GAO-09-283R Real Property Disposal

United States Government Accountability Office

Washington, DC 20548 

February 17, 2009 

The Honorable Edolphus Towns 

Chairman 

Committee on Oversight and Government Reform 

House of Representatives 

The Honorable Darrell Issa 

Ranking Member 

Committee on Oversight and Government Reform 

House of Representatives 

Subject: Federal Real Property: Authorities and Actions Regarding Enhanced Use 

Leases and Sale of Unneeded Real Property 

Many federal agencies hold real property that they do not need, including property 

that is underutilized or excess.1

 Such properties present significant potential risks to 

federal agencies because they are costly to maintain and could be put to more costbeneficial uses or sold to generate revenue for the government. We first designated 

federal real property management as a high-risk area in January 2003 due to longstanding problems with underutilized and excess property, among other things.2

 

After our high-risk designation, President George W. Bush added real property 

management to the President’s Management Agenda and directed that the Federal 

Real Property Profile (FRPP) be established as a comprehensive database of real 

property under the control and custody of executive branch agencies, with agencies 

required to report on their real property assets each year.3

 The President also 

established a goal of disposing of $15 billion in unneeded real property assets by 2015 

to encourage agencies to right-size their portfolios by eliminating unneeded property. 

 

1

Section 102 of Title 40 of the United States Code defines “excess property” as property under the 

control of a federal agency that the federal agency determines is not required to meet the agency’s 

needs or responsibilities. The General Services Administration’s Federal Management Regulation 

defines “not utilized property” as an entire property or portion of a property that is not occupied for 

current program purposes of the accountable agency or property that is occupied in caretaker status 

only. The regulation defines “underutilized property” as an entire property or portion of a property 

that is used only at irregular periods or intermittently by the accountable agency or property that is 

being used for the agency’s current program purposes that can be satisfied with only a portion of the 

property (41 C.F.R. §§102-75.45 & 75.50). 

2

GAO, High-Risk Series: An Update, GAO-03-119 (Washington, D.C.: January 2003) and High-Risk 

Series: An Update, GAO-09-271 (Washington, D.C.: January 2009). 

3

Executive Order No. 13327, Feb. 4, 2004. 
Some federal agencies have been granted authorities to enter into enhanced use 

leases (EUL)—typically long-term agreements with public and private entities for the 

use of federal property, resulting in cash and/or in-kind consideration for the 

agency—or to retain the proceeds from the sale of real property. Given the large 

number of unneeded properties being held by the federal government, you asked that 

we review how agencies are using their disposal authorities. Therefore, we 

addressed (1) what authorities the 10 largest real property holding agencies have to 

enter into EULs and retain proceeds from the sale of real property; (2) the extent to 

which agencies with authority to retain proceeds sold real property and how they 

have used the proceeds; and (3) the relationship, if any, between agencies having the 

authority to enter into EULs or retain sales proceeds and the amount of real property 

that they retained or sold. 

To address these questions, we analyzed agencies’ legal authorities related to EULs 

and the sale and retention of proceeds of real property; analyzed agency real property 

and FRPP data; and gathered, analyzed, and synthesized documentary and 

testimonial evidence of the 10 largest real property holding federal agencies (by value 

of real property). These 10 agencies include the Department of Agriculture (USDA), 

Department of Defense (DOD), Department of Energy (DOE), Department of the 

Interior (DOI), Department of Justice (DOJ), Department of State (State), 

Department of Veterans Affairs (VA), General Services Administration (GSA), 

National Aeronautics and Space Administration (NASA), and the United States Postal 

Service (USPS). For the purposes of this review, the term “real property” does not 

include real property that DOD has or is planning to dispose of through the Base 

Realignment and Closure Act (BRAC) process,4

 lands managed by DOI or the Forest 

Service (except for Forest Service administrative sites), and transfers of individual 

properties specifically authorized by Congress. We also conducted site visits of real 

property that agencies have recently sold, exchanged, or were attempting to sell, and 

a property being leased under an EUL agreement and collected data from agencies on 

their real property sales during fiscal years 2006 and 2007. (See encl. I for additional 

information on our scope and methodology.) 

We conducted our work in Arlington, Va.; Camp Verde, Ariz.; Colorado Springs, Colo.; 

Denver; Estes Park, Colo.; Glendale, Ariz.; Guilderland, N.Y.; Hillsborough, N.J.; 

Loveland, Colo.; Middle River, Md.; New York City; Peoria, Ariz.; Rotterdam, N.Y.; 

Scotia, N.Y.; Scottsdale, Ariz.; Sedona, Ariz.; Tucson, Ariz.; and Washington, D.C., 

from April 2008 through February 2009. 

Results in Brief 

The 10 largest real property holding agencies have different authorities regarding 

EULs and retention of proceeds from the sale of real property. As of the end of fiscal 

year 2008, 

 4

Under the BRAC process, the Secretary of Defense is authorized to close certain military bases and 

dispose of property. In the scope of our review, we included real property disposed of by DOD 

through its authority to convey or lease existing property and facilities outside of the BRAC process. 

2 GAO-09-283R Real Property Disposal
• six agencies had both the authority to enter into EULs and sell and retain the 

proceeds from the sale of real property (DOD, GSA, State, USDA’s Forest Service, 

USPS, and VA); 

• two agencies had EUL authority but no authority to retain proceeds from the sale 

of real property (DOE and NASA); and 

• three agencies had no authority either to enter into EULs or retain proceeds from 

the sale of real property (USDA,5

 excluding the Forest Service; DOI;6 and DOJ). 

Authorities are agency-specific and include different provisions. For example, while 

VA is authorized to enter into EULs for “underutilized” or “unutilized” real property, 

DOD is authorized to enter into EULs only for “nonexcess” real property. In addition, 

while DOD, GSA, and VA have the authority to retain proceeds from the sale of real 

property, DOD (in some cases), GSA, and VA are required to follow several steps 

before possibly selling the property, including offering it to other federal agencies, 

eligible organizations that will use the property to assist the homeless, and other 

public benefit purposes. However, the Forest Service, State, and USPS sell real 

property and retain the proceeds without following these additional steps. Moreover, 

four agencies have the authority to retain proceeds from the sale of real property and 

use them without further congressional action (DOD in certain cases, the Forest 

Service, State,7

 and USPS) while further congressional action is required before two 

agencies (VA for nonEUL property8

 and GSA) may use the proceeds. 

The six agencies with authority to retain proceeds reported selling property to 

varying extents and using proceeds primarily to help manage their real property 

portfolios. Governmentwide data reported to the FRPP were not sufficiently reliable 

to quantify the extent to which these agencies sold real property. As a result, we 

were unable to use the FRPP to analyze the number of sales of real property by 

agencies with the authority to retain proceeds. However, the six agencies we 

contacted that have authority to retain proceeds from the sale of real property 

provided data on their net proceeds from the sale of real property during fiscal years 

 5

Because USDA’s Agricultural Research Service (ARS) received pilot authority to enter into EULs for

certain properties effective June 2008, but had not entered into any EULs during our review, we did

not include ARS in the scope of our review. 

6

DOI has authorities that permit it to sell certain real property and retain the proceeds, but we did not 

include lands managed by DOI in our review. 

7

According to State, committee reports accompanying State’s appropriations acts routinely require the 

department to notify Congress through the reprogramming process of the specific planned use of the 

proceeds of the sale of excess property. Furthermore, State indicated that it routinely includes

discussion of the use of proceeds from the sale of real property in its budget justifications and 

financial plans. 

8

VA has two authorities under which it can sell real property and retain the proceeds. Under the first 

authority, the Capital Asset Fund (CAF) at 38 U.S.C. § 8118, VA can sell real property subject to certain 

restrictions. The proceeds are deposited in the CAF which are subject to further congressional action. 

Under the second authority, VA can sell real property related to an EUL that is no longer needed by the 

department. When this property is sold, under 38 U.S.C. § 8165, the proceeds are deposited in the CAF

which would require further congressional action. Alternatively, in its annual appropriations act, the 

Secretary of VA is authorized to deposit proceeds from EULs, including sale proceeds, into VA’s major

or minor construction accounts, and use these proceeds for construction, alteration, and improvement 

projects. While congressional action is needed to pass VA’s annual appropriation acts, no further 

congressional action is needed for VA to spend these proceeds. 

3 GAO-09-283R Real Property Disposal
2006 and 2007, which ranged from $21 million to $541 million per agency. While some 

properties sold for tens of thousands of dollars, others sold for over $200 million. 

Agencies generally reported using the sales proceeds to manage their real property 

portfolios, such as rental of space, building operations, new construction and 

acquisition, maintenance, and repairs and operations. 

Agency officials generally said that the authorities to enter into EULs and sell real 

property and retain the proceeds influenced the amount of property that is kept and 

sold and that they preferred using the authorities that were the least restrictive. 

Because we were unable to quantify the number of properties that agencies sold 

during fiscal years 2006 and 2007, we asked agency officials about their views on the 

relationship between having the authorities to enter into EULs or retain sales 

proceeds and the amount of real property that they sell. Of the six agencies with the 

authority to retain proceeds from the sale of real property, officials at five agencies 

(the Forest Service, GSA, State, USPS, and VA) said that this authority is a strong 

incentive to sell real property, while officials at DOD said that the authority to retain 

proceeds is not a strong incentive to sell real property. Agencies with both 

authorities—to enter into EULs and retain proceeds from the sale of real property—

prefer using the authority with the fewest restrictions. For example, VA indicated 

that EUL authority allows the agency to manage unneeded property because (1) VA 

may enter into EUL agreements without following steps required to sell real property, 

such as screening the property for use by the homeless, and (2) VA has the authority 

to retain and spend proceeds generated from EULs without the need for further 

congressional action. On the other hand, officials at USPS said that USPS has little 

incentive to enter into EULs and instead focuses on selling or exchanging property to 

maximize benefits to its real estate portfolio. The five agencies that do not have the 

authority to retain proceeds from the sale of real property (DOE; DOI; DOJ; NASA; 

and USDA except for the Forest Service), provided mixed responses about the extent 

to which such an authority would be an incentive to sell unneeded real property. 

While officials at all five agencies said that they would like to have such expanded 

authorities to help manage their real property portfolios, officials at two of those 

agencies said that due to challenges such as the security needs or remote locations of 

most of their properties, it was unlikely that they would sell many properties. 

We requested comments on a draft of this report from the 10 real property holding 

agencies in our review and OMB. DOE, GSA, and DOI agreed with the information 

presented in the report. DOE, GSA, NASA, OMB, State, USDA, and VA provided

technical clarifications, which we incorporated throughout the report as appropriate. 

The other agencies did not provide comments. 

Agencies Have Different Authorities Regarding EULs and Retention of 

Proceeds from Sale of Real Property 

Separate legislation has provided agencies with their own statutory authorities 

regarding EULs and retaining proceeds from the sale of real property. The 10 largest 

real property holding agencies have different authorities for EULs and retention of 

proceeds from the sale of real property. As of the end of fiscal year 2008, eight 

agencies had the authority to enter into EULs (DOD, DOE, GSA, NASA, State, USDA’s 

Forest Service, USPS, and VA) and six agencies (DOD, the Forest Service, GSA, State, 

4 GAO-09-283R Real Property Disposal
USPS, and VA) had the authority to sell and retain proceeds from the sale of real 

property. Six agencies had both authorities to enter into EULs and to retain proceeds 

from the sale of real property (DOD, GSA, State, USDA’s Forest Service, USPS, and 

VA); two agencies had EUL authority but no authority to retain proceeds from the 

sale of real property (DOE and NASA); and three agencies had no authority to enter 

into EULs or retain proceeds from the sale of real property (USDA, excluding the 

Forest Service; DOI; and DOJ).9

 The authorities of these agencies are shown in table 

1. For more information on agencies’ legal authorities related to real property EULs, 

sales, and retention of proceeds, see enclosure II. 

Table 1: Agencies’ Authorities Regarding EULs and Real Property Sales 

Agency 

Authority to 

enter into EULs

and retain leasing

proceeds 

Authority to use 

proceeds from

EULs without 

further 

congressional 

action

Authority to sell 

real property and

retain sales 

proceeds 

Authority to use 

proceeds from

sales without 

further 

congressional 

action

DOD X X X Xa

DOE Xb

GSA X X

DOIc

DOJ 

NASA X X

StatedX X X Xe

USDA (except

the Agricultural 

Research Servicef

and the Forest 

Service) 

USDA (Forest 

Service)

g

XhX X X

USPS X X X X

VA X X X i

Source: GAO analysis and information provided by the above agencies. 

Note: Authorities through fiscal year 2008. 

a

In certain cases, the use of proceeds from the sale of DOD real property is subject to further congressional action. See 

footnote 13. 

b

According to DOE, the department has determined that it has EUL authority on the basis of the definition set forth in OMB 

Circular A-11 (June 2008). DOE officials said that the department has not entered into any EULs using this authority. 

c

While DOI has certain authorities to sell real property, we did not include in the scope of our review lands managed by DOI. 

d

State has used its authority under 22 U.S.C. § 300 to exchange, lease, or license real property outside of the country. 

According to State, in exceptional cases, the department has relied on this authority to enter into long-term leases to conserve 

historically significant properties, such as the Talleyrand Building in Paris, France. State’s authorization to sell and retain 

proceeds from the sale of real property applies to its properties located outside of the United States and to properties located 

within the United States acquired for an exchange with a specified foreign government. 

e

According to State, committee reports accompanying State's appropriations acts routinely require the department to notify 

Congress through the reprogramming process of the specific planned use of the proceeds of the sale of excess property. 

Furthermore, State indicated that it routinely includes discussion of the use of proceeds from the sale of real property in its

budget justifications and financial plans. 

f

Because USDA’s Agricultural Research Service received pilot authority to enter into EULs for certain properties effective June 

2008, but had not entered into any EULs during our review, we did not include it in the scope of our review. 

 9

Since these agencies lack disposal authority, GSA would dispose of these agencies’ excess property

and the proceeds from the disposal would be deposited into the U.S. Treasury. 

5 GAO-09-283R Real Property Disposal
g

We are listing the Forest Service separately from USDA because it has authority to sell administrative property and retain the 

proceeds from the sales, unlike the rest of USDA. 

h

Although the Forest Service has EUL authority, it has not used that authority. 

i

Under certain circumstances, VA can use the proceeds from the sale of former EUL property without further congressional 

action. See footnote 8.

Authorities are agency-specific and include different provisions. For example, while 

VA is authorized to enter into EULs for “underutilized” or “unutilized” real property, 

DOD is authorized to enter into EULs only for “nonexcess” real property.10 In 

addition, some agencies must follow the requirements in Title 40 of the United States 

Code and the McKinney-Vento Homeless Assistance Act before selling real 

property—and some of these steps may result in the property being disposed of with 

no proceeds—while other agencies’ authorities exempt them from following these 

requirements.11 Congress enacted the McKinney-Vento Homeless Assistance Act as a 

comprehensive federal response to homelessness and enacted the public benefit 

conveyance (PBC) program as one means of disposing of surplus federal property, 

whereby state or local governments and certain tax-exempt nonprofit organizations 

can obtain surplus real property for public uses, such as public heath or educational 

facilities and public parks and recreational areas. GSA and VA, for example, have the 

authority to retain proceeds from the sale of real property but must, before offering 

property for sale, follow the requirements under Title 40 of the United States 

Code and the McKinney-Vento Homeless Assistance Act. Although DOD also 

has authority to retain the proceeds from the sale of real property, in certain cases, 

the department is exempt from following the requirements under Title 40 relating to 

real property disposition and the McKinney Act.12 Furthermore, four agencies with 

the authority to retain proceeds from the sale of real property (DOD, in certain 

cases;13 the Forest Service; State; and USPS) have authority to use these proceeds 

 10Land that DOD classifies as “underutilized” or “not utilized” may not necessarily be considered 

“excess property.” Pursuant to 40 U.S.C. §102, “excess property” is defined 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. Therefore, a parcel of DOD real property could potentially be underutilized, 

yet still not be excess, because it is required to meet certain DOD needs or responsibilities. 

11Title 40 of the United States Code governs the disposal of most federal real property. When a federal

agency no longer needs a property to carry out its mission responsibilities, the property is reported as 

excess and is offered to other federal agencies for use. If another federal agency does not have a need

for the property, it is considered surplus to the federal government. Pursuant to the McKinney-Vento 

Homeless Assistance Act, the Department of Housing and Urban Development then reviews the 

property to determine if it is suitable for homeless use. If the property is considered suitable for 

homeless use, it is first made available for homeless use consideration at 100 percent discount of fair

market value by state or local governments and certain tax-exempt nonprofit organizations for 60 days 

prior to any other public benefit uses. If the property is not considered suitable or if there is no 

interest in the property, it becomes available for other public benefit uses through the public benefit 

conveyance (PBC) program. In the PBC program, state or local governments and certain tax-exempt

nonprofit organizations can obtain the property for an approved public benefit use, such as education 

or parks and recreation. Properties can be conveyed to grantees at a discount of up to 100 percent of 

fair market value.

1210 U.S.C. §§ 2854a and 2878. 

13DOD has several different authorities to retain proceeds from the sale of real property. Under 40

U.S.C. § 572, the Administrator of GSA is authorized to dispose of property under the control of a 

military department that is not subject to closure and is excess to the department’s needs. Proceeds 

from the sale are deposited into a special account in the Treasury for DOD and, since fiscal year 2005, 

are available for expenditure without being subject to further congressional action. Also under 10

U.S.C. § 2854a, DOD is authorized to convey damaged or deteriorated military family housing and to 

6 GAO-09-283R Real Property Disposal
without further congressional action, while two agencies with authority to retain 

proceeds from the sale of real property, (VA for nonEUL property and GSA) require 

further congressional action before using them. Figure 1 shows the steps that GSA 

must follow to sell excess real property and retain the proceeds. (Encl. III illustrates 

the steps each agency must follow to sell real property.) 

Figure 1: GSA’s Process for Selling Excess GSA-Controlled Real Property

Property is screened for use by other 

federal agencies

If transferred to another federal agencyIf not transferred to another federal agency

Property is screened for use by homeless providers at no cost 

If conveyed for 

homeless use If not conveyed for 

homeless use

Public Buildings Service reports the 

property excess

No proceeds

Proceeds–if any–go to GSA’s

Federal Buildings Fund

Proceeds–if any–go to GSA’s

Federal Buildings Fund

Property is screened for certain other public uses for up to 100 percent discount of fair market value, and for negotiated sale to public entities

Property not conveyed as

PBC or negotiated sale

Property conveyed as PBC or negotiated sale

Property is offered for competitive 

public sale

Property is sold

Source: GSA.

Proceeds go to GSA’s

Federal Buildings Fund for 

GSA’s real property capital 

needs (congressional action 

is necessary for the 

proceeds to be used)

By contrast, the Forest Service, State, and USPS do not follow the requirements14

under Title 40 of the United States Code and the McKinney-Vento Homeless 

Assistance Act when they wish to sell real property, both reducing the time and effort 

involved and eliminating instances in which the agency disposes of the property at a 

 retain the proceeds for use without further congressional action. Under 10 U.S.C. § 2878, the Secretary 

is authorized to convey property or facilities for the military housing privatization initiative and the use

of the proceeds is subject to further congressional action. 

14Under 40 U.S.C. § 113(e)(7), State is exempt from following Title 40 requirements regarding the sale

of excess real property. Furthermore, because State’s properties are located outside of the United 

States, the McKinney-Vento Homeless Assistance Act does not apply. USPS’s own authorities also 

exempt USPS from these requirements. The Forest Service interprets its authority to convey

administrative sites under 16 U.S.C. § 580d note to exempt it from the requirements under Title 40 of

the United States Code and the McKinney-Vento Homeless Assistance Act. 

7 GAO-09-283R Real Property Disposal
discount of up to 100 percent of fair market value. For example, figure 2 shows the 

steps that State must follow to sell overseas real property. 

Figure 2: State Department’s Process for Selling Excess Real Property Located Outside of the 

United States

Source: State Department.

Department of State declares property excess

Property is put on market; timing depends on 

market, economic, political, or reciprocity issues

Property is sold 

Proceeds go to Department of State and 

are available to be spent for acquisition, 

construction, or other authorized purposes

How these proceeds can be spent also varies, as described fully in enclosure II. Table 

2 provides a summary of the steps that agencies must follow when selling real

property and retaining proceeds. 

Table 2: Summary of Major Steps that Agencies Follow to Sell Real Property 

Agency 

Property 

declared excess 

Screened for 

use by other

agencies 

Screened for 

use by

homeless 

Screened

for public

benefit use

DODaYes Yes Yes Yes

DODb,c No No No No

GSA Yes Yes Yes Yes

State Yes No No No

USDA/Forest Service

(for administrative sites) 

No No No No

USPS Yes No No No

VA Yes Yes Yes Yes

Source: GAO analysis; information provided by the above agencies.

Note: The agencies listed in this table are only those with the authority to retain proceeds from the sale of real property. See 

enclosure II for the specific authorities provided in this table. 

a

40 U.S.C. § 572. Under this authority, while the Administrator of GSA is authorized to dispose of DOD property, DOD is the 

recipient of the proceeds. b

10 U.S.C. § 2854a. 

c

10 U.S.C. § 2878. 

8 GAO-09-283R Real Property Disposal
Agencies with Authority to Retain Proceeds from Sale of Real Property 

Reported Selling Property to Varying Extents and Using Proceeds for 

Property Management 

Governmentwide data reported to the FRPP were not sufficiently reliable to analyze 

the extent to which the six agencies with authority to retain proceeds sold real 

property, due to inconsistent and unreliable reporting. However, these six agencies 

(DOD, the Forest Service, GSA, State, USPS, and VA) reported selling property to 

varying extents, with net proceeds ranging from $21 million to $541 million during 

fiscal years 2006 and 2007. In addition, five agencies (DOD, GSA, State, the Forest 

Service, and VA) reported using sales proceeds to manage their real property 

portfolios, such as rental of space, building operations, new construction and 

acquisition, maintenance, and repairs and alterations, while USPS reported 

depositing the proceeds into its general fund. 

FRPP Data on Real Property Disposal Were Unreliable

According to GSA officials, a data element on disposition (which includes disposition 

by sale as well as other methods) was added to the FRPP as of fiscal year 2006 to 

identify unneeded assets that have been removed from the FRPP inventory and to 

track the volume of disposals to support the strategic goal of right-sizing the federal 

real property inventory. However, we found inconsistent and unreliable reporting 

within the disposal data element on the method of disposal and were therefore 

unable to use the FRPP to analyze the number of sales of real property by agencies 

with the authority to retain proceeds. For example, the Air Force reported that in 

fiscal year 2006, it disposed of 4,397 assets by sale, as well as disposing of a number 

of assets by demolition, federal transfer, or other means. In fiscal year 2007, 

however, it reported disposing of 12,423 assets, all in the “other” category.15 Because 

all of its disposed assets were reported in the “other” category for fiscal year 2007, 

unlike in the prior fiscal year, we asked Air Force officials about the reasonableness 

of the data. Air Force officials agreed that the disposal method data summarized and 

reported in 2007 did not provide disposal information comparable to the level of 

detail provided in 2006. They said that the primary cause for insufficient data detail 

has been resolved and that they plan to provide better data in future reporting that 

more accurately reflects disposal methods. 

GSA officials said that every time a new data element is added to the FRPP, the data 

for that element are likely to be less reliable because agencies need to learn the 

process and determine how to provide these data. GSA reviews the data submitted 

by federal agencies and notifies the relevant agencies of any inconsistencies and 

anomalies. If an agency does not address the inconsistencies or anomalies, GSA will 

report these to OMB; OMB takes these into account when rating the agencies on their 

real property management initiative efforts. Nevertheless, these data weaknesses 

reduce the effectiveness of the FRPP as a tool to enable governmentwide 

comparisons of real property efforts, such as the effort to reduce the government’s 

portfolio of unneeded property. 

 15FRPP data are requested by constructed asset, and one “property” may include many constructed 

assets. 

9 GAO-09-283R Real Property Disposal
Agencies with Authority to Retain Proceeds Reported Selling Real Property to 

Varying Extent

While we were unable to analyze the governmentwide FRPP database to determine 

the number of properties sold by agencies with authority to retain proceeds,16

 we 

asked the six agencies that have authority to retain proceeds from the sale of real 

property to provide information on the net proceeds received during fiscal years 2006 

and 2007. As shown in Table 3, the sales proceeds received by individual agencies in 

our review ranged from $21 million to $541 million during those 2 years. The highest 

level of net proceeds for these 2 years was reported by State, largely due to the sale 

of a facility known as the Navy Annex in London for $494 million. 

Table 3: Real Property Sales Proceeds during Fiscal Year 2006 and Fiscal Year 2007, by 

Agency 

ency FY 2006 proceeds FY 2007 proceeds

FY 2006 and FY 2007 

Ag total proceeds 

DOD $14,070,949 $41,787,312 $55,858,261

GSA 52,049,163 82,218,326 134,267,489

State 36,035,010 505,145,944 541,180,954

USDA-Forest 

Service

12,600,000 8,700,000 21,300,000

USPS 91,367,745 201,753,000 293,120,745 

VAa22,319,702 0 22,319,702 

Sources: DOD, GSA, State, USDA, USPS, and VA. 

a

VA reported that it did not sell any properties through its Capital Asset Fund authority, which authorizes it to sell real property

and retain the proceeds, but that it sold one property, shown in this table. The property, the Lakeside VA Medical Center in 

Chicago, was sold under an EUL agreement after determining that it was no longer needed by the agency. VA’s proceeds 

from the sale of the Lakeside VA Medical Center were $50 million, which included a net present value rental return of $28 

million received in 2005 for a 75-year EUL term and an additional $22 million received in 2006, reflected in this table, with the 

actual closing of the sale of the property. 

Of the six agencies with the authority to sell real property and retain the proceeds, 

two (State and USPS) use in-house staff to handle the sales, while the other three 

agencies use GSA for some or all of their sales. Under the Federal Management 

Regulation, landholding agencies must report excess real property to GSA, which is 

generally responsible for disposing of real property unless an agency has specific or 

delegated authority to do so.17 Property sales handled by GSA are typically sold

through auctions. We found that agencies with the authority to retain proceeds from 

the sale of real property had sold a variety of types of properties in the past several 

years (see fig. 3). 

 16Although we asked the agencies to provide data on the number of properties sold during fiscal years

2006 and 2007, we are not reporting them because the methods that the agencies used to count the 

number of properties were not comparable. 

1741 C.F.R. § 102-75.115. 

10 GAO-09-283R Real Property Disposal
Figure 3: Examples of Recently Sold Properties by Agencies with Authority to Retain 

Proceeds 

Former Army housing in Rotterdam, New York Former Forest Service property, Camp Verde, Arizona

Former federal building in Colorado Springs, Colorado State Department’s former Navy Annex in London, England

Sources : GAO (Army Rotterdam housing, Forest Service Camp Verde, and Colorado Springs federal building); Department of State

(London Navy Annex).

The sales prices for these recently sold properties varied considerably. While some 

properties sold for tens of thousands of dollars, one sold for nearly $500 million. 

Information provided by agency officials on the above properties included the 

following: 

• State’s London, England, Navy Annex building sold in 2007 for $494 million, 

when the London real estate market was at its peak. State Department 

officials said the sale of this building, which was owned by State but 

previously used by the Navy, was unique because the sales proceeds from the 

Navy Annex will be used to build a new embassy in London, rather than used 

to fund worldwide priorities. State officials provided information on two other 

examples of sales that they said were more typical, involving the sales of 

former marine security guard quarters in Cape Town, South Africa, and Quito, 

Ecuador, in 2008, for $1.1 million and $1.8 million, respectively. The proceeds 

from those sales were deposited into the department’s asset management 

account to be used for worldwide priorities. 

• The Army sold a former Army housing complex in Rotterdam, N.Y., for $1.8 

million in 2008. The Army determined this property was excess because it had 

more housing in the area than it needed to serve its mission. The property, 

11 GAO-09-283R Real Property Disposal
which included several apartment and other buildings on about 8 acres of land, 

was sold through GSA’s online auction for slightly over its appraised value. 

• The Forest Service sold two of four parcels of administrative land it offered for 

sale through GSA’s online auction at Camp Verde, Ariz. The first parcel 

consisted of about 1.6 acres of unimproved land in a residential neighborhood 

that was sold to private citizens in 2006 for $155,000. The second parcel 

consisted of about 119 acres of mostly unimproved land that was sold to the 

town of Camp Verde in 2008 for $2.4 million. The other two parcels did not 

sell—a fact that Forest Service officials attributed to a downturn in the real 

estate market. 

• GSA sold a federal building in Colorado Springs, Colo., for $890,000 in 2009. 

The property consisted of about 1.7 acres of land and a 2-story brick office 

building built in 1962. Formerly leased to the Air Force, the building had been 

vacant since December 2007. The property was sold through GSA’s online 

auction. 

Agencies Reported Using Sales Proceeds Mainly for Real Property Portfolio 

Management Purposes

Agencies reported using sale proceeds mainly to help manage their real property 

portfolios. (Encl. II states how agencies are authorized to use proceeds.) For 

example, a Forest Service official said that the Forest Service used the proceeds from 

the Camp Verde sale described above to build a new ranger station at Camp Verde. 

GSA indicated that its sales proceeds are deposited into GSA’s Federal Buildings

Fund and used for real property management purposes, such as rental of space, 

building operations, new construction and acquisition, and repairs and alterations. 

State Department officials said that the proceeds are collected centrally and used for 

priorities established by the department’s Bureau of Overseas Buildings Operations, 

including purchasing housing and other properties, constructing new facilities, or 

rehabilitating existing facilities. USPS officials said that the agency deposits its 

proceeds from the sale of real property into its general fund, where they become part 

of USPS’s funds for use for agency priorities. 

Authorities Affect How Agencies Manage Their Real Property Portfolio 

Agency officials generally said that the authorities to enter into EULs and sell and 

retain sales proceeds influenced the amount of property that is sold and that they 

preferred using the authorities that were the least restrictive. The five agencies that 

do not have the authority to retain proceeds from the sale of real property (DOE; 

DOI; DOJ; NASA; and USDA, except for the Forest Service), indicated that they 

would favor having this authority to help manage their real property. 

Agencies with Authority for Both EUL and Retention of Sales Proceeds Preferred the 

Authority Seen as Less Restrictive or More Advantageous 

We asked agency officials for their views on the relationship between having the 

authorities to enter into EULs or to sell real property and retain the sales proceeds 

and the amount of real property that they sell. Of the six agencies with the authority 

to retain the proceeds from the sale of real property, officials at five agencies (the 

12 GAO-09-283R Real Property Disposal
Forest Service, GSA, State, USPS, and VA) said that this authority is a strong 

incentive to sell real property, while officials at one agency, DOD, which had the 

authority to enter into EULs without offering the properties to the homeless and 

other federal agencies—said that the authority to retain proceeds is not a strong 

incentive to sell real property. Officials from five agencies that had authorities to 

enter into EULs and to retain the proceeds from the sale of real property—GSA, 

DOD, USDA’s Forest Service, USPS, and VA—all stated preferences for the authority 

seen as less restrictive or more financially advantageous to the agency.18 State, which 

also has the authority to enter into EULS and retain the proceeds from the sale of real 

property, indicated that retaining sales proceeds is the more critical part of its 

program, but also foresees increasing opportunities for EULs in the future. 

DOD and VA officials said that because EULs provide greater incentives, the agencies 

place greater emphasis on entering into EULs, compared to real property sales. DOD 

officials emphasized the potential of EULs to serve the department’s mission, while 

stating that its authority to retain proceeds from the sale of real property was not a 

strong incentive to sell unneeded real property. For example, headquarters DOD 

officials said that there was little emphasis or potential at DOD for selling excess real 

property outside of the BRAC process, in part because that process was the 

department’s major initiative to consolidate its real property and had largely taken 

care of the opportunity to dispose of DOD real property. Disincentives to selling real 

property, according to DOD officials, include the length of time it can take, since such 

property must first be offered to other federal agencies, the homeless, and other 

public benefit uses, and the fact that much DOD property cannot be sold to a private 

entity for security reasons. 

In contrast, DOD officials emphasized the potential for EULs to maximize the utility 

and value of its real property and to serve its mission needs, and each service has a 

Web site focused on its existing and proposed EULs. In prior work, we found that 

EULs are a land use planning tool for DOD that Army and Air Force are using to gain 

in-kind services.19 DOD is authorized to enter into EULs only for nonexcess property, 

and officials made the distinction between DOD’s authority to enter into EULs for 

nonexcess property and its authority to sell and retain proceeds from the sale of 

excess real property. However, it was not always clear how DOD determined 

whether properties were suitable for EULs. For example, Army officials said that the 

Army considers EULs for properties it would not consider excess because the 

property creates a buffer zone or security perimeter for an installation. However, the 

Army entered into a long-term EUL agreement for a mixed-used development of hotel 

and retail space at Redstone Arsenal, Ala., on Army property that lies outside of the 

 18In a 2003 report, we found that outleasing historic properties under the National Historic Preservation

Act, 16 U.S.C. § 470h-3, promotes certain benefits such as the restoration of historic buildings, but that 

it is unclear whether selling such properties would accomplish the same purpose with greater 

economic benefit to the taxpayer. See GAO, Budget Issues: Alternative Approaches to Finance 

Federal Capital, GAO-03-1011 (Washington, D.C.: Aug. 21, 2003). At times, these outleases, like some 

EULs, have been long-term leases for commercial development. For example, in Washington, D.C., 

GSA leased the U.S. Tariff Building, which had been vacant for a number of years, to the Kimpton 

Hotel and Restaurant Group, Inc. for 60 years. This group restored the building, converting it into a 

luxury hotel. 

19GAO, Defense Infrastructure: Services’ Use of Land Use Planning Authorities, GAO-08-850

(Washington, D.C.: July 23, 2008). 

13 GAO-09-283R Real Property Disposal
installation’s fence and gate. Army officials said that they see the use as compatible 

with a buffer zone and wanted to maintain some control over the property because a 

training site is nearby. 

Similarly, Air Force officials said that unutilized property may be nonexcess but 

suitable for an EUL because it is needed for a buffer zone or to avoid encroachment. 

However, it has proposed a long-term EUL agreement for a hotel/resort development 

at Emerald Breeze, on 17 acres of Air Force property on an island off the coast of 

Florida that is not directly adjacent to an installation. Air Force officials said that 

every EUL agreement states that the lease can be terminated at any time for a 

national emergency. This allows the Air Force more flexibility than excessing and 

selling the property, at which point it would lose the right to reacquire it during a 

national emergency. In addition, an Air Force official said that under the terms of 

excessing real property, no property is declared excess until a determination has 

been made that it is excess. Therefore, until that determination is made, the Air 

Force does not consider that property excess, and it may consider an EUL for that 

property. 

According to VA officials, VA places greater emphasis on entering into EULs, 

compared to real property sales, in part because VA can enter into EULs with fewer 

restrictions than under its Capital Asset Fund (CAF) authority to sell and retain 

proceeds of real property.20 For example, VA can enter into an EUL without first 

screening the property for homeless use, as it must for property it wishes to sell

under its CAF authority. Moreover, VA has the authority to retain and spend 

proceeds from EULs without the need for further congressional action, while 

proceeds retained under CAF authority are subject to further congressional action. 21

 

In addition, VA is authorized to use EUL proceeds for purposes unrelated to real 

property, such as providing health care services, which are not permitted under VA’s 

CAF authority. VA officials said that in addition, EULs allow VA to realign its asset 

portfolio in a way that supports its mission by using EULs to obtain facilities, 

services, in-kind consideration, or revenue for VA requirements that would otherwise 

be unavailable or unaffordable. The officials added that local and state government, 

veterans groups, private partners, and nonprofit entities and other community 

members potentially benefit when these properties are redeveloped to provide new 

services and economic opportunities to veterans and the community. VA produces 

an annual report that discusses and tracks the benefits of its active EULs for the past 

fiscal year.

VA officials said that although they believe retaining proceeds from the sale of real 

property is a strong incentive, other factors, such as the needs of veterans’ service 

organizations and the community that are complimentary to VA’s mission, are of 

 20VA’s CAF authority at 38 U.S.C. §8118 established a revolving fund and granted the Secretary the 

authority to transfer, sell, or exchange real property and deposit funds into the CAF. CAF funds may 

be used for property transfer costs, minor medical construction projects, or historic VA properties. 

21Under 38 U.S.C. §8165, VA is authorized to spend EUL proceeds without further congressional action

for EUL expenses and veterans’ health care services. Additionally, in its annual appropriations act, the 

Secretary of VA is authorized to deposit EUL proceeds into VA’s major or minor construction 

accounts, and use them for construction, alteration, and improvement projects. While congressional 

action is needed to pass VA’s annual appropriation acts, no further congressional action is needed for

VA to spend these proceeds.

14 GAO-09-283R Real Property Disposal
equal importance. This review and past work found that VA has used authorities, 

such as EULs, to provide services for veterans, such as homeless housing, drug 

rehabilitation, and childcare, and to generate revenue. For example, in 2006, at Fort 

Howard, Md., VA entered into an EUL to use nearly 300,000 square feet of vacant 

space to develop a retirement community, with priority placement for veterans. 

Conversely, in another EUL, VA is leasing property in Hillsborough, N.J., called 

Veterans Industrial Park to a company that subleases the property to a variety of 

commercial interests needing warehouse or light manufacturing space, as well as the 

county government. VA officials said that VA did not consider selling this property 

because, in 1999, when the agency entered into the EUL agreement, it did not have 

the authority to retain the proceeds from the sale of real property. In addition, GSA 

had a similar property nearby that the agency had been unable to sell. Other than a 

small area on the property that is used for VA services to collect and distribute 

military clothing to homeless veterans, the property lessees are commercial renters 

who are not providing any direct services to VA. However, VA officials said that it 

considers such EULs to be in the agency’s interest, as VA is receiving about $300,000 

to $390,000 a year from rental income that it can use for the agency’s priorities.22 (See 

fig. 4 for photographs of this property.) 

Figure 4: Veterans Industrial Park, Which Is Generating Lease Payments to VA 

Source: GAO.

GSA stated that while it has the authority to enter into EULs and sell and retain the 

proceeds from real property sales, it believes that budget scorekeeping rules under 

OMB Circular A-11 limit the agency’s ability to maximize usage of its EUL authority. 

In contrast, GSA officials said that the agency’s ability to retain proceeds is a strong 

incentive to dispose of excess real property.23 From fiscal years 2002 to 2007, it 

reported 271 assets as excess, helping to avoid more than $600 million of repair and 

alterations liability and providing GSA with almost $140 million of proceeds, which 

GSA uses as reinvestment funds for its portfolio of core assets. GSA officials said 

that it is unlikely that sales proceeds have been seen as an offset to the following

year’s appropriation. According to GSA officials, the agency’s sale of a 1.9 million 

 22According to VA officials, VA also has a profit participation agreement for the EUL based on the 

lessee’s net income. In 2007, VA received proceeds from the profit participation for the first time in

the amount of about $32,000. 

23GSA received permanent authority to sell and retain the net proceeds from real property sales in

fiscal year 2005. Section 412 of P.L. No. 108-447, 118 Stat. 2809, 3259 (2004). 

15 GAO-09-283R Real Property Disposal
square-foot facility known as the Middle River Depot in Baltimore County, Md., is a 

good illustration of how retention of proceeds can motivate GSA to dispose of excess 

real property and obtain the best value for the government from its real property 

sales. 

The Middle River Depot, a large warehouse used to build B-26 bombers in World War 

II, with some associated buildings and land, sold for $37.5 million in 2006. In this 

case, GSA decided there was no government need for the property, and Congress 

passed legislation in 2004 for GSA to sell this property and keep the proceeds.24 The 

main challenges in marketing and selling the property were community concerns and 

the state’s insistence that the warehouse be covered by a historic easement.25 GSA 

officials said that GSA expended considerable time and effort into overcoming these 

challenges, such as negotiating with the Maryland Historical Trust until it came to an 

understanding of the basic alterations that would and would not be permitted to the 

building. GSA subsequently provided this information to prospective bidders. GSA 

officials said that the agency was motivated to sell the property at the highest 

possible price because GSA was authorized to retain the proceeds (see fig. 5). 

Figure 5: Middle River Depot, Md., Sold by GSA in 2006

Source: GAO.

Officials at USPS, which has authority to enter into EULs and sell real property and 

retain proceeds, said that the Postal Service prefers to sell or exchange unneeded 

property. Officials said that USPS’s authority provides the agency with a strong 

incentive to actively sell or exchange underutilized property that has a high value. 

Because of the relatively streamlined process to sell real property, compared to other 

agencies, and its ability to retain and use sales proceeds for any USPS purpose 

without further congressional action, it has little incentive to enter into EULs and 

rarely does so. Three former USPS properties that were sold or exchanged in the 

past few years were initiated by other parties wanting to purchase the building or 

land. For example, the state of New York approached USPS in the 1990s about 

purchasing the Farley Building in Manhattan, a historic, 1.4 million-square-foot 

 24Section 407 of P.L. No. 108-447, 118 Stat. 2809, 3258 (2004). Although we excluded from our legal 

research transfers of individual properties authorized by Congress, we visited this property upon 

GSA’s recommendation. 

25Under a historic easement, the future owner would have to obtain approval from the Maryland

Historical Trust for any changes to the interior or exterior of the building. 

16 GAO-09-283R Real Property Disposal
building across the street from Pennsylvania Station (see fig. 6) to redevelop the 

building into a new train station to be named the Moynihan Station. USPS sold the 

Farley Building in 2007 and is in the process of consolidating its operations into two 

other existing buildings and 250,000 square feet of leaseback space in the Farley 

building. According to USPS officials, the sale of the Farley building generated 

financial proceeds to USPS,26 reduced deferred maintenance costs, consolidated 

USPS operations into less space overall, and resulted in reduced operating costs. In 

the other two cases, in Denver and Scottsdale, Ariz., USPS exchanged old post offices 

with various parties (the city of Denver and a health care company) that sought the 

postal property and financed new post offices. In both cases, according to USPS’s 

analysis, USPS benefited financially from the transaction, as well as gaining modern 

and more efficient facilities in return for older ones. 

Figure 6: Farley Building in New York City, Sold by USPS in 2007 

Source: GAO.

State Department officials also told us that the authority to retain proceeds is an 

incentive to dispose of excess real property because it allows the agency to direct 

resources from the sale of real property to other pressing facilities needs. Although 

further congressional action is not needed before State may use proceeds from the 

sales of real property, the department notifies Congress about its intended use of the 

proceeds in its budget justifications and financial plans. 

Officials at the Forest Service, which has authorities to enter into EULs and retain 

proceeds from the sale of real property, said that the agency’s authority to retain 

proceeds is a strong incentive to sell real property. Officials at this agency described 

active efforts to analyze their portfolios to find opportunities to sell unneeded real 

property. Forest Service officials said that since it received authority to retain 

proceeds in 2001, it has disposed of more properties than before it had the authority.27

 

The Forest Service officials said that the agency has benefited in two primary ways 

 26A USPS official said that the Postal Service originally agreed to sell the Farley building for $230 

million, including $55 million in a deferred purchase price that will not be paid until the commercial

component of the development is built. The official said that as of January 2009, USPS has received 

$195 million, which is $20 million more than was expected because of inflation and other factors. 

27In 2001, the Forest Service received authority for a pilot program to convey excess Forest Service

administrative structures and to retain the proceeds from those sales. This 2001 authority was

replaced with its current authority in 2005. 

17 GAO-09-283R Real Property Disposal
from this authority. First, the Forest Service has used proceeds to help address a 

large backlog of deferred maintenance needs. Second, because it may use proceeds 

to construct new ranger stations, they said this authority has helped the Forest 

Service realign its infrastructure to better meet its current mission. Forest Service 

officials said that a major reason that the authority to keep the proceeds has 

functioned as an incentive is that the Forest Service’s policy is to use proceeds for 

local or regional priorities where the property is sold. A Forest Service site in 

Sedona, Ariz., illustrates these benefits. The Forest Service sold a property that had 

been used as a ranger station, along with some related buildings and land, for $8.4 

million to build a new ranger station on another site (see fig. 7). The previous Forest 

Service ranger station had significant deferred maintenance needs and was on a side 

street with little traffic in the town of Sedona. According to a Forest Service official, 

since the new ranger station opened along the main highway to Sedona in April 2008, 

average monthly visits by the public to the ranger station have increased significantly. 

Figure 7: New Forest Service Ranger Station in Sedona, Ariz., Funded by Sale of Another 

Property 

Source: GAO.

The Forest Service has also sold properties with lower real estate values, including 

one in Estes Park, Colo., that was sold in August 2008 for $440,000. According to a 

Forest Service official, the Forest Service no longer ran an office out of Estes Park 

and did not need the property. In addition, the property had significant maintenance 

needs. Forest Service officials said that the biggest challenge regarding the sale of 

this property was the downturn in the housing market, and that the agency faces a 

similar challenge in selling many other properties under such economic conditions. 

Even so, the Forest Service considers the disposition a success because it no longer 

has to maintain this unneeded property and plans to use the proceeds for highpriority deferred maintenance needs. 

Agencies without Authority to Retain Proceeds from Real Property Sales Provided 

Mixed Responses on Whether Such Authority Would Be a Strong Incentive

Officials at the five agencies we contacted that do not have the authority to retain 

proceeds from the sale of real property (DOE; DOI; DOJ; NASA; and USDA, except 

for the Forest Service) provided mixed responses when asked about the extent to 

which such an authority would be an incentive to sell more real property. Officials at 

the five agencies said their agencies would like to have expanded authorities with 

18 GAO-09-283R Real Property Disposal
which to manage their real property portfolio, including the authority to enter into 

EULs and retain the proceeds from the sale of real property. However, officials at 

two of those agencies said that due to challenges such as the security needs or 

remote locations of most of their properties, it was unlikely there would be a 

significant number of real properties that were appropriate to sell. 

One challenge that agencies face in disposing of real properties is maintaining them 

until they can be sold. We visited a former USDA Agricultural Research Service 

laboratory in Phoenix that was for sale. The laboratory was vacated in January 2006 

when the staff moved to another location. During our visit, we observed that 

property had been vandalized and copper from the buildings and part of a greenhouse 

had been stolen. While GSA is marketing and attempting to sell the property, USDA 

remains responsible for maintaining it until May 1, 2009, before responsibility is 

transferred to GSA under certain conditions. 

Figure 8: Former USDA Laboratory for Sale in Phoenix

Vandalized USDA laboratory Destroyed greenhouse

Source: GAO.

Agencies may also face challenges in exercising their EUL authority. NASA, one 

agency that does not have the authority to retain proceeds from the sale of real 

property, has had the authority to enter into EULs at two centers; as of December 31, 

2008, a new agencywide authority gives NASA the ability to enter into EULs. In 

recent work, we found that while NASA has realized some EUL-related financial 

benefits, among other things—most of which would not have been realized by NASA 

without this authority—the agency did not have adequate controls in place to ensure 

accountability and transparency and to protect the government.28 NASA accepted our 

recommendations and developed agencywide policy for the administration of EULs 

and for the financial management of the revenue derived from EULs.29 NASA officials 

said that they use EULs, rather than selling the property, when the agency believes 

 28GAO, NASA: Enhanced Use Leasing Program Needs Additional Controls, GAO-07-306R 

(Washington, D.C.: Mar. 1, 2007). 

29NASA indicated that the initial agencywide administrative policy, which was published in July 2007, 

has since been updated to reflect the legislation and changes to NASA’s EUL authority. According to 

NASA, the most recent update was sent to all NASA centers in December 2008 and the agency’s Office

of the Chief Financial Officer sent out financial policy for EUL revenue in May 2008. NASA indicated 

that these actions were taken to address the concerns expressed in the GAO review and have ensured 

accountability and transparency and protection for the government. 

19 GAO-09-283R Real Property Disposal
the property may be needed in the future or wants to maintain some control over the 

property. 

Agency Comments and Our Evaluation 

We requested comments on a draft of this report from the Administrator of the 

General Services Administration; the Administrator of the National Aeronautics and 

Space Administration; the Attorney General; the Director of the Office of 

Management and Budget; the Postmaster and Chief Executive Officer of the United 

States Postal Service; the Secretary of Agriculture; the Secretary of Defense; the 

Secretary of Energy; the Secretary of the Interior; the Secretary of State; and the 

Secretary of Veterans Affairs. 

DOE indicated that it agreed with the report’s findings and noted that it is important 

to emphasize that the EUL authority provided to the department under the "Hall 

Amendment," 42 U.S.C. § 7256(c) is very limited in scope. DOE also indicated that it 

would greatly benefit from a more expansive and broad EUL authority, similar to the 

authorities used by DOD. In addition, DOE indicated that, with the increased 

emphasis on renewable energy as contained in the Energy Policy Act of 2005, 

legislation that provides expanded authorities to the department would provide the 

flexibility and tools with which to achieve the goals that are vital to the nation. GSA 

indicated that it agreed with the report’s findings. DOI indicated that the report was a 

fair summation of the authorities, policies and complex challenges associated with 

the disposal and transfer of lands and constructed assets. DOE, GSA, NASA, OMB, 

State, USDA, and VA provided technical clarifications, which we incorporated 

throughout the report as appropriate. DOD, DOJ, and USPS provided no comments. 

____________________________________ 

As agreed with your offices, unless you publicly announce the contents of this report 

earlier, we plan no further distribution until 30 days from the report date. At that 

time, we will send copies to the appropriate congressional committees; the 

Administrator of the General Services Administration; the Administrator of the 

National Aeronautics and Space Administration; the Attorney General; the Director of 

the Office of Management and Budget; the Postmaster and Chief Executive Officer of 

the United States Postal Service; the Secretary of Agriculture; the Secretary of 

Defense; the Secretary of Energy; the Secretary of the Interior; the Secretary of State; 

and the Secretary of Veterans Affairs. 

In addition, this report will be available at no charge on GAO’s Web site at 

http://www.gao.gov. 

20 GAO-09-283R Real Property Disposal
If you or your staffs have any questions regarding this report, please contact me at 

(202) 512-2834 or wised@gao.gov. Contact points for our Offices of Congressional 

Relations and Public Affairs may be found on the last page of this report. Key 

contributors to this report are listed in enclosure IV. 

David Wise 

Director, Physical Infrastructure Issues 

Enclosures (4)

21 GAO-09-283R Real Property Disposal
Enclosure I: Scope and Methodology 

Our objective was to review how agencies are using their disposal authorities. To 

accomplish this, we addressed (1) what authorities the 10 largest real property 

holding agencies have to enter into enhanced use leases (EUL) or retain proceeds 

from the sale of real property; (2) the extent to which agencies with authority to 

retain proceeds sold real property and how they have used the proceeds; and (3) the 

relationship, if any, between agencies having the authority to enter into EULs or 

retain sales proceeds and the amount of real property that they retained or sold. 

To determine what authorities the 10 largest real property holding agencies have 

regarding EULs and retention of proceeds from the sale of real property, we first 

identified the 10 agencies that reported holding real property with the highest values 

to the Federal Real Property Profile (FRPP) in fiscal year 2007. These 10 agencies 

include the Department of Agriculture (USDA), Department of Defense (DOD),

Department of Energy (DOE), Department of the Interior (DOI), Department of 

Justice (DOJ), Department of State (State), Department of Veterans Affairs (VA), 

General Services Administration (GSA), National Aeronautics and Space 

Administration (NASA), and the United States Postal Service (USPS). For the 

purposes of this review, the term “real property” does not include real property that 

DOD has or is planning to dispose of through the Base Realignment and Closure Act 

(BRAC) process,30 lands managed by DOI or the Forest Service (except for Forest 

Service administrative sites), and transfers of individual properties specifically 

authorized by Congress. We then conducted legal research and interviewed officials 

at those 10 agencies regarding their authorities to enter into EULs and sell and retain 

the proceeds from the sales of real property. We also reviewed agencies’ asset 

management plans and real property management policies on issues involving 

excessing properties, selling properties, and entering into EULs. In addition, we 

reviewed GSA guidance for federal agencies on declaring excess and selling real

property. Furthermore, we reviewed prior GAO reports on real property 

management, leasing, and selling federal real property. 

To determine to what extent agencies with authority to retain proceeds sold real 

property and how they have used the proceeds, we first obtained and analyzed real 

property disposition data from the FRPP regarding the 10 agencies. We also 

interviewed officials from the Office of Management and Budget (OMB) about the 

reliability of the disposition information contained in the FRPP. After we determined 

that the FRPP disposition data were unreliable for our purposes, we obtained 

information on the amount of proceeds from the sales of real property received 

during fiscal years 2006 and 2007 from the six agencies that are authorized to retain 

proceeds. We did not independently validate the accuracy of the sales proceeds 

information that the agencies provided because we considered the data to be 

sufficiently reliable for our purposes, which was focused more on whether the 

agencies sold any real property and what they used the proceeds for, rather than an 

accurate accounting of the funds received for those properties. In addition, we 

interviewed officials from the 10 agencies about the processes that they follow in 

 30Under the BRAC process, the Secretary of Defense is authorized to close certain military bases and 

dispose of property. In the scope of our review, we included real property disposed of by DOD 

through its authority to convey or lease existing property and facilities outside of the BRAC process. 

22 GAO-09-283R Real Property Disposal
disposing of real property and their recent real property sales, including the reasons 

for selling the properties, how they were marketed, and the challenges faced. 

To determine the relationship, if any, between agencies having the authority to enter 

into EULs or retain sales proceeds and the amount of real property that they retained 

or sold, we interviewed agency officials about the factors they considered in deciding 

whether or how to dispose of unneeded real property, including the authorities 

available. We also visited a VA EUL site in Hillsborough, N.J., and interviewed 

officials from the property management and leasing companies about the agreement 

and how the property was being used. 

To help address the second and third research questions, we also visited federal 

properties that had been sold or were for sale in Camp Verde, Ariz.; Colorado Springs, 

Colo.; Denver; Estes Park, Colo.; Glendale, Ariz.; Guilderland, N.Y.; Loveland, Colo.; 

Middle River, Md.; New York; Peoria, Ariz., Rotterdam, N.Y.; Scotia, N.Y.; Scottsdale, 

Ariz.; Sedona, Ariz.; and Tucson, Ariz. During the site visits, we interviewed officials 

involved in the sales, including officials from the agencies that held the properties; 

GSA; and, when available, the buyers. We also obtained information from the 

agencies that were authorized to retain the sales proceeds on how they used the 

proceeds. 

23 GAO-09-283R Real Property Disposal
24 GAO-09-283R Real Property Disposal

Enclosure II: Selected Real Property Authorities and Retention of Proceeds 

Authorities for Major Real Property Holding Agencies 

Real property 

holding 

agency Authority Description of authority 

DODa Leases of Non-Excess 

Property of Military 

Departments 

10 U.S.C. § 2667 

The Secretary of a military department is authorized to lease 

nonexcess real property under the control of the department that is 

not needed for public use if the Secretary considers the lease to be 

advantageous to the United States and upon such terms that will 

promote the national defense or be in the public interest. The term 

of the lease may not be more than 5 years, unless the Secretary 

determines the term should be longer to promote the national 

defense or to be in the public interest. Lease payments shall be in 

cash or in-kind consideration for an amount not less than fair 

market value. In-kind consideration includes maintenance, 

protection, alteration, repair, or environmental restoration of 

property or facilities; construction of new facilities; providing 

facilities; or providing or paying for utility services. 

DOD Retention of Proceeds/ 

Leases of Non-Excess 

Property of Military 

Departments 

10 U.S.C. § 2667 

Proceeds from leases of a military department are deposited into a 

special account in the Treasury and are available to the Secretary 

of that military department for such activities as maintenance, 

protection, alteration, or environmental restoration of property or 

facilities; construction of new facilities; lease of facilities; or 

payment of utility services. At least 50 percent of the proceeds 

received shall be available for activities at the military installations 

where the proceeds are derived. Prior to fiscal year 2005, any 

amounts deposited in a special account from the disposition of 

property were subject to expenditure, as provided in an 

appropriation act. Beginning in fiscal year 2005, any amounts 

deposited into a special account from the disposition of property 

are appropriated and available for expenditure.b

DOD Conveyance of Damaged 

or Deteriorated Military 

Family Housing 

10 U.S.C. § 2854a 

The Secretary concerned is authorized to convey any family 

housing facility, including the real property associated with the 

facility, which due to damage or deterioration is in a condition that 

is uneconomical to repair. The person to whom the facility is 

conveyed shall pay an amount equal to the fair market value of the 

facility conveyed, including any real property conveyed along with 

the facility.c

DOD Retention of Proceeds/ 

Conveyance of Damaged 

or Deteriorated Military 

Family Housing 

10 U.S.C. § 2854a 

Proceeds of any conveyance of a damaged or deteriorated military 

family housing facility shall be credited to the Department of 

Defense Housing Improvement Funds, 10 U.S.C. § 2883, and shall 

be available, without any further appropriation, to construct family 

housing units to replace the family housing facility conveyed under 

this section; to repair or restore existing military family housing; and 

to reimburse the Secretary concerned for the costs incurred by the 

Secretary in conveying the family housing facility. 

DOD Conveyance or Lease of 

Existing Property and 

Facilities 

10 U.S.C. § 2878 

The Secretary concerned is authorized to convey or lease property 

or facilities, including ancillary supporting facilities to eligible entities 

at such consideration the Secretary concerned considers 

appropriate for the purposes of the alternative authority for 

acquisition and improvement of military housing and to protect the 

interests of the United States.d 

 

DOD Retention of Proceeds/ 

Conveyance or Lease of 

Existing Property and 

Facilities 

10 U.S.C. § 2883 

Proceeds from the conveyance or lease of property or facilities 

under 10 U.S.C. § 2878 shall be credited to the Department of 

Defense Housing Improvement Funds. Proceeds may be used to 

carry out activities with respect to the alternative authority for the 

acquisition and improvement of military housing, including activities 

required in connection with the planning, execution, and 

administration of contracts subject to such amounts as provided in 

appropriation acts. 
25 GAO-09-283R Real Property Disposal

Real property 

holding 

agency Authority Description of authority 

DOD General Services 

Administration’s (GSA) 

Disposal of Real Property 

Under a Military 

Department’s Control that 

is Excess to the 

Department’s Needs 

40 U.S.C. § 572 

The Administrator of GSA is authorized to dispose of property 

under the control of a military department that is not subject to 

closure or realignment and is excess to the department’s needs.e

DOD Retention of Proceeds/ 

GSA’s Disposal of Real 

Property Under a Military 

Department’s Control that 

is Excess to the 

Department’s Needs 

40 U.S.C. § 572 

Proceeds from the disposition of the property are deposited into a 

special account in the Treasury, less expenses incurred by GSA for 

the disposition. Fifty percent of the proceeds are available for 

facility maintenance and repair or environmental restoration at the 

military installation where the property was located, and 50 percent 

of the proceeds are available for facility maintenance and repair or 

for environmental restoration by the military department that had 

jurisdiction over the property. Prior to fiscal year 2005, any 

amounts deposited into a special account from the disposition of 

property were subject to expenditure, as provided in an 

appropriation act. Beginning in fiscal year 2005, any amounts 

deposited in a special account from the disposition of property are 

appropriated and available for expenditure.f

DOE Leasing of Excess 

Property 

42 U.S.C. § 7256 

The Secretary of Energy is authorized to lease excess real property 

located at a DOE facility that is to be closed or reconfigured and is 

not needed by DOE at the time the lease is entered into if the 

Secretary considers the lease to be appropriate to promote national 

security or is in the public interest. The term of the lease may be 

up to 10 years, with an option to renew the lease for another 10 

years, if the Secretary determines that a renewal of the lease will 

promote national security or be in the public interest. Lease 

payments may be in cash or in-kind consideration for an amount 

less than fair market value. In kind consideration may include 

services relating to the protection and maintenance of the leased 

property. 

DOE Retention of Proceeds/ 

Leasing of Excess 

Property 

42 U.S.C. § 7256 

To the extent provided in advance in appropriations acts, the 

Secretary is authorized to use the funds received as rents to cover 

administrative expenses of the lease, maintenance and repair of 

the leased property, or environmental restoration activities at the 

facility where the leased property is located. 

GSA Disposition of Real 

Property 

40 U.S.C. § 543 

The Administrator of GSA is authorized to dispose of surplus real 

property by sale, exchange, lease, permit, or transfer for cash, 

credit, or other property. 

GSA Conveyance of Property 

Consolidated 

Appropriations Act of 

2005, P.L. No. 108-447, § 

412, 118 Stat. 2809, 

3259 (2004) 

The Administrator of GSA, notwithstanding any other provision of 

law, is authorized to convey by sale, lease, exchange, or otherwise, 

including through leaseback arrangements, real and related 

personal property, or interests therein. 

GSA Retention of Proceeds/ 

Conveyance of Property 

Consolidated 

Appropriations Act of 

2005, P.L. No. 108-447, § 

412, 118 Stat. 2809, 

3259 (2004) 

Net proceeds from the disposition of real property are deposited in 

GSA’s Federal Buildings Fund (FBF) and are used for GSA real 

property capital needs to the extent provided in appropriations acts.

NASA Enhanced Use Lease 

Real Property 

Demonstration 

42 U.S.C. § 2459j 

The Administrator of NASA is authorized to enter into a lease 

agreement with any person or entity, including federal, state, or 

local governments, with regard to any real property at two NASA 

centers. The lease shall be for fair market value and payments 

may be in cash. Prior to December 31, 2008, NASA could have 
26 GAO-09-283R Real Property Disposal

Real property 

holding 

agency Authority Description of authority 

accepted for lease payments in-kind consideration such as 

construction, maintenance, or improvement of facilities, or providing 

services to NASA such as launch and payload processing 

services.g

NASA Retention of Proceeds/ 

Enhanced Use Lease 

Real Property 

Demonstration 

42 U.S.C. § 2459j 

Cash consideration received for the lease is to be used to cover the 

full costs to NASA in connection with the lease and shall remain 

available until expended. Thirty-five percent of any remaining cash 

shall be deposited in a capital asset account available for 

maintenance, capital revitalization, and improvements of real 

property assets under the jurisdiction of the Administrator and shall 

remain available until expended. The remaining 65 percent of the 

cash shall be available to the respective center or facility engaged 

in the lease of nonexcess real property and shall remain available 

until expended for maintenance, capital revitalization, and 

improvements of real property assets at the respective center or 

facility, subject to the concurrence of the Administrator. 

NASA Lease of Non-Excess 

Property 

42 U.S.C. § 2459j 

Effective December 31, 2008, the Administrator of NASA is 

authorized to enter into a lease agreement with any person or 

entity, including federal, state, or local governments, with regard to 

any nonexcess real property under the jurisdiction of the 

Administrator. The lease shall be for cash consideration of the fair 

market value as determined by the Administrator.h

NASA Retention of Proceeds/ 

Lease of Non-Excess 

Property 

42 U.S.C. § 2459j 

Cash consideration received for the lease is to be used to cover the full 

costs to NASA in connection with the lease and shall remain available 

until expended. Thirty-five percent of any remaining cash shall be 

deposited into a capital asset account available for maintenance, 

capital revitalization, and improvements of real property assets under 

the jurisdiction of the Administrator and shall remain available until 

expended. The remaining 65 percent of the cash shall be available to 

the respective center or facility engaged in the lease of non-excess real 

property and shall remain available until expended for maintenance, 

capital revitalization, and improvements of real property assets at the 

respective center or facility, subject to the concurrence of the 

Administrator. Effective December 31, 2008, no funds may be used for 

daily operating costs. 

State Disposition of Property 

22 U.S.C. § 300 

The Secretary of State is authorized to sell, exchange, lease, or 

license any property or property interest acquired in foreign 

countries for diplomatic and consular establishments. 

State Retention of Proceeds/ 

Disposition of Property 

22 U.S.C. § 300 

Proceeds from the disposition of properties are applied toward 

acquisition, construction, or other purposes authorized by this 

chapter; Foreign Service Buildings; or deposited into the Foreign 

Service Buildings Funds, as in the judgment of the Secretary may 

best serve the government’s interest. 

USDA Enhanced Use Lease 

Authority Pilot Program 

7 U.S.C. § 3125a notei

The Secretary of Agriculture is authorized to establish a pilot 

program and lease nonexcess real property at the Beltsville 

Agricultural Research Center and the National Agricultural Library 

to any individual or entity, including agencies or instrumentalities of 

State or local governments, if the Secretary determines that the 

lease is consistent with, and will not adversely affect, the mission of 

the agency administering the property; will enhance the use of the 

property; will not permit any portion of the property or facility to be 

used for the public retail or wholesale sale of merchandise or 

residential development; will not permit the construction or 

modification of facilities financed by nonfederal sources to be used 

by an agency, except for incidental use; and will not include any 

property or facility required for any agency purpose without prior 

consideration of the needs of the agency. Consideration for any 

lease shall be for fair market value and for cash. The Secretary is 

authorized to enter into leases until June 18, 2013, and the term of 

the lease shall not exceed 30 years.
27 GAO-09-283R Real Property Disposal

Real property 

holding 

agency Authority Description of authority 

USDA Retention of Proceeds/ 

Enhanced Use Lease 

Authority Pilot Program 

7 U.S.C. § 3125a note 

Consideration for leases shall be deposited in a capital asset 

account, which is available until expended, without further 

appropriation, for maintenance, capital revitalization, and 

improvements to the department’s properties and facilities at the 

Beltsville Agricultural Research Center and the National Agricultural 

Library. 

USDAForest Service Conveyance of Forest 

Service Administrative 

Sites 

16 U.S.C. § 580d notej

The Secretary of Agriculture is authorized to convey administrative 

sites of 40 acres or less under the Secretary’s jurisdiction by sale, 

lease, exchange, or combination of sale and exchange. An 

administrative site is defined as a facility or improvement, including 

curtilage, that was acquired or is used specifically for purposes of 

administration of the National Forest System (NFS); any federal 

land associated with a facility or improvement that was acquired or 

specifically used for purposes of administration of Forest Service 

activities and underlies or abuts the facility or improvement; or not 

more than 10 isolated, undeveloped parcels per fiscal year of not 

more than 40 acres each that were acquired or used for purposes 

of administration of Forest Service activities, but are not being so 

utilized such as vacant lots outside of the proclaimed boundary of a 

unit of NFS. This conveyance authority, which would have expired 

on September 30, 2008, was extended until March 6, 2009.k

USDA-Forest 

Service 

Retention of Proceeds/ 

Conveyance of Forest 

Service Administrative 

Sites 

16 U.S.C. § 580d note 

Proceeds from the conveyance of administrative sites are available 

to the Secretary of Agriculture, until expended and without further 

appropriation, to pay any necessary and incidental costs in 

connection with the acquisition, improvement, maintenance, 

reconstruction, or construction of a facility or improvement for the 

NFS, and the conveyance of administrative sites, including 

commissions or fees for brokerage services. 

USPS Real Property Authorities 

39 U.S.C. § 401(5) 

The Postal Service is authorized to acquire in any legal manner, real 

property or any interest therein, as it deems necessary or convenient in 

the transaction of its business and to hold, maintain, sell, lease, or 

otherwise dispose of such property or any interest therein. 

USPS Real Property Authorities 

39 U.S.C. § 401(6) 

The Postal Service is authorized to construct, operate, lease, and 

maintain buildings, facilities, or equipment, and to make other 

improvements on any property owned or controlled by it. 

USPS Retention of Proceeds/ 

Real Property Authorities 

39 U.S.C. §§ 2003 and 

2401 

Proceeds are deposited into the Postal Service Fund and remain 

available to the Postal Service without fiscal year limitation to carry 

out the purposes, functions, and powers authorized by Title 39, 

Postal Service. All revenues received by the Postal Service are 

appropriated to the Postal Service. 

VA Transfer Authority – 

Capital Asset Fund 

38 U.S.C. § 8118 

The Secretary of VA is authorized to transfer real property under 

VA’s control or custody to another department or agency of the 

United States, to a state or political subdivision of a state, or to any 

public or private entity, including an Indian tribe until November 30, 

2011. The property must be transferred for fair market value, 

unless it is transferred to a homeless provider. Property under this 

authority cannot be disposed of until the Secretary determines that 

the property is no longer needed by the department in carrying out 

its functions and is not suitable for use for the provision of services 

to homeless veterans by the department under the McKinneyVento Act or by another entity under VA’s EUL authority. 
28 GAO-09-283R Real Property Disposal

Real property 

holding 

agency Authority Description of authority 

VA Retention of Proceeds/ 

Transfer Authority 

38 U.S.C. § 8118 

Proceeds from the transfer of real property are deposited into the 

VA Capital Asset Fund and, to the extent provided in advance in 

appropriations acts, may be used for property transfer costs such 

as demolition, environmental remediation, and maintenance and 

repair; costs associated with future transfers of property under this 

authority; costs associated with enhancing medical care services to 

veterans by improving, renovating, replacing, updating, or 

establishing patient care facilities through minor construction 

projects; and costs associated with the transfer or adaptive use of 

property that is under the Secretary’s jurisdiction and listed on the 

National Register of Historic Places. 

VA Enhanced Used Leases 

38 U.S.C. §§ 8161-8169 

The Secretary of VA is authorized to enter into leases for up to 75 

years with public and private entities for underutilized and unutilized 

real property that is under the Secretary’s jurisdiction or control. 

EULs shall be for “fair consideration,” (i.e., cash and/or in-kind 

consideration, such as construction, repair, or remodeling of 

department facilities); providing office space, storage, or other 

usable space; and providing good or services to the department. 

The authority to enter into EULs terminates on December 31, 2011.

VA Retention of Proceeds/ 

Enhanced Use Leases 

38 U.S.C. § 8165 

Expenses incurred by the Secretary of VA in connection with EULs 

will be deducted from the proceeds of the lease and may be used 

to reimburse the account from which the funds were used to pay 

such expenses. The proceeds can be used for any expenses 

incurred in the development of additional EULs. Remaining funds 

shall be deposited into the VA Medical Care Collections Fund (see 

authority below for additional uses of EUL proceeds). 

VA Retention of Proceeds/ 

Enhanced Use Lease 

Property 

Consolidated Security, 

Disaster Assistance, and 

Continuing Appropriations 

Act of 2009, P.L. No. 110-

329, § 213, 122 Stat. 

3574, 3711 (2008) 

At the Secretary’s discretion, proceeds or revenues derived from 

EUL activities, including disposal, may be deposited into the 

“Construction, Major Projects” and “Construction Minor Projects” 

accounts and used for construction, alterations, and improvements 

of any VA medical facility.l

VA Disposal of Enhanced 

Use Lease Property 

38 U.S.C. § 8164 

If the Secretary of VA determines during the term of an EUL or 

within 30 days after the end of the lease term that the property is no 

longer needed by the department, the Secretary is authorized to 

initiate an action to dispose of the property. 

VA Retention of Proceeds/ 

Disposal of Enhanced 

Use Lease Property 

38 U.S.C. § 8165 

Funds received by VA from a disposal of an EUL property are 

deposited into the VA Capital Asset Fund and may be used to the 

extent provided for in appropriations acts for property transfer costs 

such as demolition, environmental remediation, maintenance, and 

repair; costs associated with future transfers of property under this 

authority; costs associated with enhancing medical care services to 

veterans by improving, renovating, replacing, updating or 

establishing patient care facilities through construction projects; 

and costs associated with the transfer or adaptive use of property 

which is under the Secretary’s jurisdiction and listed on the National 

Register of Historic Places (see authority below for additional uses 

of EUL disposal proceeds). 

VA Retention of Proceeds/ 

Disposal of Enhanced 

Use Lease Property 

Consolidated Security, 

Disaster Assistance, and 

Continuing Appropriations 

Act of 2009, P.L. No. 110-

329, § 213, 122 Stat. 

3574, 3711 (2008) 

At the Secretary’s discretion, proceeds or revenues derived from 

EUL activities, including disposal, may be deposited into the 

“Construction, Major Projects” and “Construction Minor Projects” 

accounts and used for construction, alterations, and improvements 

of any VA medical facility. 
29 GAO-09-283R Real Property Disposal

Source: GAO analysis. 

Note: This list is not intended to be an all inclusive list of an agency’s authorities. Furthermore, this list specifically excludes 

DOD authorities to sell or lease property under a base closure or realignment, lands managed by DOI or the Forest Service, 

except for Forest Service administrative sites and the Agricultural Research Service’s EUL pilot program, and transfers of 

individual properties authorized by Congress. 

a

Our review of DOD did not include real property at a military installation designated for closure or realignment under a base 

closure law. Therefore, for purposes of this appendix we have excluded DOD authorities relating to base closure or 

realignment. Additionally, while some authorities in this enclosure, such as 10 U.S.C. § 2667, contain subsections relating to

base closure and realignment, for purposes of this enclosure we are referring to the other subsections of the statute. 

b

Department of Defense Appropriations Act of Fiscal Year 2005, P.L. No. 108-287, § 8034, 118 Stat. 951, 978 (2004). 

c

This authority does not apply to family housing facilities located at military installations approved for closure under a base 

closure law or family housing activities located at an installation outside the United States at which the Secretary of Defense

terminates operations. See 10 U.S.C. § 2854a(a)(2). 

d

This authority does not apply to property or facilities located on or near a military installation approved for closure under a base 

closure law. See 10 U.S.C. § 2878(b). 

e

This authority does not apply to property at a military installation designated for closure or realignment pursuant to a base 

closure law. See 40 U.S.C. § 572(b)(2)(B)(ii). 

f

Department of Defense Appropriations Act of Fiscal Year 2005, P.L. No. 108-287, § 8034, 118 Stat. 951, 978 (2004). 

g

NASA was provided EUL authority in 2003. See the Consolidated Appropriations Resolution of FY 2003, P.L. No. 108-7, 

§418, 117 Stat. 11, 525-526 (2003). 

h

The Consolidated Appropriations Act for FY 2008, P.L. No. 110-161, § 533, 121 Stat. 1844, 1931-1932 (2007), amended 

NASA’s EUL authority at 42 U.S.C. § 2459j to include any NASA non-excess real property, rather than just nonexcess real 

property at two NASA facilities. P.L. No. 110-161 also amended NASA’s EUL authority at 42 U.S.C. § 2459j to allow for cash 

consideration only when entering into a lease and to prohibit any cash received for the EUL from being used for daily operating

costs. These amendments are effective as of December 31, 2008. 

i

This pilot program was enacted in the Food, Conservation, and Energy Act of 2008, P.L. No. 110-246, § 7409, 112 Stat. 1651, 

2014-2016 (2008). 

j

This authority, the Forest Service Facility Realignment and Enhancement Act, was enacted in 2005 as part of P.L. No. 109-54, 

Title V, §§ 501-505, 119 Stat. 499, 559-563 (2005). 

k

Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of FY 2009, P.L. No. 110-329, §149, 122 Stat. 

3574, 3581 (2008). 

l

This provision has been included in numerous appropriations acts. See the Consolidated Security, Disaster Assistance, and 

Continuing Appropriations Act of FY 2009, P.L. No. 110-329, § 213,110 Stat. 3574, 3711 (2008); the Consolidated 

Appropriations Act of FY 2008, P.L. No. 110-161, § 213, 121 Stat. 1844, 2270 (2007); the Consolidated Appropriations Act of 

FY 2005, P. L. No. 108-447, § 117, 118 Stat. 2809, 3293 (2004); and the Consolidated Appropriations Act of FY 2004, P.L. 

108-199, § 117, 118 Stat. 3, 371 (2004). 
30 GAO-09-283R Real Property Disposal

Enclosure III: Flow Charts of Agencies’ Real Estate Disposal Processes 

Figure 9: DOD’s Real Property Disposal Process 

Property is screened for use by another 

federal agency

If taken by another 

federal agency

If not taken by another 

federal agency

Property is screened for use by homeless

organization at no cost 

If not taken by homeless If taken by homeless

DOD declares the property excess

No proceeds

Proceeds, less expenses

incurred by GSA for the 

disposition, go to DOD, with 

at least 50 percent of funds

going to installation where 

property was located, and 

are available to be spent 

Proceeds go to DOD, with at 

least 50 percent of funds

going to installation where 

property was located, and 

are available to be spent 

Proceeds–if there are 

any–less expenses incurred 

by GSA for the disposition, 

go to DOD, with at least 50 

percent of funds going to 

installation where property was located, and are 

available to be spent 

Property is screened for certain other public uses

for up to 100 percent discount of fair market value 

and for sole source sale to public entity for public 

purpose for fair market value

If taken by PBC or if 

disposed of in sole source sale

If not taken for PBC or 

disposed of in sole 

source sale

Property is put on market

Property is sold

Source: DOD.

Note: This flow chart reflects the disposal process under 40 U.S.C. § 572.
31 GAO-09-283R Real Property Disposal

Figure 10: Forest Service’s Real Property Disposal Process 

Source: USDA.

Forest Service notifies Congress that it is

planning to convey an administrative site

Property is put on market 

Property is sold 

Proceeds go to Forest Service Fund and are 

available for acquisition of administrative 

facilities, as well as maintenance, 

construction, and conveyance processing 

costs; regions determine how the proceeds

will be utilized based on regional facility 

management priorities
32 GAO-09-283R Real Property Disposal

Figure 11: GSA’s Process for Selling Excess GSA-Controlled Real Property

Property is screened for use by other 

federal agencies

If transferred to 

another federal agency

If not transferred to 

another federal agency

Property is screened for use by homeless

providers at no cost 

If conveyed for 

homeless use If not conveyed for 

homeless use

Public Buildings Service reports the 

property excess

No proceeds

Proceeds–if any–go to GSA’s

Federal Buildings Fund

Proceeds–if any–go to GSA’s

Federal Buildings Fund

Property is screened for certain other public uses

for up to 100 percent discount of fair market value, 

and for negotiated sale to public entities

Property not conveyed as

PBC or negotiated sale

Property conveyed as PBC or negotiated sale

Property is offered for competitive 

public sale

Property is sold

Source: GSA.

Proceeds go to GSA’s

Federal Buildings Fund for 

GSA’s real property capital 

needs (congressional action 

is necessary for the 

proceeds to be used)
33 GAO-09-283R Real Property Disposal

Figure 12: State Department’s Real Property Disposal Process 

Source: State Department.

Department of State declares property excess

Property is put on market; timing depends on 

market, economic, political, or reciprocity issues

Property is sold 

Proceeds go to Department of State and 

are available to be spent for acquisition, 

construction, or other authorized purposes

Figure 13: U.S. Postal Service’s Real Property Disposal Process 

Source: USPS.

USPS declares property excess

Property is put on market 

Property is sold 

Proceeds go to the USPS general fund and 

are available to be spent on USPS priorities
34 GAO-09-283R Real Property Disposal

Figure 14: VA’s Real Property Disposal Process 

Property is screened for sole source sale to public 

entity for public purpose for fair market value

If disposed of in sole 

source sale

If not disposed of in 

sole source sale

Property is screened for use by another 

federal agency

If taken by another 

federal agency

If not taken by another 

federal agency

Property is screened for use by homeless

organization at no cost 

If not taken by homeless If taken by homeless

VA declares the property excess

No proceeds

Proceeds go to VA

Proceeds go to VA

Proceeds go to VA Capital 

Asset Fund for use for 

various property disposal and 

minor medical construction 

projects (congressional 

action is needed for the 

proceeds to be used)

Proceeds—if there are 

any—go to VA

Property is screened for certain other public uses

for up to 100 percent discount of fair market value

If not taken for PBC If taken by PBC

Property is put on market

Property is sold

Source: VA.

Note: If sold by GSA, the proceeds are given to the U.S. Treasury. 
35 GAO-09-283R Real Property Disposal

Enclosure IV: GAO Contact and Staff Acknowledgments 

GAO Contact 

David Wise, (202) 512-2834 or wised@gao.gov

Staff Acknowledgments 

In addition to the individual named above, Mike Clements (Assistant Director), Bob 

Homan, Grant Mallie, Josh Ormond, Susan Michal-Smith, and Alywnne Wilbur made 

significant contributions to this report. 

(543209) 
This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be

necessary if you wish to reproduce this material separately. 
GAO’s Mission The Government Accountability Office, the audit, evaluation, and 

investigative arm of Congress, exists to support Congress in meeting its 

constitutional responsibilities and to help improve the performance and 

accountability of the federal government for the American people. GAO 

examines the use of public funds; evaluates federal programs and policies; 

and provides analyses, recommendations, and other assistance to help 

Congress make informed oversight, policy, and funding decisions. GAO’s 

commitment to good government is reflected in its core values of 

accountability, integrity, and reliability. 

The fastest and easiest way to obtain copies of GAO documents at no cost 

is through GAO’s Web site (www.gao.gov). Each weekday afternoon, GAO 

posts on its Web site newly released reports, testimony, and 

correspondence. To have GAO e-mail you a list of newly posted products, 

go to www.gao.gov and select “E-mail Updates.” 

Obtaining Copies of 

GAO Reports and 

Testimony 

Order by Phone The price of each GAO publication reflects GAO’s actual cost of 

production and distribution and depends on the number of pages in the 

publication and whether the publication is printed in color or black and 

white. Pricing and ordering information is posted on GAO’s Web site, 

http://www.gao.gov/ordering.htm. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 

TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card, 

MasterCard, Visa, check, or money order. Call for additional information. 

Contact: 

Web site: www.gao.gov/fraudnet/fraudnet.htm

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470 

Ralph Dawn, Managing Director, dawnr@gao.gov, (202) 512-4400 

U.S. Government Accountability Office, 441 G Street NW, Room 7125 

Washington, DC 20548 

To Report Fraud, 

Waste, and Abuse in 

Federal Programs 

Congressional 

Relations 

Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800 

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, DC 20548 

Public Affairs