAIHE and SSARP
programs that were awarded to make up for a shortfall of HEERF (a)(2) grant funding.
However, as detailed in previous guidance, institutions can use the (a)(1) Institutional
Portion and (a)(3) grant funds on projects characterized as “minor remodeling,” like the
2
HEERF (a)(3) grant programs include the Institutional Resilience and Expanded Postsecondary Opportunity
(IREPO) program (ALN 84.425P), the Supplemental Assistance to Institutions of Higher Education (SAIHE)
program (ALN 84.425S), and the Supplemental Support under American Rescue Plan (SSARP) program (ALN
84.425T).
3
installation or renovation of an HVAC system. For more information regarding minor
remodeling, see Question 24 of the ARP HEERF III FAQs.
3. Question: What sort of construction or renovation projects can now be supported with
HEERF (a)(2) grant funds?
Answer: Generally, any construction or renovation project must be connected to the
purpose of the HEERF program, which is to “prevent, prepare for, and respond to
coronavirus.” This could include, but is not limited to, the following types of construction
projects:
• Dorm facility expansion or remodeling (including constructing smaller/individual
housing units) for increased social distancing
• Classroom expansion or remodeling for increased social distancing
• Constructing or expanding student support services for childcare based on
increased need as a result of the pandemic
• Remodeling campus buildings to improve ventilation and social distancing
• Constructing new buildings where pre-existing buildings cannot be structurally
remodeled to improve ventilation and social distancing
• Constructing new or renovating old space for COVID-19 vaccination/testing
site(s)
• Constructing new or renovating old space for campus-based food pantries based
on increased need as a result of the pandemic
• Constructing permanent modular buildings for increased social distancing
In proposing a construction or renovation project to help “prevent, prepare for, and respond
to coronavirus,” an institution’s proposal does not need to match the current public health
recommendations of the geographic area of the construction or renovation project but should
focus on well-established procedures and design considerations to reduce the spread of
COVID-19.
4. Question: What do institutions need to do to take advantage of this flexibility?
Answer: HEERF (a)(2) institutions wishing to use their (a)(2) funds for construction,
renovations, and real property projects must receive approval from the Department prior
to beginning their construction, renovation, or real property projects.
As described in our instructions here, institutions must submit the following
documentation to their HEERF Department of Education program contact:
a. HEERF (a)(2) Prior Approval Request Form;
b. OMB Standard Form (SF) 424D Assurances for Construction Programs form; and
c. ED 524 Form
Please refer to the instructions for information on when and how to complete the HEERF
(a)(2) Prior Approval Request.
4
Please note that prior approval is not needed for projects characterized as “minor
remodeling,” such as the installation or renovation of an HVAC system. For more
information regarding minor remodeling, see Question 24 of the ARP HEERF III FAQs.
5. Question: When does a construction or renovation project help “prevent, prepare for, and
respond to coronavirus”?
Answer: In general, construction or renovation projects that address a student or
institutional need that has arisen in whole or part as a result of the coronavirus, such as
those that are geared toward improving ventilation or allowing for greater physical
distancing, will be allowable uses of HEERF (a)(2) grant funds. However, whether a
construction or renovation project would help prevent, prepare for, or respond to the
coronavirus will be determined based on the needs of individual institutions.
In submitting a proposal to the Department for a construction, renovation, or real
property project, institutions must describe how the proposed project is connected to
preventing, preparing for, or responding to coronavirus.
6. Question: Are there limits on the sort of construction, renovation, and real property
projects HEERF (a)(2) grant funds can now support?
Answer: Yes. As before with other types of expenditures in the HEERF program,
projects cannot support work on facilities related to athletics, sectarian instruction,
religious worship, or marketing and recruitment. This is described in more detail in
Section C, Questions 13-17.
7. Question: May institutions purchase real property with HEERF (a)(2) grant funds?
Answer: Yes. Institutions may purchase real property with HEERF (a)(2) funds in order
to respond to pandemic-related needs for additional real estate, including to support
construction or renovation projects described under Question 3.
However, institutions may not use HEERF (a)(2) grant funds just for purchasing land
when there are no immediate plans to acquire, renovate, or construct a building on that
land, because the purchase of land alone will not generally help an institution or its
students prevent, prepare for, or respond to coronavirus.
Institutions choosing to purchase real property must comply with the Uniform
Guidance’s Real Property regulations in 2 CFR §§ 200.310 – 200.312 and 200.330, and
the assurances contained in the OMB SF-424D form. These requirements are described in
more detail in Question 19.
8. Question: What are the regulatory requirements that institutions must follow when
beginning a construction, renovation, or real property project supported by HEERF (a)(2)
grant funds?
5
Answer: Generally, HEERF grantees must follow all the usual Federal requirements
when supporting their construction or real property projects with HEERF (a)(2) grant
funds. These requirements include the following:
a. Meet the overall purpose of the HEERF program, which is “to prevent, prepare
for, and respond to” coronavirus (see also Question 5);
b. Comply with the Cost Principles in 2 CFR part 200, subpart E of the Uniform
Guidance (e.g., the cost must be “necessary and reasonable”);
c. Comply with the Uniform Guidance’s requirements Procurement Standards in 2
CFR §§ 200.317-200.327 (see also Question 20) and Property Standards in 2 CFR
§§ 200.310 – 200.312 and 200.330 (see also Question 19);
d. Comply with the Davis-Bacon Act prevailing wage requirements (see also
Question 21);
e. Comply with the Copland Act anti-kickback requirements;
f. As applicable, comply with the Department’s regulations regarding construction
at 34 CFR §§ 75.600-75.617 (see also Question 18); and
g. Properly report construction, renovation, and real property expenditures on the
HEERF quarterly and annual reports (see also Question 26).
B. Timing Questions
9. Question: How long do institutions have to complete a construction, renovation, or real
property project?
Answer: Generally, construction or real property projects must be completed during the
HEERF (a)(2) grant performance period. Current HEERF grant performance periods for
all grantees, including HEERF (a)(2) grants, are set to expire through June 30, 2023. 3 All
HEERF grantees are eligible to receive a no-cost extension (NCE) for one additional year
through June 30, 2024.
Institutions must provide information on their expected timeline to complete proposed
projects on the HEERF (a)(2) Prior Approval Request Form. Projects approved with a
timeline from the institution that extends beyond June 30, 2023, will be granted an
extension of their HEERF (a)(2) performance period solely for the purposes of
completing their approved construction, renovation, or real property project, as
appropriate.
10. Question: May an institution use HEERF (a)(2) grants as reimbursement for
construction, renovations, or real property expenditures that occurred prior to March 15,
2022?
Answer: No. Grantees may only use HEERF (a)(2) grants for permissible construction,
renovation or real property expenditures that occurred on or after March 15, 2022, the
date of the passage of the Consolidated Appropriations Act, 2022.
3
The Department announced this new flexibility on April 4, 2022, in a notice published in the Federal Register
available at https://www.federalregister.gov/d/2022-07053 (87 FR 19496).
6
11. Question: May an institution incur pre-approval costs prior to seeking approval of a
construction, renovation, or real property project from the Department?
Answer: Yes. Institutions may incur reasonable and necessary pre-planning costs on or
after March 15, 2022 as they develop their construction, renovation, and real property
projects prior to receiving approval from the Department. This could include costs for
hiring an architect, receiving an appraisal, or developing a proposal that is submitted to
the Department.
However, as with any grant, pre-approval costs incurred for projects are at the grantees
own risk and are not considered an allowable cost if a form of the project is ultimately
not approved. Additionally, under 34 CFR § 75.605(b), institutions may not begin
contractual bidding or actual construction or renovation prior to the Department’s
approval. More information about the approval process is described in Question .
12. Question: If my institution has existing plans to construct or renovate a building, but has
not begun the project, can it be supported using HEERF (a)(2) grants?
Answer: It depends. Buildings that were planned—but had not begun construction—
prior to this new flexibility for HEERF (a)(2) grants that will be utilized to prevent,
prepare for, or respond to the coronavirus may be eligible. This may include construction
or renovation projects that were previously included in an institution’s strategic plan or
were previously contemplated prior to the beginning of the pandemic but did not begin
construction.
In submitting a proposal to the Department for a previously planned construction or
renovation project, institutions must describe how the proposed project is connected to
preventing, preparing for, or responding to the coronavirus. Additionally, if the existing
proposal now has outdated cost estimates due to more recent cost increases, those cost
increases, along with the original estimated costs, can be supported using HEERF (a)(2)
grants. That is, any existing proposal that has not begun construction will be reviewed
and can be supported in the same way a new construction or renovation project will be
reviewed and can be supported using HEERF (a)(2) grants.
Institutions with existing proposals may incur reasonable and necessary pre-planning
costs from March 15, 2022 onward to update their existing project plans prior to
receiving approval from the Department (see also Question 11).
However, if an institution has recently constructed or renovated a building, or begun
contractual bidding or actual construction or renovation, that building will not be
supportable using HEERF (a)(2) grants because the project did not receive the prior
approval of the Department under 34 CFR § 75.605(b).
C. Allowability Questions
13. Question: May HEERF (a)(2) grants support construction, renovation, or real property
projects that support facilities associated with athletics, sectarian instruction, religious
worship, or marketing and recruitment?
7
Answer: No. Institutions cannot use HEERF grants to support facilities associated with
athletics, sectarian instruction, religious worship, or marketing and recruitment. This
includes, for athletic facilities, for example, swimming pools, tennis courts, and rock-
climbing walls. However, institutions may use non-HEERF grants to support those
portions of the construction that would be otherwise unallowable using HEERF (a)(2)
grants.
If institutions plan to include athletic, sectarian instruction, religious worship, or
marketing and recruitment spaces as a portion of their overall HEERF-supported
construction project, they should separately account for the costs of building or
renovating those spaces and carefully document how the institution calculated the portion
of costs attributable to the construction that cannot be supported by HEERF grants.
One way an institution might calculate unallowable costs is to determine the square
footage of the unallowable construction and subtract the costs of constructing that square
footage from the total square footage of the proposed construction or renovation project.
14. Question: May an institution include a wellness or meditative space for students in a
proposed construction project?
Answer: Yes, if the project addresses needs that have arisen in response to the pandemic,
such as addressing mental health.
15. Question: May an institution use HEERF (a)(2) grants to build a student gym in a new
dorm?
Answer: No. A student gym is a “facility associated with athletics” and cannot be
supported using HEERF (a)(2) grants. However, as described in Question 14, institutions
may separately account for the costs of building or renovating spaces that are an
unallowable use of HEERF (a)(2) grants.
16. Question: May an institution use HEERF (a)(2) grants on deferred maintenance projects,
such as repairs to campus buildings?
Answer: Yes. Institutions may use their HEERF (a)(2) grants on deferred maintenance
projects, provided that the deferred maintenance will help the institution to prevent,
prepare for, or respond to coronavirus.
If, for example, a building needed a new sewer system prior to the pandemic and the
institution would like to use the building to support the institution in prevent, preparing
for, or responding to coronavirus,HEERF (a)(2) grants would support the replacement of
the entire system so that the building would be fully functional and therefore support the
institutions use for the intended purpose..
In submitting a proposal to the Department for their deferred maintenance projects,
institutions must describe how the proposed project is connected to preventing, preparing
for, or responding to coronavirus.
8
17. Question: May an institution use HEERF (a)(2) grant funds to support the development
of broadband or Wi-Fi infrastructure?
Answer: Yes. Institutions may want to build broadband or Wi-Fi infrastructure as part of
their response to preventing, preparing for, or responding to coronavirus. Institutions can
use their HEERF (a)(2) grants to support these kinds of construction projects including,
for example, construction of a broadband tower or renovating classrooms to incorporate
smart classroom technology.
D. Grant Administration Questions
18. Question: What are the Department’s regulations regarding construction or renovation
projects under 34 CFR §§ 75.600-75.617 that apply to HEERF (a)(2) grants?
Answer: Generally, grantees proposing construction or renovation projects must do the
following under the Department’s construction regulations in 34 CFR §§ 75.600-75.617:
a. As applicable, develop an environmental impact assessment (34 CFR § 75.601
and Question 22);
b. As applicable, describe any impact or involvement with a building listed on the
National Register of Historic Places or eligible under criteria established by the
Secretary of Interior for inclusion in the National Register of Historic Places (34
CFR § 75.602);
c. In purchasing real property, obtain a full title or interest to the site sufficient to
ensure the grantee’s undisturbed use and possession of the facilities for 50 years
or the useful life of the facilities, whichever is longer (34 CFR § 75.603, and
Question 19);
d. Ensure any construction is functional, economical, and not elaborate in design or
extravagant in the use of materials (34 CFR § 75.607);
e. Comply with Federal, State, and local safety and health standards (34 CFR §
75.609);
f. Comply with access for individuals with disabilities (34 CFR § 75.610);
g. To the extent feasible, design and construct facilities to maximize the efficient use
of energy by using current ASHRAE standards (34 CFR § 75.616 and Question
23); and
h. As applicable, comply with the Coastal Barrier Resources Act and avoid flood
hazards (34 CFR §§ 75.611 and 75.617).
19. Question: What are the regulations and requirements concerning real property projects
that apply to HEERF (a)(2) grants?
Answer: Generally, grantees proposing to use HEERF (a)(2) grants to purchase real
property projects must comply with the following:
a. The Uniform Guidance’s Real Property regulations in 2 CFR §§ 200.310 –
200.312 and 200.330 which describe requirements concerning the insurance, title,
9
use, annual reporting, and disposition of real property acquired using Federal
grant funds; 4
b. The assurances contained in the OMB SF-424D form, which require a grantee to
(i) seek approval of the Department prior to disposing of, modifying the use of, or
changing the terms of the real property title, (ii) record the Federal interest in the
title of real property, and (iii) include a covenant in the title of real property to
ensure nondiscrimination during the useful life of the project; and
c. If constructing or renovating the property, the Department’s property regulation at
34 CFR § 75.603, which requires a grantee to obtain a full title or other interest in
the site, including right of access, that is sufficient to ensure the grantee's
undisturbed use and possession of the facilities for 50 years or the useful life of
the facilities, whichever is longer.
20. Question: Are institutions required to follow competitive procurement for construction
and renovation projects supported by HEERF (a)(2) grants?
Answer: Yes. Specifically for construction and renovation projects, institutions must
have competitive procurement policies in place prior to commencement of the
construction or renovation project. These policies must follow the Uniform Guidance
under 2 CFR §§ 200.317-200.327 and institutions must incorporate the contract
provisions described under Appendix II to Part 200 - Contract Provisions for Non-Federal
Entity Contracts Under Federal Awards.
21. Question: What is the Davis-Bacon Act and where can an institution go to learn more
about complying with the requirements of the law?
Answer: The Davis-Bacon Act, along with the Department’s related act, 5 are a series of
laws that require contractors and subcontractors working on federally assisted
construction and minor remodeling projects over $2,000 to (a) pay their laborers and
mechanics at least prevailing local wages and (b) include language in their contracts that
all contractors or subcontractors must pay wages that are not less than the prevailing local
wages established for the locality of the project. Generally, the Davis-Bacon Act is
considered the floor for the required level of wages and State and local jurisdictions may
require higher standards for wages.
Recently, the U.S. Department of Labor announced a series of prevailing wage
compliance seminars for Federal contractors, contracting agencies, unions, workers, and
other stakeholders. More information regarding those upcoming seminars is available
here.
4
Please note that under 2 CFR § 200.311(c), an institution must compensate the Department if it later decides to
sell the property acquired in whole or in part using HEERF grant funds or if real property is no longer needed
for the originally authorized purpose.
5
Pursuant to the Department’s related act under Section 439 of the General Education Provisions Act (GEPA)
(20 USC 1232b), the Davis-Bacon Act applies to all laborers and mechanics employed by contractors or
subcontractors on all construction and minor remodeling projects over $2,000 supported by applicable
Department programs, which includes HEERF.
10
22. Question: Is an institution required to do an environmental impact assessment under 34
CFR § 75.601 and the National Environmental Policy Act (NEPA) for a construction,
renovation, or real property project supported by HEERF (a)(2) grants?
Answer: No. The Department does not exercise control over the use of the funds for any
individual project as long as the project continues to meet all statutory and other
applicable requirements (such as the Uniform Guidance and the Department’s
administrative regulations). As a result, construction, renovation, or real property projects
supported by HEERF (a)(2) grants are not considered a “major Federal action” under
NEPA and are not subject to 34 CFR § 75.601.
While NEPA does not apply, the Department strongly encourages grantees to require
some type of environmental assessment for projects that involve breaking new ground,
such as projects to expand the size of an existing building or replace an outdated building.
This may already be required by State law and would help to assess any potential
environmental ramifications of expanding or replacing institution buildings.
23. Question: How can an institution maximize the environmental sustainability of any
renovations or construction supported by HEERF (a)(2) grants?
Answer: To the extent feasible, grantees should follow the current standards of the
American Society of Heating, Refrigerating, and Air-Conditioning Engineers
(ASHRAE), incorporated by reference in 34 CFR § 75.616, to support energy
conservation in their construction or renovation projects.
Additionally, grantees should consider relevant green building guidance, benchmarking,
specifications, and rating systems that lead to a positive impact on health and the
environment.
24. Question: May an institution pool funds from other sources to support a HEERF
construction, renovation, or real property project?
Answer: Yes. In some cases, it may be necessary to pool funds from other sources in
order to complete the construction, renovation, or real property project. Institutions may
use non-HEERF grants to do so, provided that the overall project complies with the
requirements that apply to using HEERF grants (e.g., your institution is not developing an
impermissible building such as a new athletic facility) and will result in a completed
project (e.g., not result in only a half-completed building).
Please note that the use of other Federal funds to support a HEERF (a)(2) construction,
renovation, or real property project must meet all applicable requirements that apply to
the use and expenditure of those Federal funds, including, if applicable, the requirements
for expenditures under Titles III and V of the Higher Education Act of 1965, as amended
(HEA).
25. Question: May an institution repurpose previously spent HEERF (a)(2) grants to unspent
(a)(1) Institutional Portion grant funds to allow for additional spending under (a)(2)
toward construction, renovation, or real property?
11
Answer: Yes. Beginning on or after March 15, 2022, institutions may repurpose
previously spent (a)(2) grant funds to unobligated (a)(1) institutional grant funds to
maximize the amount of HEERF grants available for construction, renovation, or real
property projects. If an institution takes advantage of this flexibility, it must:
a. Ensure the period of performance for all applicable HEERF grants is still open;
b. Update all HEERF annual and quarterly performance reporting, including
amending previously submitted and posted reports, to accurately reflect the
institution’s grant expenditures after the repurposing of (a)(2) funds; and
c. If the decision to repurpose funds is made subsequent to the issuance of the single
audit that covered the previously spent HEERF (a)(2) grants, consult with the
auditor to determine whether an error correction or prior period adjustment to the
Schedule of Expenditures of Federal Awards (SEFA) is warranted under
Generally Accepted Accounting Principles (GAAP). 6
For example, if an institution had a total HEERF (a)(2) grant award of $300,000 and
previously spent $100,000 of these funds to discharge student debt as lost revenue, it
currently has $200,000 left over in (a)(2) grant funds available for construction,
renovation, or the purchase of real property. However, if the institution has $100,000 in
unobligated HEERF (a)(1) Institutional Portion grant funds, it can now, consistent with
the above, repurpose the previously spent $100,000 in (a)(2) grant funds as an allowable
expense under the institution’s HEERF (a)(1) award. The institution would now have a
total of $300,000 in (a)(2) grant funds that could be used to cover construction,
renovation or real property costs, and the amount of the institution’s (a)(1) Institutional
Portion grant funds would be diminished by $100,000.
26. Question: How does an institution report construction or real property expenditures on
the quarterly and annual HEERF reports?
Answer: Expenditures for construction, renovation, or real property must be reported on
the 2022 HEERF Annual Report, which will be due in early 2023, and the Department
will add a construction, renovation, and real property category to the HEERF quarterly
report beginning with the report due on July 10, 2022. For more information, visit our
HEERF reporting page here.
27. Question: What documentation do institutions need to maintain for construction,
renovation, or real property projects?
Answer: An institution must retain financial records, strategic plans, environmental
assessments, blueprints, the calculation of how it separately accounted for any
unallowable costs in a project, contract solicitations and bids, and all other institutional
records pertinent to any construction, renovation, or real property project and the
administration of the HEERF grant programs generally for a period of three years from
the date of submission of the final expenditure report (2 CFR § 200.334).
6
Repurposing expended HEERF (a)(2) grant funds is allowed back to the date of the declaration of the national
emergency, March 13, 2020.
12
28. Question: Will the Department host any webinars or trainings on the process to request
approval for construction, renovation, and real property projects?
Answer: Yes. The Department will soon announce a series of webinars to support
HEERF grantees as they explore using their HEERF (a)(2) grants for construction,
renovation, or real property projects.
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