In recent years, many school districts have benefitted from Elementary and Secondary School Emergency Relief (ESSER) grants. These grants have assisted school districts and other academic institutions in responding to the unprecedented challenges raised by the Novel Coronavirus (COVID-19) Pandemic. Pursuant to guidance recently issued by the United States Department of Education (ED), recipients of ESSER funds are required to record a “Notice of Federal Interest” if the recipient used one million dollars ($1,000,000.00) or more of ESSER grant funds for any single renovation, major remodeling, construction, or real property project (such as a land acquisition).
These required documents provide public notice of the federal government’s investment in school district property and help to ensure compliance with various regulations implicated by the use of ESSER funds. Notices of Federal Interest must be recorded in the official real property records of the jurisdiction in which the improved or purchased property is located. School districts and other institutions impacted by this guidance must record a Notice of Federal Interest no later than January 28, 2025.
This article provides a general overview of the ED’s recent guidance concerning ESSER funds and Notices of Federal Interest. However, the obligations of each recipient will depend upon the specific facts and circumstances of their ESSER-funded projects. Each recipient should therefore work closely with legal counsel to determine what actions should be taken to ensure appropriate regulatory compliance.
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