[House Report 114-578]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-578
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
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FEDERAL ASSETS SALE AND TRANSFER ACT OF 2016
_______
May 23, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 4465]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 4465) to decrease the deficit by
consolidating and selling Federal buildings and other civilian
real property, and for other purposes, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 6
Legislative History and Consideration............................ 6
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 6
New Budget Authority and Tax Expenditures........................ 6
Congressional Budget Office Cost Estimate........................ 7
Performance Goals and Objectives................................. 10
Advisory of Earmarks............................................. 10
Duplication of Federal Programs.................................. 10
Disclosure of Directed Rule Makings.............................. 10
Federal Mandate Statement........................................ 11
Preemption Clarification......................................... 11
Advisory Committee Statement..................................... 11
Applicability of Legislative Branch.............................. 11
Section-by-Section Analysis of Legislation....................... 11
Changes in Existing Law Made by the Bill, as Reported............ 15
Purpose of Legislation
The purpose of H.R. 4465 is to save taxpayer money by
shrinking the federal real property footprint by selling or
redeveloping high value properties, consolidating federal
space, maximizing utilization rates, and streamlining the
disposal of unneeded assets.
Background and Need for Legislation
H.R. 4465, the Federal Assets Sale and Transfer Act of
2016, improves the management of Federal real property by
consolidating and selling underutilized federal buildings and
other civilian real property.
Opportunities to reduce costs
Given the vast real estate holdings of the federal
government, poor asset management and missed market
opportunities cost taxpayers significant sums of money. For
this reason, in 2003, the Government Accountability Office
(GAO) placed real property management on its list of ``high
risk'' government activities, where it remains today. Among the
reasons GAO lists federal real property as high risk are
``excess and underutilized real property'' and ``unreliable
property data.'' While significant attention has been paid to
addressing these issues, GAO noted in its 2015 ``High Risk
series'' report that, ``the federal government continues to
maintain too much excess and underutilized property.''\1\
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\1\GAO High Risk Series, GAO-15-290 (2015), p. 135.
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The high risk activities related to federal real property
are significant; however, consistent and accurate data
continues to be a challenge in measuring the full costs to the
taxpayer. Considerable amounts of vacant or underperforming
real estate assets can translate into significant costs
associated with the operation, maintenance, and security of
those properties.
Domestically, the federal government owns more than 254,000
buildings\2\ comprising a total of 2.5 billion square feet of
space with an annual operating cost of $14.4 billion.\3\ The
total amount of underutilized or vacant real estate has not
been accurately ascertained likely due in large measure to poor
data and inconsistent reporting requirements.\4\ For example,
in fiscal year 2009, the number of underutilized buildings was
45,190, comprising 341 million square feet of space costing
$1.66 billion.\5\ However, in fiscal year 2010, there were
77,000 buildings comprising 490 million square feet listed as
underutilized or vacant, costing $1.66 billion annually.\6\
While those were global numbers (domestic and non-domestic), in
the most recent Federal Real Property Summary Data Set for
2014, which accounts for only domestic properties, 5,000
buildings are listed as underutilized or vacant. This does not
include all property categories and reflects only 43 percent of
the total buildings. The same fiscal year 2014 Data Set lists
31,465 ``assets'' as not currently needed, including buildings
and structures.
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\2\This figure excludes land and 477,000 structures, costing $7.8
billion annually, such as utility systems, roads and bridges, and
parking structures.
\3\FY 2014 Federal Real Property Profile Summary Open Data Set.
\4\See Federal Real Property: Excess and Underutilized Property is
an Ongoing Challenge, GAO-13-573T (April 2013); Federal Real Property:
Strategic Focus Needed to Help Manage Vast and Diverse Warehouse
Portfolio, GAO-15-41 (November 2014).
\5\Federal Real Property: The Government Faces Challenges to
Disposing of Unneeded Buildings, GAO-11-370T, (February 2011).
\6\FY 2010 Federal Real Property Report, Federal Real Property
Council, p. 6. See also Disposal of Unneeded Federal Buildings:
Legislative Proposals in the 112th Congress, Congressional Research
Service, August 6, 2012.
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Reducing the real estate footprint
Both the Committee and the Administration have been working
to reduce the costs of office space by improving the space
utilization rates of agencies and reducing their real estate
footprint. Large real estate acquisitions, over $2.85 million
annually, must be authorized by the House Committee on
Transportation and Infrastructure and the Senate Committee on
Environment and Public Works. Since the beginning of the 113th
Congress, through efforts to get the General Services
Administration's (GSA) tenant agencies to improve their space
utilization, the Committee has authorized projects that will
potentially result in up to $3 billion in savings to the
taxpayer through lease cost avoidance, reduction of previously-
authorized projects, and consolidations.
The Administration has also issued directives to reduce the
amount of real estate used by federal agencies. On June 10,
2010, the Administration issued a memorandum directing agencies
to accelerate efforts to identify and eliminate excess
properties. On March 14, 2013, the Office of Management and
Budget (OMB) issued a Management Procedures Memorandum
prohibiting agencies from increasing the total square footage
of their domestic office and warehouse inventory compared to
their fiscal year 2012 baseline--in effect requiring agencies
to freeze their federal real property footprint. More recently,
on March 25, 2015, OMB issued a directive for agencies to
reduce their office and warehouse space by aggressively
disposing of properties and making more efficient use of space.
At the same time, the Administration released the National
Strategy for the Efficient Use of Real Property, which proposed
a five-year, three-step strategy to improve the efficiency and
cost-effectiveness of federal real estate. The three-step
approach includes freezing the footprint, improving the quality
of data to more accurately analyze and measure opportunities,
and reducing the footprint through accelerated disposals and
improved space utilization.
Unfortunately, despite executive orders and memoranda
issued during two administrations and acts of Congress intended
to improve the management of federal real property, these
problems persist.\7\ The GAO has noted in recent years the
continual problem of retention of excess and underutilized
properties, despite efforts by both the Administration and
Congress to reduce the amount and costs associated with
unneeded properties.\8\
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\7\See, for example, Executive Order 13327, Federal Real Property
Asset Management, signed by President George W. Bush, February 4, 2004;
Presidential Memorandum, Disposing of Unneeded Federal Real Estate,
signed by President Barack Obama, June 10, 2010; Public Buildings
Cooperative Use Act of 1976; Public Law 108-447, Division H, Title IV,
Section 412, December 8, 2004 (providing enhanced flexibility to GSA in
real property management).
\8\See Federal Real Property: Continued Efforts, Legislation, and
Implementing GAO Recommendations Could Address Challenges, GAO-15-689T,
June 16, 2015; Federal Real Property: Excess and Underutilized Property
Is an Ongoing Challenge, GAO-13-573T, April 25, 2013.
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There are a number of examples of high value vacant and
underutilized properties sitting for years, if not more than a
decade and, only after action by the Committee either through
hearings or legislation did GSA begin to take action. These
include, for example, in Washington D.C. the West Heating Plant
in the Georgetown area, the Old Post Office on Pennsylvania
Avenue, and the Cotton Annex located right off the National
Mall. Despite sitting in prime locations, these assets sat for
years and, in two cases, were vacant yet were never disposed
of, costing taxpayer money to maintain them. In the case of the
Old Post Office, despite being used, the building was
underutilized and GSA lost revenue on the property every year.
Only through legislation directing GSA to redevelop that
property, did GSA finally take steps to do so.
Hurdles to reducing the real estate footprint and the solution
Over the years, the issue of getting federal agencies to
sell or dispose of underutilized and unneeded properties has
been a focus of GAO investigations, congressional hearings, and
actions by administrations. Various hurdles to disposing of
properties have been identified, including:
Upfront costs to agencies--Preparing the
properties for disposal costs money. For example, there are
costs related to surveys, environmental assessments, and
cleanup.
Cumbersome disposal process--The current disposal
process can be cumbersome and time-consuming, particularly for
larger, more valuable assets, creating a disincentive for
agencies to dispose of unneeded properties.
Land-banking of high value assets--Either as a
result of the costs, disposal process, or because an agency
believes it may require space at some unspecified point in the
future, agencies may hold on to higher value assets.
Real estate activities may be required--Many
valuable properties used by agencies may be underutilized;
however, in order to make properties available for sale or
disposition, money may be needed to relocate, consolidate, or
acquire space to move the agency operations.
Poor data and property management--Agencies may
not maintain accurate data about their properties and space
utilization, making it more difficult to identify properties
available for disposal.\9\ In addition, agencies may not be in
a position to determine if use of the property is optimized.
For example, if a small government building sits in a larger,
valuable plot of land, the building itself may be fully
utilized, but the property underutilized, and may provide more
value to the taxpayer if sold and the agency consolidated into
other space.
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\9\Federal Real Property: Better Guidance and More Reliable Data
Needed to Improve Management, GAO-14-757T (July 29, 2014).
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Prioritization--Other than the GSA, property
management is not a part of the core mission of most agencies,
and, as such, working to identify and make available
underutilized properties may not be a priority.
These hurdles not only cost the taxpayer money given
ongoing maintenance and operation costs and unrealized return
from selling them, but they minimize the number of properties
made available for other public purposes, such as serving the
homeless.\10\
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\10\Written Statement of Maria Foscarinis, Executive Director,
National Law Center on Homelessness & Poverty, Subcommittee on Economic
Development, Public Buildings, and Emergency Management hearing on
``Saving Taxpayer Dollars in Federal Real Estate: Reducing the
Government's Space Footprint,'' June 16, 2015.
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While GSA and some tenant agencies have begun to take steps
to improve their space utilization, consolidate, and reduce
their space footprint, resistance remains. In order to promote
better utilization of space, realize financial returns on
under-used high value assets, and improve efficiency, including
energy efficiency, H.R. 4465 was introduced. The legislation is
intended to create a process that would independently establish
space standards, apply them to the federal inventory, and
provide a streamlined manner to ensure actions are taken by
agencies to reduce the federal real estate footprint.
H.R. 4465 is intended to save taxpayer money by selling and
redeveloping high value assets, consolidating facilities,
maximizing utilization rates, and increasing the use of
efficient space. H.R. 4465 would require the Board established
in the legislation to examine federal real property across
government--used and un-used--and make decisions based on the
best return to the taxpayer.
Public Museums
Federal Management Regulations (FMR) require a museum to be
open for at least 1,000 posted hours annually in order to
qualify as a public museum eligible to receive surplus
property. The public policy principle behind this requirement
is to ensure that surplus property is available to the public,
but this principle can be satisfied in other ways. The
Committee believes that the FMR regulation requiring that a
non-profit museum have at least 1,000 posted hours in order to
receive surplus property is arbitrary. The Committee believes
the legislative language in Section 23 makes it clear that the
Administrator consider a public museum eligible for surplus
property if the organization accedes to any request submitted
for access during business hours.
The Administrator has a prominent role in executing the
Administration's Freeze the Footprint Policy\11\ and subsequent
Reduce the Footprint Policy.\12\ Both of these policies have
been designed to reduce the federal real estate footprint with
a specific focus on reducing the amount of warehouse space.
Flexible criteria for the eligibility of non-profit museums to
receive surplus property allow the Federal government to more
easily dispose of surplus property and reduce the need for
warehouse space. Changing the rules that governs a museum's
eligibility to receive surplus property will achieve the dual
policy goals of reducing the amount of Federal warehouse space
needed and sharing surplus property with the public.
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\11\Implementation of OMB Memorandum M-12-12 Section 3: Freeze the
Footprint, Office of Management and Budget, March 14, 2013.
\12\National Strategy For the Efficient Use of Real Property 2015-
2020, Reducing the Federal Portfolio through Improved Space
Utilization, Consolidation, and Disposal, Office of Management and
Budget. March 25, 2015.
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Conclusion
The management of federal real property was a challenge
even before appearing on GAO's High Risk list. The costs of
real property are significant and most agencies do not have the
incentives to minimize those costs. Properties sit vacant or
woefully under-utilized, not only costing taxpayers billions of
dollars but often are eye sores in local communities. And,
despite the current budget climate, many agencies continue to
hold onto properties they do not need, reducing efficiency and
increasing costs. H.R. 4465 is intended to bring an independent
process to the management of federal real property.
Hearings
The Subcommittee held a number of hearings during the 112th
Congress on subject matters contained in H.R. 4465. In the
114th Congress, the Subcommittee held a hearing specifically
related to H.R. 4465. In particular, the Subcommittee held the
following hearing:
``Saving Taxpayer Dollars in Federal Real Estate: Reducing
the Government's Space Footprint,'' held on June 16, 2015.
Witnesses included, Representatives Jeff Denham and Jason
Chaffetz, the Honorable David Mader, Controller, Office of
Management and Budget, Mr. David Wise, Director, Physical
Infrastructure Team, U.S. Government Accountability Office, Mr.
Norman Dong, Commissioner, Public Buildings Service, General
Services Administration, and Ms. Maria Foscarinis, Executive
Director, National Law Center on Homelessness and Poverty. The
hearing examined the issue of underutilized and vacant federal
properties, costs to the taxpayer, challenges to selling or
disposing of unneeded real property, and methods by which the
federal government can reduce its space footprint and save
taxpayer dollars by addressing those challenges.
Legislative History and Consideration
On February 4, 2016, Representative Jeff Denham (R-CA),
along with Representatives Chaffetz (R-UT), Shuster (R-PA),
Cummings (D-MD), DeFazio (D-OR), Barletta (R-PA), and Carson
(D-IN) introduced H.R. 4465, a bill to decrease the deficit by
consolidating and selling federal buildings and other civilian
real property, and for other purposes.
On March 2, 2016, the Committee on Transportation and
Infrastructure met in open session. No amendments were offered.
H.R. 4465 was ordered reported by voice vote with a quorum
present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no record votes taken in connection
with consideration of H.R. 4465.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement 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 enclosed cost estimate for H.R. 4465 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 19, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4465, the Federal
Assets Sale and Transfer Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall.
Enclosure.
H.R. 4465--Federal Assets Sale and Transfer Act of 2016
Summary: H.R. 4465 aims to better manage federal real
property by reducing the inventory of such property and the
cost of maintaining the remaining inventory. The bill would
establish the Public Buildings Reform Board (board) to provide
recommendations to the Office of Management and Budget (OMB)
regarding specific federal properties that should be sold. The
board would be charged with recommending specific operational
efficiencies that could be implemented to reduce the inventory
and cost of the government's real estate holdings. The
legislation also would authorize the appropriation of $2
million to fund the board and $40 million to implement the
board's recommendations.
Assuming appropriation of the specified amounts, CBO
estimates that implementing H.R. 4465 would cost $8 million in
2017 and about $40 million over the 2017-2021 period. If the
board's recommendations lead to the sale of facilities, the
legislation also would result in additional receipts. However,
CBO has no basis to estimate whether the board's
recommendations would result in the sale of any properties that
would not otherwise be sold under current law. Enacting the
bill would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 4465 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 4465 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effects of H.R. 4465 are shown in the following
table. The costs of this legislation fall within all budget
functions that contain federal real property other than 050
(national defense).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2017 2018 2019 2020 2021 2017-2021
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Public Buildings Reform Board:
Authorization Level................................. 2 0 0 0 0 2
Estimated Outlays................................... * * * * * 2
Asset Proceeds and Space Management Fund:
Authorization Level................................. 40 0 0 0 0 40
Estimated Outlays................................... 7 7 7 7 6 34
Other Requirements:
Estimated Authorization Level....................... 1 * * * * 3
Estimated Outlays................................... 1 * * * * 3
Total Changes:
Estimated Authorization Level................... 43 0 0 0 0 45
Estimated Outlays............................... 8 7 7 7 6 39
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Note: * = less than $500,000; components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the end of 2016, that the
authorized amounts will be appropriated, and that spending will
follow historical patterns for similar management efforts.
Public buildings reform board
H.R. 4465 would establish an independent board to recommend
to OMB properties that could be sold in order to reduce the
inventory of federal civilian real property. The board would
consist of seven members appointed by the President. H.R. 4465
would specify two major objectives for the board. First, the
board would be required to identify and recommend the sale of
at least five federal civilian properties with a combined
estimated fair market value of between $500 million and $750
million. Second, the legislation would require the board to
recommend to OMB opportunities to consolidate, exchange, sell,
or redevelop federal properties to further reduce the inventory
of civilian real property and to reduce operating costs. All
recommendations made by the board would be available to the
public on a government website.
Under the bill, the board would terminate after six years.
H.R. 4465 would authorize the appropriation of $2 million for
the board's expenses. Assuming appropriation of those amounts,
CBO estimates the board would spend about $2 million over the
2017-2021 period.
Asset proceeds and space management fund
H.R. 4465 would establish a fund to help agencies cover any
costs associated with implementing the board's recommendations.
During its six-year term, the board would primarily work with
the General Services Administration (GSA) to consolidate,
reconfigure, redevelop, or co-locate agency operations in order
to make additional properties available for sale. The bill
would authorize the appropriation of $40 million for those
purposes. Assuming appropriation of the specified amount, CBO
estimates that agencies would spend about $7 million annually
over the 2017-2021 period to prepare federal properties for
sale or achieve other operational efficiencies.
Other requirements
H.R. 4465 would require GSA and federal civilian agencies
to prepare additional reports and recommendations about their
real property holding and would require GSA to improve its
database of federal property. CBO estimates that implementing
those provisions would increase the workloads of GSA and other
agencies. In addition, the Government Accountability Office
would be required to report on all the recommendations. Based
on information from GSA and some landholding agencies, CBO
estimates that those activities would cost $3 million over the
2017-2021 period; such spending would be subject to the
availability of appropriated funds.
Effect on federal property sales
Under current law, before an agency can offer federal real
property that it considers to be surplus for sale to the
public, the agency must first offer that property to other
federal agencies, state and local governments, and in some
cases nonprofit organizations, at no cost. H.R. 4465 would
exempt properties recommended for sale by the board from those
requirements, except for the purpose of alleviating
homelessness. CBO does not expect that exemption would increase
the proceeds from selling surplus properties above the expected
amounts under current law because other barriers to selling
such property will still exist.
Based on information from GSA and other agencies that hold
significant amounts of real property, CBO has concluded that
there are at least two other obstacles that constrain the
amount of property offered for sale and ultimately sold to the
public.\1\
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\1\For more information on the barriers to selling federal real
property see Congressional Budget Office, letter to the Honorable
Darrell E. Issa containing an analysis of a proposal to expedite the
disposal of federal civilian real property (June 27, 2011).
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First, agencies generally lack funds to prepare
properties for sale, including relocating any users of such
properties. To help implement the board's recommendations, the
bill would authorize appropriations to cover the costs of
moving, consolidating, marketing, renovating property. However,
those amounts may not be sufficient to cover such costs.
Furthermore, any additional proceeds from sales would depend on
the enactment of appropriated amounts and cannot be attributed
to this bill.
Second, many agencies resist efforts to sell
property and prefer to leverage the value of their holdings
rather than sell them outright. In most cases property-holding
agencies do not have access to any of the proceeds from a sale
of their property. However, they may have other authorities
that enable them to add to their budgetary resources; for
example, some agencies can lease unused real property and spend
those proceeds on mission-related or administrative purposes.
Whether or not the board that would be created by H.R. 4465
could overcome such resistance is unclear.
For these reasons, CBO has no basis to estimate whether the
board's recommendations for $8 billion in changes to the
federal government real estate holdings would result in
additional receipts.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 4465
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO estimate: On May 17, 2016, CBO transmitted a
cost estimate for S. 2375, the Federal Asset Sale and Transfer
Act of 2015, as ordered reported by the Senate Committee on
Homeland Security and Governmental Affairs on December 9, 2015.
On May 19, 2016, CBO transmitted a cost estimate for H.R. 4465,
as ordered reported by the House Committee on Oversight and
Government Reform on April 14, 2016. Both versions of H.R. 4465
and S. 2375 aim to better manage federal real property by
reducing the inventory of such property and the cost of
maintaining the remaining inventory; CBO's estimate of their
costs are the same.
Estimate prepared by: Federal spending: Matthew Pickford;
Impact on state, local, and tribal governments: Jon Sperl;
Impact on the private sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
decrease the deficit by consolidating and selling Federal
buildings and other civilian real property, and for other
purposes.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 4465 establishes
or reauthorizes a program of the federal government known to be
duplicative of another federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee finds that enacting H.R. 4465 does not direct the
completion of a specific rule making within the meaning of
section 551 of title 5, United States Code.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 4465 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 1: Short title
Section 1 designates the short title of the Act as the
``Federal Assets Sale and Transfer Act of 2016.''
Section 2: Purposes
Section 2 lists the purposes of the bill to include:
reducing and consolidating the footprint of federal buildings;
maximizing the utilization rate; reducing leasing where
appropriate; selling or redeveloping high value assets;
reducing the operating and maintenance costs of Federal
properties; reducing overlap in field offices; creating
incentives for agencies to achieve greater efficiencies;
facilitating sale or disposal of unneeded properties; improving
the efficiency of real property transfers for the provision of
services to the homeless; and achieving sustainability goals.
The intention of this section is to highlight that real
cost savings will only be produced through a combination of
actions. While selling off properties already declared excess
or surplus may help, many of those properties will realize
little net income. Real savings are achieved by consolidations,
co-locations, reducing field office overlap and tapping into
the value of high value assets. These high value assets would
not be of the nature that would be declared excess or surplus.
These may be assets that are used to some extent but would
produce a greater return to the taxpayer if sold or redeveloped
and the federal tenants relocated to less valuable locations.
Section 3: Definitions
Section 3 provides relevant definitions used in the
legislation.
Section 4: Board
Section 4 establishes a Board to carry out duties as
described in the Act. The Board would be composed of seven
members, including a chairman appointed by the President, by
and with the advice and consent of the Senate, and 6 members
appointed by the President. The six members would be appointed
with input by the House and Senate leadership. The section sets
terms for six years and requires that the composition of the
members include expertise related to commercial real estate and
development, government management or operations, and community
development.
The intention of the Committee is to ensure those on the
Board include individuals with strong private sector real
estate experience that will help identify properties and
opportunities for savings.
Section 5: Board meetings
Section 5 requires Board meetings to be public and open,
establishes what constitutes a quorum, and ensures information
is accessible to oversight committees and the GAO.
An open process ensures appropriate input into the process
and ensures the public and stakeholders are fully informed. The
Committee expects the Board to utilize regional public meetings
to help it identify appropriate federal properties and
redevelopment opportunities for its recommendations.
Section 6: Compensation and travel expenses
Section 6 sets the compensation rate for the Board members
and allows for per diem reimbursement of travel expenses
related to the work of the Board.
Section 7: Executive Director
Section 7 provides for the appointment and compensation of
an Executive Director.
Section 8: Staff
Section 8 provides for additional staff through personnel
detailed from federal agencies.
Section 9: Contracting authority
Section 9 requires the Board to use, to the extent
practicable, contracts, including non-appropriated contracts,
entered into by GSA for services necessary to carry out the
duties of the Board. Section 9 also requires the GSA to
identify suitable space for the Board and requires the Board to
utilize personal property already in the custody and control of
GSA.
Section 10: Termination
Section 10 terminates the Board in six years.
Section 11: Development of recommendations to Board
Section 11 establishes a framework for the development of
initial recommendations to be reviewed and submitted to the
Office of Management and Budget (OMB) and to the Board. This
section also requires the standards developed to incorporate
key principles listed in section 2 and requires the
recommendations to be submitted to the Board.
The Board is also given access to necessary property data
including the age and condition, operating costs, history of
capital expenditures, sustainability metrics, number of federal
employees and functions, and square footage. The number of
employees and square footage data will ensure the Board can
properly evaluate utilization rates. The Committee believes
this data is critical to ensuring proper recommendations are
developed. This data will assist the Board in evaluating what
recommendations will yield the best return to the taxpayer
given costs associated with particular properties.
The Committee intends the standards be developed to
maximize the reduction and optimization of the federal real
property footprint and costs. The standards should result in
the co-location of agencies and offices and standard
utilizations rates across categories of properties, such as
general purpose office space. In addition, the standards should
ensure the sale of property at its highest and best use. In
particular, the Board should identify high value assets for
sale or redevelopment.
Section 12: Board duties
Section 12 establishes general duties of the Board as
identifying opportunities for the government to reduce its
inventory and reduce costs, performing an independent analysis,
developing final recommendations, and conducting public
hearings. This section also sets an initial time for reporting
its final recommendations (and then two additional rounds
thereafter) to the President. The section requires the Board
establish a website and requires the GAO to conduct reviews of
the process. Additionally this section requires the Board to
recommend not less than $500 million and not more than $750
million in savings from the sale of high value properties in
the first 180 days.
This section also requires the Board to develop an
accounting system to assist in the development of its
recommendations. The intention is to ensure there is a standard
accounting system to assist the Board in developing
recommendations that will produce the highest return to the
taxpayer.
Section 13: Review by OMB
Section 13 establishes a process for review by OMB. It
requires OMB to send to Congress its approval or disapproval of
the recommendations. If OMB disapproves, the Board is provided
additional time to revise its recommendations. If OMB fails to
approve recommendations, the process ceases for that round. If
OMB approves the recommendations, the recommendations go into
effect.
Section 14: Implementation of Board recommendations
Section 15 requires agencies to carry out the
recommendations. It requires all activities to be initiated
within 2 years and all actions completed in 6 years, unless
notice is provided to OMB and Congress. The bill allows for
agencies to take necessary steps to carry out the
recommendations, except agencies are required to work within
their existing authorities and, if necessary, work with GSA.
The Committee expects GSA to be the lead agency with respect to
the planning and execution of construction projects needed to
execute the Board's recommendations.
Except the initial recommendations related to the sale of
high-value assets, all other properties included in subsequent
recommendations will be submitted to the Secretary of Housing
and Urban Development (HUD). HUD is required to identify any
suitable properties for use as a property benefitting the
mission of assistance to the homeless for the purposes of
further screening pursuant to section 501 of the McKinney-Vento
Homeless Assistance Act.
Section 15: Authorization of appropriations
Section 15 authorizes $42 million for the Board and initial
costs associated with implementing any recommendations.
The Committee expects the initial funding will facilitate
the creation of the Board and fund the initial costs to
implement the recommendations. As there are often expenses to
prepare properties for sale or to make them available, this is
intended to cover those initial expenses. Future year funding
is expected to be offset by the proceeds of property sales and
redevelopments.
Section 16: Funding
Section 16 establishes an account on the books of the
Treasury for the salaries and expenses of the Board and
establishes an account within the Federal Buildings Fund (FBF)
to carry out actions related to the Board recommendations. The
FBF account would be funded with proceeds from any action taken
pursuant to the Board recommendations.
Section 17: Congressional approval of proposed projects
Section 17 amends the Public Buildings Act by requiring
prospectuses for future projects, unrelated to Board
recommendations, to include a statement describing how the
proposed project is consistent with principles in the Federal
Assets Sale and Transfer Act of 2016.
This section is intended to ensure that future projects
submitted to the Committee by GSA through the prospectus
process outlined in the Public Buildings Act also conform to
the standards outlined in this legislation.
Section 18: Preclusion of judicial review
Section 18 makes clear that actions of the Board and
actions taken pursuant to sections 12 and 13 are not subject to
judicial review.
Section 19: Implementation review by GAO
Section 19 requires GAO, on at least an annual basis,
monitor and review the implementation activities of federal
agencies related to the Board recommendations.
Section 20: Agency retention of proceeds
Section 20 provides for federal agencies to retain net
proceeds from the disposal of properties, but such proceeds may
only be used as authorized in appropriations Acts for the
purpose of covering costs related to disposals. This section
would be effective following the termination of the Board.
Section 21: Federal Real Property Database
Section 21 codifies and sets requirements on a Federal Real
Property Database. It requires GSA to publish a single,
comprehensive, and descriptive database of all Federal real
property under the custody and control of all executive
agencies, except those excluded for national security reasons.
This section requires the database to be available to other
federal agencies and, to the extent consistent with national
security and procurement laws, accessible by the public at no
cost through a Web site.
Section 22: Streamlining McKinney-Vento Homeless Assistance Act
Section 22 streamlines the process for identifying and
disposing of suitable properties for use to benefit the
homeless pursuant to section 501 of the McKinney-Vento Homeless
Assistance Act.
Section 23: Additional property
Section 23 clarifies the qualifications for a nonprofit
museum to receive surplus personal property under the federal
disposal process. It requires GSA to consider the level of
access that a museum is willing to offer rather than a blanket
rule on the number of hours the museum is open and available to
the public.
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, and 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 III--DISPOSING OF PROPERTY
* * * * * * *
Sec. 549. Donation of personal property through state agencies
(a) Definitions.--In this section, the following definitions
apply:
(1) Public agency.--The term ``public agency''
means--
(A) a State;
(B) a political subdivision of a State
(including a unit of local government or
economic development district);
(C) a department, agency, or instrumentality
of a State (including instrumentalities created
by compact or other agreement between States or
political subdivisions); or
(D) an Indian tribe, band, group, pueblo, or
community located on a state reservation.
(2) State.--The term ``State'' means a State of the
United States, the District of Columbia, Puerto Rico,
the Virgin Islands, Guam, the Northern Mariana Islands,
and American Samoa.
(3) State agency.--The term ``state agency'' means an
agency designated under state law as the agency
responsible for fair and equitable distribution,
through donation, of property transferred under this
section.
(b) Authorization.--
(1) In general.--The Administrator of General
Services, in the Administrator's discretion and under
regulations the Administrator may prescribe, may
transfer property described in paragraph (2) to a state
agency.
(2) Property.--
(A) In general.--Property referred to in
paragraph (1) is any personal property that--
(i) is under the control of an
executive agency; and
(ii) has been determined to be
surplus property.
(B) Special rule.--In determining whether the
property is to be transferred for donation
under this section, no distinction may be made
between property capitalized in a working-
capital fund established under section 2208 of
title 10 (or similar fund) and any other
property.
(3) No cost.--Transfer of property under this section
is without cost, except for any costs of care and
handling.
(c) Allocation and Transfer of Property.--
(1) In general.--The Administrator shall allocate and
transfer property under this section in accordance with
criteria that are based on need and use and that are
established after consultation with state agencies to
the extent feasible. The Administrator shall give fair
consideration, consistent with the established
criteria, to an expression of need and interest from a
public agency or other eligible institution within a
State. The Administrator shall give special
consideration to an eligible recipient's request,
transmitted through the state agency, for a specific
item of property.
(2) Allocation among states.--The Administrator shall
allocate property among the States on a fair and
equitable basis, taking into account the condition of
the property as well as the original acquisition cost
of the property.
(3) Recipients and purposes.--The Administrator shall
transfer to a state agency property the state agency
selects for distribution through donation within the
State--
(A) to a public agency for use in carrying
out or promoting, for residents of a given
political area, a public purpose, including
conservation, economic development, education,
parks and recreation, public health, and public
safety;
(B) for purposes of education or public
health (including research), to a nonprofit
educational or public health institution or
organization that is exempt from taxation under
section 501 of the Internal Revenue Code of
1986 (26 U.S.C. 501), including--
(i) a medical institution, hospital,
clinic, health center, or drug abuse
treatment center;
(ii) a provider of assistance to
homeless individuals or to families or
individuals whose annual incomes are
below the poverty line (as that term is
defined in section 673 of the Community
Services Block Grant Act (42 U.S.C.
9902));
(iii) a school, college, or
university;
(iv) a school for the mentally
retarded or physically handicapped;
(v) a child care center;
(vi) a radio or television station
licensed by the Federal Communications
Commission as an educational radio or
educational television station;
[(vii) a museum attended by the
public;]
(vii) a museum attended by the
public, and, for purposes of
determining whether a museum is
attended by the public, the
Administrator shall consider a museum
to be public if the nonprofit
educational or public health
institution or organization, at
minimum, accedes to any request
submitted for access during business
hours;
(viii) a library serving free all
residents of a community, district,
State, or region; or
(ix) a historic light station as
defined under section 305101(4) of
title 54, including a historic light
station conveyed under section 305103
of title 54, notwithstanding the number
of hours that the historic light
station is open to the public; or
(C) for purposes of providing services to
veterans (as defined in section 101 of title
38), to an organization whose--
(i) membership comprises
substantially veterans; and
(ii) representatives are recognized
by the Secretary of Veterans Affairs
under section 5902 of title 38.
(4) Exception.--This subsection does not apply to
property transferred under subsection (d).
(d) Department of Defense Property.--
(1) Determination.--The Secretary of Defense shall
determine whether surplus personal property under the
control of the Department of Defense is usable and
necessary for educational activities which are of
special interest to the armed services, including
maritime academies, or military, naval, Air Force, or
Coast Guard preparatory schools.
(2) Property usable for special interest
activities.--If the Secretary of Defense determines
that the property is usable and necessary for
educational activities which are of special interest to
the armed services, the Secretary shall allocate the
property for transfer by the Administrator to the
appropriate state agency for distribution through
donation to the educational activities.
(3) Property not usable for special interest
activities.--If the Secretary of Defense determines
that the property is not usable and necessary for
educational activities which are of special interest to
the armed services, the property may be disposed of in
accordance with subsection (c).
(e) State Plan of Operation.--
(1) In general.--Before property may be transferred
to a state agency, the State shall develop a detailed
state plan of operation, in accordance with this
subsection and with state law.
(2) Procedure.--
(A) Consideration of needs and resources.--In
developing and implementing the state plan of
operation, the relative needs and resources of
all public agencies and other eligible
institutions in the State shall be taken into
consideration. The Administrator may consult
with interested federal agencies to obtain
their views concerning the administration and
operation of this section.
(B) Publication and period for comment.--The
state plan of operation, and any major
amendment to the plan, may not be filed with
the Administrator until 60 days after general
notice of the proposed plan or amendment has
been published and interested persons have been
given at least 30 days to submit comments.
(C) Certification.--The chief executive
officer of the State shall certify and submit
the state plan of operation to the
Administrator.
(3) Requirements.--
(A) State agency.--The state plan of
operation shall include adequate assurance that
the state agency has--
(i) the necessary organizational and
operational authority and capability
including staff, facilities, and means
and methods of financing; and
(ii) established procedures for
accountability, internal and external
audits, cooperative agreements,
compliance and use reviews, equitable
distribution and property disposal,
determination of eligibility, and
assistance through consultation with
advisory bodies and public and private
groups.
(B) Equitable distribution.--The state plan
of operation shall provide for fair and
equitable distribution of property in the State
based on the relative needs and resources of
interested public agencies and other eligible
institutions in the State and their abilities
to use the property.
(C) Management control and accounting
systems.--The state plan of operation shall
require, for donable property transferred under
this section, that the state agency use
management control and accounting systems of
the same type as systems required by state law
for state-owned property. However, with
approval from the chief executive officer of
the State, the state agency may elect to use
other management control and accounting systems
that are effective to govern the use, inventory
control, accountability, and disposal of
property under this section.
(D) Return and redistribution for non-use.--
The state plan of operation shall require the
state agency to provide for the return and
redistribution of donable property if the
property, while still usable, has not been
placed in use for the purpose for which it was
donated within one year of donation or ceases
to be used by the donee for that purpose within
one year of being placed in use.
(E) Request by recipient.--The state plan of
operation shall require the state agency, to
the extent practicable, to select property
requested by a public agency or other eligible
institution in the State and, if requested by
the recipient, to arrange shipment of the
property directly to the recipient.
(F) Service charges.--If the state agency is
authorized to assess and collect service
charges from participating recipients to cover
direct and reasonable indirect costs of its
activities, the method of establishing the
charges shall be set out in the state plan of
operation. The charges shall be fair and
equitable and shall be based on services the
state agency performs, including screening,
packing, crating, removal, and transportation.
(G) Terms, conditions, reservations, and
restrictions.--
(i) In general.--The state plan of
operation shall provide that the state
agency--
(I) may impose reasonable
terms, conditions,
reservations, and restrictions
on the use of property to be
donated under subsection (c);
and
(II) shall impose reasonable
terms, conditions,
reservations, and restrictions
on the use of a passenger motor
vehicle and any item of
property having a unit
acquisition cost of $5,000 or
more.
(ii) Special limitations.--If the
Administrator finds that an item has
characteristics that require special
handling or use limitations, the
Administrator may impose appropriate
conditions on the donation of the
property.
(H) Unusable property.--
(i) Disposal.--The state plan of
operation shall provide that surplus
personal property which the state
agency determines cannot be used by
eligible recipients shall be disposed
of--
(I) subject to the
disapproval of the
Administrator within 30 days
after notice to the
Administrator, through transfer
by the state agency to another
state agency or through
abandonment or destruction if
the property has no commercial
value or if the estimated cost
of continued care and handling
exceeds estimated proceeds from
sale; or
(II) under this subtitle, on
terms and conditions and in a
manner the Administrator
prescribes.
(ii) Proceeds from sale.--
Notwithstanding subchapter IV of this
chapter and section 702 of this title,
the Administrator, from the proceeds of
sale of property described in
subsection (b), may reimburse the state
agency for expenses that the
Administrator considers appropriate for
care and handling of the property.
(f) Cooperative Agreements With State Agencies.--
(1) Parties to the agreement.--For purposes of
carrying out this section, a cooperative agreement may
be made between a state surplus property distribution
agency designated under this section and--
(A) the Administrator;
(B) the Secretary of Education, for property
transferred under section 550(c) of this title;
(C) the Secretary of Health and Human
Services, for property transferred under
section 550(d) of this title; or
(D) the head of a federal agency designated
by the Administrator, the Secretary of
Education, or the Secretary of Health and Human
Services.
(2) Shared resources.--The cooperative agreement may
provide that the property, facilities, personnel, or
services of--
(A) a state agency may be used by a federal
agency; and
(B) a federal agency may be made available to
a state agency.
(3) Reimbursement.--The cooperative agreement may
require payment or reimbursement for the use or
provision of property, facilities, personnel, or
services. Payment or reimbursement received from a
state agency shall be credited to the fund or
appropriation against which charges would otherwise be
made.
(4) Surplus property transferred to state agency.--
(A) In general.--Under the cooperative
agreement, surplus property transferred to a
state agency for distribution pursuant to
subsection (c) may be retained by the state
agency for use in performing its functions.
Unless otherwise directed by the Administrator,
title to the retained property vests in the
state agency.
(B) Conditions.--Retention of surplus
property under this paragraph is subject to
conditions that may be imposed by--
(i) the Administrator;
(ii) the Secretary of Education, for
property transferred under section
550(c) of this title; or
(iii) the Secretary of Health and
Human Services, for property
transferred under section 550(d) of
this title.
* * * * * * *
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 (c) 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,
including paying costs incurred by the General Services
Administration for any disposal-related activity
authorized by this chapter.
(3) Deficit reduction.--Any net proceeds described in
subsection (c) 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.
(c) 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), 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.
(d) 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.
* * * * * * *
SUBTITLE II--PUBLIC BUILDINGS AND WORKS
* * * * * * *
PART A--GENERAL
* * * * * * *
CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION
* * * * * * *
Sec. 3307. Congressional approval of proposed projects
(a) Resolutions Required Before Appropriations May Be Made.--
The following appropriations may be made only if the Committee
on Environment and Public Works of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives adopt resolutions approving the purpose for
which the appropriation is made:
(1) An appropriation to construct, alter, or acquire
any building to be used as a public building which
involves a total expenditure in excess of $1,500,000,
so that the equitable distribution of public buildings
throughout the United States with due regard for the
comparative urgency of need for the buildings, except
as provided in section 3305(b) of this title, is
ensured.
(2) An appropriation to lease any space at an average
annual rental in excess of $1,500,000 for use for
public purposes.
(3) An appropriation to alter any building, or part
of the building, which is under lease by the Federal
Government for use for a public purpose if the cost of
the alteration will exceed $750,000.
(b) Transmission to Congress of Prospectus of Proposed
Project.--To secure consideration for the approval referred to
in subsection (a), the Administrator of General Services shall
transmit to Congress a prospectus of the proposed facility,
including--
(1) a brief description of the building to be
constructed, altered, or acquired, or the space to be
leased, under this chapter;
(2) the location of the building or space to be
leased and an estimate of the maximum cost to the
Government of the facility to be constructed, altered,
or acquired, or the space to be leased;
(3) a comprehensive plan for providing space for all
Government officers and employees in the locality of
the proposed facility or the space to be leased, having
due regard for suitable space which may continue to be
available in existing Government-owned or occupied
buildings, especially those buildings that enhance the
architectural, historical, social, cultural, and
economic environment of the locality;
(4) with respect to any project for the construction,
alteration, or acquisition of any building, a statement
by the Administrator that suitable space owned by the
Government is not available and that suitable rental
space is not available at a price commensurate with
that to be afforded through the proposed action;
(5) a statement by the Administrator of the economic
and other justifications for not acquiring a building
identified to the Administrator under section 3303(c)
of this title as suitable for the public building needs
of the Government;
(6) a statement of rents and other housing costs
currently being paid by the Government for federal
agencies to be housed in the building to be
constructed, altered, or acquired, or the space to be
leased; [and]
(7) with respect to any prospectus for the
construction, alteration, or acquisition of any
building or space to be leased, an estimate of the
future energy performance of the building or space and
a specific description of the use of energy efficient
and renewable energy systems, including photovoltaic
systems, in carrying out the project[.]; and
(8) a statement of how the proposed project is
consistent with the standards and criteria developed
under section 11(b) of the Federal Assets Sale and
Transfer Act of 2016.
(c) Increase of Estimated Maximum Cost.--The estimated
maximum cost of any project approved under this section as set
forth in any prospectus may be increased by an amount equal to
any percentage increase, as determined by the Administrator, in
construction or alteration costs from the date the prospectus
is transmitted to Congress. The increase authorized by this
subsection may not exceed 10 percent of the estimated maximum
cost.
(d) Rescission of Approval.--If an appropriation is not made
within one year after the date a project for construction,
alteration, or acquisition is approved under subsection (a),
the Committee on Environment and Public Works of the Senate or
the Committee on Transportation and Infrastructure of the House
of Representatives by resolution may rescind its approval
before an appropriation is made.
(e) Emergency Leases by the Administrator.--This section does
not prevent the Administrator from entering into emergency
leases during any period declared by the President to require
emergency leasing authority. An emergency lease may not be for
more than 180 days without approval of a prospectus for the
lease in accordance with subsection (a).
(f) Minimum Performance Requirements for Leased Space.--With
respect to space to be leased, the Administrator shall include,
to the maximum extent practicable, minimum performance
requirements requiring energy efficiency and the use of
renewable energy.
(g) Limitation on Leasing Certain Space.--
(1) In general.--The Administrator may not lease
space to accommodate any of the following if the
average rental cost of leasing the space will exceed
$1,500,000:
(A) Computer and telecommunications
operations.
(B) Secure or sensitive activities related to
the national defense or security, except when
it would be inappropriate to locate those
activities in a public building or other
facility identified with the Government.
(C) A permanent courtroom, judicial chamber,
or administrative office for any United States
court.
(2) Exception.--The Administrator may lease space
with respect to which paragraph (1) applies if the
Administrator--
(A) decides, for reasons set forth in
writing, that leasing the space is necessary to
meet requirements which cannot be met in public
buildings; and
(B) submits the reasons to the Committee on
Environment and Public Works of the Senate and
the Committee on Transportation and
Infrastructure of the House of Representatives.
(h) Dollar Amount Adjustment.--The Administrator annually may
adjust any dollar amount referred to in this section to reflect
a percentage increase or decrease in construction costs during
the prior calendar year, as determined by the composite index
of construction costs of the Department of Commerce. Any
adjustment shall be expeditiously reported to the Committee on
Environment and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
* * * * * * *
----------
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.
(b) Availability of Property.--(1) The Secretary shall
promptly notify each Federal agency with respect to any
property of that agency that the Secretary has identified under
subsection (a). No later than 45 days after receipt of such a
notice, the head of the appropriate landholding agency shall
transmit to the Secretary the agency's response to property
identifications contained in such notification, which shall
include--
(A) in the case of unutilized or underutilized
property--
(i) a statement of intention to determine the
property excess to the agency's needs;
(ii) a statement of intention to make the
property available for use to assist the
homeless; or
(iii) a statement of the reasons (including a
full explanation of the need) the property
cannot be determined excess to the agency's
needs or made available for use to assist the
homeless; and
(B) in the case of excess property--
(i) a statement that there is no other
compelling Federal need for the property and,
therefore, the property will be determined
surplus; or
(ii) a statement that there is further and
compelling Federal need for the property
(including a full explanation of such need) and
that, therefore, the property is not presently
available for use to assist the homeless.
(2) [(A)] All properties identified by the Secretary under
subsection (a) shall be available for application--
[(i)] (A) in the case of property other than surplus
property, for use to assist the homeless in accordance
with the provisions of this section; [and]
[(ii)] (B) in the case of surplus property, for use
to assist the homeless either in accordance with this
section or as a public health use in accordance with
paragraphs (1) and (4) of section 203(k) of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 484(k) (1) and (4))[.]; and
(C) in the case of surplus property, the provision of
permanent housing with or without supportive services
is an eligible use to assist the homeless under this
section.
(3) The Secretary shall maintain a written public record of--
(A) the identification of buildings and other
properties by the Secretary under this subsection and
the reasons for such identifications; and
(B) the responses of landholding agencies to such
identifications.
(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 Web site of the Department of Housing and
Urban Development or the General Services Administration--
(i) a list of all properties reviewed by the
Secretary under subsection (a); and
(ii) a list of all properties that are available
under subsection (b)(2) for application for use to
assist the homeless.
(B) Each publication of properties shall include a
description and the location of each property (including the
address and zip code) and the current classification of each
property as unutilized, underutilized, excess property, or
surplus property.
(C) The Secretary shall make available to the public upon
request all information in the possession of the Department of
Housing and Urban Development (other than valuation
information), regardless of format, about all properties
reviewed and not identified as being suitable for use to assist
the homeless, including the reasons such properties were not so
identified.
(D) The Secretary shall publish separately, on an annual
basis, all properties identified as being suitable for use to
assist the homeless, but reported to be unavailable, and the
reasons such properties were unavailable.
(2)(A) No later than 15 days after the last day of the 45-day
period provided for under subsection (b)(1), the Secretary
shall transmit a copy of the list of available properties
published under paragraph (1)(A)(ii) to the United States
Interagency Council on Homelessness. The Council shall
immediately distribute to all State and regional homeless
coordinators area-relevant portions of the list.
(B) The Secretary, the Administrator, and the Secretary of
Health and Human Services shall make such efforts as are
necessary to ensure the widest possible dissemination of the
information on such list.
(C) The Secretary shall establish a toll-free number to
provide the public with specific information about properties
on such list.
(3) The Secretary shall make available to the public upon
request all information (other than valuation information)
regardless of format in the possession of the Department of
Housing and Urban Development about the properties published
under paragraph (1)(A), including environmental assessment
data. The Secretary shall maintain a current list of agency
contacts for making referrals of inquiries for information
about specific properties.
(4)(A) On December 31 of each year, the head of each
landholding agency shall report to the Secretary the current
availability status and the current classification of each
property controlled by the agency, that--
(i) was included in a list published in that year by
the Secretary under paragraph (1)(A)(ii); and
(ii) remains available for application for use to
assist the homeless or has become available for
application during that year.
(B) No later than February 15 each year, the Secretary shall
publish in the Federal Register a list of all properties
reported under subparagraph (A) for the preceding year and the
current classification of the properties.
(C) For purposes of subparagraph (A), property shall not be
considered to remain available for application for use to
assist the homeless after the 60-day holding period provided
under subsection (d) if--
(i) an application for or written expression of
interest in the property is made under any law for use
of the property for any purpose; or
(ii) the Administrator receives a bona fide offer to
purchase the property or advertises for the sale of the
property by public auction.
(d) Holding Period.--(1) Properties published under
subsection (c)(1)(A)(ii) as available for application for use
to assist the homeless shall not be available for any other
purpose for a [period of 60 days] period of 30 days beginning
on the date of such publication.
(2) If written notice of intent to apply for such a property
for use to assist the homeless is received by the Secretary of
Health and Human Services within the [60-day period] 30-day
period described under paragraph (1), such property may not be
made available for any other purpose until the date the
Secretary of Health and Human Services or other appropriate
landholding agency has completed action on the application
submitted under subsection (e) with respect to that written
notice of intent.
(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 makes changes to the property (e.g.
improvements) that may change the unsuitable determination and
the Secretary subsequently determines the property is suitable.
(4)(A) Written notice of intent to apply for a property
published under subsection (c)(1)(A)(ii) may be filed at any
time after the [60-day period] 30-day period described in
paragraph (1) has expired. In such case, an application
submitted pursuant to the notice may be approved for disposal
for use to assist the homeless only if the property remains
available for application for use to assist the homeless. If
the property remains available, the use to assist the homeless
shall be given priority of consideration over other competing
disposal opportunities under section 203 of the Federal
Property and Administratives Services Act of 1949 (40 U.S.C.
484), except as provided in subsection (f)(3)(A).
(B) Surplus property for which an application has been
approved shall be assigned promptly to the Secretary of Health
and Human Services for disposition in accordance with and
subject to subsection (f).
(e) Application for Property.--(1) A representative of the
homeless may submit an application to the Secretary of Health
and Human Services for any property that is published under
subsection (c)(1)(A)(ii) as available for application for use
to assist the homeless.
(2)(A) No later than [90 days] 75 days after the submission
of written notice of intent to apply for a property, an
applicant shall submit [a complete application] an initial
application to the Secretary of Health and Human Services. The
Secretary of Health and Human Services shall, with the
concurrence of the appropriate landholding agency, grant
reasonable extensions.
(B) An initial application shall set forth--
(i) the services that will be offered;
(ii) the need for the services; and
(iii) the experience of the applicant that
demonstrates the ability to provide the services.
(3) No later than [25 days after receipt of a completed
application] 10 days after receipt of an initial application ,
the Secretary of Health and Human Services shall review, make
all determinations, and complete all actions on the
application. The Secretary of Health and Human Services shall
maintain a written public record of all actions taken in
response to an application.
(4) If the Secretary of Health and Human Services approves an
initial application, the applicant has 45 days in which to
provide a final application that sets forth a reasonable plan
to finance the approved program.
(5) No later than 15 days after receipt of the final
application, the Secretary of Health and Human Services shall
review, make a final determination, and complete all actions on
the final application. The Secretary of Health and Human
Services shall maintain a public record of all actions taken in
response to an application.
(f) Making Property Available to Representatives of the
Homeless.--(1) Subject to the provisions of this subsection,
property for which the Secretary of Health and Human Services
has approved an application under subsection (e) shall be made
promptly [available by] available, at the applicant's
discretion, by permit or lease, or by deed as a public health
use under paragraphs (1) and (4) of section 203(k) of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 484(k) (1) and (4)), to the representative of the
homeless that submitted the application.
(2) Unutilized or underutilized property that is the subject
of an agency's statement of intention under subsection
(b)(1)(A)(ii) shall be made promptly available by the
appropriate landholding agency to the approved applicant by
lease or permit for a term of not less than 1 year, unless the
applicant requests a shorter term.
(3)(A) In disposing of surplus property by deed or lease
under section 203 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 484), the Administrator and the
Secretary of Health and Human Services shall give priority of
consideration to uses to assist the homeless, unless the
Administrator or the Secretary of Health and Human Services
determines that a competing request for the property under
section 203(k) of such Act is so meritorious and compelling as
to outweigh the needs of the homeless.
(B) Whenever the Administrator or the Secretary of Health and
Human Services makes a determination under subparagraph (A),
the Administrator or the Secretary of Health and Human Services
shall transmit to the appropriate committees of the Congress an
explanatory statement detailing the need satisfied by
conveyance of the surplus property and the reasons for
determining that such need was so meritorious and compelling as
to outweigh the needs of the homeless.
(4) For any property made available by lease to a
representative of the homeless before the date of the enactment
of the Stewart B. McKinney Homeless Assistance Amendments Act
of 1990, the Secretary of Health and Human Services may, upon
written request by the representative, convey such property by
deed to the representative in accordance with, and subject to
the requirements of, section 203(k) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 484(k)). The
lease term shall not be affected if a deed is not granted.
(g) Records.--The Secretary shall maintain a written public
record of--
(1) the reasons for determinations of the Secretary
under this section that property is suitable or
unsuitable for use to assist the homeless; and
(2) the responses of landholding agencies under
subsection (b)(1).
(h) Applicability to Property Under Base Closure Process.--
(1) The provisions of this section shall not apply to buildings
and property at military installations that are approved for
closure under the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687 note) after the date of the enactment of this subsection.
(2) For provisions relating to the use to assist the homeless
of buildings and property located at certain military
installations approved for closure under such Act, or under
title II of the Defense Authorization Amendments and Base
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687
note), before such date, see section 2(e) of Base Closure
Community Redevelopment and Homeless Assistance Act of 1994.
(i) Definitions.--For purposes of this section--
(1) the term ``Administrator'' means the
Administrator of General Services;
(2) each of the terms ``excess property'' and
``surplus property'' has the meaning given that term
under section 3 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 472);
(3) the term ``landholding agency'' means a Federal
department or agency with statutory authority to
control real property;
(4) the term ``representative of the homeless'' means
a State or local government agency, or private
nonprofit organization, which provides services to the
homeless; and
(5) the term ``Secretary'' means the Secretary of
Housing and Urban Development, except as otherwise
provided.
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