[House Report 112-402]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-402
======================================================================
EXCESS FEDERAL BUILDING AND PROPERTY DISPOSAL ACT OF 2011
_______
February 27, 2012.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Issa, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 665]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 665) to establish a pilot program
for the expedited disposal of Federal real property, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Committee Statement and Views.................................... 7
Section-by-Section............................................... 10
Explanation of Amendments........................................ 12
Committee Consideration.......................................... 12
Application of Law to the Legislative Branch..................... 12
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 13
Statement of General Performance Goals and Objectives............ 13
Federal Advisory Committee Act................................... 13
Unfunded Mandate Statement....................................... 13
Earmark Identification........................................... 13
Committee Estimate............................................... 13
Budget Authority and Congressional Budget Office Cost Estimate... 13
Changes in Existing Law Made by the Bill as Reported............. 16
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Excess Federal Building and Property
Disposal Act of 2011''.
SEC. 2. FEDERAL REAL PROPERTY DISPOSAL PILOT PROGRAM.
(a) In General.--Chapter 5 of subtitle I of title 40, United States
Code, is amended by adding at the end the following new subchapter:
``SUBCHAPTER VII--EXPEDITED DISPOSAL OF REAL PROPERTY
``Sec. 621. Federal real property disposal pilot program
``(a) In General.--The Administrator of General Services (in this
subchapter referred to as the `Administrator'), in consultation with
the Director of the Office of Management and Budget (in this subchapter
referred to as the `Director'), shall conduct a pilot program to be
known as the `Federal Real Property Disposal Pilot Program', under
which the Administrator, in consultation with the Director, shall
determine which 15 Federal Government real properties that are excess
or surplus and have the highest fair market value and the greatest
potential to sell and shall dispose of such properties in accordance
with this subchapter and through an expedited disposal of real
property.
``(b) Disposal.--During the five-year period beginning on the date of
the enactment of the Excess Federal Building and Property Disposal Act
of 2011, the Administrator, in consultation with the Director, shall
dispose of real property under the Federal Real Property Disposal Pilot
Program through a public auction.
``(c) Adding Properties to the Pilot Program.--Not later than 15 days
after a property is disposed of under subsection (b), the
Administrator, in consultation with the Director, shall designate an
additional property, in accordance with subsection (a), to be disposed
of under the Federal Real Property Disposal Pilot Program.
``(d) Exceptions.--The Administrator shall not include for purposes
of the Federal Real Property Pilot Program any of the following types
of property:
``(1) A parcel of real property, building, or other structure
located on such real property that is to be closed or realigned
under the Defense Base Closure and Realignment Act of 1990 (10
U.S.C. 2687 note).
``(2) Properties that are excluded for reasons of national
security by the Director of the Office of Management and
Budget.
``(3) Indian and Native Eskimo properties including--
``(A) any property within the limits of any Indian
reservation to which the United States owns title for
the benefit of an Indian tribe; and
``(B) any property title which is held in trust by
the United States for the benefit of any Indian tribe
or individual or held by an Indian tribe or individual
subject to restriction by the United States against
alienation.
``(4) Properties operated and maintained by the Tennessee
Valley Authority pursuant to the Tennessee Valley Authority Act
of 1933 (16 U.S.C. 831 et seq.).
``(5) Postal properties owned by the United States Postal
Service.
``(6) Properties used in connection with river, harbor, flood
control, reclamation, or power projects.
``(7) Properties that the Administrator has determined are
suitable for assignment to the Secretary of the Interior for
transfer to a State, a political subdivision or instrumentality
of a State, or a municipality for use as a public park or
recreation area under section 550(e) of this title. In making
such determination, the Administrator may consider the
appraised value of the property and the highest and best use.
``(e) GAO Report.--Not later than 24 months after the date of the
enactment of this subchapter, the Comptroller General of the United
States shall submit to Congress and make publicly available a study of
the effectiveness of the Federal Real Property Pilot Program.
``(f) Termination.--The Federal Real Property Disposal Pilot Program
shall terminate on the date that is five years after the date of the
enactment of the Excess Federal Building and Property Disposal Act of
2011.
``Sec. 622. Selection of real properties
``The head of each executive agency shall recommend properties to the
Director for disposal under the Federal Real Property Pilot Program.
The Director, in consultation with the Administrator, shall then select
properties for disposal under the pilot program and notify the
recommending executive agency accordingly.
``Sec. 623. Expedited disposal requirements
``(a) Expedited Disposal of Real Property Defined.--For purposes of
this subchapter, an `expedited disposal of real property' is the sale
of real property for cash that is conducted pursuant to the
requirements of section 545(a) of this title.
``(b) Fair Market Value Requirement.--Real property sold under the
Federal Real Property Pilot Program may not be sold at less than the
fair market value as determined by the Administrator, in consultation
with the Director. Costs associated with disposal may not exceed the
fair market value of the property unless the Director approves
incurring such costs.
``(c) Monetary Proceeds Requirement.--Real property shall be sold
under the Federal Real Property Pilot Program only if the property will
generate monetary proceeds to the Federal Government, as provided in
subsection (b). A disposal of real property under the Federal Real
Property Pilot Program may not include any exchange, trade, transfer,
acquisition of like-kind property, or other non-cash transaction as
part of the disposal.
``(d) Rule of Construction.--Nothing in this subchapter shall be
construed as terminating or in any way limiting authorities that are
otherwise available to agencies under other provisions of law to
dispose of Federal real property, except as provided in subsection (e).
``(e) Exemption From Certain Requirements.--Any expedited disposal of
a real property conducted under this subchapter shall not be subject
to--
``(1) subchapter IV of this chapter;
``(2) sections 550 and 553 of this title;
``(3) section 501 of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11411);
``(4) any other provision of law authorizing the no-cost
conveyance of real property owned by the Federal Government; or
``(5) any congressional notification requirement other than
that in section 545 of this title.
``Sec. 624. Special rules for deposit and use of proceeds from
expedited disposals
``(a) Reimbursement.--
``(1) Executive agency.--An executive agency that conducts an
expedited disposal of real property under this subchapter shall
be reimbursed from the proceeds of such disposal for the
administrative expenses associated with such disposal.
``(2) General services administration.--The General Services
Administration shall be reimbursed the expenses of an expedited
disposal of real property under this subchapter on behalf of an
executive agency from the proceeds of such disposal.
``(3) Offsetting collections.--The amounts described in
paragraphs (1) and (2) will be credited as offsetting
collections to the account that incurred such expenses, to
remain available until expended without further appropriations.
``(b) Distribution of Proceeds.--After payment of the expenses
described in subsection (a), the balance of the proceeds shall be
distributed as follows:
``(1) Ninety-eight percent shall be deposited into the
General Fund of the Treasury.
``(2) Two percent shall hereby be made available until
expended to fund the grant program under section 625.
``Sec. 625. Homeless assistance grants
``(a) Grant Authority.--To the extent amounts are made available
pursuant to section 624(b)(2) for use under this section, the Secretary
of Housing and Urban Development shall make grants to eligible private
nonprofit organizations under subsection (b) to purchase property
suitable for use to assist the homeless as provided in subsection (c).
``(b) Eligible Grantees.--To be eligible to receive a grant under
subsection (a), a private nonprofit organization shall be a
representative of the homeless, as such term is defined in section
501(i)(4) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11411(i)(4)).
``(c) Use of Properties for Housing or Shelter for the Homeless.--
``(1) Eligible uses.--A nonprofit organization that receives
a grant under subsection (a) shall use the amounts received
under such grant only to acquire or rehabilitate real property
for use to provide permanent housing (as such term is defined
in section 401 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11360)), transitional housing (as such term is
defined in such section 401), or temporary shelter, for persons
who are homeless.
``(2) Term of use.--The Secretary of Housing and Urban
Development may not make a grant under subsection (a) to a
private nonprofit organization unless the organization provides
the Secretary with such assurances as the Secretary determines
necessary to ensure that any property acquired or rehabilitated
using the amounts received under such grant is used only as
provided in paragraph (1) of this subsection for a period of
not fewer than 15 years.
``(d) Preference.--In awarding grants under subsection (a), the
Secretary of Housing and Urban Development shall give preference for
such grants to private nonprofit organizations that operate within
areas in which Federal real property is being sold under the Federal
Real Property Disposal Pilot Program under this subchapter.
``(e) Nonprofit Organization.--For purposes of this section, the
following definitions shall apply:
``(1) Homeless.--The term `homeless' has the meaning given
such term in section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302(a)), except that subsection (c)
of such section shall not apply for purposes of this section.
``(2) Private nonprofit organization.--The term `private
nonprofit organization' has the meaning given such term in
section 401 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11360).
``(f) Regulations.--The Secretary of Housing and Urban Development
may issue any regulations necessary to carry out this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 5 of subtitle I of title 40, United States Code, is amended by
inserting after the item relating to section 611 the following:
``subchapter vii--expedited disposal of real property
``621. Federal real property disposal pilot program.
``622. Selection of real properties.
``623. Expedited disposal requirements.
``624. Special rules for deposit and use of proceeds from expedited
disposals.
``625. Homeless assistance grants.''.
SEC. 3. DUTIES OF THE GENERAL SERVICES ADMINISTRATION AND EXECUTIVE
AGENCIES.
(a) In General.--Section 524 of title 40, United States Code, is
amended to read as follows:
``Sec. 524. Duties of the General Services Administration and executive
agencies
``(a) Duties of the General Services Administration.--
``(1) Guidance.--Not later than 6 months after the date of
the enactment of this section, and when necessary thereafter,
the Administrator of General Services shall issue guidance for
the development and implementation of executive agency real
property plans. Such guidance shall include recommendations
on--
``(A) how to identify excess properties;
``(B) how to evaluate the costs and benefits
associated with disposing of real property;
``(C) how to prioritize disposal decisions based on
agency missions and anticipated future need for
holdings; and
``(D) how best to dispose of those properties
identified as excess to meet the needs of the agency.
``(2) Assistance.--The Administrator shall assist executive
agencies in the identification and disposal of excess real
property.
``(b) Duties of Executive Agencies.--
``(1) In general.--Each executive agency shall--
``(A) maintain adequate inventory controls and
accountability systems for property under its control;
``(B) continuously survey property under its control
to identify excess property;
``(C) promptly report excess property to the
Administrator;
``(D) perform the care and handling of excess
property; and
``(E) transfer or dispose of excess property as
promptly as possible in accordance with authority
delegated and regulations prescribed by the
Administrator.
``(2) Specific requirements with respect to real property.--
With respect to real property, each executive agency shall--
``(A) develop and implement a real property plan in
order to identify properties to declare as excess using
the guidance issued under subsection (a)(1);
``(B) identify and categorize all real property
owned, leased, or otherwise managed by the agency;
``(C) establish adequate goals and incentives to
reduce excess real property in such agency's inventory;
and
``(D) when appropriate, use the authorities in
section 572(a)(2)(B) of this title in order to identify
and prepare real property to be reported as excess.
``(3) Additional requirements.--Each executive agency, as far
as practicable, shall--
``(A) reassign property to another activity within
the agency when the property is no longer required for
the purposes of the appropriation used to make the
purchase;
``(B) transfer excess property under its control to
other Federal agencies and to organizations specified
in section 321(c)(2) of this title; and
``(C) obtain excess properties from other Federal
agencies to meet mission needs before acquiring non-
Federal property.''.
(b) Clerical Amendment.--The item relating to section 524 in the
table of sections at the beginning of chapter 5 of such title is
amended to read as follows:
``524. Duties of the General Services Administration and executive
agencies.''.
(c) GSA Report.--
(1) In general.--Not later than three years after the date of
the enactment of this Act, the Administrator of General
Services shall submit a report to the Committee on Oversight
and Government Reform of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs of the
Senate on the implementation of section 524, as amended by
subsection (a), and each of the following:
(A) The efforts of each executive agency to reduce
such agency's real property assets, based on data
submitted from such agency.
(B) For each excess and surplus real property
facility/installation disposed of, an indication of--
(i) the date and method of disposal;
(ii) the proceeds obtained from the
disposition of such property;
(iii) the amount of time required to fully
dispose of excess and surplus real property
under the custody and control of all executive
agencies; and
(iv) the cost to dispose of surplus and
excess real property under the custody and
control of all executive agencies.
(2) Definitions.--The terms ``excess property'', ``executive
agency'', and ``surplus property'' have the meanings given
those terms in section 102 of title 40, United States Code.
SEC. 4. ENHANCED AUTHORITIES WITH REGARD TO PREPARING PROPERTIES TO BE
REPORTED AS EXCESS.
Section 572(a)(2) of title 40, United States Code, is amended--
(1) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Additional authority.--(i) From the fund
described in paragraph (1), subject to clause (iv) of
this subparagraph, the Administrator may obligate an
amount to pay the direct and indirect costs related to
identifying and preparing properties to be reported
excess by another agency.
``(ii) The General Services Administration shall be
reimbursed from the proceeds of the sale of such
properties for such costs.
``(iii) Net proceeds shall be dispersed pursuant to
section 571 of this title.
``(iv) The authority under clause (i) to obligate
funds to prepare properties to be reported excess does
not include the authority to convey such properties by
use, sale, lease, exchange, or otherwise, including
through leaseback arrangements or service agreements.
``(v) Nothing in this subparagraph is intended to
affect subparagraph (D).''.
SEC. 5. ENHANCED AUTHORITIES WITH REGARD TO REVERTED REAL PROPERTY.
(a) Authority to Pay Expenses Related to Reverted Real Property.--
Section 572(a)(2)(A) of title 40, United States Code, is amended by
adding at the end the following:
``(iv) The direct and indirect costs
associated with the reversion, custody, and
disposal of reverted real property.''.
(b) Requirements Related to Sales of Reverted Property Under Section
550.--Section 550(b)(1) of title 40, United States Code, is amended--
(1) by inserting ``(A)'' after ``(1) In general.--''; and
(2) by adding at the end the following: ``If the official, in
consultation with the Administrator, recommends reversion of
the property, the Administrator shall take control of such
property, and, subject to subparagraph (B), sell it at or above
appraised fair market value for cash and not by lease,
exchange, leaseback arrangements, or service agreements.
``(B) Prior to sale, the Administrator shall make such
property available to State and local governments and certain
non-profit institutions or organizations pursuant to this
section and sections 553 and 554 of this title.''.
(c) Requirements Related to Sales of Reverted Property Under Section
553.--Section 553(e) of title 40, United States Code, is amended--
(1) by inserting ``(1)'' after ``This Section.--''; and
(2) by adding at the end the following: ``If the
Administrator determines that reversion of the property is
necessary to enforce compliance with the terms of the
conveyance, the Administrator shall take control of such
property and, subject to paragraph (2), sell it at or above
appraised fair market value for cash and not by lease,
exchange, leaseback arrangements, or service agreements.
``(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and sections 550
and 554 of this title.''.
SEC. 6. AGENCY RETENTION OF PROCEEDS.
The text of section 571 of title 40, United States Code, is amended
to read as follows:
``(a) Proceeds From Transfer or Sale of Real Property.--
``(1) Deposit of net proceeds.--Net proceeds described in
subsection (d) shall be deposited into the appropriate real
property account of the agency that had custody and
accountability for the real property at the time the real
property is determined to be excess.
``(2) Expenditure of net proceeds.--The net proceeds
deposited pursuant to paragraph (1) may only be expended as
authorized in annual appropriations Acts, for activities
described in sections 543 and 545 of this title, including
paying costs incurred by the General Services Administration
for any disposal-related activity authorized by this title.
``(3) Deficit reduction.--Any net proceeds described in
subsection (d) from the sale, lease, or other disposition of
surplus real property that are not expended under paragraph (2)
shall be used for deficit reduction.
``(b) Effect on Other Sections.--Nothing in this section is intended
to affect section 572(b), 573, or 574 of this title.
``(c) Disposal Agency for Reverted Property.--For the purposes of
this section, for any real property that reverts to the United States
under sections 550 and 553 of this title, the General Services
Administration, as the disposal agency, shall be treated as the agency
with custody and accountability for the real property at the time the
real property is determined to be excess.
``(d) Net Proceeds.--The net proceeds described in this subsection
are proceeds under this chapter, less expenses of the transfer or
disposition as provided in section 572(a) of this title, from a--
``(1) transfer of excess real property to a Federal agency
for agency use; or
``(2) sale, lease, or other disposition of surplus real
property.
``(e) Proceeds From Transfer or Sale of Personal Property.--
``(1) In general.--Except as otherwise provided in this
subchapter, proceeds described in paragraph (2) shall be
deposited in the Treasury as miscellaneous receipts.
``(2) Proceeds.--The proceeds described in this paragraph are
proceeds under this chapter from--
``(A) a transfer of excess personal property to a
Federal agency for agency use; or
``(B) a sale, lease, or other disposition of surplus
personal property.
``(3) Payment of expenses of sale before deposit.--Subject to
regulations under this subtitle, the expenses of the sale of
personal property may be paid from the proceeds of sale so that
only the net proceeds are deposited in the Treasury. This
paragraph applies whether proceeds are deposited as
miscellaneous receipts or to the credit of an appropriation as
authorized by law.''.
SEC. 7. FEDERAL REAL PROPERTY DATABASE.
(a) In General.--Subchapter II of chapter 5 of title 40, United
States Code, is amended by adding at the end the following new section:
``Sec. 530. Federal real property database
``(a) Database Required.--Not later than one year after the date of
the enactment of this section, the Administrator of General Services
shall publish a single, comprehensive, and descriptive database of all
Federal real property under the custody and control of all executive
agencies, other than Federal real property excluded for reasons of
national security, in accordance with subsection (b).
``(b) Required Information for Database.--The Administrator shall
collect from the head of each executive agency descriptive information,
except for classified information, of the nature, use, and extent of
the Federal real property of each such agency, including the following:
``(1) The geographic location of each Federal real property
of each such agency, including the address and description for
each such property.
``(2) The total size of each Federal real property of each
such agency, including square footage and acreage of each such
property.
``(3) The relevance of each Federal real property to the
agency's mission.
``(4) The level of use of each Federal real property for each
such agency, including whether such property is excess,
surplus, underutilized, or unutilized.
``(5) The number of days each Federal real property is
designated as excess, surplus, underutilized, or unutilized.
``(6) The annual operating costs of each Federal real
property.
``(7) The replacement value of each Federal real property.
``(c) Access to Database.--
``(1) Federal agencies.--The Administrator shall, in
consultation with the Director of the Office of Management and
Budget, make the database established and maintained under this
section available to other Federal agencies.
``(2) Public access.--To the extent consistent with national
security, the database shall be accessible by the public at no
cost through the website of the General Services
Administration.
``(d) Transparency of Database.--To the extent practicable, the
Administrator shall ensure that the database--
``(1) uses an open, machine-readable format;
``(2) permits users to search and sort Federal real property
data; and
``(3) includes a means to download a large amount of Federal
real property data and a selection of such data retrieved using
a search.
``(e) Applicability.--Nothing in this section may be construed to
require an agency to make available to the public information that is
exempt from disclosure pursuant to section 552(b) of title 5.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 5 of title 40, United States Code, is amended by inserting
after the item relating to section 529 the following new item:
``530. Federal real property database.''.
SEC. 8. SUSTAINABLE DISPOSAL OF PROPERTY.
(a) In General.--Subchapter III of chapter 5 of title 40, United
States Code, is amended by adding at the end the following new section:
``Sec. 560. Sustainable disposal of property
``The head of each Federal agency shall divert at least 50 percent of
construction and demolition materials and debris by the end of fiscal
year 2015.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 5 of title 40, United States Code, is amended by inserting
after the item relating to section 559 the following new item:
``560. Sustainable disposal of property.''.
SEC. 9. STREAMLINING THE MCKINNEY-VENTO HOMELESS ASSISTANCE ACT.
Section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11411) is amended--
(1) in subsection (a), by adding at the end the following new
sentence: ``Agencies shall not be required to submit
information to the Secretary regarding properties located in an
area for which the general public is denied access in the
interest of national security.'';
(2) in subsection (c)(1)(A), by striking ``in the Federal
Register'' and inserting the following: ``on the website of the
Department of Housing and Urban Development or the General
Services Administration''; and
(3) in subsection (d)(3), by adding at the end the following
new sentence: ``If no such review of the determination is
requested within the 20-day period, such property will not be
included in subsequent publications unless the landholding
agency reclassifies the property as available and the Secretary
subsequently determines the property is suitable.''.
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 665, the Excess Federal Building and Property Disposal
Act of 2011, would streamline the Federal real property
disposal process by authorizing a pilot program to
expeditiously dispose of real property not meeting the needs of
the Federal Government. The legislation requires agencies to
select candidate disposition properties for participation in
the pilot program and provides the Office of Management and
Budget (OMB) authority to choose which properties to place into
the pilot program. H.R. 665 exempts the properties in the pilot
program from any of the public benefit conveyance requirements
described in Title 40, and from the McKinney-Vento Homeless
Assistance Act requirements. The bill requires participating
agencies to be reimbursed for associated administrative
expenses and allows them to retain 20% of the net proceeds of a
sale. The bill directs 80% of sale proceeds to the Treasury
Department for debt reduction. During Full Committee
consideration of H.R. 665, a more comprehensive Amendment in
the Nature of a Substitute (ANS) was adopted. The section-by-
section portion of this report elaborates on the content of the
ANS.
BACKGROUND AND NEED FOR LEGISLATION
Since 2003, the Government Accountability Office (GAO) has
cited Federal real property management as a ``high-risk'' area
for several reasons.\1\ GAO has cited concerns about the
reliability of real property data, the deteriorating condition
of facilities, the large quantity of excess and underutilized
properties, an overreliance on leasing, and insufficient
security of facilities.\2\ In 2011, GAO narrowed the scope of
its concerns, stating that although improvements had been made
with regard to the reliability of real property data and
building conditions, the other concerns remain.\3\
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\1\General Accountability Office, High Risk Series: An Update, GAO-
11-278, Feb. 2011 [hereinafter GAO High Risk Series].
\2\Id.
\3\Id.
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The Congressional Research Service (CRS) reports that the
Federal Government holds over ten thousand unneeded
properties\4\ and spends hundreds of millions of dollars
annually on the upkeep and maintenance of these properties.\5\
The government holds over 900,000 buildings and structures,\6\
and approximately 41 million acres of land worldwide.\7\
According to testimony from OMB, the Federal Government
currently has approximately 14,000 buildings and structures
designated as excess and approximately 76,000 properties
classified as underutilized.\8\ GAO testified that in fiscal
year 2009 some 45,190 buildings deemed as underutilized cost
taxpayers nearly $1.7 billion annually to operate.\9\
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\4\Garrett Hatch, Congressional Research Service, Disposal of
Unneeded Federal Buildings: Legislative Proposals in the 112th
Congress, CRS no. R41892, June 24, 2011 (citing 40 U.S.C. Sec. 102)
[hereinafter CRS no. R41892].
\5\Garrett Hatch, Congressional Research Service, Real Property
Disposition: Overview and Issues for the 111th Congress, CRS no.
R41240, Jan. 12, 2011 [hereinafter CRS no. R41240].
\6\GAO High Risk Series.
\7\CRS no. R41240.
\8\Federal Asset Management: Eliminating Waste by Disposing of
Unneeded Federal Real Property, Hearing before the Subc. on Fed.
Financial Mgmt., Gov't. Info., Fed. Services, and Int'l Sec. of the S.
Comm. on Homeland Sec. and Gov't. Affairs, 112th Cong. 1 (2011)
(statement of Hon. Daniel I. ``Danny'' Werfel, Controller, OMB)
\9\Federal Asset Management: Eliminating Waste by Disposing of
Unneeded Federal Real Property, Hearing Before the Subc. on Fed.
Financial Mgmt., Gov't. Info., Fed. Services, and Int'l Sec. of the S.
Comm. on Homeland Sec. and Gov't. Affairs, 112th Cong. 1 (2011)
(statement of David J. Wise, Director and Brian J. Lepore, Director,
U.S. GAO)
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Both the Administration and Congress recognize the
financial burden of unneeded Federal real property. On June 10,
2010, President Obama issued a memorandum ``Disposing of
Unneeded Federal Real Estate,'' directing OMB to work with
agencies to ``produce no less than $3 billion in cost savings
by the end of fiscal year 2012.''\10\ These cost savings were
to come from increased sale proceeds, as well as reduced
operating, maintenance and energy expenses. This $3 billion
goal provides a standard for Congress to evaluate what steps
landholding agencies have taken to achieve the directive in the
memorandum.
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\10\Memorandum on Disposing of Unneeded Federal Real Estate--
Increasing Sales, Proceeds, Cutting Operating Costs, & Improving Energy
Efficiency, Memorandum for the Heads of Executive Departments and
Agencies, June 10, 2010.
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During the June 2011 budget deficit reduction debate, the
media reported that the sale of surplus Federal real property
was suggested as a means to generate revenue to offset spending
elsewhere.\11\ In July 2011, President Obama sent draft real
property disposal legislation to Congress. The draft
legislation advanced by the President seeks to expedite the
disposal of unneeded and underutilized Federal civilian real
property assets, with the goal of generating billions of
dollars in revenue for the Federal Government. It creates a
Civilian Property Realignment Board (CPRB) analogous to the
Department of Defense Base Realignment and Closure (BRAC)
Commission. Under this proposal, the Board would be responsible
for recommending properties for disposal. Ultimately, OMB and
Congress must approve or disapprove of the entirety of the
Board's recommendations in order for the agencies to begin
disposing of them. According to the Administration, the
legislation would allow the government to realize $15 billion
in gross proceeds and other savings from the disposal of
Federal real property over a 3-year period, once the Board
becomes fully operational.
---------------------------------------------------------------------------
\11\Laura Meckler, Federal Land Up for Budget Grabs, WALL ST. J.,
July 16, 2011.
---------------------------------------------------------------------------
In a June 27, 2011, letter to the Committee, the
Congressional Budget Office (CBO) estimated that the
President's proposal would increase direct spending by $60
million over 10 years and could increase discretionary spending
by $420 million over 5 years.\12\ CBO also said the proposal
would probably not yield significant sale proceeds from the
disposal of unneeded Federal properties.\13\
---------------------------------------------------------------------------
\12\Letter from Hon. Douglas W. Elmendorf, Director, CBO, to Hon.
Darrell Issa, Chairman, Comm. on Oversight & Gov't Reform, June 27,
2011, available at http://www.cbo.gov/ftpdocs/122xx/doc12270/06-28-
IssaLtrProperty.pdf.
\13\Id.
---------------------------------------------------------------------------
The President's legislation, due to cost and approach,
would not likely be supported by Congress. H.R. 665 provides a
viable, bipartisan alternative by working within the existing
real property disposal process rather than creating a novel
process.
LEGISLATIVE HISTORY
The pilot program and the provisions of the ANS discussed
below in greater detail have been introduced in bills and
supported during previous Congresses. During the 111th
Congress, Representative Chaffetz introduced an almost
identical bill to H.R. 665. On February 11, 2011, during the
112th Congress, he reintroduced the bill. It was referred to
the Committee on Oversight and Government Reform and then to
the Subcommittee on Government Organization, Efficiency, and
Financial Management.
On July 27, 2011, the Full Committee held a hearing
entitled, ``Disposal of Federal Real Property: Legislative
Proposals.'' During the hearing, three legislative proposals
were examined. Representative Chaffetz, Representative Quigley,
and Representative Denham testified regarding the real property
disposal bills they had introduced during the 112th Congress.
Representative Quigley's bill and Representative Chaffetz's
bill share certain characteristics that differentiated them
from Representative Denham's bill, which bears greater
similarity to the President's real property disposal proposal.
On November 17, 2011, the Full Committee held a business
meeting to mark up H.R. 665. Representative Quigley offered an
ANS which was supported by Representative Chaffetz. Ultimately,
the ANS was accepted and adopted by voice vote.
Section-by-Section
A section-by-section summary of the ANS adopted during the
Full Committee business meeting follows:
Section 1. Short title
This section is the short title of the bill ``Excess
Federal Building and Property Disposal Act of 2011.''
Section 2. Federal real property disposal pilot program
This section of the bill creates the pilot program to
dispose of unneeded Federal real property in an expeditious and
efficient manner with the goal of maximizing profit. According
to OMB, there are properties within the Federal real property
portfolio which can be sold to raise revenue.\14\
---------------------------------------------------------------------------
\14\Fed. Asset Management: Eliminating Waste By Disposing of
Unneeded Fed. Real Property. Hearing before the S. Comm. on Homeland
Sec. & Gov't Affairs Subc. on Fed. Financial Mgmt. Gov't Info. Fed.
Serv. & Int'l Security, 112th Cong. (June 9, 2011) (oral statement of
Daniel Werfel, Controller, OMB).
---------------------------------------------------------------------------
Under the pilot program created by this section, the OMB
Director, in consultation with the head of the General Services
Administration (Administrator), is directed to identify, with
input from Federal agencies, 15 real properties to be placed on
a rolling list for disposal. These properties must meet certain
criteria, such as possessing high fair market value. Certain
properties such as United States Postal Service properties and
properties owned by Indian and Native Alaskans are excluded
from the pilot.
The Administrator is further directed to dispose of the
properties through a public auction. This method of disposal
was recommended by the CBO. Once a property is auctioned and
transferred, the Administrator has 15 days to identify another
property to be placed on the list for disposal. This rolling
list is also referred to as the real property pilot program. It
is authorized for five years.
The Committee anticipates that during the pilot program,
the standard disposal process under Title 40 will occur
contemporaneously. Pilot properties are exempt from certain
statutory constraints to disposal. For example, properties sold
as part of the pilot program will not be subject to the
requirements of Title V of the McKinney-Vento Homeless
Assistance Act or the public benefit conveyance requirements.
An agency that participates in the pilot program and GSA
are reimbursed for administrative costs. Proceeds from sales
under the pilot program are required to be distributed as
follows: 98 percent to the General Fund of the Treasury and two
percent to a grant fund for homeless assistance.
With the two percent proceeds, the Department of Housing
and Urban Development (HUD) is authorized to make grants to
nonprofit entities for the purchase or rehabilitation of real
property suitable to assist the homeless. The HUD Secretary is
directed to give preference to nonprofit entities located in
the areas in which real property is being sold through the
pilot program.
This section also requires the GAO to conduct a study of
the effectiveness of the pilot program.
Section 3. Duties of the General Services Administration and executive
agencies
This section directs GSA to issue guidance for agencies
regarding the development of real property plans. Agencies are
required to continuously monitor their real property portfolio
and dispose of any unneeded properties in a timely manner. GSA
is required to report (one time) on the efficacy of this
section three years after enactment.
Section 4. Enhanced authorities with regard to preparing properties to
be reported as excess
This section applies to the standard disposal process under
Title 40. Specifically, it amends 40 U.S.C. 572(a)(2) to allow
GSA and the agencies to be reimbursed for the costs associated
with the disposal of real property. After costs are paid,
proceeds are distributed pursuant to Section 6, described
below.
Section 5. Enhanced authorities with regard to reverted real property
This section amends 40 U.S.C. 572(a)(2)(A) to allow GSA to
be reimbursed for the direct and indirect costs associated with
a reversion of real property and the disposal of reverted real
property. It should be noted that reverted real property at one
time or another likely underwent the standard disposal process.
This section also allows the Administrator to dispose of
reverted real property through sale under certain circumstances
and places certain requirements on these types of disposals.
Prior to selling reverted real property, the GSA Administrator
shall allow public benefit conveyances.
Section 6. Agency retention of proceeds
This section amends 40 U.S.C. 571 to allow the net proceeds
of a sale of real property conducted under the standard
disposal process to be returned to the agency that conducted
the disposal for the purpose of continuing disposal activities
and maintenance to properties. Any remainder shall go to the
Treasury for deficit reduction. It also allows proceeds from
the sale of personal property to be deposited into the
Treasury.
Section 7. Federal real property database
This section codifies the requirement for a Federal real
property database and requires GSA to publish the existing
database, which the Committee understands is owned by OMB and
managed by GSA. This section allows classified information and
national security sensitive information to be excluded from
publication.
Section 8. Sustainable disposal of property
This section directs agencies to recycle at least 50
percent of construction and demolition materials.
Section 9. Streamlining the McKinney-Vento Homeless Assistance Act
This section streamlines the McKinney-Vento homeless review
process. Under Title V of the McKinney-Vento Homeless
Assistance Act, a surplus Federal property must be made
available to entities serving the homeless before it can be
conveyed for other public use.\15\ This section excludes
national security properties from the review conducted by HUD.
By excluding national security properties, the standard
disposal process should become more efficient.
---------------------------------------------------------------------------
\15\Garrett Hatch, Congressional Research Service, Disposal of
Unneeded Federal Buildings: Legislative Proposals in the 112th
Congress, CRS no. R41892, June 24, 2011 (citing 40 U.S.C. Sec. 102).
---------------------------------------------------------------------------
Under the current process, HUD publishes available
properties in the Federal Register. According to HUD, this is
an onerous requirement. This section repeals that requirement
and directs HUD or GSA to publish the available properties on a
website.
Explanation of Amendments
The provisions of Representative Quigley's ANS adopted
during the Committee Business Meeting are explained in the
Section-by-Section above.
Representative Connolly introduced an amendment to Section
2 of the ANS that was accepted. His amendment gives the
Administrator of the General Services Administration the
discretion to except from the pilot program those properties
the Administrator deems suitable for use as parks or
recreational space pursuant to 40 U.S.C. 550(e). This Title
allows the Administrator to assign surplus real property to the
Secretary of the Interior for sale, lease, or transfer to a
state, locality, or municipality. The amendment requires that
in making the determination to except parcels of real property
from the pilot, the Administrator should consider the
``appraised value of the property and the highest and best
use.'' Appraised value has the plain language meaning. It is
the market value of real property as determined by the opinion
of a qualified appraiser. ``Highest and best use'' is a real
estate term which ``means an appraiser's supported opinion of
the most probable and legal use of a property, based on market
evidence, as of the date of valuation.''\16\
---------------------------------------------------------------------------
\16\36 C.F.R. Sec. 254.2 (2011).
---------------------------------------------------------------------------
This amendment is not intended to impede the pilot program
created under Section 2 of the ANS. It should be emphasized
that the Administrator's use of this exclusion is intended to
be rare and under circumstances in which a parcel of surplus
real property has little or no economically beneficial value or
use.
Committee Consideration
On November 17, 2011, the Committee met in open session and
ordered reported favorably the bill, H.R. 665, as amended, by
voice vote, a quorum being present.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill would streamline the Federal real property disposal
process by authorizing a pilot program to expeditiously dispose
of real property not meeting the needs of the Federal
government. As such this bill does not relate to employment or
access to public services and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
H.R. 665 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 665. However, clause 3(d)(3)(B) of that rule provides that
this requirement does not apply when the Committee has included
in its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 665 from the Director of
Congressional Budget Office:
February 24, 2012.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 665, the Excess
Federal Building and Property Disposal Act of 2011.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact for this
estimate is Matthew Pickford.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 665--Excess Federal Building and Property Disposal Act of 2011
Summary: H.R. 665 would amend the Federal Property and
Administrative Services Act (Property Act) to facilitate the
disposal of federal real property. The legislation would
establish a five-year pilot program to expedite the disposal of
excess and surplus federal property.
CBO estimates that enacting the bill would increase net
direct spending by $100 million over the 2012-2022 period
because it would authorize the General Services Administration
(GSA) and other federal agencies to spend proceeds from the
sale of federal property that are expected to be collected
under current law. Enacting H.R. 665 would not affect revenues.
Because the legislation would affect direct spending, pay-as-
you-go procedures apply. In addition, CBO estimates that
implementing the legislation would cost $2 million over the
2012-2017 period, assuming the availability of appropriated
funds.
H.R. 665 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 665 is shown in the following table.
The costs of this legislation fall within budget function 800
(general government) and all budget functions that contain
landholding agencies, except 050 (national defense).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013-2017 2013-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING\1\
Estimated Budget Authority.................................. 20 20 20 20 20 0 0 0 0 0 100 100
Estimated Outlays........................................... 20 20 20 20 20 0 0 0 0 0 100 100
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\In addition to the costs shown above, CBO estimates that implementing H.R. 665 would cost $2 million over the 2013-2017 period for administrative and
reporting costs related to property disposal, assuming the availability of appropriated funds.
Basis of estimate: For this estimate, CBO assumes that H.R.
665 will be enacted in fiscal year 2012, that the necessary
funds will be provided for each year, and that spending will
follow historical patterns for similar programs.
The Federal Property and Administrative Services Act
governs the disposition of most federal properties. That act
and other statutes that govern real estate transactions of
specific agencies and programs generally require agencies to
allocate excess property to other public purposes before
offering it for sale. As a result, in most years, only a small
portion of excess federal property is typically sold to the
public. The remaining properties are transferred to public
agencies and institutions through public benefit conveyances.
The act also allows GSA to retain 12 percent of the proceeds
from sales to cover the costs of auction fees and appraisals.
The net proceeds from such sales are deposited in the Treasury
as offsetting receipts. Under current law, proceeds from such
transactions usually cannot be spent without further
Congressional action. Under current law, CBO estimates that net
receipts from the sale of surplus property governmentwide will
total about $20 million per year.
The legislation would establish a five-year pilot program
to authorize the expedited disposal of excess and surplus
federal property. The Director of the General Services
Administration, in consultation with the Office of Management
and Budget (OMB) and using recommendations of affected
executive agencies, would be required to always have 15 federal
properties available to participate in the program; the program
would terminate five years after enactment. Under the pilot
program properties could be sold without some of the
administrative reviews and determinations that must occur under
current law. Agencies and GSA would be reimbursed for certain
expenses related to properties disposed of under this program.
Any remaining proceeds from those sales would be divided
between two accounts: 98 percent would be deposited in the
Treasury as miscellaneous receipts, while 2 percent would be
spent for homeless assistance grants.
Based on information from OMB and GSA regarding the status
of property governmentwide, CBO expects that that the pilot
program would not significantly increase the number of
properties sold above the number anticipated under current law.
In addition, receipts from sales of properties participating in
the pilot program would be spent by GSA and other agencies to
reimburse them for their expenses associated with the sales. As
a result, CBO estimates that the reimbursement of expenses
would increase direct spending of sales proceeds expected under
current law by about $20 million annually over the 2013-2017
period.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act establishes budget-reporting and enforcement procedures for
legislation affecting direct spending or revenues. The net
changes in outlays that are subject to those pay-as-you-go
procedures are shown in the following table. Enacting the
legislation would have no effect on revenues.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 665, THE EXCESS FEDERAL BUILDING AND PROPERTY DISPOSAL ACT OF 2011, AS ORDERED REPORTED BY THE HOUSE
COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM ON NOVEMBER 17, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012-2017 2012-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 20 20 20 20 20 0 0 0 0 0 100 100
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 665
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: On February 1, 2012, CBO transmitted
a cost estimate for H.R. 1734, the Civilian Property
Realignment Act, as transmitted to the Congressional Budget
Office on January 24, 2012. On December 8, 2011, CBO
transmitted a cost estimate for H.R. 1734, as ordered reported
by the House Committee on Transportation and Infrastructure on
October 13, 2011. All three pieces of legislation address
federal property but have different provisions. Both versions
of H.R. 1734 would establish a commission to sell and dispose
of federal property, but the version of that legislation
reported by the House Committee on Transportation and
Infrastructure would provide the commission with broad
authorities to sell and dispose of federal properties (without
future Congressional actions). H.R. 665 would not establish a
commission but would provide additional authorities to GSA to
help facilitate the sale and disposal of federal properties.
Those differences are reflected in the estimated cost of the
bills.
Estimate prepared by: Federal Spending: Matthew Pickford;
Impact on State, Local, and Tribal Governments: Paige Piper/
Bach; Impact on the Private Sector: Elizabeth Cove Delisle.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 40, UNITED STATES CODE
* * * * * * *
SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
subchapter i--procurement and warehousing
Sec.
501. Services for executive agencies.
* * * * * * *
subchapter ii--use of property
* * * * * * *
[524. Duties of executive agencies.]
524. Duties of the General Services Administration and executive
agencies.
* * * * * * *
530. Federal real property database.
subchapter iii--disposing of property
* * * * * * *
560. Sustainable disposal of property.
* * * * * * *
subchapter vi--motor vehicle pools and transportation systems
* * * * * * *
subchapter vii--expedited disposal of real property
621. Federal real property disposal pilot program.
622. Selection of real properties.
623. Expedited disposal requirements.
624. Special rules for deposit and use of proceeds from expedited
disposals.
625. Homeless assistance grants.
* * * * * * *
SUBCHAPTER II--USE OF PROPERTY
* * * * * * *
[Sec. 524. Duties of executive agencies
[(a) Required.--Each executive agency shall--
[(1) maintain adequate inventory controls and
accountability systems for property under its control;
[(2) continuously survey property under its control
to identify excess property;
[(3) promptly report excess property to the
Administrator of General Services;
[(4) perform the care and handling of excess
property; and
[(5) transfer or dispose of excess property as
promptly as possible in accordance with authority
delegated and regulations prescribed by the
Administrator.
[(b) Required as Far as Practicable.--Each executive agency,
as far as practicable, shall--
[(1) reassign property to another activity within the
agency when the property is no longer required for the
purposes of the appropriation used to make the
purchase;
[(2) transfer excess property under its control to
other federal agencies and to organizations specified
in section 321(c)(2) of this title; and
[(3) obtain excess property from other federal
agencies.]
Sec. 524. Duties of the General Services Administration and executive
agencies
(a) Duties of the General Services Administration.--
(1) Guidance.--Not later than 6 months after the date
of the enactment of this section, and when necessary
thereafter, the Administrator of General Services shall
issue guidance for the development and implementation
of executive agency real property plans. Such guidance
shall include recommendations on--
(A) how to identify excess properties;
(B) how to evaluate the costs and benefits
associated with disposing of real property;
(C) how to prioritize disposal decisions
based on agency missions and anticipated future
need for holdings; and
(D) how best to dispose of those properties
identified as excess to meet the needs of the
agency.
(2) Assistance.--The Administrator shall assist
executive agencies in the identification and disposal
of excess real property.
(b) Duties of Executive Agencies.--
(1) In general.--Each executive agency shall--
(A) maintain adequate inventory controls and
accountability systems for property under its
control;
(B) continuously survey property under its
control to identify excess property;
(C) promptly report excess property to the
Administrator;
(D) perform the care and handling of excess
property; and
(E) transfer or dispose of excess property as
promptly as possible in accordance with
authority delegated and regulations prescribed
by the Administrator.
(2) Specific requirements with respect to real
property.--With respect to real property, each
executive agency shall--
(A) develop and implement a real property
plan in order to identify properties to declare
as excess using the guidance issued under
subsection (a)(1);
(B) identify and categorize all real property
owned, leased, or otherwise managed by the
agency;
(C) establish adequate goals and incentives
to reduce excess real property in such agency's
inventory; and
(D) when appropriate, use the authorities in
section 572(a)(2)(B) of this title in order to
identify and prepare real property to be
reported as excess.
(3) Additional requirements.--Each executive agency,
as far as practicable, shall--
(A) reassign property to another activity
within the agency when the property is no
longer required for the purposes of the
appropriation used to make the purchase;
(B) transfer excess property under its
control to other Federal agencies and to
organizations specified in section 321(c)(2) of
this title; and
(C) obtain excess properties from other
Federal agencies to meet mission needs before
acquiring non-Federal property.
* * * * * * *
Sec. 530. Federal real property database
(a) Database Required.--Not later than one year after the
date of the enactment of this section, the Administrator of
General Services shall publish a single, comprehensive, and
descriptive database of all Federal real property under the
custody and control of all executive agencies, other than
Federal real property excluded for reasons of national
security, in accordance with subsection (b).
(b) Required Information for Database.--The Administrator
shall collect from the head of each executive agency
descriptive information, except for classified information, of
the nature, use, and extent of the Federal real property of
each such agency, including the following:
(1) The geographic location of each Federal real
property of each such agency, including the address and
description for each such property.
(2) The total size of each Federal real property of
each such agency, including square footage and acreage
of each such property.
(3) The relevance of each Federal real property to
the agency's mission.
(4) The level of use of each Federal real property
for each such agency, including whether such property
is excess, surplus, underutilized, or unutilized.
(5) The number of days each Federal real property is
designated as excess, surplus, underutilized, or
unutilized.
(6) The annual operating costs of each Federal real
property.
(7) The replacement value of each Federal real
property.
(c) Access to Database.--
(1) Federal agencies.--The Administrator shall, in
consultation with the Director of the Office of
Management and Budget, make the database established
and maintained under this section available to other
Federal agencies.
(2) Public access.--To the extent consistent with
national security, the database shall be accessible by
the public at no cost through the website of the
General Services Administration.
(d) Transparency of Database.--To the extent practicable, the
Administrator shall ensure that the database--
(1) uses an open, machine-readable format;
(2) permits users to search and sort Federal real
property data; and
(3) includes a means to download a large amount of
Federal real property data and a selection of such data
retrieved using a search.
(e) Applicability.--Nothing in this section may be construed
to require an agency to make available to the public
information that is exempt from disclosure pursuant to section
552(b) of title 5.
SUBCHAPTER III--DISPOSING OF PROPERTY
* * * * * * *
Sec. 550. Disposal of real property for certain purposes
(a) * * *
(b) Enforcement and Revision of Instruments Transferring
Property Under This Section.--
(1) In general.--(A) Subject to disapproval by the
Administrator of General Services within 30 days after
notice of a proposed action to be taken under this
section, except for personal property transferred
pursuant to section 549 of this title, the official
specified in paragraph (2) shall determine and enforce
compliance with the terms, conditions, reservations,
and restrictions contained in an instrument by which a
transfer under this section is made. The official shall
reform, correct, or amend the instrument if necessary
to correct the instrument or to conform the transfer to
the requirements of law. The official shall grant a
release from any term, condition, reservation or
restriction contained in the instrument, and shall
convey, quitclaim, or release to the transferee (or
other eligible user) any right or interest reserved to
the Federal Government by the instrument, if the
official determines that the property no longer serves
the purpose for which it was transferred or that a
release, conveyance, or quitclaim deed will not prevent
accomplishment of that purpose. The release,
conveyance, or quitclaim deed may be made subject to
terms and conditions that the official considers
necessary to protect or advance the interests of the
Government. If the official, in consultation with the
Administrator, recommends reversion of the property,
the Administrator shall take control of such property,
and, subject to subparagraph (B), sell it at or above
appraised fair market value for cash and not by lease,
exchange, leaseback arrangements, or service
agreements.
(B) Prior to sale, the Administrator shall make such
property available to State and local governments and
certain non-profit institutions or organizations
pursuant to this section and sections 553 and 554 of
this title.
* * * * * * *
Sec. 553. Property for correctional facility, law enforcement, and
emergency management response purposes
(a) * * *
* * * * * * *
(e) Enforcement and Revision of Instruments Transferring
Property Under This Section.--(1) The Administrator shall
determine and enforce compliance with the terms, conditions,
reservations, and restrictions contained in an instrument by
which a transfer or conveyance under this section is made. The
Administrator shall reform, correct, or amend the instrument if
necessary to correct the instrument or to conform the transfer
to the requirements of law. The Administrator shall grant a
release from any term, condition, reservation or restriction
contained in the instrument, and shall convey, quitclaim, or
release to the transferee (or other eligible user) any right or
interest reserved to the Government by the instrument, if the
Administrator determines that the property no longer serves the
purpose for which it was transferred or that a release,
conveyance, or quitclaim deed will not prevent accomplishment
of that purpose. The release, conveyance, or quitclaim deed may
be made subject to terms and conditions that the Administrator
considers necessary to protect or advance the interests of the
Government. If the Administrator determines that reversion of
the property is necessary to enforce compliance with the terms
of the conveyance, the Administrator shall take control of such
property and, subject to paragraph (2), sell it at or above
appraised fair market value for cash and not by lease,
exchange, leaseback arrangements, or service agreements.
(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and
sections 550 and 554 of this title.
* * * * * * *
Sec. 560. Sustainable disposal of property
The head of each Federal agency shall divert at least 50
percent of construction and demolition materials and debris by
the end of fiscal year 2015.
SUBCHAPTER IV--PROCEEDS FROM SALE OR TRANSFER
Sec. 571. General rules for deposit and use of proceeds
[(a) Deposit in Treasury as Miscellaneous Receipts.--
[(1) In general.--Except as otherwise provided in
this subchapter, proceeds described in paragraph (2)
shall be deposited in the Treasury as miscellaneous
receipts.
[(2) Proceeds.--The proceeds referred to in paragraph
(1) are proceeds under this chapter from a--
[(A) transfer of excess property to a federal
agency for agency use; or
[(B) sale, lease, or other disposition of
surplus property.
[(b) Payment of Expenses of Sale Before Deposit.--Subject to
regulations under this subtitle, the expenses of the sale of
old material, condemned stores, supplies, or other public
property may be paid from the proceeds of sale so that only the
net proceeds are deposited in the Treasury. This subsection
applies whether proceeds are deposited as miscellaneous
receipts or to the credit of an appropriation as authorized by
law.]
(a) Proceeds From Transfer or Sale of Real Property.--
(1) Deposit of net proceeds.--Net proceeds described
in subsection (d) shall be deposited into the
appropriate real property account of the agency that
had custody and accountability for the real property at
the time the real property is determined to be excess.
(2) Expenditure of net proceeds.--The net proceeds
deposited pursuant to paragraph (1) may only be
expended as authorized in annual appropriations Acts,
for activities described in sections 543 and 545 of
this title, including paying costs incurred by the
General Services Administration for any disposal-
related activity authorized by this title.
(3) Deficit reduction.--Any net proceeds described in
subsection (d) from the sale, lease, or other
disposition of surplus real property that are not
expended under paragraph (2) shall be used for deficit
reduction.
(b) Effect on Other Sections.--Nothing in this section is
intended to affect section 572(b), 573, or 574 of this title.
(c) Disposal Agency for Reverted Property.--For the purposes
of this section, for any real property that reverts to the
United States under sections 550 and 553 of this title, the
General Services Administration, as the disposal agency, shall
be treated as the agency with custody and accountability for
the real property at the time the real property is determined
to be excess.
(d) Net Proceeds.--The net proceeds described in this
subsection are proceeds under this chapter, less expenses of
the transfer or disposition as provided in section 572(a) of
this title, from a--
(1) transfer of excess real property to a Federal
agency for agency use; or
(2) sale, lease, or other disposition of surplus real
property.
(e) Proceeds From Transfer or Sale of Personal Property.--
(1) In general.--Except as otherwise provided in this
subchapter, proceeds described in paragraph (2) shall
be deposited in the Treasury as miscellaneous receipts.
(2) Proceeds.--The proceeds described in this
paragraph are proceeds under this chapter from--
(A) a transfer of excess personal property to
a Federal agency for agency use; or
(B) a sale, lease, or other disposition of
surplus personal property.
(3) Payment of expenses of sale before deposit.--
Subject to regulations under this subtitle, the
expenses of the sale of personal property may be paid
from the proceeds of sale so that only the net proceeds
are deposited in the Treasury. This paragraph applies
whether proceeds are deposited as miscellaneous
receipts or to the credit of an appropriation as
authorized by law.
Sec. 572. Real property
(a) In General.--
(1) * * *
(2) Payment of expenses from the fund.--
(A) Authority.--From the fund described in
paragraph (1), the Administrator may obligate
an amount to pay the following direct expenses
incurred for the use of excess property and the
disposal of surplus property under this
subtitle:
(i) * * *
* * * * * * *
(iv) The direct and indirect costs
associated with the reversion, custody,
and disposal of reverted real property.
(B) Additional authority.--(i) From the fund
described in paragraph (1), subject to clause
(iv) of this subparagraph, the Administrator
may obligate an amount to pay the direct and
indirect costs related to identifying and
preparing properties to be reported excess by
another agency.
(ii) The General Services Administration
shall be reimbursed from the proceeds of the
sale of such properties for such costs.
(iii) Net proceeds shall be dispersed
pursuant to section 571 of this title.
(iv) The authority under clause (i) to
obligate funds to prepare properties to be
reported excess does not include the authority
to convey such properties by use, sale, lease,
exchange, or otherwise, including through
leaseback arrangements or service agreements.
(v) Nothing in this subparagraph is intended
to affect subparagraph (D).
[(B)] (C) Limitations.--
(i) * * *
* * * * * * *
[(C)] (D) Direct payment or reimbursement.--
An amount obligated under this paragraph may be
used to pay an expense directly or to reimburse
a fund or appropriation that initially paid the
expense.
* * * * * * *
SUBCHAPTER VII--EXPEDITED DISPOSAL OF REAL PROPERTY
Sec. 621. Federal real property disposal pilot program
(a) In General.--The Administrator of General Services (in
this subchapter referred to as the ``Administrator''), in
consultation with the Director of the Office of Management and
Budget (in this subchapter referred to as the ``Director''),
shall conduct a pilot program to be known as the ``Federal Real
Property Disposal Pilot Program'', under which the
Administrator, in consultation with the Director, shall
determine which 15 Federal Government real properties that are
excess or surplus and have the highest fair market value and
the greatest potential to sell and shall dispose of such
properties in accordance with this subchapter and through an
expedited disposal of real property.
(b) Disposal.--During the five-year period beginning on the
date of the enactment of the Excess Federal Building and
Property Disposal Act of 2011, the Administrator, in
consultation with the Director, shall dispose of real property
under the Federal Real Property Disposal Pilot Program through
a public auction.
(c) Adding Properties to the Pilot Program.--Not later than
15 days after a property is disposed of under subsection (b),
the Administrator, in consultation with the Director, shall
designate an additional property, in accordance with subsection
(a), to be disposed of under the Federal Real Property Disposal
Pilot Program.
(d) Exceptions.--The Administrator shall not include for
purposes of the Federal Real Property Pilot Program any of the
following types of property:
(1) A parcel of real property, building, or other
structure located on such real property that is to be
closed or realigned under the Defense Base Closure and
Realignment Act of 1990 (10 U.S.C. 2687 note).
(2) Properties that are excluded for reasons of
national security by the Director of the Office of
Management and Budget.
(3) Indian and Native Eskimo properties including--
(A) any property within the limits of any
Indian reservation to which the United States
owns title for the benefit of an Indian tribe;
and
(B) any property title which is held in trust
by the United States for the benefit of any
Indian tribe or individual or held by an Indian
tribe or individual subject to restriction by
the United States against alienation.
(4) Properties operated and maintained by the
Tennessee Valley Authority pursuant to the Tennessee
Valley Authority Act of 1933 (16 U.S.C. 831 et seq.).
(5) Postal properties owned by the United States
Postal Service.
(6) Properties used in connection with river, harbor,
flood control, reclamation, or power projects.
(7) Properties that the Administrator has determined
are suitable for assignment to the Secretary of the
Interior for transfer to a State, a political
subdivision or instrumentality of a State, or a
municipality for use as a public park or recreation
area under section 550(e) of this title. In making such
determination, the Administrator may consider the
appraised value of the property and the highest and
best use.
(e) GAO Report.--Not later than 24 months after the date of
the enactment of this subchapter, the Comptroller General of
the United States shall submit to Congress and make publicly
available a study of the effectiveness of the Federal Real
Property Pilot Program.
(f) Termination.--The Federal Real Property Disposal Pilot
Program shall terminate on the date that is five years after
the date of the enactment of the Excess Federal Building and
Property Disposal Act of 2011.
Sec. 622. Selection of real properties
The head of each executive agency shall recommend properties
to the Director for disposal under the Federal Real Property
Pilot Program. The Director, in consultation with the
Administrator, shall then select properties for disposal under
the pilot program and notify the recommending executive agency
accordingly.
Sec. 623. Expedited disposal requirements
(a) Expedited Disposal of Real Property Defined.--For
purposes of this subchapter, an ``expedited disposal of real
property'' is the sale of real property for cash that is
conducted pursuant to the requirements of section 545(a) of
this title.
(b) Fair Market Value Requirement.--Real property sold under
the Federal Real Property Pilot Program may not be sold at less
than the fair market value as determined by the Administrator,
in consultation with the Director. Costs associated with
disposal may not exceed the fair market value of the property
unless the Director approves incurring such costs.
(c) Monetary Proceeds Requirement.--Real property shall be
sold under the Federal Real Property Pilot Program only if the
property will generate monetary proceeds to the Federal
Government, as provided in subsection (b). A disposal of real
property under the Federal Real Property Pilot Program may not
include any exchange, trade, transfer, acquisition of like-kind
property, or other non-cash transaction as part of the
disposal.
(d) Rule of Construction.--Nothing in this subchapter shall
be construed as terminating or in any way limiting authorities
that are otherwise available to agencies under other provisions
of law to dispose of Federal real property, except as provided
in subsection (e).
(e) Exemption From Certain Requirements.--Any expedited
disposal of a real property conducted under this subchapter
shall not be subject to--
(1) subchapter IV of this chapter;
(2) sections 550 and 553 of this title;
(3) section 501 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11411);
(4) any other provision of law authorizing the no-
cost conveyance of real property owned by the Federal
Government; or
(5) any congressional notification requirement other
than that in section 545 of this title.
Sec. 624. Special rules for deposit and use of proceeds from expedited
disposals
(a) Reimbursement.--
(1) Executive agency.--An executive agency that
conducts an expedited disposal of real property under
this subchapter shall be reimbursed from the proceeds
of such disposal for the administrative expenses
associated with such disposal.
(2) General services administration.--The General
Services Administration shall be reimbursed the
expenses of an expedited disposal of real property
under this subchapter on behalf of an executive agency
from the proceeds of such disposal.
(3) Offsetting collections.--The amounts described in
paragraphs (1) and (2) will be credited as offsetting
collections to the account that incurred such expenses,
to remain available until expended without further
appropriations.
(b) Distribution of Proceeds.--After payment of the expenses
described in subsection (a), the balance of the proceeds shall
be distributed as follows:
(1) Ninety-eight percent shall be deposited into the
General Fund of the Treasury.
(2) Two percent shall hereby be made available until
expended to fund the grant program under section 625.
Sec. 625. Homeless assistance grants
(a) Grant Authority.--To the extent amounts are made
available pursuant to section 624(b)(2) for use under this
section, the Secretary of Housing and Urban Development shall
make grants to eligible private nonprofit organizations under
subsection (b) to purchase property suitable for use to assist
the homeless as provided in subsection (c).
(b) Eligible Grantees.--To be eligible to receive a grant
under subsection (a), a private nonprofit organization shall be
a representative of the homeless, as such term is defined in
section 501(i)(4) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11411(i)(4)).
(c) Use of Properties for Housing or Shelter for the
Homeless.--
(1) Eligible uses.--A nonprofit organization that
receives a grant under subsection (a) shall use the
amounts received under such grant only to acquire or
rehabilitate real property for use to provide permanent
housing (as such term is defined in section 401 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360)), transitional housing (as such term is defined
in such section 401), or temporary shelter, for persons
who are homeless.
(2) Term of use.--The Secretary of Housing and Urban
Development may not make a grant under subsection (a)
to a private nonprofit organization unless the
organization provides the Secretary with such
assurances as the Secretary determines necessary to
ensure that any property acquired or rehabilitated
using the amounts received under such grant is used
only as provided in paragraph (1) of this subsection
for a period of not fewer than 15 years.
(d) Preference.--In awarding grants under subsection (a), the
Secretary of Housing and Urban Development shall give
preference for such grants to private nonprofit organizations
that operate within areas in which Federal real property is
being sold under the Federal Real Property Disposal Pilot
Program under this subchapter.
(e) Nonprofit Organization.--For purposes of this section,
the following definitions shall apply:
(1) Homeless.--The term ``homeless'' has the meaning
given such term in section 103 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11302(a)), except
that subsection (c) of such section shall not apply for
purposes of this section.
(2) Private nonprofit organization.--The term
``private nonprofit organization'' has the meaning
given such term in section 401 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360).
(f) Regulations.--The Secretary of Housing and Urban
Development may issue any regulations necessary to carry out
this section.
* * * * * * *
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MCKINNEY-VENTO HOMELESS ASSISTANCE ACT
* * * * * * *
TITLE V--IDENTIFICATION AND USE OF SURPLUS FEDERAL PROPERTY
SEC. 501. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND REAL
PROPERTY TO ASSIST THE HOMELESS.
(a) Identification of Suitable Property.--The Secretary of
Housing and Urban Development shall, on a quarterly basis,
request information from each landholding agency regarding
Federal public buildings and other Federal real properties
(including fixtures) that are excess property or surplus
property or that are described as unutilized or underutilized
in surveys by the heads of landholding agencies under section
202(b)(2) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 483(b)(2)). No later than 25 days after
receiving a request from the Secretary, the head of each
landholding agency shall transmit such information to the
Secretary. No later than 30 days after receiving such
information, the Secretary shall identify which of those
buildings and other properties are suitable for use to assist
the homeless. Agencies shall not be required to submit
information to the Secretary regarding properties located in an
area for which the general public is denied access in the
interest of national security.
* * * * * * *
(c) Publication of Properties.--(1)(A) No later than 15 days
after the last day of the 45-day period provided for under
subsection (b)(1), the Secretary shall publish [in the Federal
Register] on the website of the Department of Housing and Urban
Development or the General Services Administration--
(i) * * *
* * * * * * *
(d) Holding Period.--(1) * * *
* * * * * * *
(3) Property that is reviewed by the Secretary under
subsection (a) and that is not identified by the Secretary as
being suitable for use to assist the homeless may not be made
available for any other purpose for 20 days after the
determination of unsuitability to allow for review of the
determination at the request of the representative of the
homeless. The Secretary shall disseminate immediately this
information to the regional offices of the Department of
Housing and Urban Development and to the United States
Interagency Council on Homelessness. If no such review of the
determination is requested within the 20-day period, such
property will not be included in subsequent publications unless
the landholding agency reclassifies the property as available
and the Secretary subsequently determines the property is
suitable.
* * * * * * *