59–006 

114TH CONGRESS REPT. 114–578 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

FEDERAL ASSETS SALE AND TRANSFER ACT OF 2016 

MAY 23, 2016.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. SHUSTER, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 4465] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 4465) to decrease the deficit by consolidating and selling Federal buildings and other civilian real property, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill 

do pass. 

CONTENTS 

Page 

Purpose of Legislation ............................................................................................. 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 6 

Legislative History and Consideration .................................................................. 6 

Committee Votes ...................................................................................................... 6 

Committee Oversight Findings ............................................................................... 6 

New Budget Authority and Tax Expenditures ...................................................... 6 

Congressional Budget Office Cost Estimate .......................................................... 7 

Performance Goals and Objectives ......................................................................... 10 

Advisory of Earmarks .............................................................................................. 10 

Duplication of Federal Programs ............................................................................ 10 

Disclosure of Directed Rule Makings ..................................................................... 10 

Federal Mandate Statement ................................................................................... 11 

Preemption Clarification ......................................................................................... 11 

Advisory Committee Statement .............................................................................. 11 

Applicability of Legislative Branch ........................................................................ 11 

Section-by-Section Analysis of Legislation ............................................................ 11 

Changes in Existing Law Made by the Bill, as Reported ..................................... 15 


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1GAO High Risk Series, GAO–15–290 (2015), p. 135. 2This figure excludes land and 477,000 structures, costing $7.8 billion annually, such as utility systems, roads and bridges, and parking structures. 3FY 2014 Federal Real Property Profile Summary Open Data Set. 

4See Federal Real Property: Excess and Underutilized Property is an Ongoing Challenge, GAO–13–573T (April 2013); Federal Real Property: Strategic Focus Needed to Help Manage Vast 

and Diverse Warehouse Portfolio, GAO–15–41 (November 2014). 5Federal Real Property: The Government Faces Challenges to Disposing of Unneeded Buildings, GAO–11–370T, (February 2011). 6FY 2010 Federal Real Property Report, Federal Real Property Council, p. 6. See also Disposal 

of Unneeded Federal Buildings: Legislative Proposals in the 112th Congress, Congressional Research Service, August 6, 2012. 

PURPOSE OF LEGISLATION

The purpose of H.R. 4465 is to save taxpayer money by shrinking 

the federal real property footprint by selling or redeveloping high 

value properties, consolidating federal space, maximizing utilization rates, and streamlining the disposal of unneeded assets. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 4465, the Federal Assets Sale and Transfer Act of 2016, improves the management of Federal real property by consolidating 

and selling underutilized federal buildings and other civilian real 

property. 

Opportunities to reduce costs 

Given the vast real estate holdings of the federal government, 

poor asset management and missed market opportunities cost taxpayers significant sums of money. For this reason, in 2003, the 

Government Accountability Office (GAO) placed real property management on its list of ‘‘high risk’’ government activities, where it remains today. Among the reasons GAO lists federal real property as 

high risk are ‘‘excess and underutilized real property’’ and ‘‘unreliable property data.’’ While significant attention has been paid to 

addressing these issues, GAO noted in its 2015 ‘‘High Risk series’’ 

report that, ‘‘the federal government continues to maintain too 

much excess and underutilized property.’’ 1

The high risk activities related to federal real property are significant; however, consistent and accurate data continues to be a 

challenge in measuring the full costs to the taxpayer. Considerable 

amounts of vacant or underperforming real estate assets can translate into significant costs associated with the operation, maintenance, and security of those properties. 

Domestically, the federal government owns more than 254,000 

buildings 2 comprising a total of 2.5 billion square feet of space with 

an annual operating cost of $14.4 billion.3 The total amount of underutilized or vacant real estate has not been accurately 

ascertained likely due in large measure to poor data and inconsistent reporting requirements.4 For example, in fiscal year 2009, 

the number of underutilized buildings was 45,190, comprising 341 

million square feet of space costing $1.66 billion.5 However, in fiscal year 2010, there were 77,000 buildings comprising 490 million 

square feet listed as underutilized or vacant, costing $1.66 billion 

annually.6 While those were global numbers (domestic and non-domestic), in the most recent Federal Real Property Summary Data 

Set for 2014, which accounts for only domestic properties, 5,000 

buildings are listed as underutilized or vacant. This does not inVerDate Sep 11 2014 06:34 May 27, 2016 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR578P1.XXX HR578P1

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7See, for example, Executive Order 13327, Federal Real Property Asset Management, signed 

by President George W. Bush, February 4, 2004; Presidential Memorandum, Disposing of 

Unneeded Federal Real Estate, signed by President Barack Obama, June 10, 2010; Public Buildings Cooperative Use Act of 1976; Public Law 108–447, Division H, Title IV, Section 412, December 8, 2004 (providing enhanced flexibility to GSA in real property management). 8See Federal Real Property: Continued Efforts, Legislation, and Implementing GAO Recommendations Could Address Challenges, GAO–15–689T, June 16, 2015; Federal Real Property: 

Excess and Underutilized Property Is an Ongoing Challenge, GAO–13–573T, April 25, 2013. 

clude all property categories and reflects only 43 percent of the 

total buildings. The same fiscal year 2014 Data Set lists 31,465 ‘‘assets’’ as not currently needed, including buildings and structures. 

Reducing the real estate footprint 

Both the Committee and the Administration have been working 

to reduce the costs of office space by improving the space utilization 

rates of agencies and reducing their real estate footprint. Large 

real estate acquisitions, over $2.85 million annually, must be authorized by the House Committee on Transportation and Infrastructure and the Senate Committee on Environment and Public 

Works. Since the beginning of the 113th Congress, through efforts 

to get the General Services Administration’s (GSA) tenant agencies 

to improve their space utilization, the Committee has authorized 

projects that will potentially result in up to $3 billion in savings 

to the taxpayer through lease cost avoidance, reduction of previously-authorized projects, and consolidations. 

The Administration has also issued directives to reduce the 

amount of real estate used by federal agencies. On June 10, 2010, 

the Administration issued a memorandum directing agencies to accelerate efforts to identify and eliminate excess properties. On 

March 14, 2013, the Office of Management and Budget (OMB) 

issued a Management Procedures Memorandum prohibiting agencies from increasing the total square footage of their domestic office 

and warehouse inventory compared to their fiscal year 2012 baseline—in effect requiring agencies to freeze their federal real property footprint. More recently, on March 25, 2015, OMB issued a directive for agencies to reduce their office and warehouse space by 

aggressively disposing of properties and making more efficient use 

of space. At the same time, the Administration released the National Strategy for the Efficient Use of Real Property, which proposed a five-year, three-step strategy to improve the efficiency and 

cost-effectiveness of federal real estate. The three-step approach includes freezing the footprint, improving the quality of data to more 

accurately analyze and measure opportunities, and reducing the 

footprint through accelerated disposals and improved space utilization. 

Unfortunately, despite executive orders and memoranda issued 

during two administrations and acts of Congress intended to improve the management of federal real property, these problems persist.7 The GAO has noted in recent years the continual problem of 

retention of excess and underutilized properties, despite efforts by 

both the Administration and Congress to reduce the amount and 

costs associated with unneeded properties.8

There are a number of examples of high value vacant and underutilized properties sitting for years, if not more than a decade and, 

only after action by the Committee either through hearings or legislation did GSA begin to take action. These include, for example, 


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9Federal Real Property: Better Guidance and More Reliable Data Needed to Improve Management, GAO–14–757T (July 29, 2014). 10Written Statement of Maria Foscarinis, Executive Director, National Law Center on Homelessness & Poverty, Subcommittee on Economic Development, Public Buildings, and Emergency 

Management hearing on ‘‘Saving Taxpayer Dollars in Federal Real Estate: Reducing the Government’s Space Footprint,’’ June 16, 2015. 

in Washington D.C. the West Heating Plant in the Georgetown 

area, the Old Post Office on Pennsylvania Avenue, and the Cotton 

Annex located right off the National Mall. Despite sitting in prime 

locations, these assets sat for years and, in two cases, were vacant 

yet were never disposed of, costing taxpayer money to maintain 

them. In the case of the Old Post Office, despite being used, the 

building was underutilized and GSA lost revenue on the property 

every year. Only through legislation directing GSA to redevelop 

that property, did GSA finally take steps to do so. 

Hurdles to reducing the real estate footprint and the solution 

Over the years, the issue of getting federal agencies to sell or dispose of underutilized and unneeded properties has been a focus of 

GAO investigations, congressional hearings, and actions by administrations. Various hurdles to disposing of properties have been 

identified, including: 

• Upfront costs to agencies—Preparing the properties for disposal 

costs money. For example, there are costs related to surveys, environmental assessments, and cleanup. 

• Cumbersome disposal process—The current disposal process 

can be cumbersome and time-consuming, particularly for larger, 

more valuable assets, creating a disincentive for agencies to dispose 

of unneeded properties. 

• Land-banking of high value assets—Either as a result of the 

costs, disposal process, or because an agency believes it may require space at some unspecified point in the future, agencies may 

hold on to higher value assets. 

• Real estate activities may be required—Many valuable properties used by agencies may be underutilized; however, in order to 

make properties available for sale or disposition, money may be 

needed to relocate, consolidate, or acquire space to move the agency 

operations. 

• Poor data and property management—Agencies may not maintain accurate data about their properties and space utilization, 

making it more difficult to identify properties available for disposal.9 In addition, agencies may not be in a position to determine 

if use of the property is optimized. For example, if a small government building sits in a larger, valuable plot of land, the building 

itself may be fully utilized, but the property underutilized, and may 

provide more value to the taxpayer if sold and the agency consolidated into other space. 

• Prioritization—Other than the GSA, property management is 

not a part of the core mission of most agencies, and, as such, working to identify and make available underutilized properties may 

not be a priority. 

These hurdles not only cost the taxpayer money given ongoing 

maintenance and operation costs and unrealized return from selling them, but they minimize the number of properties made available for other public purposes, such as serving the homeless.10


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11 Implementation of OMB Memorandum M–12–12 Section 3: Freeze the Footprint, Office of 

Management and Budget, March 14, 2013. 12 National Strategy For the Efficient Use of Real Property 2015–2020, Reducing the Federal 

Portfolio through Improved Space Utilization, Consolidation, and Disposal, Office of Management and Budget. March 25, 2015. 

While GSA and some tenant agencies have begun to take steps 

to improve their space utilization, consolidate, and reduce their 

space footprint, resistance remains. In order to promote better utilization of space, realize financial returns on under-used high value 

assets, and improve efficiency, including energy efficiency, H.R. 

4465 was introduced. The legislation is intended to create a process 

that would independently establish space standards, apply them to 

the federal inventory, and provide a streamlined manner to ensure 

actions are taken by agencies to reduce the federal real estate footprint. 

H.R. 4465 is intended to save taxpayer money by selling and redeveloping high value assets, consolidating facilities, maximizing 

utilization rates, and increasing the use of efficient space. H.R. 

4465 would require the Board established in the legislation to examine federal real property across government—used and unused—and make decisions based on the best return to the taxpayer. 

Public Museums 

Federal Management Regulations (FMR) require a museum to be 

open for at least 1,000 posted hours annually in order to qualify 

as a public museum eligible to receive surplus property. The public 

policy principle behind this requirement is to ensure that surplus 

property is available to the public, but this principle can be satisfied in other ways. The Committee believes that the FMR regulation requiring that a non-profit museum have at least 1,000 posted 

hours in order to receive surplus property is arbitrary. The Committee believes the legislative language in Section 23 makes it 

clear that the Administrator consider a public museum eligible for 

surplus property if the organization accedes to any request submitted for access during business hours. 

The Administrator has a prominent role in executing the Administration’s Freeze the Footprint Policy 11 and subsequent Reduce 

the Footprint Policy.12 Both of these policies have been designed to 

reduce the federal real estate footprint with a specific focus on reducing the amount of warehouse space. Flexible criteria for the eligibility of non-profit museums to receive surplus property allow the 

Federal government to more easily dispose of surplus property and 

reduce the need for warehouse space. Changing the rules that governs a museum’s eligibility to receive surplus property will achieve 

the dual policy goals of reducing the amount of Federal warehouse 

space needed and sharing surplus property with the public. 

Conclusion 

The management of federal real property was a challenge even 

before appearing on GAO’s High Risk list. The costs of real property are significant and most agencies do not have the incentives 

to minimize those costs. Properties sit vacant or woefully under-utilized, not only costing taxpayers billions of dollars but often are eye 

sores in local communities. And, despite the current budget cliVerDate Sep 11 2014 06:34 May 27, 2016 Jkt 059006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR578P1.XXX HR578P1

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mate, many agencies continue to hold onto properties they do not 

need, reducing efficiency and increasing costs. H.R. 4465 is intended to bring an independent process to the management of federal real property. 

HEARINGS

The Subcommittee held a number of hearings during the 112th 

Congress on subject matters contained in H.R. 4465. In the 114th 

Congress, the Subcommittee held a hearing specifically related to 

H.R. 4465. In particular, the Subcommittee held the following hearing: 

‘‘Saving Taxpayer Dollars in Federal Real Estate: Reducing the 

Government’s Space Footprint,’’ held on June 16, 2015. Witnesses 

included, Representatives Jeff Denham and Jason Chaffetz, the 

Honorable David Mader, Controller, Office of Management and 

Budget, Mr. David Wise, Director, Physical Infrastructure Team, 

U.S. Government Accountability Office, Mr. Norman Dong, Commissioner, Public Buildings Service, General Services Administration, and Ms. Maria Foscarinis, Executive Director, National Law 

Center on Homelessness and Poverty. The hearing examined the 

issue of underutilized and vacant federal properties, costs to the 

taxpayer, challenges to selling or disposing of unneeded real property, and methods by which the federal government can reduce its 

space footprint and save taxpayer dollars by addressing those challenges. 

LEGISLATIVE HISTORY AND CONSIDERATION

On February 4, 2016, Representative Jeff Denham (R–CA), along 

with Representatives Chaffetz (R–UT), Shuster (R–PA), Cummings 

(D–MD), DeFazio (D–OR), Barletta (R–PA), and Carson (D–IN) introduced H.R. 4465, a bill to decrease the deficit by consolidating 

and selling federal buildings and other civilian real property, and 

for other purposes. 

On March 2, 2016, the Committee on Transportation and Infrastructure met in open session. No amendments were offered. H.R. 

4465 was ordered reported by voice vote with a quorum present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires each committee report to include the total number of 

votes cast for and against on each record vote on a motion to report 

and on any amendment offered to the measure or matter, and the 

names of those members voting for and against. There were no 

record votes taken in connection with consideration of H.R. 4465. 

COMMITTEE OVERSIGHT FINDINGS

With respect to the requirements of clause 3(c)(1) of rule XIII of 

the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives does not apply where a cost estimate and comparison preVerDate Sep 11 2014 06:34 May 27, 2016 Jkt 059006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR578P1.XXX HR578P1

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pared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974 has been timely 

submitted prior to the filing of the report and is included in the report. Such a cost estimate is included in this report. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

With respect to the requirement of clause 3(c)(3) of rule XIII of 

the Rules of the House of Representatives and section 402 of the 

Congressional Budget Act of 1974, the Committee has received the 

enclosed cost estimate for H.R. 4465 from the Director of the Congressional Budget Office: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, May 19, 2016. 

Hon. BILL SHUSTER, 

Chairman, Committee on Transportation and Infrastructure, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4465, the Federal Assets 

Sale and Transfer Act of 2016. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 4465—Federal Assets Sale and Transfer Act of 2016 

Summary: H.R. 4465 aims to better manage federal real property 

by reducing the inventory of such property and the cost of maintaining the remaining inventory. The bill would establish the Public Buildings Reform Board (board) to provide recommendations to 

the Office of Management and Budget (OMB) regarding specific 

federal properties that should be sold. The board would be charged 

with recommending specific operational efficiencies that could be 

implemented to reduce the inventory and cost of the government’s 

real estate holdings. The legislation also would authorize the appropriation of $2 million to fund the board and $40 million to implement the board’s recommendations. 

Assuming appropriation of the specified amounts, CBO estimates 

that implementing H.R. 4465 would cost $8 million in 2017 and 

about $40 million over the 2017–2021 period. If the board’s recommendations lead to the sale of facilities, the legislation also 

would result in additional receipts. However, CBO has no basis to 

estimate whether the board’s recommendations would result in the 

sale of any properties that would not otherwise be sold under current law. Enacting the bill would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

CBO estimates that enacting H.R. 4465 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2027. 

H.R. 4465 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 


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Estimated cost to the Federal Government: The estimated budgetary effects of H.R. 4465 are shown in the following table. The 

costs of this legislation fall within all budget functions that contain 

federal real property other than 050 (national defense). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2017– 

2021 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Public Buildings Reform Board: 

Authorization Level .............................................................. 2 0 0 0 0 2 

Estimated Outlays ............................................................... * * * * * 2 

Asset Proceeds and Space Management Fund: 

Authorization Level .............................................................. 40 0 0 0 0 40 

Estimated Outlays ............................................................... 7 7 7 7 6 34 

Other Requirements: 

Estimated Authorization Level ............................................. 1 * * * * 3 

Estimated Outlays ............................................................... 1 * * * * 3 

Total Changes: 

Estimated Authorization Level .................................... 43 0 0 0 0 45 

Estimated Outlays ...................................................... 8 7 7 7 6 39 

Note: * = less than $500,000; components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted near the end of 2016, that the authorized 

amounts will be appropriated, and that spending will follow historical patterns for similar management efforts. 

Public buildings reform board 

H.R. 4465 would establish an independent board to recommend 

to OMB properties that could be sold in order to reduce the inventory of federal civilian real property. The board would consist of 

seven members appointed by the President. H.R. 4465 would specify two major objectives for the board. First, the board would be required to identify and recommend the sale of at least five federal 

civilian properties with a combined estimated fair market value of 

between $500 million and $750 million. Second, the legislation 

would require the board to recommend to OMB opportunities to 

consolidate, exchange, sell, or redevelop federal properties to further reduce the inventory of civilian real property and to reduce operating costs. All recommendations made by the board would be 

available to the public on a government website. 

Under the bill, the board would terminate after six years. H.R. 

4465 would authorize the appropriation of $2 million for the 

board’s expenses. Assuming appropriation of those amounts, CBO 

estimates the board would spend about $2 million over the 2017– 

2021 period. 

Asset proceeds and space management fund 

H.R. 4465 would establish a fund to help agencies cover any costs 

associated with implementing the board’s recommendations. During its six-year term, the board would primarily work with the 

General Services Administration (GSA) to consolidate, reconfigure, 

redevelop, or co-locate agency operations in order to make additional properties available for sale. The bill would authorize the appropriation of $40 million for those purposes. Assuming appropriation of the specified amount, CBO estimates that agencies would 

spend about $7 million annually over the 2017–2021 period to preVerDate Sep 11 2014 06:34 May 27, 2016 Jkt 059006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR578P1.XXX HR578P1

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1For more information on the barriers to selling federal real property see Congressional Budget Office, letter to the Honorable Darrell E. Issa containing an analysis of a proposal to expedite 

the disposal of federal civilian real property (June 27, 2011). 

pare federal properties for sale or achieve other operational efficiencies. 

Other requirements 

H.R. 4465 would require GSA and federal civilian agencies to 

prepare additional reports and recommendations about their real 

property holding and would require GSA to improve its database 

of federal property. CBO estimates that implementing those provisions would increase the workloads of GSA and other agencies. In 

addition, the Government Accountability Office would be required 

to report on all the recommendations. Based on information from 

GSA and some landholding agencies, CBO estimates that those activities would cost $3 million over the 2017–2021 period; such 

spending would be subject to the availability of appropriated funds. 

Effect on federal property sales 

Under current law, before an agency can offer federal real property that it considers to be surplus for sale to the public, the agency must first offer that property to other federal agencies, state and 

local governments, and in some cases nonprofit organizations, at no 

cost. H.R. 4465 would exempt properties recommended for sale by 

the board from those requirements, except for the purpose of alleviating homelessness. CBO does not expect that exemption would 

increase the proceeds from selling surplus properties above the expected amounts under current law because other barriers to selling 

such property will still exist. 

Based on information from GSA and other agencies that hold significant amounts of real property, CBO has concluded that there 

are at least two other obstacles that constrain the amount of property offered for sale and ultimately sold to the public.1

• First, agencies generally lack funds to prepare properties for 

sale, including relocating any users of such properties. To help implement the board’s recommendations, the bill would authorize appropriations to cover the costs of moving, consolidating, marketing, 

renovating property. However, those amounts may not be sufficient 

to cover such costs. Furthermore, any additional proceeds from 

sales would depend on the enactment of appropriated amounts and 

cannot be attributed to this bill. 

• Second, many agencies resist efforts to sell property and prefer 

to leverage the value of their holdings rather than sell them outright. In most cases property-holding agencies do not have access 

to any of the proceeds from a sale of their property. However, they 

may have other authorities that enable them to add to their budgetary resources; for example, some agencies can lease unused real 

property and spend those proceeds on mission-related or administrative purposes. Whether or not the board that would be created 

by H.R. 4465 could overcome such resistance is unclear. 

For these reasons, CBO has no basis to estimate whether the 

board’s recommendations for $8 billion in changes to the federal 

government real estate holdings would result in additional receipts. 

Pay-As-You-Go considerations: None. 


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Intergovernmental and private-sector impact: H.R. 4465 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Previous CBO estimate: On May 17, 2016, CBO transmitted a 

cost estimate for S. 2375, the Federal Asset Sale and Transfer Act 

of 2015, as ordered reported by the Senate Committee on Homeland Security and Governmental Affairs on December 9, 2015. On 

May 19, 2016, CBO transmitted a cost estimate for H.R. 4465, as 

ordered reported by the House Committee on Oversight and Government Reform on April 14, 2016. Both versions of H.R. 4465 and 

S. 2375 aim to better manage federal real property by reducing the 

inventory of such property and the cost of maintaining the remaining inventory; CBO’s estimate of their costs are the same. 

Estimate prepared by: Federal spending: Matthew Pickford; Impact on state, local, and tribal governments: Jon Sperl; Impact on 

the private sector: Paige Piper/Bach. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

With respect to the requirement of clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, the performance goal 

and objective of this legislation is to decrease the deficit by consolidating and selling Federal buildings and other civilian real property, and for other purposes. 

ADVISORY OF EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, the Committee is required to include a list of congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 

the House of Representatives. No provision in the bill includes an 

earmark, limited tax benefit, or limited tariff benefit under clause 

9(e), 9(f), or 9(g) of rule XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee finds that no provision of H.R. 4465 establishes or reauthorizes a program of the federal government known to be duplicative of another federal program, a program that was included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139, or a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee finds that enacting H.R. 4465 does not direct the completion of a specific rule making within the meaning of section 551 

of title 5, United States Code. 


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FEDERAL MANDATE STATEMENT

The Committee adopts as its own the estimate of federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act 

(Public Law 104–4). 

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the 

report of any Committee on a bill or joint resolution to include a 

statement on the extent to which the bill or joint resolution is intended to preempt state, local, or tribal law. The Committee states 

that H.R. 4465 does not preempt any state, local, or tribal law. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act are created by this legislation. 

APPLICABILITY OF LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1). 

SECTION-BY-SECTION ANALYSIS OF LEGISLATION

Section 1: Short title 

Section 1 designates the short title of the Act as the ‘‘Federal Assets Sale and Transfer Act of 2016.’’ 

Section 2: Purposes 

Section 2 lists the purposes of the bill to include: reducing and 

consolidating the footprint of federal buildings; maximizing the utilization rate; reducing leasing where appropriate; selling or redeveloping high value assets; reducing the operating and maintenance costs of Federal properties; reducing overlap in field offices; 

creating incentives for agencies to achieve greater efficiencies; facilitating sale or disposal of unneeded properties; improving the efficiency of real property transfers for the provision of services to 

the homeless; and achieving sustainability goals. 

The intention of this section is to highlight that real cost savings 

will only be produced through a combination of actions. While selling off properties already declared excess or surplus may help, 

many of those properties will realize little net income. Real savings 

are achieved by consolidations, co-locations, reducing field office 

overlap and tapping into the value of high value assets. These high 

value assets would not be of the nature that would be declared excess or surplus. These may be assets that are used to some extent 

but would produce a greater return to the taxpayer if sold or redeveloped and the federal tenants relocated to less valuable locations. 

Section 3: Definitions 

Section 3 provides relevant definitions used in the legislation. 


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Section 4: Board 

Section 4 establishes a Board to carry out duties as described in 

the Act. The Board would be composed of seven members, including 

a chairman appointed by the President, by and with the advice and 

consent of the Senate, and 6 members appointed by the President. 

The six members would be appointed with input by the House and 

Senate leadership. The section sets terms for six years and requires 

that the composition of the members include expertise related to 

commercial real estate and development, government management 

or operations, and community development. 

The intention of the Committee is to ensure those on the Board 

include individuals with strong private sector real estate experience that will help identify properties and opportunities for savings. 

Section 5: Board meetings 

Section 5 requires Board meetings to be public and open, establishes what constitutes a quorum, and ensures information is accessible to oversight committees and the GAO. 

An open process ensures appropriate input into the process and 

ensures the public and stakeholders are fully informed. The Committee expects the Board to utilize regional public meetings to help 

it identify appropriate federal properties and redevelopment opportunities for its recommendations. 

Section 6: Compensation and travel expenses 

Section 6 sets the compensation rate for the Board members and 

allows for per diem reimbursement of travel expenses related to the 

work of the Board. 

Section 7: Executive Director 

Section 7 provides for the appointment and compensation of an 

Executive Director. 

Section 8: Staff 

Section 8 provides for additional staff through personnel detailed 

from federal agencies. 

Section 9: Contracting authority 

Section 9 requires the Board to use, to the extent practicable, 

contracts, including non-appropriated contracts, entered into by 

GSA for services necessary to carry out the duties of the Board. 

Section 9 also requires the GSA to identify suitable space for the 

Board and requires the Board to utilize personal property already 

in the custody and control of GSA. 

Section 10: Termination 

Section 10 terminates the Board in six years. 

Section 11: Development of recommendations to Board 

Section 11 establishes a framework for the development of initial 

recommendations to be reviewed and submitted to the Office of 

Management and Budget (OMB) and to the Board. This section 

also requires the standards developed to incorporate key principles 


SSpencer on DSK4SPTVN1PROD with REPORTS
13 

listed in section 2 and requires the recommendations to be submitted to the Board. 

The Board is also given access to necessary property data including the age and condition, operating costs, history of capital expenditures, sustainability metrics, number of federal employees 

and functions, and square footage. The number of employees and 

square footage data will ensure the Board can properly evaluate 

utilization rates. The Committee believes this data is critical to ensuring proper recommendations are developed. This data will assist 

the Board in evaluating what recommendations will yield the best 

return to the taxpayer given costs associated with particular properties. 

The Committee intends the standards be developed to maximize 

the reduction and optimization of the federal real property footprint and costs. The standards should result in the co-location of 

agencies and offices and standard utilizations rates across categories of properties, such as general purpose office space. In addition, the standards should ensure the sale of property at its highest 

and best use. In particular, the Board should identify high value 

assets for sale or redevelopment. 

Section 12: Board duties 

Section 12 establishes general duties of the Board as identifying 

opportunities for the government to reduce its inventory and reduce costs, performing an independent analysis, developing final 

recommendations, and conducting public hearings. This section also 

sets an initial time for reporting its final recommendations (and 

then two additional rounds thereafter) to the President. The section 

requires the Board establish a website and requires the GAO to 

conduct reviews of the process. Additionally this section requires 

the Board to recommend not less than $500 million and not more 

than $750 million in savings from the sale of high value properties 

in the first 180 days. 

This section also requires the Board to develop an accounting 

system to assist in the development of its recommendations. The 

intention is to ensure there is a standard accounting system to assist the Board in developing recommendations that will produce the 

highest return to the taxpayer. 

Section 13: Review by OMB 

Section 13 establishes a process for review by OMB. It requires 

OMB to send to Congress its approval or disapproval of the recommendations. If OMB disapproves, the Board is provided additional time to revise its recommendations. If OMB fails to approve 

recommendations, the process ceases for that round. If OMB approves the recommendations, the recommendations go into effect. 

Section 14: Implementation of Board recommendations 

Section 15 requires agencies to carry out the recommendations. 

It requires all activities to be initiated within 2 years and all actions completed in 6 years, unless notice is provided to OMB and 

Congress. The bill allows for agencies to take necessary steps to 

carry out the recommendations, except agencies are required to 

work within their existing authorities and, if necessary, work with 

GSA. The Committee expects GSA to be the lead agency with reVerDate Sep 11 2014 05:37 May 27, 2016 Jkt 059006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR578P1.XXX HR578P1

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spect to the planning and execution of construction projects needed 

to execute the Board’s recommendations. 

Except the initial recommendations related to the sale of highvalue assets, all other properties included in subsequent recommendations will be submitted to the Secretary of Housing and 

Urban Development (HUD). HUD is required to identify any suitable properties for use as a property benefitting the mission of assistance to the homeless for the purposes of further screening pursuant to section 501 of the McKinney-Vento Homeless Assistance 

Act. 

Section 15: Authorization of appropriations 

Section 15 authorizes $42 million for the Board and initial costs 

associated with implementing any recommendations. 

The Committee expects the initial funding will facilitate the creation of the Board and fund the initial costs to implement the recommendations. As there are often expenses to prepare properties 

for sale or to make them available, this is intended to cover those 

initial expenses. Future year funding is expected to be offset by the 

proceeds of property sales and redevelopments. 

Section 16: Funding 

Section 16 establishes an account on the books of the Treasury 

for the salaries and expenses of the Board and establishes an account within the Federal Buildings Fund (FBF) to carry out actions 

related to the Board recommendations. The FBF account would be 

funded with proceeds from any action taken pursuant to the Board 

recommendations. 

Section 17: Congressional approval of proposed projects 

Section 17 amends the Public Buildings Act by requiring 

prospectuses for future projects, unrelated to Board recommendations, to include a statement describing how the proposed project 

is consistent with principles in the Federal Assets Sale and Transfer Act of 2016. 

This section is intended to ensure that future projects submitted 

to the Committee by GSA through the prospectus process outlined 

in the Public Buildings Act also conform to the standards outlined 

in this legislation. 

Section 18: Preclusion of judicial review 

Section 18 makes clear that actions of the Board and actions 

taken pursuant to sections 12 and 13 are not subject to judicial review. 

Section 19: Implementation review by GAO 

Section 19 requires GAO, on at least an annual basis, monitor 

and review the implementation activities of federal agencies related 

to the Board recommendations. 

Section 20: Agency retention of proceeds 

Section 20 provides for federal agencies to retain net proceeds 

from the disposal of properties, but such proceeds may only be used 

as authorized in appropriations Acts for the purpose of covering 


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15 

costs related to disposals. This section would be effective following 

the termination of the Board. 

Section 21: Federal Real Property Database 

Section 21 codifies and sets requirements on a Federal Real 

Property Database. It requires GSA to publish a single, comprehensive, and descriptive database of all Federal real property under 

the custody and control of all executive agencies, except those excluded for national security reasons. This section requires the database to be available to other federal agencies and, to the extent 

consistent with national security and procurement laws, accessible 

by the public at no cost through a Web site. 

Section 22: Streamlining McKinney-Vento Homeless Assistance Act 

Section 22 streamlines the process for identifying and disposing 

of suitable properties for use to benefit the homeless pursuant to 

section 501 of the McKinney-Vento Homeless Assistance Act. 

Section 23: Additional property 

Section 23 clarifies the qualifications for a nonprofit museum to 

receive surplus personal property under the federal disposal process. It requires GSA to consider the level of access that a museum 

is willing to offer rather than a blanket rule on the number of 

hours the museum is open and available to the public. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 40, UNITED STATES CODE 

* * * * * * * 

SUBTITLE I—FEDERAL PROPERTY AND 

ADMINISTRATIVE SERVICES 

* * * * * * * 

CHAPTER 5—PROPERTY MANAGEMENT 

* * * * * * * 

SUBCHAPTER III—DISPOSING OF PROPERTY 

* * * * * * * 

§ 549. Donation of personal property through state agencies 

(a) DEFINITIONS.—In this section, the following definitions apply: 

(1) PUBLIC AGENCY.—The term ‘‘public agency’’ means— 

(A) a State; 

(B) a political subdivision of a State (including a unit of 

local government or economic development district); 


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16 

(C) a department, agency, or instrumentality of a State 

(including instrumentalities created by compact or other 

agreement between States or political subdivisions); or 

(D) an Indian tribe, band, group, pueblo, or community 

located on a state reservation. 

(2) STATE.—The term ‘‘State’’ means a State of the United 

States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American 

Samoa. 

(3) STATE AGENCY.—The term ‘‘state agency’’ means an agency designated under state law as the agency responsible for 

fair and equitable distribution, through donation, of property 

transferred under this section. 

(b) AUTHORIZATION.— 

(1) IN GENERAL.—The Administrator of General Services, in 

the Administrator’s discretion and under regulations the Administrator may prescribe, may transfer property described in 

paragraph (2) to a state agency. 

(2) PROPERTY.— 

(A) IN GENERAL.—Property referred to in paragraph (1) 

is any personal property that— 

(i) is under the control of an executive agency; and 

(ii) has been determined to be surplus property. 

(B) SPECIAL RULE.—In determining whether the property 

is to be transferred for donation under this section, no distinction may be made between property capitalized in a 

working-capital fund established under section 2208 of 

title 10 (or similar fund) and any other property. 

(3) NO COST.—Transfer of property under this section is 

without cost, except for any costs of care and handling. 

(c) ALLOCATION AND TRANSFER OF PROPERTY.— (1) IN GENERAL.—The Administrator shall allocate and transfer property under this section in accordance with criteria that 

are based on need and use and that are established after consultation with state agencies to the extent feasible. The Administrator shall give fair consideration, consistent with the established criteria, to an expression of need and interest from a 

public agency or other eligible institution within a State. The 

Administrator shall give special consideration to an eligible recipient’s request, transmitted through the state agency, for a 

specific item of property. 

(2) ALLOCATION AMONG STATES.—The Administrator shall allocate property among the States on a fair and equitable basis, 

taking into account the condition of the property as well as the 

original acquisition cost of the property. 

(3) RECIPIENTS AND PURPOSES.—The Administrator shall 

transfer to a state agency property the state agency selects for 

distribution through donation within the State— 

(A) to a public agency for use in carrying out or promoting, for residents of a given political area, a public purpose, including conservation, economic development, education, parks and recreation, public health, and public 

safety; 

(B) for purposes of education or public health (including 

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tution or organization that is exempt from taxation under 

section 501 of the Internal Revenue Code of 1986 (26 

U.S.C. 501), including— 

(i) a medical institution, hospital, clinic, health center, or drug abuse treatment center; 

(ii) a provider of assistance to homeless individuals 

or to families or individuals whose annual incomes are 

below the poverty line (as that term is defined in section 673 of the Community Services Block Grant Act 

(42 U.S.C. 9902)); 

(iii) a school, college, or university; 

(iv) a school for the mentally retarded or physically 

handicapped; 

(v) a child care center; 

(vi) a radio or television station licensed by the Federal Communications Commission as an educational 

radio or educational television station; 

ø(vii) a museum attended by the public;¿ 

(vii) a museum attended by the public, and, for purposes of determining whether a museum is attended by 

the public, the Administrator shall consider a museum 

to be public if the nonprofit educational or public 

health institution or organization, at minimum, accedes to any request submitted for access during business hours; 

(viii) a library serving free all residents of a community, district, State, or region; or 

(ix) a historic light station as defined under section 

305101(4) of title 54, including a historic light station 

conveyed under section 305103 of title 54, notwithstanding the number of hours that the historic light 

station is open to the public; or 

(C) for purposes of providing services to veterans (as defined in section 101 of title 38), to an organization whose— 

(i) membership comprises substantially veterans; 

and 

(ii) representatives are recognized by the Secretary 

of Veterans Affairs under section 5902 of title 38. 

(4) EXCEPTION.—This subsection does not apply to property 

transferred under subsection (d). 

(d) DEPARTMENT OF DEFENSE PROPERTY.— 

(1) DETERMINATION.—The Secretary of Defense shall determine whether surplus personal property under the control of 

the Department of Defense is usable and necessary for educational activities which are of special interest to the armed 

services, including maritime academies, or military, naval, Air 

Force, or Coast Guard preparatory schools. 

(2) PROPERTY USABLE FOR SPECIAL INTEREST ACTIVITIES.—If 

the Secretary of Defense determines that the property is usable 

and necessary for educational activities which are of special interest to the armed services, the Secretary shall allocate the 

property for transfer by the Administrator to the appropriate 

state agency for distribution through donation to the educational activities. 


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18 

(3) PROPERTY NOT USABLE FOR SPECIAL INTEREST ACTIVI- TIES.—If the Secretary of Defense determines that the property 

is not usable and necessary for educational activities which are 

of special interest to the armed services, the property may be 

disposed of in accordance with subsection (c). 

(e) STATE PLAN OF OPERATION.— (1) IN GENERAL.—Before property may be transferred to a 

state agency, the State shall develop a detailed state plan of 

operation, in accordance with this subsection and with state 

law. 

(2) PROCEDURE.— (A) CONSIDERATION OF NEEDS AND RESOURCES.—In developing and implementing the state plan of operation, the 

relative needs and resources of all public agencies and 

other eligible institutions in the State shall be taken into 

consideration. The Administrator may consult with interested federal agencies to obtain their views concerning the 

administration and operation of this section. 

(B) PUBLICATION AND PERIOD FOR COMMENT.—The state 

plan of operation, and any major amendment to the plan, 

may not be filed with the Administrator until 60 days after 

general notice of the proposed plan or amendment has 

been published and interested persons have been given at 

least 30 days to submit comments. 

(C) CERTIFICATION.—The chief executive officer of the 

State shall certify and submit the state plan of operation 

to the Administrator. 

(3) REQUIREMENTS.— (A) STATE AGENCY.—The state plan of operation shall include adequate assurance that the state agency has— 

(i) the necessary organizational and operational authority and capability including staff, facilities, and 

means and methods of financing; and 

(ii) established procedures for accountability, internal and external audits, cooperative agreements, compliance and use reviews, equitable distribution and 

property disposal, determination of eligibility, and assistance through consultation with advisory bodies and 

public and private groups. 

(B) EQUITABLE DISTRIBUTION.—The state plan of operation shall provide for fair and equitable distribution of 

property in the State based on the relative needs and resources of interested public agencies and other eligible institutions in the State and their abilities to use the property. 

(C) MANAGEMENT CONTROL AND ACCOUNTING SYSTEMS.— 

The state plan of operation shall require, for donable property transferred under this section, that the state agency 

use management control and accounting systems of the 

same type as systems required by state law for stateowned property. However, with approval from the chief executive officer of the State, the state agency may elect to 

use other management control and accounting systems 

that are effective to govern the use, inventory control, accountability, and disposal of property under this section. 


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(D) RETURN AND REDISTRIBUTION FOR NON-USE.—The 

state plan of operation shall require the state agency to 

provide for the return and redistribution of donable property if the property, while still usable, has not been placed 

in use for the purpose for which it was donated within one 

year of donation or ceases to be used by the donee for that 

purpose within one year of being placed in use. 

(E) REQUEST BY RECIPIENT.—The state plan of operation 

shall require the state agency, to the extent practicable, to 

select property requested by a public agency or other eligible institution in the State and, if requested by the recipient, to arrange shipment of the property directly to the recipient. 

(F) SERVICE CHARGES.—If the state agency is authorized 

to assess and collect service charges from participating recipients to cover direct and reasonable indirect costs of its 

activities, the method of establishing the charges shall be 

set out in the state plan of operation. The charges shall be 

fair and equitable and shall be based on services the state 

agency performs, including screening, packing, crating, removal, and transportation. 

(G) TERMS, CONDITIONS, RESERVATIONS, AND RESTRIC- TIONS.— 

(i) IN GENERAL.—The state plan of operation shall 

provide that the state agency— 

(I) may impose reasonable terms, conditions, 

reservations, and restrictions on the use of property to be donated under subsection (c); and 

(II) shall impose reasonable terms, conditions, 

reservations, and restrictions on the use of a passenger motor vehicle and any item of property 

having a unit acquisition cost of $5,000 or more. 

(ii) SPECIAL LIMITATIONS.—If the Administrator 

finds that an item has characteristics that require special handling or use limitations, the Administrator 

may impose appropriate conditions on the donation of 

the property. 

(H) UNUSABLE PROPERTY.— (i) DISPOSAL.—The state plan of operation shall provide that surplus personal property which the state 

agency determines cannot be used by eligible recipients shall be disposed of— 

(I) subject to the disapproval of the Administrator within 30 days after notice to the Administrator, through transfer by the state agency to another state agency or through abandonment or destruction if the property has no commercial value 

or if the estimated cost of continued care and handling exceeds estimated proceeds from sale; or 

(II) under this subtitle, on terms and conditions 

and in a manner the Administrator prescribes. 

(ii) PROCEEDS FROM SALE.—Notwithstanding subchapter IV of this chapter and section 702 of this title, 

the Administrator, from the proceeds of sale of property described in subsection (b), may reimburse the 


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20 

state agency for expenses that the Administrator considers appropriate for care and handling of the property. 

(f) COOPERATIVE AGREEMENTS WITH STATE AGENCIES.— 

(1) PARTIES TO THE AGREEMENT.—For purposes of carrying 

out this section, a cooperative agreement may be made between a state surplus property distribution agency designated 

under this section and— 

(A) the Administrator; 

(B) the Secretary of Education, for property transferred 

under section 550(c) of this title; 

(C) the Secretary of Health and Human Services, for 

property transferred under section 550(d) of this title; or 

(D) the head of a federal agency designated by the Administrator, the Secretary of Education, or the Secretary of 

Health and Human Services. 

(2) SHARED RESOURCES.—The cooperative agreement may 

provide that the property, facilities, personnel, or services of— 

(A) a state agency may be used by a federal agency; and 

(B) a federal agency may be made available to a state 

agency. 

(3) REIMBURSEMENT.—The cooperative agreement may require payment or reimbursement for the use or provision of 

property, facilities, personnel, or services. Payment or reimbursement received from a state agency shall be credited to the 

fund or appropriation against which charges would otherwise 

be made. 

(4) SURPLUS PROPERTY TRANSFERRED TO STATE AGENCY.— 

(A) IN GENERAL.—Under the cooperative agreement, surplus property transferred to a state agency for distribution 

pursuant to subsection (c) may be retained by the state 

agency for use in performing its functions. Unless otherwise directed by the Administrator, title to the retained 

property vests in the state agency. 

(B) CONDITIONS.—Retention of surplus property under 

this paragraph is subject to conditions that may be imposed by— 

(i) the Administrator; 

(ii) the Secretary of Education, for property transferred under section 550(c) of this title; or 

(iii) the Secretary of Health and Human Services, 

for property transferred under section 550(d) of this 

title. 

* * * * * * * 

SUBCHAPTER IV—PROCEEDS FROM SALE OR TRANSFER 

§ 571. General rules for deposit and use of proceeds 

ø(a) DEPOSIT IN TREASURY AS MISCELLANEOUS RECEIPTS.— 

ø(1) IN GENERAL.—Except as otherwise provided in this subchapter, proceeds described in paragraph (2) shall be deposited 

in the Treasury as miscellaneous receipts. 

ø(2) PROCEEDS.—The proceeds referred to in paragraph (1) 

are proceeds under this chapter from a— 


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21 

ø(A) transfer of excess property to a federal agency for 

agency use; or 

ø(B) sale, lease, or other disposition of surplus property. 

ø(b) PAYMENT OF EXPENSES OF SALE BEFORE DEPOSIT.—Subject 

to regulations under this subtitle, the expenses of the sale of old 

material, condemned stores, supplies, or other public property may 

be paid from the proceeds of sale so that only the net proceeds are 

deposited in the Treasury. This subsection applies whether proceeds are deposited as miscellaneous receipts or to the credit of an 

appropriation as authorized by law.¿ 

(a) PROCEEDS FROM TRANSFER OR SALE OF REAL PROPERTY.— 

(1) DEPOSIT OF NET PROCEEDS.—Net proceeds described in 

subsection (c) shall be deposited into the appropriate real property account of the agency that had custody and accountability 

for the real property at the time the real property is determined 

to be excess. 

(2) EXPENDITURE OF NET PROCEEDS.—The net proceeds deposited pursuant to paragraph (1) may only be expended, as authorized in annual appropriations Acts, for activities described 

in sections 543 and 545, including paying costs incurred by the 

General Services Administration for any disposal-related activity authorized by this chapter. 

(3) DEFICIT REDUCTION.—Any net proceeds described in subsection (c) from the sale, lease, or other disposition of surplus 

real property that are not expended under paragraph (2) shall 

be used for deficit reduction. 

(b) EFFECT ON OTHER SECTIONS.—Nothing in this section is intended to affect section 572(b), 573, or 574. 

(c) NET PROCEEDS.—The net proceeds described in this subsection 

are proceeds under this chapter, less expenses of the transfer or disposition as provided in section 572(a), from a— 

(1) transfer of excess real property to a Federal agency for 

agency use; or 

(2) sale, lease, or other disposition of surplus real property. 

(d) PROCEEDS FROM TRANSFER OR SALE OF PERSONAL PROPERTY.— 

(1) IN GENERAL.—Except as otherwise provided in this subchapter, proceeds described in paragraph (2) shall be deposited 

in the Treasury as miscellaneous receipts. 

(2) PROCEEDS.—The proceeds described in this paragraph are 

proceeds under this chapter from— 

(A) a transfer of excess personal property to a Federal 

agency for agency use; or 

(B) a sale, lease, or other disposition of surplus personal 

property. 

(3) PAYMENT OF EXPENSES OF SALE BEFORE DEPOSIT.—Subject to regulations under this subtitle, the expenses of the sale 

of personal property may be paid from the proceeds of sale so 

that only the net proceeds are deposited in the Treasury. This 

paragraph applies whether proceeds are deposited as miscellaneous receipts or to the credit of an appropriation as authorized 

by law. 

* * * * * * * 


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SUBTITLE II—PUBLIC BUILDINGS AND WORKS 

* * * * * * * 

PART A—GENERAL 

* * * * * * * 

CHAPTER 33—ACQUISITION, CONSTRUCTION, AND 

ALTERATION 

* * * * * * * 

§ 3307. Congressional approval of proposed projects 

(a) RESOLUTIONS REQUIRED BEFORE APPROPRIATIONS MAY BE

MADE.—The following appropriations may be made only if the 

Committee on Environment and Public Works of the Senate and 

the Committee on Transportation and Infrastructure of the House 

of Representatives adopt resolutions approving the purpose for 

which the appropriation is made: 

(1) An appropriation to construct, alter, or acquire any building to be used as a public building which involves a total expenditure in excess of $1,500,000, so that the equitable distribution of public buildings throughout the United States with 

due regard for the comparative urgency of need for the buildings, except as provided in section 3305(b) of this title, is ensured. 

(2) An appropriation to lease any space at an average annual rental in excess of $1,500,000 for use for public purposes. 

(3) An appropriation to alter any building, or part of the 

building, which is under lease by the Federal Government for 

use for a public purpose if the cost of the alteration will exceed 

$750,000. 

(b) TRANSMISSION TO CONGRESS OF PROSPECTUS OF PROPOSED

PROJECT.—To secure consideration for the approval referred to in 

subsection (a), the Administrator of General Services shall transmit 

to Congress a prospectus of the proposed facility, including— 

(1) a brief description of the building to be constructed, altered, or acquired, or the space to be leased, under this chapter; 

(2) the location of the building or space to be leased and an 

estimate of the maximum cost to the Government of the facility 

to be constructed, altered, or acquired, or the space to be 

leased; 

(3) a comprehensive plan for providing space for all Government officers and employees in the locality of the proposed facility or the space to be leased, having due regard for suitable 

space which may continue to be available in existing Government-owned or occupied buildings, especially those buildings 

that enhance the architectural, historical, social, cultural, and 

economic environment of the locality; 

(4) with respect to any project for the construction, alteration, or acquisition of any building, a statement by the Administrator that suitable space owned by the Government is 

not available and that suitable rental space is not available at 


SSpencer on DSK4SPTVN1PROD with REPORTS
23 

a price commensurate with that to be afforded through the proposed action; 

(5) a statement by the Administrator of the economic and 

other justifications for not acquiring a building identified to the 

Administrator under section 3303(c) of this title as suitable for 

the public building needs of the Government; 

(6) a statement of rents and other housing costs currently 

being paid by the Government for federal agencies to be 

housed in the building to be constructed, altered, or acquired, 

or the space to be leased; øand¿ 

(7) with respect to any prospectus for the construction, alteration, or acquisition of any building or space to be leased, an 

estimate of the future energy performance of the building or 

space and a specific description of the use of energy efficient 

and renewable energy systems, including photovoltaic systems, 

in carrying out the projectø.¿; and 

(8) a statement of how the proposed project is consistent with 

the standards and criteria developed under section 11(b) of the 

Federal Assets Sale and Transfer Act of 2016. 

(c) INCREASE OF ESTIMATED MAXIMUM COST.—The estimated 

maximum cost of any project approved under this section as set 

forth in any prospectus may be increased by an amount equal to 

any percentage increase, as determined by the Administrator, in 

construction or alteration costs from the date the prospectus is 

transmitted to Congress. The increase authorized by this subsection may not exceed 10 percent of the estimated maximum cost. 

(d) RESCISSION OF APPROVAL.—If an appropriation is not made 

within one year after the date a project for construction, alteration, 

or acquisition is approved under subsection (a), the Committee on 

Environment and Public Works of the Senate or the Committee on 

Transportation and Infrastructure of the House of Representatives 

by resolution may rescind its approval before an appropriation is 

made. 

(e) EMERGENCY LEASES BY THE ADMINISTRATOR.—This section 

does not prevent the Administrator from entering into emergency 

leases during any period declared by the President to require emergency leasing authority. An emergency lease may not be for more 

than 180 days without approval of a prospectus for the lease in accordance with subsection (a). 

(f) MINIMUM PERFORMANCE REQUIREMENTS FOR LEASED SPACE.— 

With respect to space to be leased, the Administrator shall include, 

to the maximum extent practicable, minimum performance requirements requiring energy efficiency and the use of renewable energy. 

(g) LIMITATION ON LEASING CERTAIN SPACE.— 

(1) IN GENERAL.—The Administrator may not lease space to 

accommodate any of the following if the average rental cost of 

leasing the space will exceed $1,500,000: 

(A) Computer and telecommunications operations. 

(B) Secure or sensitive activities related to the national 

defense or security, except when it would be inappropriate 

to locate those activities in a public building or other facility identified with the Government. 

(C) A permanent courtroom, judicial chamber, or administrative office for any United States court. 


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24 

(2) EXCEPTION.—The Administrator may lease space with respect to which paragraph (1) applies if the Administrator— 

(A) decides, for reasons set forth in writing, that leasing 

the space is necessary to meet requirements which cannot 

be met in public buildings; and 

(B) submits the reasons to the Committee on Environment and Public Works of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives. 

(h) DOLLAR AMOUNT ADJUSTMENT.—The Administrator annually 

may adjust any dollar amount referred to in this section to reflect 

a percentage increase or decrease in construction costs during the 

prior calendar year, as determined by the composite index of construction costs of the Department of Commerce. Any adjustment 

shall be expeditiously reported to the Committee on Environment 

and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 

* * * * * * * 

MCKINNEY-VENTO HOMELESS ASSISTANCE ACT 

* * * * * * * 

TITLE V—IDENTIFICATION AND USE OF 

SURPLUS FEDERAL PROPERTY 

SEC. 501. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND REAL PROPERTY TO ASSIST THE HOMELESS. 

(a) IDENTIFICATION OF SUITABLE PROPERTY.—The Secretary of 

Housing and Urban Development shall, on a quarterly basis, request information from each landholding agency regarding Federal 

public buildings and other Federal real properties (including fixtures) that are excess property or surplus property or that are described as unutilized or underutilized in surveys by the heads of 

landholding agencies under section 202(b)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483(b)(2)). 

No later than 25 days after receiving a request from the Secretary, 

the head of each landholding agency shall transmit such information to the Secretary. No later than 30 days after receiving such 

information, the Secretary shall identify which of those buildings 

and other properties are suitable for use to assist the homeless. 

(b) AVAILABILITY OF PROPERTY.—(1) The Secretary shall promptly 

notify each Federal agency with respect to any property of that 

agency that the Secretary has identified under subsection (a). No 

later than 45 days after receipt of such a notice, the head of the 

appropriate landholding agency shall transmit to the Secretary the 

agency’s response to property identifications contained in such notification, which shall include— 

(A) in the case of unutilized or underutilized property— 

(i) a statement of intention to determine the property excess to the agency’s needs; 

(ii) a statement of intention to make the property available for use to assist the homeless; or 


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25 

(iii) a statement of the reasons (including a full explanation of the need) the property cannot be determined excess to the agency’s needs or made available for use to assist the homeless; and 

(B) in the case of excess property— 

(i) a statement that there is no other compelling Federal 

need for the property and, therefore, the property will be 

determined surplus; or 

(ii) a statement that there is further and compelling 

Federal need for the property (including a full explanation 

of such need) and that, therefore, the property is not presently available for use to assist the homeless. 

(2) ø(A)¿ All properties identified by the Secretary under subsection (a) shall be available for application— 

ø(i)¿ (A) in the case of property other than surplus property, 

for use to assist the homeless in accordance with the provisions 

of this section; øand¿ 

ø(ii)¿ (B) in the case of surplus property, for use to assist the 

homeless either in accordance with this section or as a public 

health use in accordance with paragraphs (1) and (4) of section 

203(k) of the Federal Property and Administrative Services Act 

of 1949 (40 U.S.C. 484(k) (1) and (4))ø.¿; and 

(C) in the case of surplus property, the provision of permanent 

housing with or without supportive services is an eligible use to 

assist the homeless under this section. 

(3) The Secretary shall maintain a written public record of— 

(A) the identification of buildings and other properties by the 

Secretary under this subsection and the reasons for such identifications; and 

(B) the responses of landholding agencies to such identifications. 

(c) PUBLICATION OF PROPERTIES.—(1)(A) No later than 15 days 

after the last day of the 45-day period provided for under subsection (b)(1), the Secretary shall publish øin the Federal Register¿ 

on the Web site of the Department of Housing and Urban Development or the General Services Administration— 

(i) a list of all properties reviewed by the Secretary under 

subsection (a); and 

(ii) a list of all properties that are available under subsection 

(b)(2) for application for use to assist the homeless. 

(B) Each publication of properties shall include a description and 

the location of each property (including the address and zip code) 

and the current classification of each property as unutilized, underutilized, excess property, or surplus property. 

(C) The Secretary shall make available to the public upon request all information in the possession of the Department of Housing and Urban Development (other than valuation information), regardless of format, about all properties reviewed and not identified 

as being suitable for use to assist the homeless, including the reasons such properties were not so identified. 

(D) The Secretary shall publish separately, on an annual basis, 

all properties identified as being suitable for use to assist the 

homeless, but reported to be unavailable, and the reasons such 

properties were unavailable. 


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26 

(2)(A) No later than 15 days after the last day of the 45-day period provided for under subsection (b)(1), the Secretary shall transmit a copy of the list of available properties published under paragraph (1)(A)(ii) to the United States Interagency Council on Homelessness. The Council shall immediately distribute to all State and 

regional homeless coordinators area-relevant portions of the list. 

(B) The Secretary, the Administrator, and the Secretary of 

Health and Human Services shall make such efforts as are necessary to ensure the widest possible dissemination of the information on such list. 

(C) The Secretary shall establish a toll-free number to provide 

the public with specific information about properties on such list. 

(3) The Secretary shall make available to the public upon request 

all information (other than valuation information) regardless of format in the possession of the Department of Housing and Urban Development about the properties published under paragraph (1)(A), 

including environmental assessment data. The Secretary shall 

maintain a current list of agency contacts for making referrals of 

inquiries for information about specific properties. 

(4)(A) On December 31 of each year, the head of each landholding agency shall report to the Secretary the current availability 

status and the current classification of each property controlled by 

the agency, that— 

(i) was included in a list published in that year by the Secretary under paragraph (1)(A)(ii); and 

(ii) remains available for application for use to assist the 

homeless or has become available for application during that 

year. 

(B) No later than February 15 each year, the Secretary shall 

publish in the Federal Register a list of all properties reported 

under subparagraph (A) for the preceding year and the current 

classification of the properties. 

(C) For purposes of subparagraph (A), property shall not be considered to remain available for application for use to assist the 

homeless after the 60-day holding period provided under subsection 

(d) if— 

(i) an application for or written expression of interest in the 

property is made under any law for use of the property for any 

purpose; or 

(ii) the Administrator receives a bona fide offer to purchase 

the property or advertises for the sale of the property by public 

auction. 

(d) HOLDING PERIOD.—(1) Properties published under subsection 

(c)(1)(A)(ii) as available for application for use to assist the homeless shall not be available for any other purpose for a øperiod of 

60 days¿ period of 30 days beginning on the date of such publication. 

(2) If written notice of intent to apply for such a property for use 

to assist the homeless is received by the Secretary of Health and 

Human Services within the ø60-day period¿ 30-day period described under paragraph (1), such property may not be made available for any other purpose until the date the Secretary of Health 

and Human Services or other appropriate landholding agency has 

completed action on the application submitted under subsection (e) 

with respect to that written notice of intent. 


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27 

(3) Property that is reviewed by the Secretary under subsection 

(a) and that is not identified by the Secretary as being suitable for 

use to assist the homeless may not be made available for any other 

purpose for 20 days after the determination of unsuitability to 

allow for review of the determination at the request of the representative of the homeless. The Secretary shall disseminate immediately this information to the regional offices of the Department 

of Housing and Urban Development and to the United States Interagency Council on Homelessness. If no such review of the determination is requested within the 20-day period, such property will 

not be included in subsequent publications unless the landholding 

agency makes changes to the property (e.g. improvements) that may 

change the unsuitable determination and the Secretary subsequently 

determines the property is suitable. 

(4)(A) Written notice of intent to apply for a property published 

under subsection (c)(1)(A)(ii) may be filed at any time after the ø60- 

day period¿ 30-day period described in paragraph (1) has expired. 

In such case, an application submitted pursuant to the notice may 

be approved for disposal for use to assist the homeless only if the 

property remains available for application for use to assist the 

homeless. If the property remains available, the use to assist the 

homeless shall be given priority of consideration over other competing disposal opportunities under section 203 of the Federal 

Property and Administratives Services Act of 1949 (40 U.S.C. 484), 

except as provided in subsection (f)(3)(A). 

(B) Surplus property for which an application has been approved 

shall be assigned promptly to the Secretary of Health and Human 

Services for disposition in accordance with and subject to subsection (f). 

(e) APPLICATION FOR PROPERTY.—(1) A representative of the 

homeless may submit an application to the Secretary of Health and 

Human Services for any property that is published under subsection (c)(1)(A)(ii) as available for application for use to assist the 

homeless. 

(2)(A) No later than ø90 days¿ 75 days after the submission of 

written notice of intent to apply for a property, an applicant shall 

submit øa complete application¿ an initial application to the Secretary of Health and Human Services. The Secretary of Health and 

Human Services shall, with the concurrence of the appropriate 

landholding agency, grant reasonable extensions. 

(B) An initial application shall set forth— 

(i) the services that will be offered; 

(ii) the need for the services; and 

(iii) the experience of the applicant that demonstrates the 

ability to provide the services. 

(3) No later than ø25 days after receipt of a completed application¿ 10 days after receipt of an initial application , the Secretary 

of Health and Human Services shall review, make all determinations, and complete all actions on the application. The Secretary of 

Health and Human Services shall maintain a written public record 

of all actions taken in response to an application. 

(4) If the Secretary of Health and Human Services approves an 

initial application, the applicant has 45 days in which to provide 

a final application that sets forth a reasonable plan to finance the 

approved program. 


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28 

(5) No later than 15 days after receipt of the final application, the 

Secretary of Health and Human Services shall review, make a final 

determination, and complete all actions on the final application. 

The Secretary of Health and Human Services shall maintain a public record of all actions taken in response to an application. 

(f) MAKING PROPERTY AVAILABLE TO REPRESENTATIVES OF THE

HOMELESS.—(1) Subject to the provisions of this subsection, property for which the Secretary of Health and Human Services has approved an application under subsection (e) shall be made promptly 

øavailable by¿ available, at the applicant’s discretion, by permit or 

lease, or by deed as a public health use under paragraphs (1) and 

(4) of section 203(k) of the Federal Property and Administrative 

Services Act of 1949 (40 U.S.C. 484(k) (1) and (4)), to the representative of the homeless that submitted the application. 

(2) Unutilized or underutilized property that is the subject of an 

agency’s statement of intention under subsection (b)(1)(A)(ii) shall 

be made promptly available by the appropriate landholding agency 

to the approved applicant by lease or permit for a term of not less 

than 1 year, unless the applicant requests a shorter term. 

(3)(A) In disposing of surplus property by deed or lease under 

section 203 of the Federal Property and Administrative Services 

Act of 1949 (40 U.S.C. 484), the Administrator and the Secretary 

of Health and Human Services shall give priority of consideration 

to uses to assist the homeless, unless the Administrator or the Secretary of Health and Human Services determines that a competing 

request for the property under section 203(k) of such Act is so meritorious and compelling as to outweigh the needs of the homeless. 

(B) Whenever the Administrator or the Secretary of Health and 

Human Services makes a determination under subparagraph (A), 

the Administrator or the Secretary of Health and Human Services 

shall transmit to the appropriate committees of the Congress an 

explanatory statement detailing the need satisfied by conveyance of 

the surplus property and the reasons for determining that such 

need was so meritorious and compelling as to outweigh the needs 

of the homeless. 

(4) For any property made available by lease to a representative 

of the homeless before the date of the enactment of the Stewart B. 

McKinney Homeless Assistance Amendments Act of 1990, the Secretary of Health and Human Services may, upon written request 

by the representative, convey such property by deed to the representative in accordance with, and subject to the requirements of, 

section 203(k) of the Federal Property and Administrative Services 

Act of 1949 (40 U.S.C. 484(k)). The lease term shall not be affected 

if a deed is not granted. 

(g) RECORDS.—The Secretary shall maintain a written public 

record of— 

(1) the reasons for determinations of the Secretary under 

this section that property is suitable or unsuitable for use to 

assist the homeless; and 

(2) the responses of landholding agencies under subsection 

(b)(1). 

(h) APPLICABILITY TO PROPERTY UNDER BASE CLOSURE PROC- ESS.—(1) The provisions of this section shall not apply to buildings 

and property at military installations that are approved for closure 

under the Defense Base Closure and Realignment Act of 1990 (part 


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29 

A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note) after 

the date of the enactment of this subsection. 

(2) For provisions relating to the use to assist the homeless of 

buildings and property located at certain military installations approved for closure under such Act, or under title II of the Defense 

Authorization Amendments and Base Closure and Realignment Act 

(Public Law 100–526; 10 U.S.C. 2687 note), before such date, see 

section 2(e) of Base Closure Community Redevelopment and Homeless Assistance Act of 1994. 

(i) DEFINITIONS.—For purposes of this section— 

(1) the term ‘‘Administrator’’ means the Administrator of 

General Services; 

(2) each of the terms ‘‘excess property’’ and ‘‘surplus property’’ has the meaning given that term under section 3 of the 

Federal Property and Administrative Services Act of 1949 (40 

U.S.C. 472); 

(3) the term ‘‘landholding agency’’ means a Federal department or agency with statutory authority to control real property; 

(4) the term ‘‘representative of the homeless’’ means a State 

or local government agency, or private nonprofit organization, 

which provides services to the homeless; and 

(5) the term ‘‘Secretary’’ means the Secretary of Housing and 

Urban Development, except as otherwise provided. 

* * * * * * * 

Æ 


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