Federal Register #2026-22650

LSC proposes classifying all LSC-funded real estate improvements as capital improvements

The Legal Services Corporation (LSC) has proposed a regulatory change to how recipients classify real estate improvements. - Government agency: Legal Services Corporation (LSC); the proposal concerns its regulations in 45 CFR part 1631. - Proposed change: Treat any LSC-funded construction or addition of fixtures integral to real estate as a capital improvement, regardless of cost. - Recipient responsibilities: Identify, track, and account for qualifying improvements, including improvements accumulated through multiple expenditures over time. - Approval requirements: The proposal does not change separate rules for when LSC prior approval is required. - Procurement status: This is a proposed rule, not a solicitation. No products, services, quantities, part numbers, OEMs, or vendors are requested.

Description

The Legal Services Corporation proposes to revise its definition of “capital improvement” in 45 CFR part 1631. The proposed rule would remove the monetary threshold for LSC-funded improvements to real estate, so that any amount spent on qualifying construction or integral fixtures is treated as a capital improvement. Recipients would track and account for these expenditures regardless of amount; existing requirements governing when prior approval is required would remain separate. Comments are due by 11:59 p.m. Eastern on December 21, 2026.

View original listing