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Preventive maintenance is defined as all transit maintenance. A grantee may request assistance for preventive maintenance for any maintenance activity that the grantee has traditionally categorized as maintenance. For general guidance as to the definition of eligible maintenance costs, the grantee may refer to the definition of maintenance in the most recent National Transit Database reporting manual.


Preventive maintenance is eligible for Federal assistance as a capital expense in all Federal Transit Administration grant programs that have a capital component. These include Urbanized Area Formula Grants (Section 5307), Capital Investment Grants and Loans (Section 5309), Formula Grants and Loans for Special Needs of Elderly Individuals and Individuals with Disabilities (Section 5310), and Formula Grants for Other than Urbanized Areas (Section 5311).

The FY 1998 DOT Appropriations Act had made preventive maintenance an eligible capital expense under three of the FTA grant programs when FY 1998 funds were used for such costs.

TEA-21 permanently authorizes preventive maintenance as an eligible capital expense and expands that eligibility to include the Section 5309 program.

The Federal share for preventive maintenance is 80% of the net project cost. [3003]

September 14, 1998

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