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[Senate Report 114-291]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 544
114th Congress    }                                      {       Report
                                 SENATE
 2d Session       }                                      {      114-291          
_______________________________________________________________________

                                     

                                                       

              FEDERAL ASSET SALE AND TRANSFER ACT OF 2015

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2375

          TO DECREASE THE DEFICIT BY CONSOLIDATING AND SELLING
        EXCESS FEDERAL TANGIBLE PROPERTY, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  July 6, 2016.--Ordered to be printed
                  
                                    ________
                                    

                         U.S. GOVERNMENT PUBLISHING OFFICE 

59-010                         WASHINGTON : 2016                   
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona                 THOMAS R. CARPER, Delaware
ROB PORTMAN, Ohio                    CLAIRE McCASKILL, Missouri
RAND PAUL, Kentucky                  JON TESTER, Montana
JAMES LANKFORD, Oklahoma             TAMMY BALDWIN, Wisconsin
MICHAEL B. ENZI, Wyoming             HEIDI HEITKAMP, North Dakota
KELLY AYOTTE, New Hampshire          CORY A. BOOKER, New Jersey
JONI ERNST, Iowa                     GARY C. PETERS, Michigan
BEN SASSE, Nebraska

                  Christopher R. Hixon, Staff Director
                Gabrielle D'Adamo Singer, Chief Counsel
       Patrick J. Bailey, Chief Counsel for Governmental Affairs
                       Courtney J. Allen, Counsel
              Gabrielle A. Batkin, Minority Staff Director
           John P. Kilvington, Minority Deputy Staff Director
               Mary Beth Schultz, Minority Chief Counsel
         Brian F. Papp, Jr., Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk

                                                      Calendar No. 544
114th Congress    }                                     {       Report
                                 SENATE
 2d Session       }                                     {      114-291  

======================================================================

 
  TO DECREASE THE DEFICIT BY CONSOLIDATING AND SELLING EXCESS FEDERAL 
               TANGIBLE PROPERTY, AND FOR OTHER PURPOSES

                                _______
                                

                  July 6, 2016.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2375]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2375) to decrease 
the deficit by consolidating and selling excess Federal 
tangible property, and for other purposes, having considered 
the same, reports favorably thereon with an amendment in the 
nature of a substitute and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Summary.............................................1
  II. Background and Need for the Legislation.........................2
 III. Legislative History.............................................6
  IV. Section-by-Section Analysis.....................................6
   V. Evaluation of Regulatory Impact................................11
  VI. Congressional Budget Office Cost Estimate......................11
 VII. Changes in Existing Law Made by the Bill, as Reported..........14

                         I. Purpose and Summary

    The purpose of S. 2375, the Federal Asset Sale and Transfer 
Act of 2015, is to reduce the costs of Federal real property 
management. It establishes an independent Federal Real Property 
Reform Board to identify opportunities for the Federal 
Government to significantly reduce its real property inventory 
and to reduce costs incurred in the operations and maintenance 
of its assets. The bill also improves the efficiency of the 
process for transferring Federal real properties for 
homelessness assistance.

              II. Background and the Need for Legislation

    Federal real property management has been on the Government 
Accountability Office's (GAO) High-Risk List since 2003 because 
the Government ``continues to face long-standing challenges in 
managing its real property.\1\ One challenge is ``the Federal 
government continues to maintain too much excess and 
underutilized property.''\2\ GAO asserted that the Federal 
Government ``has not met the criteria for demonstrating 
progress in reducing excess and underutilized real 
property.''\3\
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    \1\1 Gov't Accountability Office, GAO-15-290, High Risk Series 135 
(Feb. 2015), available at http://www.gao.gov/assets/670/ 668415.pdf.
    \2\Id.
    \3\Id at 136.
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    The Committee held an oversight hearing on June 16, 2015, 
to discuss Federal real property management and evaluate 
potential reforms.\4\ At the hearing, David Mader, the 
Controller at the Office of Management and Budget (OMB) 
testified that the Federal Government's real property inventory 
consists of 1,615 underutilized buildings, 3,360 unutilized 
buildings, and 4,465 buildings that were ``pure excess.\5\ In 
his testimony, Norman Dong, Commissioner of the Public 
Buildings Service under the General Services Administration 
(GSA) stated:
---------------------------------------------------------------------------
    \4\Federal Real Property Reform: How Cutting Red Tape and Better 
Management Could Achieve Billions in Savings: Hearing Before the S. 
Comm. on Homeland Sec. and Governmental Affairs, 114th Cong. (2015) 
[hereinafter ``June 16, 2015, HSGAC Hearing''].
    \5\Id. (statement of David Mader, Controller, Off. of Mgmt. and 
Budget).

          I think everyone recognizes that we need to be far 
        more aggressive in terms of looking at the assets in 
        our portfolio, really asking that question of highest 
        and best use, and whether it is through disposition or 
        exchange or outlease, being far more aggressive in 
        terms of taking those properties that do not have much 
        use to the Federal Government and leveraging the sale 
        of that, working with the private sector.\6\
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    \6\Id. (statement of Norman Dong, Commissioner, Pub. Buildings 
Service, U.S. Gen. Services Admin.).

    While Government officials would like to be more aggressive 
in disposing of unneeded Federal real property, the property 
disposal process can often be an onerous one, driven by 
statutory requirements for agencies and GSA. There are more 
than 20 steps that GSA or a Federal agency are required to 
complete to dispose of a single surplus Federal real 
property.\7\ The disposal process initiates when a Federal 
agency reports a property as ``excess'' to its needs.\8\ 
Federal law defines ``excess property'' as ``property under the 
control of a federal agency that the head of the agency 
determines is not required to meet the agency's needs or 
responsibilities.\9\ GSA must then determine whether the excess 
property can be transferred to another Federal agency.\10\ If 
GSA determines that an excess property ``is not required to 
meet the needs or responsibilities of all federal agencies,'' 
the property is then deemed to be ``surplus property.''\11\
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    \7\Office of Mgmt. and Budget, Exec. Office of the President, 
National Strategy for the Efficient Use of Real Property: Reducing the 
Federal Portfolio Through Improved Space Utilization, Consolidation, 
and Disposal (2015), available at https://www.whitehouse.gov/sites/ 
default/files/omb/financial/national-strategy-efficient-use-real-
property.pdf [hereinafter ``OMB National Strategy''].
    \8\U.S. Gen. Services Admin., The Disposal Process, available at 
http://www.gsa.gov/portal/content/101694 [hereinafter ``GSA Disposal 
Process''].
    \9\40 U.S.C. Sec. 102.
    \10\40 U.S.C. Sec. 521.
    \11\40 U.S.C. Sec. 102(10).
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    Once a property is deemed to be surplus, GSA must first 
consider whether the property can be used for homeless 
assistance.\12\ Under the McKinney-Vento Homeless Assistance 
Act, Federal agencies report to the Department of Housing and 
Urban Development (HUD) information regarding their Federal 
public buildings and real properties that are excess, surplus, 
or otherwise unutilized or underutilized.\13\ The Secretary of 
HUD reviews these properties and identifies which properties 
are suitable for homeless assistance.\14\ After the agencies 
respond to the Secretary's identified properties, a list of 
properties available for application for use to assist the 
homeless is published in the Federal Register.\15\ Homeless 
assistance providers can then apply to the Department of Health 
and Human Services (HHS) to receive this property by deed or 
lease.\16\ This entire process can take up to 290 days.\17\
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    \12\GSA Disposal Process.
    \13\42 U.S.C. Sec. 11411(a).
    \14\Id.
    \15\42 U.S.C. Sec. 11411(c).
    \16\42 U.S.C. Sec. 11411(f).
    \17\Gov't Accountability Office, GAO-14-739, Federal Real Property: 
More Useful Information to Providers Could Improve the Homeless 
Assistance Program 5 (Sept. 2014), available at http://www.gao.gov/
assets/670/666259.pdf.
---------------------------------------------------------------------------
    Since the passage of the McKinney-Vento Homeless Assistance 
Act in 1987, at least 40,000 Federal properties were reported 
to HUD as underutilized, unutilized, excess, or surplus.\18\ 
Approximately one quarter of these properties were determined 
to be suitable and available for homeless assistance purposes, 
2,533 Notices of Interest have been filed for approximately 
1,200 of those 10,000 properties, and less than 500 
applications were actually submitted to HHS for approximately 
400 of those properties.\19\ In total, only 122 properties have 
been transferred for use by the homeless since 1987, and only 
81 of those properties are still being used as of March 
2014.\20\
---------------------------------------------------------------------------
    \18\Id. at 15.
    \19\Id.
    \20\Id.
---------------------------------------------------------------------------
    At the June 2015 Committee hearing, witnesses expressed 
concern about the process and effectiveness of screening 
surplus properties for homelessness assistance.\21\ In his 
testimony before the Committee, OMB Controller Mader stated:
---------------------------------------------------------------------------
    \21\June 16, 2015, HSGAC Hearing.

          [W]hen you look at the results over 10 years, there 
        is not a lot. And I have got to think there is a way of 
        better categorizing the types of excess property so 
        that only those that truly would be usable for the 
        purpose intended by [the] McKinney-Vento [Homeless 
        Assistance Act] would actually go for that 
        consideration and allow us to move those other 
        properties quickly.\22\
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    \22\Id. (statement of David Mader, Controller, Off. of Mgmt. and 
Budget).

    GSA Public Buildings Service Commissioner Norman Dong 
agreed that ``it is an important objective to determine whether 
we have any properties that have potential use for the 
---------------------------------------------------------------------------
homeless.'' However, Mr. Dong further clarified that:

          [W]hen you actually look at the results that we have 
        seen and less than 2 percent of those properties 
        actually ending up for use by the homeless, it suggests 
        that the process is not very target-effective and that 
        there is probably a better way of supporting this 
        objective.\23\
---------------------------------------------------------------------------
    \23\Id. (statement of Norman Dong, Commissioner, Pub. Buildings 
Service, U.S. Gen. Services Admin.).

---------------------------------------------------------------------------
    GAO agreed with the other two witnesses and explained:

          Basically, there is such a vast number of properties 
        that are clearly unsuitable for the purposes of trying 
        to provide housing for the homeless. I mean, so many 
        buildings that are being screened. . . are in closed 
        military facilities and cannot be used for that 
        purpose, or they are in [Veterans' Affairs] campuses, 
        the same thing, or they are in remote areas. But they 
        all go through this process of screening, Federal 
        Register notices, and so forth, and the HUD 
        recordkeeping is cumbersome. It just is a really 
        awkward and time-consuming process . . . without a 
        whole lot of payoff.\24\
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    \24\Id. (statement of David Wise, Director, Physical Infrastructure 
Team, U.S. Gov't Accountability Off.).

    Under current law, if a surplus property is not deemed 
suitable or available for homeless use, GSA then determines 
whether the property can be conveyed for a public benefit use 
through another Federal agency.\25\ For example, the Department 
of Education can seek the property for a school, classroom, or 
other educational use.\26\ HHS can request a surplus property 
to use to protect the public health, including for research 
purposes.\27\ The Department of the Interior can request the 
surplus property be transferred for a public park or recreation 
area.\28\ GSA can donate the surplus property to the American 
National Red Cross for charitable purposes.\29\ GSA may also 
transfer the surplus property to a state or municipal 
government if the Attorney General determines the property is 
needed for a correctional facility or for other law enforcement 
purposes.\30\ The Federal Emergency Management Agency may also 
request that surplus property be transferred for emergency 
management response purposes.\31\ Surplus Federal real property 
can also be transferred for the Interstate System,\32\ 
highways,\33\ wildlife conservation,\34\ a port facility,\35\ 
public airports,\36\ or power transmission lines.\37\
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    \25\GSA Disposal Process.
    \26\40 U.S.C. Sec. 550(c).
    \27\40 U.S.C. Sec. 550(d).
    \28\40 U.S.C. Sec. 550(e).
    \29\40 U.S.C. Sec. 551.
    \30\40 U.S.C. Sec. 553(b)(1)-(2).
    \31\40 U.S.C. Sec. 553(b)(3).
    \32\23 U.S.C. Sec. 107.
    \33\23 U.S.C. Sec. 317.
    \34\16 U.S.C. Sec. 667b.
    \35\40 U.S.C. Sec. 554.
    \36\49 U.S.C. Sec. 47151.
    \37\50 U.S.C. App. 1622(d).
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    If the property remains after all options for transfer to a 
Federal agency are exhausted, GSA then pursues a negotiated 
sale with a state or local government for public use.\38\ If no 
state or local governments seek such a sale, only then can GSA 
dispose of a surplus Federal property through a competitive 
sale to the public.\39\
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    \38\GSA Disposal Process. See also 40 U.S.C. 545(d)(2).
    \39\GSA Disposal Process. See also 40 U.S.C. 545.
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    The Obama Administration, in its national strategy for 
Federal real property management recognized that:

          Administrative burden can increase the cost and time 
        required to execute disposals significantly. . . . The 
        process requirements are in place for good reasons, 
        such as ensuring environmental protection, the 
        preservation of significant historic properties, and 
        accurate documentation of land title. . . . Applying 
        these steps uniformly without flexibility for location, 
        asset type and size, and potential private or public 
        sector re-use options, often creates inefficiencies and 
        slows or limits the number of disposals executed.\40\
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    \40\OMB National Strategy at 6.

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    GAO testified before the Committee:

          [T]here are certain actions the administration can 
        take, but there are some things outside their ability 
        to control. And where Congress can be helpful and be a 
        positive influence is helping in the disposal process 
        and the mitigation or the elimination possibly of the 
        competing stakeholder interests that have a large 
        influence on the disposal process. And that is where I 
        think the legislation can really be a driving force to 
        helping to expedite the disposal process and help 
        rationalize the Federal portfolio.\41\
---------------------------------------------------------------------------
    \41\June 16, 2015 HSGAC Hearing (statement of David Wise, Director, 
Physical Infrastructure Team, U.S. Gov't Accountability Off.).

---------------------------------------------------------------------------
    Mr. Mader of OMB elaborated at the Committee hearing:

          [T]he administration for the last several years has 
        been proposing legislation which would basically allow 
        us to create a process that would sort of look at the 
        entire Government portfolio, identify those properties, 
        regardless of Federal agency, you know, put them 
        together, put them for an up-or-down vote, dispose of 
        them, take a portion of those dollars that we get from 
        the disposal, and then plow them back in.\42\
---------------------------------------------------------------------------
    \42\Id. (statement of David Mader, Controller, Off. of Mgmt. and 
Budget).

    S. 2375, the Federal Asset Sale and Transfer Act, provides 
the legislative relief needed to expedite property disposals 
independent of the onerous process required under current 
Federal laws and regulations. The bill establishes the Federal 
Real Property Reform Board (``Board'') to be charged with 
reviewing the entire Federal real property portfolio and 
identifying underutilized, unutilized, excess, and surplus 
properties. The Board will develop a list of high-value real 
property assets recommended for co-location, consolidation, 
disposal, or other actions. The Board's list of recommendations 
will either be approved or disapproved in its entirety by OMB. 
Once OMB approves of the Board's recommendations, Federal 
agencies will carry out the Board's recommendations without 
being subject to Federal laws and regulations that would 
increase costs or cause delays in the disposal process. The 
Board will then meet each subsequent fiscal year to identify 
additional opportunities to improve efficient use of Federal 
real properties. The Board will terminate after six years.
    S. 2375 mitigates some significant challenges to disposing 
of unneeded Federal real properties. The high-value real 
property assets recommended for disposal by the Board will not 
be subject to the McKinney-Vento Homeless Assistance Act. The 
legislation also provides the Board with a separate fund within 
the Federal Buildings Fund to deposit sales proceeds for 
reinvestment in future property disposals.
    Additionally, S. 2375 makes important changes to the 
application process under the McKinney-Vento Act to streamline 
the process for efficiency. The legislation eliminates the 
requirement of a Federal Register notice of suitable properties 
and modifies time requirements in the application process for a 
more structured and delineated procedure that is practical for 
the Federal Government and for homeless assistance providers. 
The National Law Center on Homelessness and Poverty issued a 
letter supporting this legislation ``because it contains 
important provisions that will strengthen Title V of the 
McKinney-Vento Homeless Assistance Act.''\43\
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    \43\Letter from the National Law Center on Homelessness and Poverty 
to U.S. Senator Ronald H. Johnson, Chairman, S. Comm. on Homeland 
Security and Governmental Affairs, and U.S. Senator Thomas R. Carper, 
Ranking Member, S. Comm. on Homeland Security and Governmental Affairs 
(Dec. 9, 2015) (on file with Comm. staff).
---------------------------------------------------------------------------

                        III. Legislative History

    S. 2375, the Federal Asset Sale and Transfer Act, was 
introduced on December 8, 2015, by Chairman Ron Johnson and 
Senators Mark Warner, Roy Blunt, Rob Portman, and James 
Lankford. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs.
    The Committee considered S. 2375 at a business meeting on 
December 9, 2015. During the business meeting, a substitute 
amendment by Senators Johnson, Portman, Carper, and Lankford 
was offered and adopted. Both the amendment and the legislation 
as modified by the amendment were passed by voice vote with 
Senators Johnson, Portman, Lankford, Ayotte, Ernst, Carper, 
Tester, Baldwin, and Booker present.

        IV. Section-by-Section Analysis of the Bill, as Reported

Section 1. Short title

    This section establishes the bill's title as the ``Federal 
Asset Sale and Transfer Act of 2015.''

Section 2. Purpose

    This section outlines the purpose of the Federal Asset Sale 
and Transfer Act of 2015 to improve the management and reduce 
the costs of the Federal government's real property inventory, 
and lists ways in which the legislation will help achieve this 
purpose.

Section 3. Definitions

    This section defines ``Administrator'', ``Board'', 
``Director'', ``Federal agency'', ``Federal civilian real 
property and civilian real property'', ``field office'', and 
``postal property''.

Section 4. Federal Real Property Reform Board

    This section establishes an independent board called the 
Federal Real Property Reform Board (the Board), and details its 
composition and obligations. This section requires that the 
Chairperson of the board shall be appointed by the President by 
and with the advice and consent of the Senate. Members 
appointed to the Board will have expertise in commercial real 
estate and development, space optimization and utilization, and 
community development. The Board will terminate six years after 
the date of the enactment of this bill.
    The Board will hold meetings that are open to the public 
and announced 14 days in advance in the Federal Register, 
except for meetings that will discuss classified information. 
Under this section, Congressional committees of jurisdiction 
will receive information, upon request, of the proceedings, 
information, and deliberations of the Board.

Section 5. Development of recommendations to the Board

    This section requires Federal agencies to report 
information on their real property inventories and requires OMB 
to develop standards and criteria for the Board to adhere to in 
its review.
    Subsection (a) requires each Federal agency to submit to 
the OMB Director and the GSA Administrator a report on all 
Federal real properties in the agencies' inventories and agency 
recommendations on any properties that can be disposed of or 
utilized in a different manner to reduce the Federal real 
estate inventory, generate cost savings for the taxpayer, and 
operational efficiencies that may be realized by the federal 
government in the operation and maintenance of federal civilian 
real properties.
    Subsection (b) requires the OMB Director, in consultation 
with the GSA Administrator, to review the agency 
recommendations submitted under subsection (a) and to develop 
consistent standards and criteria against which agency 
recommendations will be reviewed. The standards and criteria 
will be developed by considering several factors that inform on 
the cost-effectiveness and efficiency of a Federal building, 
how to maximize the use of a building, or how the disposal of a 
building would achieve cost savings, generate revenue for the 
Federal government, and impact the economy of the community 
surrounding the building.
    Subsection (c) directs the OMB Director to develop and 
apply a clear standard space-utilization rate that provides the 
Board with a data point for how much space of a real property 
asset is actually being used by the agency. Considering the 
diverse nature of the federal portfolio, this space-utilization 
rate will be consistent across Federal agencies and throughout 
each type of space.
    Under subsection (d), the standards, criteria, and 
recommendations developed by the OMB Director will be submitted 
to the Board, published in the Federal Register, and submitted 
to Congressional committees of jurisdiction and GAO. The Board 
may also request additional information from a Federal agency 
about a particular property.

Section 6. Duties of Board

    This section charges the Board with identifying 
opportunities to significantly reduce the Federal real property 
inventory and reduce Federal real property costs.
    Subsection (b) requires the Board to identify at least five 
Federal properties that are not listed as surplus or excess and 
that have a total fair market value of at least $500 million. 
The Board will submit a list of these identified high-value 
properties to Congress and the OMB Director. The GSA 
Administrator must initiate the sale of the identified 
properties and sell the identified properties within one year 
at fair market value at the highest and best use.
    Subsection (c) requires the Board to independently analyze 
the real property inventories and recommendations submitted by 
Federal agencies to OMB. The Board is not bound or limited by 
the agency recommendations. If the Board determines that an 
agency did not provide necessary information, data, or adequate 
recommendations, the Board can develop recommendations based on 
existing relevant data other than the agency's submission.
    Subsection (d) allows the Board to consider proposals, 
information, and other data submitted by the private sector and 
by State and local officials. Any information received from 
these sources will be made available to the public.
    Under subsection (e), the Board is required to implement an 
accounting system to independently evaluate the costs of and 
returns on the recommendations provided to the Board. This will 
assist the Board in developing its recommendations and in 
determining the highest return to the taxpayer.
    Subsection (f) requires the Board to conduct public 
hearings. All testimony before the Board at a public hearing 
shall be presented under oath.
    Subsection (g) requires the Board to issue a report on the 
Board's findings, conclusions, and recommendations. This report 
must be submitted to the OMB Director and publicly posted on a 
website maintained by the Board. While the Board is encouraged 
to include consensus recommendations in this report, 
recommendations supported by a majority of the Board may be 
included if the Board cannot achieve a consensus.
    Subsection (h) directs the Board to establish and maintain 
a website to make relevant information available to the public.
    Subsection (i) mandates that GAO submit a report to 
Congress and the Board that includes a detailed analysis of the 
Board's recommendations and a description of the selection 
process used by the Board to develop the recommendations.

Section 7. Review by the Office of Management and Budget

    This section describes the next steps to carry out the 
Board's recommendations.
    Under subsection (b), the OMB Director shall review and 
submit a report on the approval or disapproval of the Board's 
recommendations. During this time of review by OMB and before 
the OMB Director submits the report required under this 
subsection, the Board must testify before Congress about its 
report if a committee of jurisdiction requests such testimony.
    Subsection (c) describes the processes for when OMB 
approves or disapproves of the recommendations submitted by the 
Board.

Section 8. Implementation of Board recommendations

    Subsection (a) establishes the required timelines for 
Federal agencies to carry out the Board's recommendations. Each 
recommended action taken by a Federal agency shall be 
economically beneficial and cost-neutral or otherwise favorable 
to the Federal Government. A procedure for handling extenuating 
circumstances is outlined.
    Subsection (b) allows Federal agencies to take all such 
necessary and proper action related to any Federal building or 
facility recommended for action by the Board.
    Under subsection (c), when a Federal agency acts on a Board 
recommendation, the agency will act within any of its delegated 
authority. If the agency has not been delegated the necessary 
authority to initiate action on a Board recommendation, the 
Federal agency must work in partnership with the GSA 
Administrator to carry out the Board recommendation.
    Subsection (d) provides the GSA Administrator the 
discretion to engage in certain transactions identified, 
recommended or commenced under this bill, specifically 
transactions which would convey a federal civilian real 
property for less than fair market value, for no consideration 
at all, or in a transaction that mandates the exclusion of 
other market participants.
    Subsection (e) lists Federal statutes which will not apply 
for any recommendation of the Board.
    Under subsection (f), the OMB Director must submit all 
known information on the Federal real property assets included 
in the recommendations of the Board to the Secretary of HUD. 
The requirements under this subsection do not apply to the high 
value assets identified under section 6(b) of this bill. The 
Secretary of HUD is directed 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 within 30 days after receiving the 
information submitted by the OMB Director.
    Subsection (g) describes the requirements for addressing 
environmental considerations that may arise in the transfer, 
sale, or other disposal of Federal real property assets.
    Paragraph (1) allows a Federal agency to enter into an 
agreement with any entity to transfer real property by deed 
pursuant to section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(CERCLA) to carry out a recommendation of the Board.
    Paragraph (2) prohibits the head of a Federal agency from 
entering into a deed of transfer for a Federal real property 
asset described in paragraph (1) unless the agency head makes 
one of two cost certifications pertaining to environmental 
restoration, waste management, and environmental compliance 
activities to the Board and to Congress.
    Paragraph (3) allows a Federal agency to make payment to a 
recipient of any Federal real property asset transfer for which 
an agency head certified that the cost of environmental 
compliance activities exceed the fair market value of the 
asset. This payment may be the amount by which the 
environmental compliance costs exceed the fair market value of 
the asset, or the amount by which the costs HUD would have 
incurred for environmental compliance activities exceeds the 
fair market value of the asset.
    Paragraph (4) requires the head of a Federal agency to 
disclose to any recipient of a transferred Federal real 
property asset of all information possessed by the agency 
regarding the environmental restoration, waste management, and 
environmental compliance activities that relate to the asset.
    Under paragraph (5), when considering whether to grant any 
time extensions for implementing a Board recommendation, the 
OMB Director must give the highest weight to the need for 
significant environmental remediation to an asset or a portion 
of the asset.
    Paragraph (6) is a savings provision that asserts that 
nothing in this bill modifies, alters, or amends specified 
federal statutes.

Section 9. Funding

    This section requires the Department of Treasury to 
establish a funding account for the Board and a fund to carry 
out the Board's activities and recommendations. The fund shall 
consist of amounts appropriated for activities related to the 
Board's activities and implementing the Board's recommendations 
and of amounts received from the sale of any Federal real 
property asset pursuant to a Board recommendation. The 
President is directed to submit to Congress a report, not less 
frequently than annually, that includes an estimate of proceeds 
from implementing the recommendations of the Board and the 
obligations and expenditures needed to support those 
recommendations.

Section 10. Congressional approval of proposed projects

    This section will require that the GSA prospectus of a 
proposed facility that is required to be submitted to Congress 
for approval includes a cost-benefit analysis of the proposed 
facility which evaluates the standards and criteria developed 
by OMB and GSA under section 5(b) of this bill.

Section 11. Preclusion of judicial review

    Under this section, actions taken by the Board, Federal 
agencies, or OMB pursuant to activities required by this bill 
will not be subject to judicial review.

Section 12. Implementation review by GAO

    GAO is charged with monitoring and reviewing Federal 
agencies' implementation of the Board's recommendations and 
annually reporting to Congress on any findings and 
recommendations for improvement.

Section 13. Streamlining the McKinney-Vento Homeless Assistance Act

    This section modifies the McKinney-Vento Homeless 
Assistance Act to improve efficiencies in the application 
process and to accept applications for the use of surplus 
property for permanent housing with or without supportive 
services to assist the homeless.

Section 14. Authorization of appropriations

    This section authorizes Congress to appropriate $2 million 
for the salaries and expenses of the Board and $40 million for 
activities needed to implement the Board's recommendations. 
Appropriations to carry out the Board's recommendations are to 
be deposited into the Federal Real Property Reform Board-Asset 
Proceeds and Space Management Fund created in this bill.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                                      May 17, 2016.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2375, the Federal 
Asset Sale and Transfer Act of 2015.
    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.

S. 2375--Federal Asset Sale and Transfer Act of 2015

    Summary: S. 2375 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 Federal Real Property 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 required to recommend at least five 
civilian facilities that should be offered for sale and that 
have a combined estimated fair market value of at least $500 
million. The legislation also would authorize the appropriation 
of $2 million to fund the board and $40 million to implement 
the boards recommendations.
    Assuming appropriation of the specified amounts, CBO 
estimates that implementing S. 2375 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 S. 2375 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    S. 2375 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 S. 2375 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
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Federal Real Property 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
----------------------------------------------------------------------------------------------------------------
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.

Federal Real Property Reform Board

    S. 2375 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. S. 2375 
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 at least $500 million. Second, 
the legislation would require the board to make annual 
recommendations for consolidating, exchanging, selling, or 
redeveloping 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. 
S. 2375 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

    S. 2375 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.

Other requirements

    S. 2375 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. S. 2375 would exempt 
properties recommended for sale by the board from those 
requirements, except for 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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
     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 S. 2375 could 
overcome such resistance is unclear.
    For these reasons, CBO has no basis to estimate whether the 
board's recommendations to sell at least five properties would 
result in additional receipts.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 2375 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    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.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *

TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

           *       *       *       *       *       *       *

SEC. 3307. CONGRESSIONAL APPROVAL OF PROPOSED PROJECTS

    (a) * * *
          (b) * * *
          (1) * * *

           *       *       *       *       *       *       *

          (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 description of how the proposed project is 
        consistent with criteria established in section 5(b) of 
        the Federal Asset Sale and Transfer Act of 2015.

           *       *       *       *       *       *       *

TITLE 42--THE PUBLIC HEALTH AND WELFARE

           *       *       *       *       *       *       *

CHAPTER 119--HOMELESS ASSISTANCE

           *       *       *       *       *       *       *

    Subchapter V--Identification and Use of Surplus Federal Property

SEC. 11411. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND 
                    REAL PROPERTY TO ASSIST THE HOMELESS

    (a) * * *
    (b) Availability of Property.--
         (1) * * *
         (2) * * *
                 (A) * * *
                          (i) * * *
                          (ii) [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 section 550(a)-(d) of 
                        title 40] in the case of surplus 
                        property--
                                  (I) 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
                                  (II) to provide permanent 
                                housing with or without 
                                supportive services to assist 
                                the homeless in accordance with 
                                this section.

           *       *       *       *       *       *       *

    (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) of this section, the 
                Secretary shall publish [in the Federal 
                Register] on the website of the Department of 
                Housing and Urban Development or the General 
                Services Administration--

           *       *       *       *       *       *       *

    (d) Holding Period.--
          (1) Properties published under subsection 
        (c)(1)(A)(ii) of this section as available for 
        application for use to assist the homeless shall not be 
        available for any other purpose for a period of [60 
        days] 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) of this section with 
        respect to that written notice of intent.
          (3) Property that is reviewed by the Secretary under 
        subsection (a) of this section 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 Interagency Council on the Homeless. If the 
        representative of the homeless does not request a 
        review of the determination of unsuitability during the 
        20-day period described in this paragraph, the property 
        shall not be included in any subsequent publication 
        under subsection (c)(1)(A)(ii) unless the landholding 
        agency makes changes to the property, including 
        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) of this section may be filed at 
                any time after the [60-day period] 30-day 
                period described in paragraph (1) has expired.
                  (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) of this section.
    (e) Application for Property.--
          (1) * * *
          (2) No later than [90 days] 75 days after the 
        submission of written notice 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. An 
        initial application shall set forth
                  (A) the services that will be offered,
                  (B) the need for the services, and
                  (C) the experience that the applicant has 
                that demonstrates the ability to provide the 
                services.
          (3) No later than [25 days after receipt of a 
        completed application] 10 days after the date on which 
        the Secretary of Health and Human Services receives an 
        initial application under paragraph (2), 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] an initial 
        application.
          (4) Not later than 45 days after the date on which 
        the Secretary of Health and Human Services approves an 
        initial application under paragraph (3), the applicant 
        shall submit to the Secretary of Health and Human 
        Services a final application, which shall set forth a 
        reasonable plan to finance the approved program.
          (5) Not later than 15 days after the date on which 
        the Secretary of Health and Human Services receives a 
        final application under paragraph (4), 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 a final application.
    (f) Making Property Available to Representatives of 
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) of this section shall be made promptly [available 
        by] available, at the discretion of the applicant, by 
        permit or lease, or by deed as a public health use 
        under paragraphs (1) and (4) of section 484(k) of title 
        40, to the representative of the homeless that 
        submitted the application.

           *       *       *       *       *       *       *

                                  [all]
```