I 

109TH CONGRESS 

1ST SESSION H. R. 3134 

To amend title 40, United States Code, to require the Federal Real Property 

Council to carry out a pilot program for the expeditious disposal of 

underutilized Federal real property, and to improve the economy and 

efficiency of Federal real property. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 30, 2005 

Mr. TOM DAVIS of Virginia (for himself and Mr. NUSSLE) introduced the 

following bill; which was referred to the Committee on Government Reform 

A BILL 

To amend title 40, United States Code, to require the Federal Real Property Council to carry out a pilot program 

for the expeditious disposal of underutilized Federal real 

property, and to improve the economy and efficiency 

of Federal real property. 

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 ‘‘Federal Real Property 

5 Disposal Pilot Program and Management Improvement 

6 Act of 2005’’. 
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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—PILOT PROGRAM FOR EXPEDITED DISPOSAL OF 

FEDERAL REAL PROPERTY 

Sec. 101. Federal Real Property Disposal Pilot Program. 

TITLE II—IMPROVEMENTS TO ECONOMY AND EFFICIENCY OF 

FEDERAL REAL PROPERTY 

Sec. 201. Improvements to Federal real property management. 

TITLE III—GENERAL PROVISIONS 

Sec. 301. Definition of underutilized real property. 

3 TITLE I—PILOT PROGRAM FOR 

4 EXPEDITED DISPOSAL OF 

5 FEDERAL REAL PROPERTY 

6 SEC. 101. FEDERAL REAL PROPERTY DISPOSAL PILOT PRO7 GRAM. 

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

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

10 following new subchapter: 

11 ‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF 

12 REAL PROPERTY 

13 ‘‘§ 621. Requirement for pilot program 

14 ‘‘(a) IN GENERAL.—The Federal Real Property 

15 Council shall conduct a pilot program, to be known as the 

16 ‘Federal Real Property Disposal Pilot Program’, under 

17 which excess property, surplus property, or underutilized 

18 real property shall be disposed of in accordance with this 

19 subchapter. 
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1 ‘‘§ 622. Selection of real properties 

2 ‘‘The Federal Real Property Council shall select at 

3 least 10 real properties per year owned by executive agen4 cies for participation in the pilot program. 

5 ‘‘§ 623. Expedited disposal requirements 

6 ‘‘(a) REQUIREMENT TO CONDUCT EXPEDITED DIS7 POSALS.— 

8 ‘‘(1) IN GENERAL.—Under the pilot program, 

9 the Federal Real Property Council shall direct exec10 utive agencies to conduct expedited disposals of the 

11 real properties selected pursuant to section 622 of 

12 this title. 

13 ‘‘(2) EXPEDITED DISPOSAL DEFINED.—For 

14 purposes of the pilot program, an expedited disposal 

15 of a real property is a sale of real property for cash 

16 that is conducted pursuant to the requirements of 

17 section 545 of this title and that is not subject to— 

18 ‘‘(A) sections 550 and 553 of this title; or 

19 ‘‘(B) section 501 of the McKinney-Vento 

20 Homeless Assistance Act (42 U.S.C. 11411). 

21 ‘‘(b) FAIR MARKET VALUE.—A real property may be 

22 sold under the pilot program only if the Federal Govern23 ment receives not less than 90 percent of the fair market 

24 value for the sale, determined in accordance with a method 

25 identified by the Council. 
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1 ‘‘(c) MONETARY PROCEEDS; PROHIBITION ON

2 TRANSACTIONS OTHER THAN SALES FOR CASH.—A real 

3 property may be sold under the pilot program only if the 

4 property will generate monetary proceeds to the Federal 

5 Government. A disposal of real property under the pilot 

6 program may not include any exchange, trade, transfer, 

7 acquisition of like-kind property, or other non-cash trans8 action as part of the disposal. 

9 ‘‘§ 624. Special rules for deposit and use of proceeds 

10 from expedited disposals 

11 ‘‘(a) DISTRIBUTION REQUIREMENTS.—With respect 

12 to the disposal of a real property under the pilot program, 

13 the monetary proceeds from the disposal shall be distrib14 uted as follows: 

15 ‘‘(1) 80 percent shall be deposited into the 

16 Treasury as miscellaneous receipts. 

17 ‘‘(2) 10 percent shall be deposited into an ac18 count in the Treasury for use for any program or 

19 purpose previously authorized by law by any execu20 tive agency determined by the Federal Real Property 

21 Council to be affected by the disposal, to remain 

22 available until expended without further appropria23 tion or authorization. 

24 ‘‘(3) 5 percent shall be deposited into an ac25 count in the Treasury for use by the Federal Real 
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1 Property Council to disburse to local taxing jurisdic2 tions affected by the disposal. Funds not disbursed 

3 within 90 days after the disposal of the property 

4 shall be deposited into the Treasury as miscellaneous 

5 receipts. 

6 ‘‘(4) 5 percent shall be deposited into an ac7 count in the Treasury for use by the Federal Real 

8 Property Council for such purposes as the Council 

9 considers appropriate, including for further study 

10 and other costs associated with the disposition of 

11 real properties. 

12 ‘‘(b) LIMITATION.—Proceeds from the disposal of a 

13 real property under the pilot program shall not be subject 

14 to subchapter IV of this chapter. 

15 ‘‘§ 625. Administrative provisions 

16 ‘‘(a) USE OF AGENCY FUNDS FOR COSTS OF DIS17 POSALS.—Subject to subsection (b), an executive agency 

18 may use any amounts otherwise available to the agency 

19 for paying the costs to the agency of disposing of real 

20 property under the pilot program, including the costs of 

21 any of the following: 

22 ‘‘(1) Site remediation, restoration, or other en23 vironmental services. 

24 ‘‘(2) Relocation of affected tenants and other 

25 occupants. 
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1 ‘‘(3) Advertising and marketing. 

2 ‘‘(4) Community outreach. 

3 ‘‘(5) Surveying. 

4 ‘‘(6) Appraisal. 

5 ‘‘(7) Brokerage. 

6 ‘‘(8) Historic preservation services. 

7 ‘‘(9) Title insurance. 

8 ‘‘(10) Due diligence. 

9 ‘‘(11) Document notarization and recording 

10 services. 

11 ‘‘(12) Prepayment of up to one year’s assessed 

12 property taxes. 

13 ‘‘(13) Any other costs, whether direct or indi14 rect, associated with the sale of the property. 

15 ‘‘(b) LIMITATION ON AMOUNT USED FOR COSTS OF

16 DISPOSALS.—With respect to the disposal of a real prop17 erty by an executive agency, the agency may not use 

18 amounts, as authorized under subsection (a), for costs as19 sociated with the disposal of the property in any amount 

20 exceeding 25 percent of the fair market value of the prop21 erty. 

22 ‘‘§ 626. Termination of pilot program 

23 ‘‘The Federal Real Property Disposal Pilot Program 

24 shall terminate 5 years after the date of the enactment 

25 of this subchapter.’’. 
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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of chapter 5 of subtitle I of title 40, 

3 United States Code, is amended by inserting after the 

4 item relating to section 611 the following: 

‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF REAL PROPERTY

‘‘Sec. 621. Requirement for pilot program. 

‘‘Sec. 622. Selection of real properties. 

‘‘Sec. 623. Expedited disposal requirements. 

‘‘Sec. 624. Special rules for deposit and use of proceeds from expedited disposals. 

‘‘Sec. 625. Administrative provisions. 

‘‘Sec. 626. Termination of pilot program.’’. 

5 TITLE II—IMPROVEMENTS TO 

6 ECONOMY AND EFFICIENCY 

7 OF FEDERAL REAL PROP8 ERTY 

9 SEC. 201. IMPROVEMENTS TO FEDERAL REAL PROPERTY 

10 MANAGEMENT. 

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

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

13 following new subchapter: 

14 ‘‘SUBCHAPTER VIII—PROPERTY MANAGEMENT 

15 GENERALLY 

16 ‘‘§ 631. Senior Real Property Officers 

17 ‘‘(a) ESTABLISHMENT OF AGENCY SENIOR REAL

18 PROPERTY OFFICER.—The head of each agency listed in 

19 paragraphs (1) and (2) of section 901(b) of title 31 shall 

20 designate among their senior management officials a Sen21 ior Real Property Officer. Such officer shall have the edu-
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1 cation, training, and experience required to administer the 

2 necessary functions of the position for the agency con3 cerned. 

4 ‘‘(b) AGENCY ASSET MANAGEMENT PLAN RESPON5 SIBILITIES.—The Senior Real Property Officer of an 

6 agency shall develop and implement an agency asset man7 agement planning process that meets the form, content, 

8 and other requirements established by the Federal Real 

9 Property Council established under section 632 of this 

10 title. The initial agency asset management plan shall be 

11 submitted to the Office of Management and Budget on 

12 a date determined by the Director of the Office of Man13 agement and Budget. In developing the plan, the Senior 

14 Real Property Officer shall— 

15 ‘‘(1) identify and categorize all real property 

16 owned, leased, or otherwise managed by the agency, 

17 including, where applicable, those properties outside 

18 the United States in which the lease agreements and 

19 arrangements reflect the host country currency or 

20 involve alternative lease plans or rental agreements; 

21 ‘‘(2) identify and pursue goals, with appropriate 

22 deadlines, consistent with and supportive of the 

23 agency’s asset management plan and measure 

24 progress against such goals; and 
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1 ‘‘(3) identify any other information and pursue 

2 any other actions necessary to the appropriate devel3 opment and implementation of the agency asset 

4 management plan. 

5 ‘‘(c) MONITORING OF ASSETS.—The Senior Real 

6 Property Officer of an agency shall be responsible, on an 

7 ongoing basis, for monitoring the real property assets of 

8 the agency so that agency assets are managed in a manner 

9 that is— 

10 ‘‘(1) consistent with, and supportive of, the 

11 goals and objectives set forth in the agency’s overall 

12 strategic plan under section 306 of title 5; 

13 ‘‘(2) consistent with the real property asset 

14 management principles developed by the Federal 

15 Real Property Council established under section 632 

16 of this title; and 

17 ‘‘(3) reflected in the agency asset management 

18 plan. 

19 ‘‘(d) PROVISION OF INFORMATION.—The Senior Real 

20 Property Officer of an agency shall, on an annual basis, 

21 provide to the Director of the Office of Management and 

22 Budget and the Administrator of General Services the fol23 lowing: 

24 ‘‘(1) Information that lists and describes real 

25 property assets under the jurisdiction, custody, or 
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1 control of that agency, except for classified informa2 tion. 

3 ‘‘(2) Any other relevant information the Direc4 tor of the Office of Management and Budget or the 

5 Administrator of General Services may request for 

6 inclusion in the inventory database established under 

7 section 634 of this title. 

8 ‘‘§ 632. Federal Real Property Council 

9 ‘‘(a) ESTABLISHMENT OF COUNCIL.—There shall be 

10 a Federal Real Property Council, within the Office of 

11 Management and Budget for administrative purposes, to 

12 develop guidance for, and facilitate the success of, each 

13 agency’s asset management plan. The Council shall be 

14 composed exclusively of all agency Senior Real Property 

15 Officers, the Controller of the Office of Management and 

16 Budget, the Administrator of General Services, and any 

17 other full-time or permanent part-time Federal officials or 

18 employees as deemed necessary by the Chairman of the 

19 Council. The Deputy Director for Management of the Of20 fice of Management and Budget shall also be a member 

21 and shall chair the Council. The Office of Management 

22 and Budget shall provide funding and administrative sup23 port for the Council, as appropriate. 

24 ‘‘(b) AGENCY ASSET MANAGEMENT PLANS.— 
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1 ‘‘(1) IN GENERAL.—The Council shall provide 

2 guidance to the Senior Real Property Officers in the 

3 development and implementation of the agency asset 

4 management plans. 

5 ‘‘(2) PERFORMANCE MEASURES.— The Council 

6 shall work with the Administrator of General Serv7 ices to establish appropriate performance measures 

8 to determine the effectiveness of Federal real prop9 erty management. Such performance measures shall 

10 include, but are not limited to, evaluating the costs 

11 and benefits involved with disposing of Federal real 

12 properties at particular agencies. Specifically, the 

13 Council shall consider, as appropriate, the following 

14 performance measures: 

15 ‘‘(A) The cost and time required to dispose 

16 of Federal real property assets and the financial 

17 recovery of the Federal investment resulting 

18 from the disposal. 

19 ‘‘(B) Changes in the amounts of vacant 

20 Federal space. 

21 ‘‘(C) The enhancement of executive agency 

22 productivity through an improved working envi23 ronment. 

24 ‘‘(3) DESIGN OF PERFORMANCE MEASURES.— 

25 The performance measures shall be designed to en-
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1 able the heads of executive agencies to track 

2 progress in the achievement of Government-wide 

3 property management objectives, as well as allow for 

4 comparing the performance of executive agencies 

5 against industry and other public sector agencies. 

6 ‘‘(c) BEST PRACTICES CLEARINGHOUSE.—The Coun7 cil shall serve as a clearinghouse for executive agencies 

8 for best practices in evaluating actual progress in the im9 plementation of real property enhancements. The Council 

10 shall also work in conjunction with the President’s Man11 agement Council to assist the efforts of the Senior Real 

12 Property Officials and the implementation of agency asset 

13 management plans. 

14 ‘‘(d) FUND.—The Council may use amounts in the 

15 fund referred to in section 624(4) of this title for such 

16 purposes as the Council considers appropriate for carrying 

17 out its responsibilities. 

18 ‘‘(e) MEETINGS.—The Council shall hold meetings 

19 not less often than once a quarter each fiscal year. 

20 ‘‘§ 633. Inventory database 

21 ‘‘(a) DATABASE.—The Administrator of General 

22 Services (in this section referred to as the ‘Adminis23 trator’), in consultation with the Federal Real Property 

24 Council, shall establish and maintain a single, comprehen25 sive, and descriptive database of all real property under 
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1 the custody and control of all executive agencies, other 

2 than real property excluded for reasons of national secu3 rity. The Administrator shall collect from each executive 

4 branch agency such descriptive information, except for 

5 classified information, as the Administrator considers will 

6 best describe the nature, use, and extent of the real prop7 erty holdings of the Federal Government. 

8 ‘‘(b) STANDARDS.—The Administrator, in consulta9 tion with the Council, may establish data and other infor10 mation technology standards for use by executive agencies 

11 in developing or upgrading executive agency real property 

12 information systems in order to facilitate reporting on a 

13 uniform basis. Those agencies with particular information 

14 technology standards and systems in place and in use shall 

15 be allowed to continue with such use to the extent that 

16 they are compatible with the standards issued by the Ad17 ministrator. 

18 ‘‘(c) JURISDICTION OF ADMINISTRATOR.—Except for 

19 the purpose of maintaining the database required under 

20 this section, nothing in this section authorizes the Admin21 istrator to assume jurisdiction over the acquisition, man22 agement, or disposal of real property not subject to this 

23 chapter. 

24 ‘‘(d) LIST OF UNDERUTILIZED FEDERAL REAL

25 PROPERTIES.— 
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1 ‘‘(1) REQUIREMENT.—The head of each execu2 tive agency shall— 

3 ‘‘(A) identify all underutilized properties 

4 under the custody and control of that agency; 

5 and 

6 ‘‘(B) submit a list describing the underuti7 lized properties to the Federal Real Property 

8 Council. 

9 ‘‘(2) CONTENTS OF LIST.—The list submitted 

10 under paragraph (1)(B) shall include information 

11 about the location, nature, and use of the property, 

12 and may be included in the database required under 

13 this section. 

14 ‘‘(3) USE OF LIST.—Each executive agency 

15 shall use the list submitted for the agency under this 

16 subsection to help in determining whether a property 

17 is excess property under this chapter.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections 

19 at the beginning of chapter 5 of subtitle I of title 40, 

20 United States Code, is amended by inserting after the 

21 item relating to section 626, as added by title I, the fol22 lowing: 

‘‘SUBCHAPTER VIII—PROPERTY MANAGEMENT GENERALLY

‘‘Sec. 631. Senior Real Property Officers. 

‘‘Sec. 632. Federal Real Property Council. 

‘‘Sec. 633. Inventory database.’’. 
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1 TITLE III—GENERAL 

2 PROVISIONS 

3 SEC. 301. DEFINITION OF UNDERUTILIZED REAL PROP4 ERTY. 

5 Section 102 of title 40, United States Code, is 

6 amended by adding at the end the following new para7 graph: 

8 ‘‘(11) The term ‘underutilized real property’ 

9 means real property under the control of a Federal 

10 agency, with or without improvements, that meets 1 

11 or more of the following criteria: 

12 ‘‘(A) The property is occupied by 10 or 

13 fewer employees of the Federal Government or 

14 a contractor of the Federal Government. 

15 ‘‘(B) 50 percent or less of the building 

16 space is occupied by the executive agency. 

17 ‘‘(C) The property has improvements that 

18 occupy 25 percent or less of the land. 

19 ‘‘(D) The property is unutilized, meaning 

20 it is vacant or not occupied for current program 

21 purposes.’’. 

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