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[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38906-38911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14133]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Chapter I

[Docket No. FAA 2014-0463]

Policy on the Non-Aeronautical Use of Airport Hangars

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notice of final policy.

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SUMMARY: This action clarifies the FAA's policy regarding storage of 
non-aeronautical items in airport facilities designated for 
aeronautical use. Under Federal law, airport operators that have 
accepted federal grants and/or those that have obligations contained in 
property deeds for property transferred under various Federal laws such 
as the Surplus Property Act generally may use airport property only for 
aviation-related purposes unless otherwise approved by the FAA. In some 
cases, airports have allowed non-aeronautical storage or uses in some 
hangars intended for aeronautical use, which the FAA has found to 
interfere with or entirely displace aeronautical use of the hangar. At 
the same time, the FAA recognizes that storage of some items in a 
hangar that is otherwise used for aircraft storage will have no effect 
on the aeronautical utility of the hangar. This action also amends the 
definition of aeronautical use to include construction of amateur-built 
aircraft and provides additional guidance on permissible non-
aeronautical use of a hangar.''

DATES: The policy described herein is effective July 1, 2017.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Manager, Airport 
Compliance Division, ACO-100, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591, telephone (202) 267-
3085; facsimile: (202) 267-4629.

ADDRESSES: You can get an electronic copy of this Policy and all other 
documents in this docket using the Internet by:
    (1) Searching the Federal eRulemaking portal (http://www.faa.gov/regulations/search);
    (2) Visiting FAA's Regulations and Policies Web page at (http://www.faa.gov/regulations_policies); or
    (3) Accessing the Government Printing Office's Web page at (http://www.gpoaccess.gov/index.html).
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Airport Compliance and Management 
Analysis, 800 Independence Avenue SW., Washington, DC 20591, or by 
calling (202) 267-3085. Make sure to identify the docket number, notice 
number, or amendment number of this proceeding.

SUPPLEMENTARY INFORMATION: 
    Authority for the Policy: This document is published under the 
authority described in Title 49 of the United States Code, Subtitle 
VII, part B, chapter 471, section 47122(a).

Background

Airport Sponsor Obligations

    In July 2014, the FAA issued a proposed statement of policy on use 
of airport hangars to clarify compliance requirements for airport 
sponsors, airport managers, airport tenants, state aviation officials, 
and FAA compliance staff. (79 Federal Register (FR) 42483, July 22, 
2014).
    Airport sponsors that have accepted grants under the Airport 
Improvement Program (AIP) have agreed to comply with certain Federal 
policies included in each AIP grant agreement as sponsor assurances. 
The Airport and Airway Improvement Act of 1982 (AAIA) (Pub. L. 97-248), 
as amended and recodified at 49 United States Codes (U.S.C.) 
47107(a)(1), and the contractual sponsor assurances require that the 
airport sponsor make the airport available for aviation use. Grant 
Assurance 22, Economic Nondiscrimination, requires the sponsor to make 
the airport available on reasonable terms without unjust discrimination 
for aeronautical activities, including aviation services. Grant 
Assurance 19, Operation and Maintenance, prohibits an airport sponsor 
from causing or permitting any activity that would interfere with use 
of airport property for airport purposes. In some cases, sponsors who 
have received property transfers through surplus property and 
nonsurplus property agreements have similar federal obligations.
    The sponsor may designate some areas of the airport for non-
aviation use,\1\ with FAA approval, but aeronautical facilities of the 
airport must be dedicated to use for aviation purposes. Limiting use of 
aeronautical facilities to aeronautical purposes ensures that airport 
facilities are available to meet aviation demand at the airport. 
Aviation tenants and aircraft owners should not be displaced by non-

[[Page 38907]]

aviation commercial uses that could be conducted off airport property.
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    \1\ The terms ``non-aviation'' and ``non-aeronautical'' are used 
interchangeably in this Notice.
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    It is the longstanding policy of the FAA that airport property be 
available for aeronautical use and not be available for non-
aeronautical purposes unless that non-aeronautical use is approved by 
the FAA. Use of a designated aeronautical facility for a non-
aeronautical purpose, even on a temporary basis, requires FAA approval. 
See FAA Order 5190.6B, Airport Compliance Manual, paragraph 22.6, 
September 30, 2009. The identification of non-aeronautical use of 
aeronautical areas receives special attention in FAA airport land use 
compliance inspections. See Order 5190.6B, paragraphs 21.6(f)(5).
    Areas of the airport designated for non-aeronautical use must be 
shown on an airport's Airport Layout Plan (ALP). The AAIA, at 49 U.S.C. 
47107(a)(16), requires that AIP grant agreements include an assurance 
by the sponsor to maintain an ALP in a manner prescribed by the FAA. 
Sponsor assurance 29, Airport Layout Plan, implements Sec.  
47107(a)(16) and provides that an ALP must designate non-aviation areas 
of the airport. The sponsor may not allow an alteration of the airport 
in a manner inconsistent with the ALP unless approved by the FAA. See 
Order 5190.6B, paragraph 7.18, and Advisory Circular 150/5070-6B, 
Airport Master Plans, Chapter 10.
    Clearly identifying non-aeronautical facilities not only keeps 
aeronautical facilities available for aviation use, but also assures 
that the airport sponsor receives at least Fair Market Value (FMV) 
revenue from non-aviation uses of the airport. The AAIA requires that 
airport revenues be used for airport purposes, and that the airport 
maintain a fee structure that makes the airport as self-sustaining as 
possible. 49 U.S.C. 47107(a)(13)(A) and (b)(1). The FAA and the 
Department of Transportation Office of the Inspector General have 
interpreted these statutory provisions to require that non-aviation 
activities on an airport be charged a fair market rate for use of 
airport facilities rather than the aeronautical rate. See FAA Policies 
and Procedures Concerning the Use of Airport Revenue, (64 FR 7696, 
7721, February 16, 1999) (FAA Revenue Use Policy).
    If an airport tenant pays an aeronautical rate for a hangar and 
then uses the hangar for a non-aeronautical purpose, the tenant may be 
paying a below-market rate in violation of the sponsor's obligation for 
a self-sustaining rate structure and FAA's Revenue Use Policy. 
Confining non-aeronautical activity to designated non-aviation areas of 
the airport helps to ensure that the non-aeronautical use of airport 
property is monitored and allows the airport sponsor to clearly 
identify non-aeronautical fair market value lease rates, in order to 
meet their federal obligations. Identifying non-aeronautical uses and 
charging appropriate rates for these uses prevents the sponsor from 
subsidizing non-aviation activities with aviation revenues.

FAA Oversight

    A sponsor's Grant Assurance obligations require that its 
aeronautical facilities be used or be available for use for 
aeronautical activities. If the presence of non-aeronautical items in a 
hangar does not interfere with these obligations, then the FAA will 
generally not consider the presence of those items to constitute a 
violation of the sponsor's obligations. When an airport has unused 
hangars and low aviation demand, a sponsor can request the FAA approval 
for interim non-aeronautical use of a hangars, until demand exists for 
those hangars for an aeronautical purpose. Aeronautical use must take 
priority and be accommodated over non-aeronautical use, even if the 
rental rate would be higher for the non-aeronautical use. The sponsor 
is required to charge a fair market commercial rental rate for any 
hangar rental or use for non-aeronautical purposes. (64 FR 7721).
    The FAA conducts land use inspections at 18 selected airports each 
year, at least two in each of the nine FAA regions. See Order 5190.6B, 
paragraph 21.1. The inspection includes consideration of whether the 
airport sponsor is using designated aeronautical areas of the airport 
exclusively for aeronautical purposes, unless otherwise approved by the 
FAA. See Order 5190.6B, paragraph 21.6.

The Notice of Proposed Policy

    In July 2014, the FAA issued a notice of proposed policy on use of 
hangars and related facilities at federally obligated airports, to 
provide a clear and standardized guide for airport sponsors and FAA 
compliance staff. (79 FR 42483, July 22, 2014). The FAA received more 
than 2,400 comments on the proposed policy statement, the majority from 
persons who have built or are in the process of building an amateur-
built aircraft. The FAA also received comments from aircraft owners, 
tenants and owners of hangars, and airport operators. The Aircraft 
Owners and Pilots Association (AOPA) and the Experimental Aircraft 
Association (EAA) also provided comments on behalf of their membership. 
Most of the comments objected to some aspect the proposed policy 
statement. Comments objecting to the proposal tended to fall into two 
general categories:
     The FAA should not regulate the use of hangars at all, 
especially if the hangar is privately owned.
     While the FAA should have a policy limiting use of hangars 
on federally obligated airports to aviation uses, the proposed policy 
is too restrictive in defining what activities should be allowed.

Discussion of Comments and Final Policy

    The following summary of comments reflects the major issues raised 
and does not restate each comment received. The FAA considered all 
comments received even if not specifically identified and responded to 
in this notice. The FAA discusses revisions to the policy based on 
comments received. In addition, the FAA will post frequently asked 
Questions and Answers regarding the Hangar Use Policy on www.faa.gov/airport compliance. These Questions and Answers will be periodically 
updated until FAA Order 5190.6B is revised to reflect the changes in 
this notice.
    1. Comment: Commenters stated that the FAA should defer to local 
government and leave all regulation of hangar use to the airport 
operator.
    Response: The FAA has a contract with the sponsor of an obligated 
airport, either through AIP grant agreements or a surplus property 
deed, to limit the use of airport property to certain aviation 
purposes. Each sponsor of an obligated airport has agreed to these 
terms. The FAA relies on each airport sponsor to comply with its 
obligations under this contract. To maintain a standardized national 
airport system and standardized practices in each of the FAA's nine 
regional offices, the agency issues guidance on its interpretation of 
the requirements of the AIP and surplus property agreements. It falls 
to the local airport sponsor to implement these requirements. The FAA 
allows airport sponsors some flexibility to adapt compliance to local 
conditions at each airport.
    However, some airport sponsors have adopted hangar use practices 
that led to airport users to complain to the FAA. Some airport users 
have complained that sponsors are too restrictive, and fail to allow 
reasonable aviation-related uses of airport hangars. More commonly, 
aircraft owners have complained that hangar facilities are not 
available for aircraft storage because airport sponsors have allowed 
the use of hangars for purposes that are unrelated to aviation,

[[Page 38908]]

such as operating a non-aviation business or storing multiple vehicles. 
By issuing the July 2014 notice, the FAA intended to resolve both kinds 
of complaints by providing guidance on appropriate management of hangar 
use. The agency continues to believe that FAA policy guidance is 
appropriate and necessary to preserve reasonable access to aeronautical 
facilities on federally obligated airports. However, the final policy 
has been revised in response to comments received on the proposal.
    2. Comment: Commenters, including AOPA, stated that the FAA lacks 
the authority to regulate the use of privately owned hangars.
    Response: The FAA has a statutory obligation to assure that 
facilities on aeronautically designated land at federally obligated 
airports are reasonably available for aviation use. Designated 
aeronautical land on a federally obligated airport is a necessary part 
of a national system of aviation facilities. Land designated for 
aeronautical use offers access to the local airfield taxiway and runway 
system. Land designated for aeronautical use is also subject to certain 
conditions, including FAA policies concerning rates and charges 
(including rental rates) which were designed to preserve access for 
aeronautical users and to support aeronautical uses. A person who 
leases aeronautical land on the airport to build a hangar accepts 
conditions that come with that land in return for the special benefits 
of the location. The fact that the tenant pays the sponsor for use of 
the hangar or the land does not affect the agreement between the FAA 
and the sponsor that the land be used for aeronautical purposes. (In 
fact, most hangar owners do not have fee ownership of the property; 
typically airport structures revert to ownership of the airport sponsor 
upon expiration of the lease term). An airport sponsor may choose to 
apply different rules to hangars owned by the sponsor than it does to 
privately constructed hangars, but the obligations of the sponsor Grant 
Assurances and therefore the basic policies on aeronautical use stated 
in this notice, will apply to both.
    3. Comment: Commenters believe that a policy applying the same 
rules to all kinds of aeronautical structures, and to privately owned 
hangars as well as sponsor-owned hangars, is too general. The policy 
should acknowledge the differences between categories of airport 
facilities.
    Response: A number of commenters thought that rules for use of 
privately constructed and owned hangars should be less restrictive than 
rules for hangars leased from the airport sponsor. The Leesburg Airport 
Commission commented that there are different kinds of structures on 
the airport, with variations in rental and ownership interests, and 
that the FAA's policy should reflect those differences. The FAA 
acknowledges that ownership or lease rights and the uses made of 
various aeronautical facilities at airports will vary. The agency 
expects that airport sponsors' agreements with tenants would reflect 
those differences. The form of property interest, be it a leasehold or 
ownership of a hangar, does not affect the obligations of the airport 
sponsor under the Grant Assurances. All facilities on designated 
aeronautical land on an obligated airport are subject to the 
requirement that the facilities be available for aeronautical use.
    4. Comment: Commenters agree that hangars should be used to store 
aircraft and not for non-aviation uses, but, they argue the proposed 
policy is too restrictive on the storage of non-aviation related items 
in a hangar along with an aircraft. A hangar with an aircraft in it 
still has a large amount of room for storage and other incidental uses, 
and that space can be used with no adverse effect on the use and 
storage of the aircraft.
    Response: In response to the comments, the final policy deletes the 
criteria of ``incidental'' or ``de minimis'' use and simply requires 
that non-aviation storage in a hangar not interfere with movement of 
aircraft in or out of the hangar, or impede access to other 
aeronautical contents of the hangar. The policy lists specific 
conditions that would be considered to interfere with aeronautical use. 
Stored non-aeronautical items would be considered to interfere with 
aviation use if they:
    [cir] Impede the movement of the aircraft in and out of the hangar;
    [cir] Displace the aeronautical contents of the hangar. (A vehicle 
parked at the hangar while the vehicle owner is using the aircraft will 
not be considered to displace the aircraft);
    [cir] Impede access to aircraft or other aeronautical contents of 
the hangar;
    [cir] Are used for the conduct of a non-aeronautical business or 
municipal agency function from the hangar (including storage of 
inventory); or
    [cir] Are stored in violation of airport rules and regulations, 
lease provisions, building codes or local ordinances.
    Note: Storage of equipment associated with an aeronautical activity 
(e.g., skydiving, ballooning, gliding) would be considered an 
aeronautical use of a hangar.
    5. Comment: Commenters stated the policy should apply different 
rules to situations where there is no aviation demand for hangars, 
especially when hangars are vacant and producing no income for the 
sponsor.
    Response: At some airports, at some times, there will be more 
hangar capacity than needed to meet aeronautical demand, and as a 
result there will be vacant hangars. The FAA agrees that in such cases 
it is preferable to make use of the hangars to generate revenue for the 
airport, as long as the hangar capacity can be recovered on relatively 
short notice for aeronautical use when needed. See Order 5190.6B, 
paragraph 22.6. The final policy adopts a provision modeled on a 
leasing policy of the Los Angeles County Airport Commission, which 
allows month-to-month leases of vacant hangars for any purpose until a 
request for aeronautical use is received. The final policy requires 
that a sponsor request FAA approval before implementing a similar 
leasing plan:
     The airport sponsor may request FAA approval of a leasing 
plan for the lease of vacant hangars for non-aeronautical use on a 
month-to-month basis.
     The plan may be implemented only when there is no current 
aviation demand for the vacant hangars.
     Leases must require the non-aeronautical tenant to vacate 
the hangar on 30 days' notice, to allow aeronautical use when a request 
is received.
     Once the plan is approved, the sponsor may lease vacant 
hangars on a 30 days' notice without further FAA approval.
    The agency believes this will allow airports to obtain some 
financial benefit from vacant hangars no, while allowing the hangars to 
be quickly returned to aeronautical use when needed. FAA pre-approval 
of a month-to-month leasing plan will minimize the burden on airport 
sponsors and FAA staff since it is consistent with existing interim use 
guidance.
    6. Comment: Commenter indicates that the terms ``incidental use'' 
and ``insignificant amount of space'' are too vague and restrictive.
    Response: The FAA has not used these terms in the final policy. 
Instead, the policy lists specific prohibited conditions that would be 
considered to interfere with aeronautical use of a hangar.
    7. Comment: Commenter states Glider operations require storage of 
items at the airport other than aircraft, such as tow vehicles and 
towing equipment. This should be an approved use of hangars.

[[Page 38909]]

    Response: Tow bars and glider tow equipment have been added to the 
list of examples of aeronautical equipment. Whether a vehicle is 
dedicated to use for glider towing is a particular fact that can be 
determined by the airport sponsor in each case. Otherwise the general 
rules for parking a vehicle in a hangar would apply.
    8. Comment: Commenter states it should be clear that it is 
acceptable to park a vehicle in the hangar while the aircraft is out of 
the hangar being used.
    Response: The final policy states that a vehicle parked in the 
hangar, while the vehicle owner is using the aircraft will not be 
considered to displace the aircraft, and therefore is not prohibited.
    9. Comment: Commenters, including Experimental Aircraft Association 
(EAA), stated that aviation museums and non-profit organizations that 
promote aviation should not be excluded from hangars.
    Response: Aviation museums and other non-profit aviation-related 
organizations may have access to airport property at less than fair 
market rent, under section VII.E of the FAA Policy and Procedures 
Concerning the Use of Airport Revenue. (64 FR 7710, February 16, 1999). 
However, there is no special reason for such activities to displace 
aircraft owners seeking hangar space for storage of operating aircraft, 
unless the activity itself involves use and storage of aircraft. 
Accordingly, aviation museums and non-profit organizations will 
continue to have the same access to vacant hangar space as other 
activities that do not actually require a hangar for aviation use, that 
is, when there is no aviation demand (aircraft storage) for those 
hangars and subject to the discretion of the airport operator.
    10. Comment: Commenters suggest that the policy should allow a 
`grace period' for maintaining possession of an empty hangar for a 
reasonable time from the sale of an aircraft to the purchase or lease 
of a new aircraft to be stored in the hangar.
    Response: The FAA assumes that airport lease terms would include 
reasonable accommodation for this purpose and other reasons a hangar 
might be empty for some period of time, including the aircraft being in 
use or at another location for maintenance. The reasons for temporary 
hangar vacancy and appropriate ``grace periods'' for various events 
depend on local needs and lease policies, and the FAA has not included 
any special provision for grace periods in the final policy.
    11. Comment: Commenters believe that the policy should allow some 
leisure spaces in a hangar, such as a lounge or seating area and 
kitchen, in recognition of the time many aircraft owners spend at the 
airport, and the benefits of an airport community.
    Response: The final policy does not include any special provision 
for lounge areas or kitchens, either specifically permitting or 
prohibiting these areas. The policy requires only that any non-aviation 
related items in a hangar not interfere in any way with the primary use 
of the hangar for aircraft storage and movement. The airport sponsor is 
expected to have lease provisions and regulations in place to assure 
that items located in hangars do not interfere with this primary 
purpose.
    12. Comment: Commenters, including EAA, stated that all 
construction of an aircraft should be considered aeronautical for the 
purpose of hangar use, because building an aircraft is an inherently 
aeronautical activity. The policy should at least allow for use of a 
hangar at a much earlier stage of construction than final assembly.
    Response: The FAA has consistently held that the need for an 
airport hangar in manufacturing or building aircraft arises at the time 
the components of the aircraft are assembled into a completed aircraft. 
Prior to that stage, components can be assembled off-airport in smaller 
spaces. This determination has been applied to both commercial aircraft 
manufacturing as well as homebuilding of experimental aircraft.
    A large majority of the more than 2,400 public comments received on 
the notice argued that aircraft construction at any stage is an 
aeronautical activity. The FAA recognizes that the construction of 
amateur-built aircraft differs from large-scale, commercial aircraft 
manufacturing. It may be more difficult for those constructing amateur-
built or kit-built aircraft to find alternative space for construction 
or a means to ultimately transport completed large aircraft components 
to the airport for final assembly, and ultimately for access to 
taxiways for operation.
    Commenters stated that in many cases an airport hangar may be the 
only viable location for amateur-built or kit-built aircraft 
construction. Also, as noted in the July 2014 notice, many airports 
have vacant hangars where a lease for construction of an aircraft, even 
for several years, would not prevent owners of operating aircraft from 
having access to hangar storage.
    Accordingly, the FAA will consider the construction of amateur-
built or kit-built aircraft as an aeronautical activity. Airport 
sponsors must provide reasonable access to this class of users, subject 
to local ordinances and building codes. Reasonable access applies to 
currently available facilities; there is no requirement for sponsors to 
construct special facilities or to upgrade existing facilities for 
aircraft construction use.
    Airport sponsors are urged to consider the appropriate safety 
measures to accommodate aircraft construction. Airport sponsors leasing 
a vacant hangar for aircraft construction also are urged to incorporate 
progress benchmarks in the lease to ensure the construction project 
proceeds to completion in a reasonable time. The FAA's policy with 
respect to commercial aircraft manufacturing remains unchanged.
    13. Comment: Commenter suggests that the time that an inoperable 
aircraft can be stored in a hangar should be clarified, because repairs 
can sometimes involve periods of inactivity.
    Response: The term ``operational aircraft'' in the final policy 
does not necessarily mean an aircraft fueled and ready to fly. All 
operating aircraft experience downtime for maintenance and repair, and 
for other routine and exceptional reasons. The final policy does not 
include an arbitrary time period beyond which an aircraft is no longer 
considered operational. An airport operator should be able to determine 
whether a particular aircraft is likely to become operational in a 
reasonable time or not, and incorporate provisions in the hangar lease 
to provide for either possibility.
    14. Comment: Commenter suggests that the FAA should limit use of 
hangars on an obligated airport as proposed in the July 2014 notice. 
Airport sponsors frequently allow non-aeronautical use of hangars now, 
denying the availability of hangar space to aircraft owners.
    Response: Some commenters supported the relatively strict policies 
in the July 2014 notice, citing their experience with being denied 
access to hangars that were being used for non-aviation purposes. The 
FAA believes that the final policy adopted will allow hangar tenants 
greater flexibility than the proposed policy in the use of their 
hangars, but only to the extent that there is no impact on the primary 
purpose of the hangar. The intent of the final policy is to minimize 
the regulatory burden on hangar tenants and to simplify enforcement 
responsibilities for airport sponsors and the FAA, but only as is 
consistent with the statutory requirements for use of federally 
obligated airport property.

Final Policy

    In accordance with the above, the FAA is adopting the following 
policy statement on use of hangars at federally obligated airports:

[[Page 38910]]

Use of Aeronautical Land and Facilities

Applicability

    This policy applies to all aircraft storage areas or facilities on 
a federally obligated airport unless designated for non-aeronautical 
use on an approved Airport Layout Plan or otherwise approved for non-
aviation use by the FAA. This policy generally refers to the use of 
hangars since they are the type of aeronautical facility most often 
involved in issues of non-aviation use, but the policy also applies to 
other structures on areas of an airport designated for aeronautical 
use. This policy applies to all users of aircraft hangars, including 
airport sponsors, municipalities, and other public entities, regardless 
of whether a user is an owner or lessee of the hangar.

I. General

    The intent of this policy is to ensure that the federal investment 
in federally obligated airports is protected by making aeronautical 
facilities available to aeronautical users, and by ensuring that 
airport sponsors receive fair market value for use of airport property 
for non-aeronautical purposes. The policy implements several Grant 
Assurances, including Grant Assurance 5, Preserving Rights and Powers; 
Grant Assurance 22, Economic Nondiscrimination; Grant Assurance 24, Fee 
and Rental Structure; and Grant Assurance 25, Airport Revenues.

II. Standards for Aeronautical Use of Hangars

    a. Hangars located on airport property must be used for an 
aeronautical purpose, or be available for use for an aeronautical 
purpose, unless otherwise approved by the FAA Office of Airports as 
described in Section III.
    b. Aeronautical uses for hangars include:
    1. Storage of active aircraft.
    2. Final assembly of aircraft under construction.
    3. Non-commercial construction of amateur-built or kit-built 
aircraft.
    4. Maintenance, repair, or refurbishment of aircraft, but not the 
indefinite storage of nonoperational aircraft.
    5. Storage of aircraft handling equipment, e.g., towbars, glider 
tow equipment, workbenches, and tools and materials used in the 
servicing, maintenance, repair or outfitting of aircraft.
    c. Provided the hangar is used primarily for aeronautical purposes, 
an airport sponsor may permit non-aeronautical items to be stored in 
hangars provided the items do not interfere with the aeronautical use 
of the hangar.
    d. While sponsors may adopt more restrictive rules for use of 
hangars, the FAA will generally not consider items to interfere with 
the aeronautical use of the hangar unless the items:
    1. Impede the movement of the aircraft in and out of the hangar or 
impede access to aircraft or other aeronautical contents of the hangar.
    2. Displace the aeronautical contents of the hangar. A vehicle 
parked at the hangar while the vehicle owner is using the aircraft will 
not be considered to displace the aircraft.
    3. Impede access to aircraft or other aeronautical contents of the 
hangar.
    4. Are used for the conduct of a non-aeronautical business or 
municipal agency function from the hangar (including storage of 
inventory).
    5. Are stored in violation of airport rules and regulations, lease 
provisions, building codes or local ordinances.
    e. Hangars may not be used as a residence, with a limited exception 
for sponsors providing an on-airport residence for a full-time airport 
manager, watchman, or airport operations staff for remotely located 
airports. The FAA differentiates between a typical pilot resting 
facility or aircrew quarters versus a hangar residence or hangar home. 
The former are designed to be used for overnight and/or resting periods 
for aircrew, and not as a permanent or even temporary residence. See 
FAA Order 5190.6B paragraph 20.5(b)
    f. This policy applies regardless of whether the hangar occupant 
leases the hangar from the airport sponsor or developer, or the hangar 
occupant constructed the hangar at the occupant's own expense while 
holding a ground lease. When land designated for aeronautical use is 
made available for construction of hangars, the hangars built on the 
land are subject to the sponsor's obligations to use aeronautical 
facilities for aeronautical use.

III. Approval for Non-Aeronautical Use of Hangars

    A sponsor will be considered to have FAA approval for non-
aeronautical use of a hangar in each of the following cases:
    a. FAA advance approval of an interim use: Where hangars are 
unoccupied and there is no current aviation demand for hangar space, 
the airport sponsor may request that FAA Office of Airports approve an 
interim use of a hangar for non-aeronautical purposes for a period of 3 
to 5 years. The FAA will review the request in accordance with Order 
5190.6B paragraph 22.6. Interim leases of unused hangars can generate 
revenue for the airport and prevent deterioration of facilities. 
Approved interim or concurrent revenue-production uses must not 
interfere with safe and efficient airport operations and sponsors 
should only agree to lease terms that allow the hangars to be recovered 
on a 30 days' notice for aeronautical purposes. In each of the above 
cases, the airport sponsor is required to charge non-aeronautical fair 
market rental fees for the non-aeronautical use of airport property, 
even on an interim basis. (64 FR 7721).
    b. FAA approval of a month-to-month leasing plan: An airport 
sponsor may obtain advance written approval month-to-month leasing plan 
for non-aeronautical use of vacant facilities from the local FAA Office 
of Airports. When there is no current aviation demand for vacant 
hangars, the airport sponsor may request FAA approval of a leasing plan 
for the lease of vacant hangars for non-aeronautical use on a month-to-
month basis. The plan must provide for leases that include an 
enforceable provision that the tenant will vacate the hangar on a 30-
day notice. Once the plan is approved, the sponsor may lease vacant 
hangars on a 30-day notice basis without further FAA approval. If the 
airport sponsor receives a request for aeronautical use of the hangar 
and no other suitable hangar space is available, the sponsor will 
notify the month-to-month tenant that it must vacate.
    A sponsor's request for approval of an interim use or a month-to-
month leasing plan should include or provide for (1) an inventory of 
aeronautical and non-aeronautical land/uses, (2) information on vacancy 
rates; (3) the sponsor's procedures for accepting new requests for 
aeronautical use; and (4) assurance that facilities can be returned to 
aeronautical use when there is renewed aeronautical demand for hangar 
space. In each of the above cases, the airport sponsor is required to 
charge non-aeronautical fair market rental fees for the non-
aeronautical use of airport property, even on an interim basis. (64 FR 
7721).
    c. Other cases: Advance written release by the FAA for all other 
non-aeronautical uses of designated aeronautical facilities. Any other 
non-aeronautical use of a designated aeronautical facility or parcel of 
airport land requires advance written approval from the FAA Office of 
Airports in accordance with Order 5190.6B chapter 22.

[[Page 38911]]

IV. Use of Hangars for Construction of an Aircraft

    Non-commercial construction of amateur-built or kit-built aircraft 
is considered an aeronautical activity. As with any aeronautical 
activity, an airport sponsor may lease or approve the lease of hangar 
space for this activity without FAA approval. Airport sponsors are not 
required to construct special facilities or upgrade existing facilities 
for construction activities. Airport sponsors are urged to consider the 
appropriate safety measures to accommodate these users.
    Airport sponsors also should consider incorporating construction 
progress targets in the lease to ensure that the hangar will be used 
for final assembly and storage of an operational aircraft within a 
reasonable term after project start.

V. No Right to Non-Aeronautical Use

    In the context of enforcement of the Grant Assurances, this policy 
allows some incidental storage of non-aeronautical items in hangars 
that do not interfere with aeronautical use. However, the policy 
neither creates nor constitutes a right to store non-aeronautical items 
in hangars. Airport sponsors may restrict or prohibit storage of non-
aeronautical items. Sponsors should consider factors such as emergency 
access, fire codes, security, insurance, and the impact of vehicular 
traffic on their surface areas when enacting rules regarding hangar 
storage. In some cases, permitting certain incidental non-aeronautical 
items in hangars could inhibit the sponsor's ability to meet 
obligations associated with Grant Assurance 19, Operations and 
Maintenance. To avoid claims of discrimination, sponsors should impose 
consistent rules for incidental storage in all similar facilities at 
the airport. Sponsors should ensure that taxiways and runways are not 
used for the vehicular transport of such items to or from the hangars.

VI. Sponsor Compliance Actions

    a. It is expected that aeronautical facilities on an airport will 
be available and used for aeronautical purposes in the normal course of 
airport business, and that non-aeronautical uses will be the exception.
    b. Sponsors should have a program to routinely monitor use of 
hangars and take measures to eliminate and prevent unapproved non-
aeronautical use of hangars.
    c. Sponsors should ensure that length of time on a waiting list of 
those in need of a hangar for aircraft storage is minimized.
    d. Sponsors should also consider including a provision in airport 
leases, including aeronautical leases, to adjust rental rates to FMV 
for any non-incidental non-aeronautical use of the leased facilities. 
In other words, if a tenant uses a hangar for a non-aeronautical 
purpose in violation of this policy, the rental payments due to the 
sponsor would automatically increase to a FMV level.
    e. FAA personnel conducting a land use or compliance inspection of 
an airport may request a copy of the sponsor's hangar use program and 
evidence that the sponsor has limited hangars to aeronautical use.
    The FAA may disapprove an AIP grant for hangar construction if 
there are existing hangars at the airport being used for non-
aeronautical purposes.

    Issued in Washington, DC, on the 9th of June 2016.
Robin K. Hunt,
Acting Director, Office of Airport Compliance and Management Analysis.
[FR Doc. 2016-14133 Filed 6-14-16; 8:45 am]
BILLING CODE 4910-13-P
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