69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–651 

FEDERAL REAL PROPERTY DISPOSAL ENHANCEMENT 

ACT OF 2008 

MAY 15, 2008.—Committee to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. WAXMAN, from the Committee on Oversight and Government 

Reform, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 5787] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Oversight and Government Reform, to whom 

was referred the bill (H.R. 5787) to amend title 40, United States 

Code, to enhance authorities with regard to real property that has 

yet to be reported excess, and for other purposes, having considered 

the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 5 

Background and Need for Legislation .................................................................... 5 

Legislative History .................................................................................................. 6 

Section-by-Section .................................................................................................... 6 

Explanation of Amendments ................................................................................... 6 

Committee Consideration ........................................................................................ 7 

Rollcall Votes ............................................................................................................ 7 

Application of Law to the Legislative Branch ....................................................... 7 

Statement of Oversight Findings and Recommendations of the Committee ...... 7 

Statement of General Performance Goals and Objectives .................................... 7 

Constitutional Authority Statement ...................................................................... 7 

Federal Advisory Committee Act ............................................................................ 8 

Unfunded Mandates Statement .............................................................................. 8 

Earmark Identification ............................................................................................ 8 

Budget Authority and Congressional Budget Office Cost Estimate .................... 8 

Changes in Existing Law Made by the Bill, as Reported ..................................... 10 


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Additional Views ...................................................................................................... 17 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Federal Real Property Disposal Enhancement Act 

of 2008’’. 

SEC. 2. FINDINGS AND PURPOSES. 

(a) FINDINGS.—Congress finds the following: 

(1) In January 2003, the Government Accountability Office identified Federal real 

property as a high¥risk area, citing excess property as a long¥standing problem. 

(2) The magnitude of the problem with excess Federal real property continues to 

put the government at risk for lost dollars and missed opportunities. 

(3) The Administration has stated its goal is to reduce the 

size of the Federal real property inventory by 5 percent, or $15 

billion, by disposing of unneeded assets by 2015. 

(4) The Federal inventory includes many properties that are 

no longer relevant to agencies’ missions and agencies are 

spending billions of dollars to maintain these unneeded properties. 

(5) The costs of preparing a property for transfer or sale continue to hamper some agencies’ efforts to address their 

unneeded properties and serve as a disincentive to disposal because, in the short¥term, it can be more beneficial economically to maintain a property that is not being used than to dispose of it. 

(6) Agencies should give greater attention to right¥sizing 

their real property portfolios. 

(b) PURPOSE.—The purpose of this Act is to reduce the Federal 

inventory of unneeded and costly property. 

SEC. 3. DUTIES OF THE GENERAL SERVICES ADMINISTRATION AND 

EXECUTIVE AGENCIES. 

(a) IN GENERAL.—Section 524 of title 40, United States Code, is 

amended to read as follows: 

‘‘§ 524. Duties of the General Services Administration and 

executive agencies 

‘‘(a) DUTIES OF THE GENERAL SERVICES ADMINISTRATION.—

‘‘(1) GUIDANCE.—The Administrator shall issue guidance for 

the development and implementation of agency real property 

plans. Such guidance shall include recommendations on—

‘‘(A) how to identify excess properties; 

‘‘(B) how to evaluate the costs and benefits involved with 

disposing of real property; 

‘‘(C) how to prioritize disposal decisions based on agency 

missions and anticipated future need for holdings; and 

‘‘(D) how best to dispose of those properties identified as 

excess to the needs of the agency. 

‘‘(2) ANNUAL REPORT.—The Administrator shall submit an 

annual report, for each of the first 5 years after 2008, to the 

Committee on Oversight and Government Reform of the House 

of Representatives and the Committee on Homeland Security 

and Governmental Affairs of the Senate, based on data submitted from all executive agencies, detailing executive agency 

efforts to reduce their real property assets. 


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‘‘(3) ASSISTANCE.—The Administrator shall assist executive 

agencies in the identification and disposal of excess real property. 

‘‘(b) DUTIES OF EXECUTIVE AGENCIES.—

‘‘(1) IN GENERAL.—Each executive agency shall—

‘‘(A) maintain adequate inventory controls and accountability systems for property under its control; 

‘‘(B) continuously survey property under its control to 

identify excess property; 

‘‘(C) promptly report excess property to the Administrator; 

‘‘(D) perform the care and handling of excess property; 

and 

‘‘(E) transfer or dispose of excess property as promptly as 

possible in accordance with authority delegated and regulations prescribed by the Administrator. 

‘‘(2) SPECIFIC REQUIREMENTS WITH RESPECT TO REAL PROPERTY.—With respect to real property, each executive agency 

shall—

‘‘(A) develop and implement a real property plan in order 

to identify properties to declare as excess using the guidance issued under subsection (a)(1); 

‘‘(B) identify and categorize all real property owned, 

leased, or otherwise managed by the agency; 

‘‘(C) establish adequate goals and incentives that lead 

the agency to reduce excess real property in its inventory; 

‘‘(D) when appropriate, use the authorities in section 

572(a)(2)(B) of this title in order to identify and prepare 

real property to be reported as excess. 

‘‘(3) ADDITIONAL REQUIREMENTS.—Each executive agency, as 

far as practicable, shall—

‘‘(A) reassign property to another activity within the 

agency when the property is no longer required for the 

purposes of the appropriation used to make the purchase; 

‘‘(B) transfer excess property under its control to other 

Federal agencies and to organizations specified in section 

321(c)(2) of this title; and 

‘‘(C) obtain excess properties from other Federal agencies 

to meet mission needs before acquiring non¥Federal property.’’. 

(b) CLERICAL AMENDMENT.—The item relating to section 524 in 

the table of sections at the beginning of chapter 5 of such title is 

amended to read as follows: 

‘‘524. Duties of the General Services Administration and executive agencies.’’. 

SEC. 4. ENHANCED AUTHORITIES WITH REGARD TO PREPARING PROPERTIES TO BE REPORTED AS EXCESS. 

Section 572(a)(2) of title 40, United States Code, is amended—

(1) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), 

respectively; and 

(2) by inserting after subparagraph (A) the following new subparagraph: 

‘‘(B) ADDITIONAL AUTHORITY.—(i) From the fund described in paragraph 

(1), subject to clause (iv), the Administrator may obligate an amount to pay 

the direct and indirect costs related to identifying and preparing properties 

to be reported excess by another agency. 

‘‘(ii) The General Services Administration may be reimbursed from the 

proceeds of the sale of such properties for such costs. 

‘‘(iii) Net proceeds shall be dispersed pursuant to section 571 of this title. 


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‘‘(iv) The authority under clause (i) to obligate funds to prepare properties 

to be reported excess does not include the authority to convey such properties by sale, lease, exchange, or otherwise, including through leaseback 

arrangements. 

‘‘(v) Nothing in this subparagraph is intended to affect subparagraph 

(D).’’. 

SEC. 5. ENHANCED AUTHORITIES WITH REGARD TO REVERTED REAL PROPERTY. 

(a) AUTHORITY TO PAY EXPENSES RELATED TO REVERTED REAL PROPERTY.—Section 572(a)(2)(A) of title 40, United States Code, is amended by adding at the end 

the following: 

‘‘(iv) The direct and indirect costs associated with the reversion, custody, and disposal of reverted real property.’’. 

(b) REQUIREMENTS RELATED TO SALES OF REVERTED PROPERTY UNDER SECTION

550.—Section 550(b)(1) of title 40, United States Code, is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(1) IN GENERAL.—’’; and 

(2) by adding at the end the following: ‘‘If the official, in consultation with 

the Administrator, recommends reversion of the property, the Administrator 

shall take control of such property, and, subject to subparagraph (B), sell it at 

fair market value for cash and not by lease, exchange, or leaseback arrangements. 

‘‘(B) Prior to sale, the Administrator shall make such property available to 

State and local governments and certain non¥profit institutions or organizations pursuant to this section and sections 553 and 554 of this title.’’. 

(c) REQUIREMENTS RELATED TO SALES OF REVERTED PROPERTY UNDER SECTION

553.—Section 553(e) of title 40, United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; and 

(2) by adding at the end the following: ‘‘If the Administrator determines that 

reversion of the property is necessary to enforce compliance with the terms of 

the conveyance, the Administrator shall take control of such property and, subject to paragraph (2), sell it at fair market value for cash and not by lease, exchange, or leaseback arrangements. 

‘‘(2) Prior to sale, the Administrator shall make such property available to State 

and local governments and certain non¥profit institutions or organizations pursuant to this section and sections 550 and 554 of this title.’’. 

(d) REQUIREMENTS RELATED TO SALES OF REVERTED PROPERTY UNDER SECTION

554.—Section 554(f) of title 40, United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; and 

(2) by adding at the end the following: ‘‘If the Secretary, in consultation with 

the Administrator, recommends reversion of the property, the Administrator 

shall take control of such property and, subject to paragraph (2), sell it at fair 

market value for cash and not by lease, exchange, or leaseback arrangements. 

‘‘(2) Prior to sale, the Administrator shall make such property available to State 

and local governments and certain non¥profit institutions or organizations pursuant to this section and sections 550 and 553 of this title.’’. 

SEC. 6. AGENCY RETENTION OF PROCEEDS. 

The text of section 571 of title 40, United States Code, is amended to read as follows: 

‘‘(a) DEPOSIT OF PROCEEDS.—Proceeds described in subsection (d) shall be deposited into the appropriate real property account of the agency that had custody and 

accountability for the real property. Such funds shall be expended only as authorized in annual appropriations Acts and only for activities as described in section 

524(b) of this title and disposal activities, including paying costs incurred by the 

General Services Administration for any disposal¥related activity authorized by 

this title. Proceeds shall not be expended for activities or projects subject to the requirements of section 3307 of this title. 

‘‘(b) EFFECT ON OTHER SECTIONS.—Nothing in this section is intended to affect 

section 572(b) or 574 of this title. 

‘‘(c) DISPOSAL AGENCY FOR REVERTED PROPERTY.—For the purposes of this section, 

the General Services Administration, as the disposal agency, shall be treated as the 

agency with custody and accountability for properties which revert to the United 

States under sections 550, 553, and 554 of this title. 

‘‘(d) PROCEEDS.—The proceeds referred to in subsection (a) are proceeds under this 

chapter from a—

‘‘(1) transfer of excess property to a federal agency for agency use; or 

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


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1 40 U.S.C. § 572(a). Section 572(b) governs real property under the control of a military department, which follows different procedures. 2 U.S. Government Accountability Office, Statement of Mark L. Goldstein, Director, Physical 

Infrastructure, Federal Real Property: An Update on High¥Risk Issues (May 24, 2007) (GAO–

07–895T). 

3Subcommittee on Government Management, Organization, and Procurement, Testimony of 

Acting Comptroller Daniel Werfel, Hearing on Pending Legislation, 110th Cong. (Apr. 15, 2008). 4 Executive Office of the President, Office of Management and Budget, Response to Sectio 408 

of Public Law 109–396 (June 15, 2007) (originally cited in Congressional Research Service, Surplus Federal Property (Nov. 14, 2007)). 

PURPOSE AND SUMMARY

H.R. 5787, the Federal Real Property Disposal Act, was introduced by Reps. Dennis Moore and John J. Duncan, Jr., on April 14, 

2008. The bill allows all agencies to retain net proceeds from the 

sale of surplus property, authorizes the General Services Administration (GSA) to assist agencies in preparing properties to be reported excess, and provides additional authority to GSA to dispose 

of property that has reverted back to the federal government from 

previous sales. 

BACKGROUND AND NEED FOR LEGISLATION

Under existing law, funds from the sale of surplus real and related personal property by GSA are placed in a fund within the 

Treasury. From this fund, the Administrator for General Services 

deducts payments for some of the costs associated with selling the 

property, including appraisal, auctioning, surveying, advertising, 

and environmental inspection. In a fiscal year, these costs cannot 

exceed 12% of the proceeds from the sales of the property.1

The agencies controlling the property must pay the costs of actually preparing the property for sale, including environmental cleanup, demolition, and historical preservation. General Accounting Office has reported that these costs discourage agencies from disposing of surplus property.2 The Office of Management and Budget 

(OMB) agrees with this assessment. In testimony before the Subcommittee on Government Management, Organization, and Procurement, Deputy Comptroller Daniel Werfel stated: 

Many agencies do not have authority to retain proceeds 

from the sale of real property assets, nor do they receive 

reimbursement for cost incurred to sell a property, such as 

advertising and cleanup. Consequently, agencies often lack 

the resources needed to sell or dispose of properties and 

are unable to avoid annual costs that are incurred when 

properties are maintained past their point of usefulness. 

Allowing agencies to be reimbursed for selling costs and to 

retain sale proceeds would provide agencies with the funds 

necessary to cover upfront costs associated with disposing 

of unneeded assets.3

According to OMB, federal agencies ‘‘reported 18,393 excess assets with a replacement value of approximately $13.8 billion. Agencies also reported 3,409 assets as surplus with a replacement value 

of approximately $3.9 billion.’’ 4

H.R. 5787, the Federal Real Property Disposal Enhancement Act, 

allows agencies to retain all of the proceeds from the sale of surplus property instead of depositing them in the Treasury. The 

agencies may only use these funds for real property disposal activiVerDate Aug 31 2005 00:05 May 17, 2008 Jkt 069006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR651.XXX HR651

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ties, subject to appropriations. The bill also allows GSA to use its 

funds to prepare properties to be reported excess. The bill does not 

make any changes to existing authorities to transfer unused property to other federal agencies or make surplus property available 

to other entities for designated public uses. 

LEGISLATIVE HISTORY

H.R. 5787, the Federal Real Property Disposal Act, was introduced by Reps. Dennis Moore and John J. Duncan, Jr., on April 14, 

2008, and was referred to the Committee on Oversight and Government Reform. 

The Subcommittee on Government Management, Organization, 

and Procurement held a hearing on H.R. 5787 on April 15, 2008. 

The witnesses were Daniel Werfel, Acting Comptroller, Federal Financial Management, Office of Management and Budget; and Stan 

Kaczmarczyk, Acting Deputy Associate Administrator, Office of 

Governmentwide Policy, General Services Administration. 

The Committee held a business meeting to consider H.R. 5787 on 

May 1, 2008, and ordered the bill, as amended, to be favorably reported by voice vote. 

SECTION-BY-SECTION

Section 1: Short title 

The short title of the bill is the Federal Real Property Disposal 

Enhancement Act of 2008. 

Section 2: Enhanced authorities with regard to preparing properties 

to be reported as excess 

This section authorizes the Administrator of GSA to obligate 

funds to pay the direct and indirect costs of preparing properties 

controlled by other federal agencies to be declared excess. It also 

allows GSA to be reimbursed for such costs from the proceeds of 

the sale of the property. 

Section 3: Enhanced authorities with regard to reverted real property 

This section modifies provisions of existing law to make clear 

that when a property has been transferred to a nonprofit organization or a state or local government for a public purpose, and that 

public purpose is no longer being met, the property must revert to 

the federal government, which must dispose of it. 

Sec. 4: Agency retention of proceeds 

This section permits federal agencies to retain the proceeds from 

the sale of federal surplus properties. These proceeds will be used 

for disposal activities such as developing and implementing a plan 

to identify and declare properties excess, appraisals, utilization 

studies, and lifecycle planning. These proceeds will not be used for 

any project subject to section 3307 of title 40. 

EXPLANATION OF AMENDMENTS

Three amendments to the bill were offered during the Committee’s consideration of the bill. Rep. Waxman offered an amendment 


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in the nature of a substitute to the bill that added findings and 

purposes to the bill. It also added a requirement that the Administrator issue guidance for the development and implementation of 

agency real property plans and for agencies to maintain adequate 

inventory controls for property, promptly report excess property to 

the Administrator, and develop real property plans. The amendment was adopted by the Committee. 

Rep. Davis offered two amendments to the bill, neither of which 

was adopted. The first would have established a pilot program at 

OMB for an expedited property disposal process. The second, which 

was offered and withdrawn, would have permitted GSA to use its 

funds to renovate property it is currently using to make changes 

to meet needs of the Department of Defense, and to transfer that 

property to the Department of Defense. 

COMMITTEE CONSIDERATION

On Thursday, May 1, 2008, the Committee met in open session 

and favorably ordered H.R. 5787 to be reported, as amended, to the 

House by a voice vote. 

ROLLCALL VOTES

No rollcall votes were held. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to terms and conditions of employment or access to public 

services and accommodations. The bill does not relate to employment or access to public services and accommodations. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report including the finding that 

unneeded buildings are in the federal inventory. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report, including improving the efficient disposal of surplus federal property. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress to enact the law proposed 

by H.R. 5787. Article I, Section 8, Clause 18 of the Constitution of 

the United States grants the Congress the power to enact this law. 


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FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATES STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement on whether the 

provisions of the report include unfunded mandates. In compliance 

with this requirement the Committee has received a letter from the 

Congressional Budget Office included herein. 

EARMARK IDENTIFICATION

H.R. 5787 does not include any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of rule XXI. 

COMMITTEE ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

5787. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act. 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

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 following cost estimate for H.R. 5787 

from the Director of the Congressional Budget Office: 

MAY 8, 2008. 

Hon. HENRY A. WAXMAN, Chairman, Committee on Oversight and Government Reform, House 

of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5787, the Federal Real 

Property Disposal Enhancement Act of 2008. 

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

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

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 


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H.R. 5787—Federal Real Property Disposal Enhancement Act of 

2008 

Summary: H.R. 5787 would amend the Federal Property and Administrative Services Act (Property Act) to give the General Services Administration (GSA) new authorities to help facilitate the disposal of federal property. CBO estimates that enacting the bill 

would reduce net direct spending by $15 million over the 2009–

2018 period. The bill would not affect revenues. 

H.R. 5787 contains no intergovernmental or private¥sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5787 is shown in the following table. The costs 

of this legislation fall within budget function 800 (general government). 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009– 

2013 

2009– 

2018 

DIRECT SPENDING 

Estimated Budget Authority ........................ * ¥1 ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥5 ¥15 

Estimated Outlays ......... * ¥1 ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥5 ¥15 

Note: * = less than $500,000. 

Basis of estimate: Enacting H.R. 5787 would increase both direct 

spending and offsetting receipts (a credit against direct spending) 

by making it easier for federal agencies to dispose of federal property. For this estimate, CBO assumes that the bill will be enacted 

near the end of 2008. 

Property disposal under current law 

Under the Property Act, GSA manages the disposal of surplus 

federal property for most agencies. That act requires GSA to first 

offer excess property to other federal agencies, then, at discounts 

of up to 100 percent, to state or local governments and nonprofit 

organizations before selling the property through a competitive bidding process. The act also allows GSA to retain 12 percent of the 

proceeds from such sales to cover its direct costs, such as auction 

fees and appraisals. (In fiscal year 2007, GSA used about $4 million for those purposes.) The remaining net proceeds (currently 

about $20 million per year) are deposited in the Treasury as offsetting receipts. 

The current federal property program generates only modest proceeds for several reasons. First, much of the surplus property disposed of under current law is conveyed without reimbursement 

(under authorities such as homeless conveyances). Second, property 

sales, and thus receipts, are limited because many federal agencies 

lack appropriated funds to initiate the disposal process. In addition, some agencies have little incentive to maximize the income 

they receive from property sales because they cannot retain any of 

those receipts to expedite such transactions or for other activities. 

(Some agencies, however, can retain the proceeds of enhanced¥use 

leases for property improvements.) 


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Property disposal under H.R. 5787 

H.R. 5787 would address some of the problems with the current 

disposal process for federal property by allowing GSA to retain and 

use additional proceeds from property sales to help pay for the direct and indirect costs of other agencies’ disposal activities. Activities include additional market research, cost/benefit analyses, and 

other activities to identify and prepare properties for disposal that 

have not yet been declared excess. Net proceeds from sales under 

the bill would be available, subject to future appropriation, for 

other property management activities. 

Estimated impact on the Federal Government: Based on information from GSA and some landholding agencies, CBO estimates that 

enacting H.R. 5787 would increase direct spending, beginning in 

2009, by about $2 million annually as GSA uses proceeds from existing property sales to help other agencies identify and prepare 

new properties for disposal. Additional receipts would be generated 

as those new properties are sold, and those receipts (estimated to 

total about $4 million annually) would eventually offset the additional costs. Because proceeds from the new sales would lag spending by several months, the net impact of the bill in 2009 would be 

negligible. CBO estimates that offsetting receipts earned from additional sales under the legislation would total about $35 million over 

the 2009–2018 period, additional spending would total an estimated $20 million. 

CBO expects that GSA would work with agencies using the new 

authorities provided in this bill to make more properties available 

for disposal than they could under existing law. The impact would 

be modest, however, because we assume that many of the largest 

federal agencies that manage significant numbers of properties 

would likely opt to continue using their enhanced¥use leasing authorities rather than GSA’s services to leverage value from 

underused real property. In addition, any new properties that 

would be made available for disposal under the bill would still have 

to be evaluated for possible public benefit conveyances—for shelter 

for the homeless, or for educational or recreational uses—before 

those properties could be offered for sale. Consequently, CBO expects that the number of properties sold for cash under this bill 

would be relatively small. 

Intergovernmental and private¥sector impact: H.R. 5787 contains no intergovernmental or private¥sector mandates as defined 

in UMRA and would impose no costs on state, local, or tribal governments. The bill would benefit state, local, and tribal governments by requiring federal agencies to make additional property 

available to those entities before they offer it for sale. 

Estimate prepared by: Federal costs: Matthew Pickford; impact 

on state, local, and tribal governments: Elizabeth Cove; impact on 

the private sector: Paige Piper/Bach. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

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 omitVerDate Aug 31 2005 00:05 May 17, 2008 Jkt 069006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR651.XXX HR651

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ted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

TITLE 40, UNITED STATES CODE 

* * * * * * * 

CHAPTER 5—PROPERTY MANAGEMENT 

SUBCHAPTER I—PROCUREMENT AND WAREHOUSING 

Sec. 

501. Services for executive agencies. 

* * * * * * * 

ø524. Duties of executive agencies.¿ 

524. Duties of the General Services Administration and executive agencies. 

* * * * * * * 

SUBCHAPTER II—USE OF PROPERTY 

* * * * * * * 

ø§ 524. Duties of executive agencies 

ø(a) REQUIRED.—Each executive agency shall— ø(1) maintain adequate inventory controls and accountability 

systems for property under its control; 

ø(2) continuously survey property under its control to identify excess property; 

ø(3) promptly report excess property to the Administrator of 

General Services; 

ø(4) perform the care and handling of excess property; and 

ø(5) transfer or dispose of excess property as promptly as 

possible in accordance with authority delegated and regulations prescribed by the Administrator. 

ø(b) REQUIRED AS FAR AS PRACTICABLE.—Each executive agency, 

as far as practicable, shall—

ø(1) reassign property to another activity within the agency 

when the property is no longer required for the purposes of the 

appropriation used to make the purchase; 

ø(2) transfer excess property under its control to other federal agencies and to organizations specified in section 321(c)(2) 

of this title; and 

ø(3) obtain excess property from other federal agencies.¿ 

§ 524. Duties of the General Services Administration and executive agencies 

(a) DUTIES OF THE GENERAL SERVICES ADMINISTRATION.—

(1) GUIDANCE.—The Administrator shall issue guidance for 

the development and implementation of agency real property 

plans. Such guidance shall include recommendations on—

(A) how to identify excess properties; 

(B) how to evaluate the costs and benefits involved with 

disposing of real property; 

(C) how to prioritize disposal decisions based on agency 

missions and anticipated future need for holdings; and 

(D) how best to dispose of those properties identified as 

excess to the needs of the agency. 


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(2) ANNUAL REPORT.—The Administrator shall submit an annual report, for each of the first 5 years after 2008, to the Committee on Oversight and Government Reform of the House of 

Representatives and the Committee on Homeland Security and 

Governmental Affairs of the Senate, based on data submitted 

from all executive agencies, detailing executive agency efforts to 

reduce their real property assets. 

(3) ASSISTANCE.—The Administrator shall assist executive 

agencies in the identification and disposal of excess real property. 

(b) DUTIES OF EXECUTIVE AGENCIES.—

(1) IN GENERAL.—Each executive agency shall—

(A) maintain adequate inventory controls and accountability systems for property under its control; 

(B) continuously survey property under its control to 

identify excess property; 

(C) promptly report excess property to the Administrator; 

(D) perform the care and handling of excess property; 

and 

(E) transfer or dispose of excess property as promptly as 

possible in accordance with authority delegated and regulations prescribed by the Administrator. 

(2) SPECIFIC REQUIREMENTS WITH RESPECT TO REAL PROPERTY.—With respect to real property, each executive agency 

shall—

(A) develop and implement a real property plan in order 

to identify properties to declare as excess using the guidance issued under subsection (a)(1); 

(B) identify and categorize all real property owned, 

leased, or otherwise managed by the agency; 

(C) establish adequate goals and incentives that lead the 

agency to reduce excess real property in its inventory; 

(D) when appropriate, use the authorities in section 

572(a)(2)(B) of this title in order to identify and prepare 

real property to be reported as excess. 

(3) ADDITIONAL REQUIREMENTS.—Each executive agency, as 

far as practicable, shall— (A) reassign property to another activity within the agency when the property is no longer required for the purposes 

of the appropriation used to make the purchase; 

(B) transfer excess property under its control to other 

Federal agencies and to organizations specified in section 

321(c)(2) of this title; and 

(C) obtain excess properties from other Federal agencies 

to meet mission needs before acquiring non¥Federal property. 

* * * * * * * 

SUBCHAPTER III—DISPOSING OF PROPERTY 

* * * * * * * 

§ 550. Disposal of real property for certain purposes 

(a) * * * 


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(b) ENFORCEMENT AND REVISION OF INSTRUMENTS TRANSFERRING

PROPERTY UNDER THIS SECTION.— (1) IN GENERAL.—(A) Subject to disapproval by the Administrator of General Services within 30 days after notice of a proposed action to be taken under this section, except for personal 

property transferred pursuant to section 549 of this title, the 

official specified in paragraph (2) shall determine and enforce 

compliance with the terms, conditions, reservations, and restrictions contained in an instrument by which a transfer 

under this section is made. The official shall reform, correct, or 

amend the instrument if necessary to correct the instrument or 

to conform the transfer to the requirements of law. The official 

shall grant a release from any term, condition, reservation or 

restriction contained in the instrument, and shall convey, quitclaim, or release to the transferee (or other eligible user) any 

right or interest reserved to the Federal Government by the instrument, if the official determines that the property no longer 

serves the purpose for which it was transferred or that a release, conveyance, or quitclaim deed will not prevent accomplishment of that purpose. The release, conveyance, or quitclaim deed may be made subject to terms and conditions that 

the official considers necessary to protect or advance the interests of the Government. If the official, in consultation with the 

Administrator, recommends reversion of the property, the Administrator shall take control of such property, and, subject to 

subparagraph (B), sell it at fair market value for cash and not 

by lease, exchange, or leaseback arrangements. 

(B) Prior to sale, the Administrator shall make such property 

available to State and local governments and certain 

non¥profit institutions or organizations pursuant to this section and sections 553 and 554 of this title. 

* * * * * * * 

§ 553. Property for correctional facility, law enforcement, 

and emergency management response purposes 

(a) * * * 

* * * * * * * 

(e) ENFORCEMENT AND REVISION OF INSTRUMENTS TRANSFERRING

PROPERTY UNDER THIS SECTION.—(1) The Administrator shall determine and enforce compliance with the terms, conditions, reservations, and restrictions contained in an instrument by which a 

transfer or conveyance under this section is made. The Administrator shall reform, correct, or amend the instrument if necessary 

to correct the instrument or to conform the transfer to the requirements of law. The Administrator shall grant a release from any 

term, condition, reservation or restriction contained in the instrument, and shall convey, quitclaim, or release to the transferee (or 

other eligible user) any right or interest reserved to the Government by the instrument, if the Administrator determines that the 

property no longer serves the purpose for which it was transferred 

or that a release, conveyance, or quitclaim deed will not prevent accomplishment of that purpose. The release, conveyance, or quitclaim deed may be made subject to terms and conditions that the 

Administrator considers necessary to protect or advance the interVerDate Aug 31 2005 00:05 May 17, 2008 Jkt 069006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6601 E:\HR\OC\HR651.XXX HR651

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14 

ests of the Government. If the Administrator determines that reversion of the property is necessary to enforce compliance with the 

terms of the conveyance, the Administrator shall take control of 

such property and, subject to paragraph (2), sell it at fair market 

value for cash and not by lease, exchange, or leaseback arrangements. 

(2) Prior to sale, the Administrator shall make such property 

available to State and local governments and certain non¥profit institutions or organizations pursuant to this section and sections 550 

and 554 of this title. 

§ 554. Property for development or operation of a port facility 

(a) * * * 

* * * * * * * 

(f) ENFORCEMENT AND REVISION OF INSTRUMENTS TRANSFERRING

PROPERTY UNDER THIS SECTION.—(1) The Secretary of Transportation shall determine and enforce compliance with the terms, conditions, reservations, and restrictions contained in an instrument 

by which a transfer or conveyance under this section is made. The 

Secretary shall reform, correct, or amend the instrument if necessary to correct the instrument or to conform the transfer to the 

requirements of law. The Secretary shall grant a release from any 

term, condition, reservation or restriction contained in the instrument, and shall convey, quitclaim, or release to the grantee any 

right or interest reserved to the Government by the instrument, if 

the Secretary determines that the property no longer serves the 

purpose for which it was transferred or that a release, conveyance, 

or quitclaim deed will not prevent accomplishment of that purpose. 

The release, conveyance, or quitclaim deed may be made subject to 

terms and conditions that the Secretary considers necessary to protect or advance the interests of the Government. If the Secretary, 

in consultation with the Administrator, recommends reversion of the 

property, the Administrator shall take control of such property and, 

subject to paragraph (2), sell it at fair market value for cash and 

not by lease, exchange, or leaseback arrangements. 

(2) Prior to sale, the Administrator shall make such property 

available to State and local governments and certain non¥profit institutions or organizations pursuant to this section and sections 550 

and 553 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—

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

agency use; or 

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


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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) DEPOSIT OF PROCEEDS.—Proceeds described in subsection (d) 

shall be deposited into the appropriate real property account of the 

agency that had custody and accountability for the real property. 

Such funds shall be expended only as authorized in annual appropriations Acts and only for activities as described in section 524(b) 

of this title and disposal activities, including paying costs incurred 

by the General Services Administration for any disposal¥related 

activity authorized by this title. Proceeds shall not be expended for 

activities or projects subject to the requirements of section 3307 of 

this title. 

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

(c) DISPOSAL AGENCY FOR REVERTED PROPERTY.—For the purposes of this section, the General Services Administration, as the 

disposal agency, shall be treated as the agency with custody and accountability for properties which revert to the United States under 

sections 550, 553, and 554 of this title. 

(d) PROCEEDS.—The proceeds referred to in subsection (a) are proceeds under this chapter from a— (1) transfer of excess property to a federal agency for agency 

use; or 

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

§ 572. Real property 

(a) IN GENERAL.— (1) * * * 

(2) PAYMENT OF EXPENSES FROM THE FUND.—

(A) AUTHORITY.—From the fund described in paragraph 

(1), the Administrator may obligate an amount to pay the 

following direct expenses incurred for the use of excess 

property and the disposal of surplus property under this 

subtitle: 

(i) * * * 

* * * * * * * 

(iv) The direct and indirect costs associated with the 

reversion, custody, and disposal of reverted real property. 

(B) ADDITIONAL AUTHORITY.—(i) From the fund described 

in paragraph (1), subject to clause (iv), the Administrator 

may obligate an amount to pay the direct and indirect costs 

related to identifying and preparing properties to be reported excess by another agency. 

(ii) The General Services Administration may be reimbursed from the proceeds of the sale of such properties for 

such costs. 

(iii) Net proceeds shall be dispersed pursuant to section 

571 of this title. 


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(iv) The authority under clause (i) to obligate funds to 

prepare properties to be reported excess does not include the 

authority to convey such properties by sale, lease, exchange, 

or otherwise, including through leaseback arrangements. 

(v) Nothing in this subparagraph is intended to affect 

subparagraph (D). 

ø(B)¿ (C) LIMITATIONS.— (i) * * * 

* * * * * * * 

ø(C)¿ (D) DIRECT PAYMENT OR REIMBURSEMENT.—An 

amount obligated under this paragraph may be used to 

pay an expense directly or to reimburse a fund or appropriation that initially paid the expense. 

* * * * * * * 


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ADDITIONAL VIEWS OF RANKING MEMBER TOM DAVIS 

The federal government is the largest landholder in the country. 

As such, it is essential for the federal government to manage its 

properties as efficiently and effectively as possible. 

More importantly, property which is no longer of use to the federal government should be removed from the inventory. Unfortunately over the years, federal property disposal processes have become increasingly cumbersome and unwieldy, and agencies often 

decide it’s easier to sit on a property than try to get rid of it. 

In fact, OMB estimates a backlog of more than 21,000 in properties in need of maintenance and repair, carrying a price tag of 

more than $18 billion. 

When I chaired this Committee I spent a considerable amount of 

time working to reform the federal real property disposal system. 

The proposals we put forth—which were approved by this Committee—were substantive proposals aimed at providing real reform. 

While I appreciate Representative Moore’s efforts in this legislation, I am concerned this proposal does not go far enough in reforming our federal property laws. 

I offered two amendments during Committee consideration of 

this legislation, neither of which was included in the reported 

version of the bill. 

The first amendment would have added to Representative 

Moore’s proposal the Federal Real Property Disposal Pilot Program 

which this Committee approved by unanimous consent in 2005. 

The second amendment I offered would have given GSA some additional authority with regard to underutilized federal properties 

which could be better put to use by the Department of Defense to 

help local communities who are trying to absorb an increase in federal presence resulting from a BRAC¥related realignment. 

I believe both of these amendments would have strengthened the 

underlying proposal and I look forward to working with the majority to include these provisions as the legislation moves forward. 

TOM DAVIS. 

Æ 


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