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General Program Guidance for FRPAP








  
  
    

  
      



Treasury Building
The Federal Real Property Assistance Program (FRPAP) implements the applicable provisions of 40 U.S.C. 550 under the authority of this Department’s governing regulations.  The FRPAP transfers Federal surplus real property for public health purposes under this Department’s regulation at 45 CFR Part 12.  The FRPAP transfer Federal surplus real property for homeless assistance purposes (Title V) under the joint Federal agency regulation at 45 CFR Part 12a.
                        What is Federal surplus real property?
    Surplus property is any excess real property not required by any Federal landholding agency for its needs or responsibilities, as determined by the Administrator of the General Services Administration (GSA).
      What is the difference between “on-site” and “off-site” property?
    Surplus property can be both “on-site” and off-site” real property. “On-site” property refers to: land; buildings, such as houses, hospitals, or barracks; and other types of structures. “Off-site” property is buildings and structures which are surplus but located on land which is not surplus and therefore, must be relocated. Approved applicants are responsible for the costs associated with relocation of “off-site” property and for clean-up and restoration of the land from which it is removed.
      Where Can Surplus Real Property Listings/Information be Found?
    In accordance with the Title V, the Department of Housing and Urban Development (HUD) makes determinations on the suitability of Federal real property for use to assist the homeless. Subsequently, HUD publishes a weekly listing every Friday on its Title V webpage located at https://www.huexchange.info/programs/title-v/suitability-listing/. If you are interested in receiving email notifications of available Title V properties, you may sign up at www.hudexchange.info/mailinglist/. The General Services Administration also posts Title V properties at, https://disposal.gsa.gov/s/. If you are interested in receiving email notifications from GSA, you may sign up at https://disposal.gsa.gov/login.

To obtain specific information related to certain Federal surplus real property available for public health or homeless assistance purposes, please contact the GSA at the appropriate address listed at https://disposal.gsa.gov/s/contactus.
      Who is Eligible to Acquire Surplus Federal real property through the FRPAP?
    Pursuant to 45 CFR 12.3(b), “[t]ransfers [of Federal surplus property] may be made only to States, their political subdivision and instrumentalities, tax-supported public health institutions, and nonprofit public health institutions which (except for institutions which lease property to assist the homeless under 42 U.S.C. 11302) have been held tax-exempt under section 501(c)(3) of the Internal Revenue Code of 1954.”

Pursuant to 45 CFR part 12.3(e), “[o]rganizations which may be eligible include those which provide care and training for the physically and mentally ill, including medical care of the aged and infirm; clinical services; services (including shelter) to homeless individuals; other public health services (including water and sewer); or similar services devoted primarily to the promotion and protection of public health. Except for the provision of services (including shelter) to homeless individuals, organizations which have as their principal purpose the providing of custodial or domiciliary care are not eligible.

To be eligible, institutions must also meet the following criteria as determined by HHS;

Propose a health or homeless program this is within the meaning of HHS’s statutes and regulations. Some potentially eligible programs include: hospitals, public health clinics, homeless services, public water and sewage systems, research facilities, rehabilitation of the mentally or physically disabled, juvenile delinquent diagnostic evaluation and rehabilitation centers, animal control facilities, and other basic health programs.
	Request an amount of property that is within normal operating requirements of the proposed program.
	Have both the organizational and financial abilities to maintain the property and carry out the proposed program.
      Can an individual apply for Federal surplus real property?
    No. Only States, political subdivisions of the State, and private non-profit organizations tax-exempt under 501(c)(3) of the Internal Revenue Code are eligible to receive Federal surplus real property.
      How Can Eligible Organizations Apply for Surplus Real Properties?
    Upon the notification of available Federal surplus real property, interested parties meeting the organizational eligibility requirement described above should submit a formal written expression of interest to this Department through the Program Support Center (PSC). The expression of interest should:

Identify the property by name.
	State the date of listing on the HUD Exchange or date of the GSA’s Notice of Surplus Determination.
	State any property identification numbers contained in the HUD Exchange listing or GSA’s determination which relate to the property of interest.
	Identify the interested party by name and provide contact information.
	Identify the interested party as a public body or a 501(c)(3) tax-exempt nonprofit organization.
	Describe briefly the proposed program of use.Your complete expression of interest should be submitted by email to rpb@psc.hhs.gov. Electronic submission allows for more expeditious processing of your request; however, to the extent that you are unable to submit your expression of interest electronically, such may be submitted in hardcopy. If sending a hardcopy, please contact HHS by email, rpb@psc.hhs.gov or by telephone, (301) 443-2265, to request the appropriate physical mailing address to send your letter of interest.

Upon receipt of your expression of interest, PSC will send you an Application Instruction Booklet. Should you not receive a response to your emailed expression of interest, or should you have questions related to submitting an expression of interest or completing an application, please contact our office at rpb@psc.hhs.gov or by telephone of (301) 443-2265.
      Can an organization apply for Federal surplus real property after the screening period ends?
    No, unless the disposal agency is willing to allow HHS to accept an application for the property after the screening period, or for Title V properties, the property is readvertised by HUD on the HUD Exchange on a later date.
      When does HHS consider an application to be complete?
    HHS determines that an application is complete when a satisfactory response has been provided for every item in the application packet. However, please note that a response must provide sufficient information for HHS to make a determination on the application. HHS may request additional information from the applicant as needed, at HHS’s discretion.
      What if I need more time to complete the application?
    If an extension is needed to complete an application, the applicant must send a formal written request to HHS at rpb@psc.hhs.gov. The request should include the name of the applicant, the name of the subject property, and an explanation for the additional time needed and the amount of time being requested. HHS must receive concurrence from the disposal agency prior to granting an extension request.
      Where can a nonprofit organization obtain evidence of its authority to acquire real property?
    Nonprofit organizations must have the authority to acquire, hold, and convey title to real estate. These powers are usually stated in the entity’s corporate charter, articles of incorporation, or by-laws. Please note that the articles of incorporation must contain the official acceptance stamp (or other proof of state registration) of the applicable state government office.
      Where can I get assistance with completing the environmental questionnaire included in the application packet?
    HHS can be reached on (301) 443-2265 or email, rpb@psc.hhs.gov, to assist with concerns regarding the environmental questionnaire. In addition, the disposal agency is required to provide applicants with existing information relevant to the environmental condition of the requested property. HHS provides disposal agency contact information with the letter providing application instructions. Other possible sources for environmental information include the landholding agency (property owner), HUD, local governmental organizations, the public library, and City/County planning offices.
      For Title V properties, what if HHS receives more than one application at the same time?
    Applications are evaluated on a first-come, first-served basis. HHS will notify all organizations which have submitted an expression of interest in a particular property when an application has been approved. If HHS receives one or more competing applications within 5 days of the initial one, HHS will evaluate all completed applications simultaneously. HHS will submit the applications to an objective review panel for determination.
      Are there any Restrictions and/or Conditions Placed on Properties Transferred Under the FRPAP?
    Various other laws and regulations apply to transfer of these properties, besides the previously mentioned statutes, including: The National Environmental Policy Act of 1969, The National Historic Preservation Act, The Archeological Resources Protection Act, and statutes which forbid discrimination because of race, religion, color, sex, disability, age or national origin.

The Federal government must receive the full fair market value of any property to be transferred through cash payment or a public benefit allowance (PBA) which accrues over a predetermined period of years. The PBA varies from 50% to 100% depending on the type of facility and the proposed program. In the case of land, with or without improvements, the accrual period is thirty (30) years. In the case of facilities acquired separately from land, whether for on-site or off-site use, the accrual period is the estimated remaining useful life of the facilities.

Standard conditions/restrictions include:

Transferee must utilize the property in accordance with their approved application for thirty (30) years (or another negotiated term for leases) from the date of the initial transfer document.
	Where construction or major renovation is not required or proposed, transferee must put the Property into use within twelve (12) months from the date of transfer. Where transferee contemplates construction or major renovation at the time of transfer, transferee must put the Property into use within thirty-six (36) months from the date of transfer.
	Transferee may not permit the property to be used by any other entity or person nor resell, lease, mortgage, or encumber or otherwise dispose of any part of the Property without prior written consent of the transferor.
	Transferee must submit annual utilization reports. NOTE: Transferee will be required to report on the occurrence of any incidents on the transferred property during the reporting period which had the potential to affect the value of the transferred property and/or expose transferee and/or the federal government to liability. See Title V AUR format, Public Health AUR Format, and Water/Sewer System AUR format.
	Transferee must comply with all applicable Federal, State, municipal, and local laws, rules, orders, ordinances, and regulations in the occupation, use, and operation of the Property.
	Transferee, and all partnering agencies, will at all times be and remain a tax‐supported organization or a nonprofit institution, organization, or association exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
	Transferee must comply with 40 U.S.C. § 476 (Prohibiting Sex Discrimination); the Fair Housing Act (42 U.S.C. § 3601-19); Executive Order 11063 (Equal Opportunity in Housing), as applicable; Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d to d-4) (Nondiscrimination in Federal Assisted Programs); Title IX of the Education Amendments of 1972 (20 U.S.C. §1681); Section 1557 of the Affordable Care Act; the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. § 6101-07); the prohibitions against otherwise qualified individuals with handicaps under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794); and Section 5 of Executive Order 13950 (Combating Race and Sex Stereotyping); all implementing regulations of the above listed statutes, including all requirements imposed by or pursuant to the regulations of the Transferor (45 CFR Parts 12, 12a, 80, 84 and 91) issued pursuant to said Acts and now in effect.Failure to comply with any of the conditions and restrictions may cause title of the property to revert to the Federal government.

Property will not be approved for transfer unless it is needed at the time of application or in the near future. If the above-mentioned time limits are not met, or a property ceases to be properly utilized for any period of time, the transferee will be required to pay for each month of nonuse, the percentage of the current value of the property which otherwise would have been earned through use. Payments will cease when the property is used as intended. Any property not properly utilized must, at the discretion of HHS, be returned to the Federal government, retransferred to another eligible organization, or sold for the benefit of the Federal government.

Deed restrictions may be released with the consent of HHS upon payment of the current fair market value of the property minus the value of the already accrued PBA.

Transferees are required to pay all external administrative costs incidental to transfer which include, but are not limited to, surveys, appraisal, legal fees, title search, and closing fees. Additionally, transferees are responsible for all fees or costs associated with: renovating or refurbishing the property (this may include abatement of asbestos or lead-based paint), as necessary, to make the property fully operational for the approved program; program operations; property management; insuring the property; protection and maintenance of the property; etc.
      What is an annual utilization report (AUR) and what is its purpose?
    An AUR is a narrative account of the transferee’s operation and maintenance of Federal surplus real property conveyed for public health or homeless purposes. It is a requirement under 45 CFR part 12.9 and is one of the conditions of the transfer document. The reporting requirement extends to the end of the period of restrictions.
      Where is Detailed Advice Regarding the FRPAP Available?
    HHS’s regulations governing the program are found in Title 45 CFR Parts 12 and 12a.

Information concerning the surplus real property program may be obtained by telephone (301) 443-2265; email, rpb@psc.hhs.gov; or letter (contact HHS for appropriate physical mailing address).

                    
  


Content created by Program Support Center (PSC) Content last reviewed September 30, 2021 Back to top
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