I 

114TH CONGRESS 

1ST SESSION H. R. 3753 

To require that the Government prioritize all obligations on the debt held 

by the public in the event that the debt limit is reached, to require 

the sale of Federal assets, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2015 

Mr. SCHWEIKERT introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committees on 

Oversight and Government Reform, Financial Services, and Appropriations, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To require that the Government prioritize all obligations 

on the debt held by the public in the event that the 

debt limit is reached, to require the sale of Federal 

assets, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Debt Ceiling Alter5 native Act’’. 


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1 SEC. 2. ENSURING THE GOVERNMENT DOES NOT DEFAULT 

2 ON ITS DEBT OBLIGATIONS. 

3 (a) IN GENERAL.—If the Department of the Treas4 ury issues a marketable borrowing estimate for a quarter 

5 that estimates that the debt of the United States, as de6 fined in section 3101 of title 31, United States Code, will 

7 reach the statutory limit during such quarter, the Presi8 dent shall ensure that the aggregate of the amounts depos9 ited in the Treasury from the sale of assets described 

10 under subsection (b) and the disposal of real property pur11 suant to subchapter VII of chapter 5 of subtitle I of title 

12 40, United States Code, and the amount of any recision 

13 of unobligated balances pursuant to section 5, is sufficient 

14 to prevent the debt of the United States from reaching 

15 such statutory limit during such quarter. 

16 (b) AUTHORITY TO SELL ASSETS.—For purposes of 

17 subsection (a), the President may order the sale of the 

18 following assets, with the proceeds from such sales depos19 ited in the Treasury: 

20 (1) On-balance sheet non-performing mortgages 

21 of the Federal National Mortgage Association. 

22 (2) Other mortgages owned or held by the Fed23 eral National Mortgage Association. 

24 (3) Real estate owned properties of the Federal 

25 National Mortgage Association. 


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1 (4) On-balance sheet non-performing mortgages 

2 of the Federal Home Loan Mortgage Corporation. 

3 (5) Other mortgages owned or held by the Fed4 eral Home Loan Mortgage Corporation. 

5 (6) Real estate owned properties of the Federal 

6 Home Loan Mortgage Corporation. 

7 (7) Mortgage-backed securities held by the 

8 Board of Governors of the Federal Reserve System 

9 or any Federal reserve bank. 

10 (c) USE OF FUNDS.—Any funds realized through this 

11 Act must be used for the retirement of old debt and 

12 issuance of new debt. 

13 SEC. 3. DISPOSAL OF REAL PROPERTY. 

14 (a) IN GENERAL.—Chapter 5 of subtitle I of title 40, 

15 United States Code, is amended by adding at the end the 

16 following: 

17 ‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF 

18 REAL PROPERTY 

19 ‘‘§ 621. Definitions 

20 ‘‘In this subchapter: 

21 ‘‘(1) DIRECTOR.—The term ‘Director’ means 

22 the Director of the Office of Management and Budg23 et. 

24 ‘‘(2) EXPEDITED DISPOSAL OF REAL PROP25 ERTY.—The term ‘expedited disposal of real propVerDate Sep 11 2014 03:37 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3753.IH H3753

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1 erty’ means a demolition of real property or a sale 

2 of real property for cash that is conducted under the 

3 requirements of section 545. 

4 ‘‘(3) LANDHOLDING AGENCY.—The term ‘land5 holding agency’ has the meaning given that term 

6 under section 501(i)(3) of the McKinney-Vento 

7 Homeless Assistance Act (42 U.S.C. 11411(i)(3)). 

8 ‘‘(4) REAL PROPERTY.— 

9 ‘‘(A) IN GENERAL.—The term ‘real prop10 erty’ means— 

11 ‘‘(i) a parcel of real property under 

12 the administrative jurisdiction of the Fed13 eral Government that is— 

14 ‘‘(I) excess; 

15 ‘‘(II) surplus; 

16 ‘‘(III) underperforming; or 

17 ‘‘(IV) otherwise not meeting the 

18 needs of the Federal Government, as 

19 determined by the Director; and 

20 ‘‘(ii) a building or other structure lo21 cated on real property described under 

22 clause (i). 

23 ‘‘(B) EXCLUSION.—The term ‘real prop24 erty’ excludes any parcel of real property or 

25 building or other structure located on such real 


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1 property that is to be closed or realigned under 

2 the Defense Base Closure and Realignment Act 

3 of 1990 (part A of title XXIX of Public Law 

4 101–510; 10 U.S.C. 2687 note). 

5 ‘‘(5) REPRESENTATIVE OF THE HOMELESS.— 

6 The term ‘representative of the homeless’ has the 

7 meaning given that term under section 501(i)(4) of 

8 the McKinney-Vento Homeless Assistance Act (42 

9 U.S.C. 11411(i)(4)). 

10 ‘‘§ 622. Pilot program 

11 ‘‘(a) ESTABLISHMENT.—The Director of the Office 

12 of Management and Budget shall conduct a pilot program, 

13 to be known as the ‘Federal Real Property Disposal Pilot 

14 Program’, under which real property that is not meeting 

15 Federal Government needs may be disposed of in accord16 ance with this subchapter. 

17 ‘‘(b) TERMINATION.—The Federal Real Property 

18 Disposal Pilot Program shall terminate 5 years after the 

19 date of the enactment of this subchapter. 

20 ‘‘§ 623. Selection of real properties 

21 ‘‘(a) AGENCY RECOMMENDATION OF PROPERTIES.— 

22 The head of each executive agency shall recommend can23 didate disposition real properties to the Director for par24 ticipation in the pilot program established under section 

25 622. 


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1 ‘‘(b) SELECTION OF PROPERTIES.—The Director, 

2 with the concurrence of the head of the executive agency 

3 concerned and consistent with the criteria established in 

4 this subchapter, may then select such candidate real prop5 erties for participation in the pilot program and notify the 

6 recommending agency accordingly. 

7 ‘‘(c) WEBSITE REQUIRED.—The Director shall en8 sure that all real properties selected for disposition under 

9 this section are listed on a website that shall— 

10 ‘‘(1) be updated routinely; and 

11 ‘‘(2) include the functionality to allow members 

12 of the public, at their option, to receive such updates 

13 through electronic mail. 

14 ‘‘(d) NOTIFICATION OF PILOT PROGRAM.—The Sec15 retary of Housing and Urban Development shall ensure 

16 that efforts are taken to inform representatives of the 

17 homeless about— 

18 ‘‘(1) the pilot program established under section 

19 622; and 

20 ‘‘(2) the website under subsection (c). 

21 ‘‘(e) AVAILABILITY OF INFORMATION.—The Sec22 retary of Housing and Urban Development shall— 

23 ‘‘(1) make available to the public upon request 

24 all information (other than valuation information), 

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1 partment of Housing and Urban Development relat2 ing to the properties listed on the website under sub3 section (c), including environmental assessment 

4 data; and 

5 ‘‘(2) maintain a current list of agency contacts 

6 for making referrals to inquiries for information re7 lating to specific properties. 

8 ‘‘§ 624. Suitability determination 

9 ‘‘(a) SUITABILITY OF PROPERTY TO ASSIST THE

10 HOMELESS.—After the Director selects the candidate real 

11 properties that may participate in the pilot program under 

12 section 623, the Secretary of Housing and Urban Develop13 ment shall determine whether each such real property is 

14 suitable for use to assist the homeless. 

15 ‘‘(b) SUITABILITY DETERMINATION REQUIRE16 MENTS.—The Secretary of Housing and Urban Develop17 ment shall base the suitability determination required 

18 under subsection (a)— 

19 ‘‘(1) on the suitability criteria identified by the 

20 Secretary of Housing and Urban Development under 

21 section 501(a) of the McKinney-Vento Homeless As22 sistance Act (42 U.S.C. 11411(a)); 

23 ‘‘(2) for real properties located within a Federal 

24 installation, campus, or compound, on whether such 


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1 property can easily be transported to an off-site lo2 cation; and 

3 ‘‘(3) for real properties where the predominant 

4 use is other than housing, on whether the size of the 

5 real property is equal to or greater than 100,000 

6 square feet. 

7 ‘‘(c) INFORMATION REQUIRED TO BE PUBLISHED

8 ON THE WEBSITE.—Immediately after a determination of 

9 suitability is made under this section, the Director shall 

10 publish, on the website described in section 623(c) the fol11 lowing information: 

12 ‘‘(1) The address of each such real property. 

13 ‘‘(2) The result of the suitability determination 

14 required under subsection (a) for each such real 

15 property. 

16 ‘‘(3) The date on which the suitability deter17 mination was made. 

18 ‘‘§ 625. Unsuitable real property 

19 ‘‘(a) 20-DAY HOLD REQUIRED AFTER DETERMINA20 TION OF UNSUITABILITY.—If real property is determined 

21 unsuitable under section 624, such real property may not 

22 be disposed of or otherwise used for any other purpose 

23 for at least 20 days after such determination was made. 

24 ‘‘(b) APPEAL.— 


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1 ‘‘(1) SECONDARY REVIEW OF DETERMINA2 TION.—Not later than 20 days after real property 

3 has been determined unsuitable under section 624 

4 and before disposal of the real property in accord5 ance with subsection (d), any representative of the 

6 homeless may appeal to the Secretary of Housing 

7 and Urban Development for a secondary review of 

8 such determination. 

9 ‘‘(2) CLEAR AND CONVINCING EVIDENCE.—Not 

10 later than 20 days after real property has been de11 termined unsuitable under subsection (b)(3) of sec12 tion 624, the Secretary of Housing and Urban De13 velopment shall deem such real property suitable 

14 notwithstanding the requirements of that subsection 

15 if a representative of the homeless has produced 

16 clear and convincing evidence that such property can 

17 be utilized for the benefit of the homeless. Any de18 termination under this paragraph shall be committed 

19 to the unreviewable discretion of the Secretary of 

20 Housing and Urban Development. 

21 ‘‘(c) FINAL SUITABILITY DETERMINATION.—Not 

22 later than 20 days after the receipt of any appeal under 

23 subsection (b), the Secretary of Housing and Urban De24 velopment shall respond to such appeal and shall make 


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1 a final suitability determination regarding the real prop2 erty. 

3 ‘‘(d) DISPOSAL OF UNSUITABLE REAL PROPERTY.— 

4 ‘‘(1) NO APPEAL.—If at the end of the 20-day 

5 period required under subsection (a), no appeal for 

6 review of a determination of unsuitability is received 

7 by the Secretary of Housing and Urban Develop8 ment, such real property shall be disposed of in ac9 cordance with section 627. 

10 ‘‘(2) DETERMINATION OF UNSUITABILITY

11 AFTER SECONDARY REVIEW.—If after conducting a 

12 secondary review of a determination of unsuitability 

13 under subsection (b), the Secretary of Housing and 

14 Urban Development determines that the real prop15 erty remains unsuitable under subsection (c), such 

16 real property shall be disposed of in accordance with 

17 section 627. 

18 ‘‘(3) DETERMINATION OF SUITABILITY AFTER

19 SECONDARY REVIEW.—If after conducting a sec20 ondary review of a determination of unsuitability 

21 under subsection (b), the Secretary of Housing and 

22 Urban Development determines that the real prop23 erty is suitable under subsection (c), such real prop24 erty shall be treated as suitable property for pur25 poses of section 626. 


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1 ‘‘§ 626. Suitable real property 

2 ‘‘(a) DISPOSAL OF SUITABLE REAL PROPERTY.— 

3 ‘‘(1) APPLICATION FOR TRANSFER OF PROP4 ERTY.—If real property is determined suitable under 

5 section 624 or upon a secondary review under sec6 tion 625(d), any representative of the homeless shall 

7 have not more than 90 days after such determina8 tion to submit an application to the Secretary of 

9 Health and Human Services for the transfer of the 

10 real property to that representative. If an applica11 tion cannot be completed within the 90-day period 

12 due to non-material factors, the Secretary of Health 

13 and Human Services, with the concurrence of the 

14 appropriate landholding agency, may grant reason15 able extensions. 

16 ‘‘(2) NO APPLICATION SUBMITTED.—If at the 

17 end of the time period described under paragraph 

18 (1), no representative of the homeless has submitted 

19 an application, such real property shall be disposed 

20 of in accordance with section 627. 

21 ‘‘(b) CONSIDERATION OF APPLICATION.— 

22 ‘‘(1) ASSESSMENT OF APPLICATION.—Not later 

23 than 20 days after the receipt of any application 

24 under subsection (a)(1), the Secretary of Health and 

25 Human Services shall assess such application and 

26 determine whether to approve or deny the request 


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1 for the transfer of the real property to such appli2 cant. 

3 ‘‘(2) DENIAL OF APPLICATION.—If the applica4 tion of a representative of the homeless is denied by 

5 the Secretary of Health and Human Services under 

6 paragraph (1), such real property shall be disposed 

7 of in accordance with section 627. 

8 ‘‘(3) APPROVAL OF APPLICATION.—If the appli9 cation of a representative of the homeless is ap10 proved by the Secretary of Health and Human Serv11 ices under paragraph (1), such real property shall be 

12 made promptly available to that representative by 

13 permit or lease, or by deed, as a public health use 

14 under subsections (a) through (d) of section 550. 

15 ‘‘§ 627. Expedited disposal requirements 

16 ‘‘(a) FAIR MARKET VALUE REQUIRED.—Real prop17 erty sold under the pilot program established under this 

18 subchapter shall be sold at not less than the fair market 

19 value, as determined by the Director in consultation with 

20 the head of the executive agency. Costs associated with 

21 such disposal may not exceed the fair market value of the 

22 property unless the Director approves incurring such 

23 costs. 

24 ‘‘(b) MONETARY PROCEEDS REQUIRED.—Real prop25 erty may be sold under the pilot program established 


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1 under this subchapter only if the property will generate 

2 monetary proceeds to the Federal Government, as pro3 vided in subsection (a). A disposal of real property under 

4 the pilot program may not include any exchange, trade, 

5 transfer, acquisition of like-kind property, or other non6 cash transaction as part of the disposal. 

7 ‘‘(c) CONSTRUCTION.—Nothing in this subchapter 

8 shall be construed as terminating or in any way limiting 

9 authorities that are otherwise available to agencies under 

10 other provisions of law to dispose of Federal real property, 

11 except as provided in subsection (d). 

12 ‘‘(d) EXPEDITED DISPOSAL EXEMPTIONS.—Any ex13 pedited disposal of real property conducted under this sub14 chapter shall not be subject to— 

15 ‘‘(1) subchapter IV of this chapter; 

16 ‘‘(2) sections 550 and 553 of this title; 

17 ‘‘(3) section 501 of the McKinney-Vento Home18 less Assistance Act (42 U.S.C. 11411); 

19 ‘‘(4) any other provision of law authorizing the 

20 no-cost conveyance of real property owned by the 

21 Federal Government; or 

22 ‘‘(5) any congressional notification requirement 

23 other than that in section 545. 


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1 ‘‘§ 628. Special rules for deposit and use of proceeds 

2 from disposal of real property 

3 ‘‘(a) REIMBURSEMENT OF ADMINISTRATIVE EX4 PENSES.—Executive agencies that dispose of real property 

5 under this subchapter shall be reimbursed from the pro6 ceeds, if any, from such disposal for the administrative 

7 expenses associated with such disposal. Such amounts 

8 shall be credited as offsetting collections to the account 

9 that incurred such expenses, to remain available until ex10 pended. 

11 ‘‘(b) DEPOSIT OF PROCEEDS.— 

12 ‘‘(1) IN GENERAL.—After payment of the ad13 ministrative expenses described under subsection (a), 

14 the balance of the proceeds shall be distributed as 

15 follows: 

16 ‘‘(A) 80 percent shall be deposited into the 

17 Treasury as miscellaneous receipts. 

18 ‘‘(B) 20 percent shall be deposited into the 

19 account of the agency that owned the real prop20 erty and initiated the disposal action. 

21 ‘‘(2) FEDERAL REAL PROPERTY CAPITAL IM22 PROVEMENTS AND DISPOSAL ACTIVITY FUNDS.— 

23 Funds deposited under paragraph (1)(A) shall re24 main available until expended for the period of the 

25 pilot program, for activities related to Federal real 

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1 ties. Upon termination of the pilot program, any un2 obligated amounts shall be transferred to the general 

3 fund of the Treasury. 

4 ‘‘§ 629. Limitation on number of permissible cash 

5 sales 

6 ‘‘The total number of cash sales of real properties 

7 to be disposed of under this subchapter over the 5-year 

8 term of the Federal Real Property Disposal Pilot Program 

9 shall not exceed 750. 

10 ‘‘§ 630. Government Accountability Office study 

11 ‘‘(a) STUDY REQUIRED.—Not later than 36 months 

12 after the date of enactment of this subchapter, the Comp13 troller General of the United States shall submit to Con14 gress and make publicly available a study of the effective15 ness of the pilot program. 

16 ‘‘(b) CONTENTS OF STUDY.—The study described 

17 under subsection (a) shall include at a minimum— 

18 ‘‘(1) recommendations for permanent reforms 

19 to statutes governing real property disposals and no 

20 cost conveyances; and 

21 ‘‘(2) recommendations for improving the perma22 nent process by which Federal properties are made 

23 available for use by the homeless.’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

25 The table of sections for chapter 5 of subtitle I of title 


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1 40, United States Code, is amended by inserting after the 

2 item relating to section 611 the following: 

‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF REAL PROPERTY

‘‘§ 621. Definitions. 

‘‘§ 622. Pilot program. 

‘‘§ 623. Selection of real properties. 

‘‘§ 624. Suitability determination. 

‘‘§ 625. Unsuitable real property. 

‘‘§ 626. Suitable real property. 

‘‘§ 627. Expedited disposal requirements. 

‘‘§ 628. Special rules for deposit and use of proceeds from disposal of real property. 

‘‘§ 629. Limitation on number of permissible cash sales. 

‘‘§ 630. Government Accountability Office study.’’. 

3 SEC. 4. PAYMENT OF PRINCIPAL AND INTEREST ON PUBLIC 

4 DEBT AND SOCIAL SECURITY TRUST FUNDS. 

5 (a) IN GENERAL.—In the event that the debt of the 

6 United States Government, as defined in section 3101 of 

7 title 31, United States Code, reaches the statutory limit, 

8 the Secretary of the Treasury shall, in addition to any 

9 other authority provided by law, issue obligations under 

10 chapter 31 of title 31, United States Code, to pay with 

11 legal tender, and solely for the purpose of paying, the prin12 cipal and interest on obligations of the United States de13 scribed in subsection (b) after the date of the enactment 

14 of this Act. 

15 (b) OBLIGATIONS DESCRIBED.—For purposes of this 

16 subsection, obligations described in this subsection are ob17 ligations which are— 

18 (1) held by the public, or 


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1 (2) held by the Old-Age and Survivors Insur2 ance Trust Fund and Disability Insurance Trust 

3 Fund. 

4 (c) PROHIBITION ON COMPENSATION FOR MEMBERS

5 OF CONGRESS.—None of the obligations issued under sub6 section (a) may be used to pay compensation for Members 

7 of Congress. 

8 (d) OBLIGATIONS EXEMPT FROM PUBLIC DEBT

9 LIMIT.—Obligations issued under subsection (a) shall not 

10 be taken into account in applying the limitation in section 

11 3101(b) of title 31, United States Code, to the extent that 

12 such obligation would otherwise cause the limitation in 

13 section 3101(b) of title 31, United States Code, to be ex14 ceeded. 

15 (e) REPORT ON CERTAIN ACTIONS.— 

16 (1) IN GENERAL.—If, after the date of the en17 actment of this Act, the Secretary of the Treasury 

18 exercises his authority under subsection (a), the Sec19 retary shall thereafter submit a report each week the 

20 authority is in use providing an accounting relating 

21 to— 

22 (A) the principal on mature obligations 

23 and interest that is due or accrued of the 

24 United States, and 


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1 (B) any obligations issued pursuant to 

2 subsection (a). 

3 (2) SUBMISSION.—The report required by para4 graph (1) shall be submitted to the Committee on 

5 Ways and Means of the House of Representatives 

6 and the Committee on Finance of the Senate. 

7 SEC. 5. RESCISSION OF UNOBLIGATED BALANCES. 

8 (a) IN GENERAL.—If a Federal budget deficit exists 

9 in 2015, not later than July 16, 2016, of the funds made 

10 available before October 1, 2009, the President may re11 scind any unobligated balances of such funds. 

12 (b) REPORT.—On the same date that the President 

13 orders a rescission under subsection (a), the President 

14 shall submit a report to Congress containing the total 

15 amounts of the funds rescinded and the affected accounts. 

Æ 


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