89870 Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Rules and Regulations 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 581 

[Docket No. FR 6119–F–02] 

RIN 2506–AC49 

GENERAL SERVICES 

ADMINISTRATION 

41 CFR Part 102–75 

RIN 3090–AK46 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

45 CFR Part 12a 

RIN 0991–AC14 

Use of Federal Real Property To Assist 

the Homeless 

AGENCY: Department of Housing and 

Urban Development, General Services 

Administration, and Department of 

Health and Human Services. 

ACTION: Final rule. 

SUMMARY: The Department of Housing 

and Urban Development (HUD), the 

General Services Administration (GSA), 

and the Department of Health and 

Human Services (HHS) (the Agencies) 

administer the Title V program, which 

makes suitable Federal real properties 

categorized as underutilized, unutilized, 

excess, or surplus available to States, 

local government agencies, and 

501(c)(3) tax-exempt non-profit 

organizations for use to assist the 

homeless. This final rule incorporates 

required statutory changes and current 

practices; updates references and 

terminology that are now outdated; and 

revises procedures for more efficient 

program administration in the Agencies’ 

regulations. 

DATES: Effective date: December 13, 

2024. 

FOR FURTHER INFORMATION CONTACT: For 

information regarding each agency’s 

implementation of these regulations, the 

contact information for that agency 

follows. The Agencies welcome and are 

prepared to receive calls from 

individuals who are deaf or hard of 

hearing, as well as individuals with 

speech or communication disabilities. 

To learn more about how to make an 

accessible telephone call, please visit: 

https://www.fcc.gov/consumers/guides/ 

telecommunications-relay-service-trs. 

Department of Housing and Urban 

Development: Brian Fitzmaurice, Senior 

Program Advisor, Office of Special 

Needs Assistance Programs, Community 

Planning and Development, Department 

of Housing and Urban Development, 

451 7th Street SW, Room 7262, 

Washington, DC 20140; title5@hud.gov; 

telephone number 202–905–3869 (this 

is not a toll-free number). 

General Services Administration: 

Chris Coneeney, Director, Real Property 

Policy Division, Office of Governmentwide Policy, at 202–208–2956 or 

chris.coneeney@gsa.gov. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat Division at 202– 

501–4755 or GSA at RegSec@gsa.gov. 

Department of Health and Human 

Services: Theresa M. Ritta, Program 

Manager, Real Property Management 

Services; Telephone: (301) 443–2265; 

Email: rpb@psc.hhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In 1991, the Agencies jointly 

published a regulation (56 FR 23789 

(May 24, 1991)), codified at 24 CFR part 

581, 41 CFR part 102–75, and 45 CFR 

part 12a, implementing the provisions 

of Title V of the McKinney-Vento 

Homeless Assistance Act (McKinneyVento Act or Title V) (42 U.S.C. 11411). 

The 1991 regulation established 

procedures for collecting information 

from landholding agencies about excess, 

surplus, unutilized, and underutilized 

properties under their control and the 

criteria for determining the properties’ 

suitability for use as homeless 

assistance. It also provided procedures 

and timelines for the application 

process and agency review of submitted 

applications to use such properties for 

homeless assistance. The regulation has 

not been updated since its publication 

in 1991. Since that time, however, the 

McKinney-Vento Act has been amended 

several times by new legislation, 

including the Homeless Emergency 

Assistance and Rapid Transition to 

Housing Act (sec. 1003, Pub. L. 111–22, 

123 Stat. 1632, 1664–65), the Federal 

Property Management Reform Act of 

2016 (Pub. L. 114–318, 130 Stat. 1608), 

and most significantly, section 22 of the 

Federal Assets Sales and Transfer Act of 

2016 (FASTA) (Pub. L. 114–287, 130 

Stat. 1463, 1478 (codified at 42 U.S.C. 

11411)). 

Under section 501 of Title V, HUD 

handles the suitability determination 

and HHS processes applications from 

eligible organizations and monitors 

transferred property for compliance 

with programmatic requirements. GSA 

supports both agencies at various stages 

throughout the entire process including: 

by screening real properties reported by 

a particular agency as excess to 

determine if they are required for use by 

any other Federal agency; submitting 

properties reported to GSA for disposal 

to HUD for a determination of suitability 

for use to assist the homeless; and 

notifying HUD of whether there is a 

continuing need for the property within 

the Federal Government after a 

suitability determination has been 

made. If there is no continuing Federal 

need for the property, the property is 

determined surplus to the needs of the 

Federal Government, and if HUD 

determines the property to be suitable, 

then the property is available for 

application to HHS for homeless 

assistance use. 

Pursuant to 42 U.S.C. 11411(f)(3)(A), 

if HHS receives and approves an 

application for surplus property and 

recommends to GSA that the property 

be conveyed to the applicant for 

homeless assistance use, GSA assigns 

the property to HHS. HHS then deeds or 

leases the property to the applicant for 

the purpose(s) stated in the approved 

application, unless a competing request 

for the property under 40 U.S.C. 550 is 

determined by GSA or HHS to be so 

meritorious and compelling as to 

outweigh the needs of the homeless. 

Further details about the suitability 

determination process and transfer of 

the property can be found in the 

proposed rule, ‘‘Use of Federal Real 

Property to Assist the Homeless: 

Revisions to Regulations,’’ at 88 FR 

16834. 

As previously noted, FASTA made 

several changes to the McKinney-Vento 

Act. Section 22 of FASTA amended the 

McKinney-Vento Act to allow for HUD’s 

suitability determinations to be posted 

electronically; to eliminate subsequent 

posting of previously reported 

properties determined unsuitable with 

no changes; to change the timeframes 

related to how long suitable and 

available properties are held for 

homeless assistance use; to change the 

number of days by which eligible 

organizations must submit an 

expression of interest to HHS from 60 

days to 30 days from the date of HUD’s 

publication; to create a two-phased 

application process; to shorten the 

initial application processing period 

from 90 days to 75 days; and, if 

approved, provide the applicant 45 days 

to submit a final application. If HHS 

does not approve a final application 

after approving an initial application, 

disposal of the property may proceed in 

accordance with applicable law. 

In addition to the McKinney-Vento 

Act and agency regulations, 

administration of the Title V Program is 

guided by Federal court decisions, 

including the March 13, 2017, revised 

Order in National Law Center on 

Homelessness & Poverty v. United 


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1 88 FR 16834. 

2https://www.gao.gov/assets/gao-14-739.pdf. 

States Department of Veterans Affairs, 

819 F. Supp. 69 (D.D.C. 1993). 

Subsequent nationwide litigation, 

including Colorado Coalition for the 

Homeless v. GSA, No. 18–cv–1008, 2019 

WL 2723857 (D.CO. Colo. July, 1, 2019); 

United States v. Overcoming Love 

Ministries, Inc., No. 16–cv–1853, 2018 

WL 4054867 (E.D.N.Y. Aug. 24, 2018); 

and New Life Evangelistic Center, Inc. v. 

Sebelius, 753 F. Supp. 2d 103 (D.D.C. 

2010) have interpreted and applied key 

provisions of Title V and its regulations. 

Taking into consideration the Agencies’ 

experience operating the Title V 

program over the past 30 years, this 

joint regulation aims to harmonize the 

joint regulation with Title V, as 

amended by FASTA and other 

legislation; incorporate existing policy 

and practice requirements for the 

benefit of future applicants; and, for 

ease of reference, expand portions of the 

joint regulation that cross-reference 

other sections of other regulations by 

incorporating the referenced portions. 

II. The Proposed Rule 

A. Collaborative Changes Across HUD, 

GSA, and HHS’s Individual Regulations 

On March 20, 2023, the Agencies 

published for public comment a 

proposed rule titled ‘‘Use of Federal 

Real Property to Assist the Homeless: 

Revisions to Regulations.’’ 1 The 

Agencies proposed several changes to 

establish procedures conforming to 

FASTA and incorporating other 

legislative changes. They also sought to 

codify established policies and 

processes used to govern the program. 

For greater readability, in instances 

where requirements found in other 

sections of the regulation were 

referenced by citation, the Agencies 

proposed to instead incorporate those 

provisions in each agency’s individual 

regulations. The Agencies also proposed 

revised suitability criteria for clarity and 

to address the Government 

Accountability Office’s recommendation 

in its 2014 report titled ‘‘Federal Real 

Property: More Useful Information to 

Providers Could Improve the Homeless 

Assistance Programs.’’ 2 Throughout the 

proposed rule, the Agencies reorganized 

and renumbered various existing 

sections of their respective regulations. 

1. Definitions 

The proposed rule sought to remove 

definitions that were no longer relevant, 

revise other definitions to conform to 

existing legislation, incorporate new 

definitions, some of which were used 

but not defined in the Title V regulation; 

and provide clarity and consistency for 

potential Title V applicants regarding 

the Agencies’ roles and requirements. 

The Agencies proposed that the 

definitions of Applicant, Eligible 

organization, Excess property, 

Homeless, Landholding agency, Lease, 

Permit, Property, Screen, and Surplus 

property be amended to provide 

consistent language across the Agencies’ 

regulations, provide more clarity, and 

conform with statutory changes. The 

proposed rule sought to add definitions 

for HUD website, Transferee, Transfer 

document, Substantial noncompliance, 

Related personal property, and State for 

clarity and conformance with statutory 

requirements. The rule proposed to 

remove the definitions of Regional 

Homeless Coordinator and State 

Homeless Coordinator as they are no 

longer applicable. The rule also 

proposed to remove the definition of 

ICH and instead reference the term 

‘‘United States Interagency Council on 

Homelessness.’’ 

2. Applicability 

The Agencies proposed to expand the 

list of properties that are not subject to 

the joint regulation by adding (1) 

properties that are not subject to Federal 

Real Property Council reporting 

requirements; (2) buildings and property 

at military installations that were 

approved for closure under the Defense 

Base Closure and Realignment Act of 

1990 after October 25, 1994; (3) 

machinery and equipment that is not 

related personal property; (4) machinery 

and equipment that is related personal 

property but that GSA or the 

landholding agency chose to dispose of 

separate from the real property; and (5) 

excess or surplus buildings or fixtures 

that sit on land under the control of a 

landholding agency where the 

underlying land is not also excess or 

surplus. The Agencies also proposed 

clarifying changes to this section, 

including adding a citation where it 

previously did not exist; specifying that 

the existing language referencing 

properties ‘‘subject to a court order’’ 

referred only to court orders that, for 

any reason, precluded transfer for use to 

assist the homeless under Title V; and 

clarifying that the existing exclusion of 

mineral and air space rights from Title 

V processing referred to mineral and air 

space rights that are independent of 

surface rights. 

3. Collecting Information From Federal 

Agencies 

The Agencies proposed several 

changes to the information collection 

process under Title V. The proposed 

rule sought to codify HUD’s existing 

practice of accepting property 

information from landholding agencies 

on an ongoing basis. The Agencies 

proposed that HUD’s canvass of 

landholding agencies include 

information about previously reported 

properties only if the property’s status 

or classification changed or if 

improvements were made to the 

property since the property was last 

reported to HUD. The Agencies 

proposed that HUD review properties 

with a change in status for suitability 

and repost the property information on 

the HUD website. The proposed rule 

sought to clarify that landholding 

agencies should respond to HUD’s 

information collecting canvass in 

accordance with 40 U.S.C. 524 and that 

a completed property checklist is the 

vehicle for submitting property 

information to HUD. 

4. Suitability Determination 

The Agencies proposed several 

changes to the suitability determination 

process. The regulations did not provide 

a deadline for the landholding agency to 

respond to HUD’s request for additional 

information in instances where HUD 

received an appeal request for review of 

a property that was determined 

unsuitable for homeless assistance use, 

and the regulations were also silent 

regarding the determination process 

after HUD received or did not receive 

the landholding agency’s response. The 

Agencies proposed that unless HUD and 

the landholding agency agree to an 

extended period, the deadline for the 

landholding agency to respond to HUD’s 

request for additional information 

would be 20 days from the date that the 

landholding agency is notified of the 

request to review the unsuitability 

determination. If the landholding 

agency fails to meet the deadline or 

request an extension, the Agencies 

proposed that HUD proceed with the 

appeal review using the property 

information provided in the survey it 

already has and information submitted 

in the appeal request provided by the 

representative of the homeless. The 

Agencies proposed that HUD act on 

requests for review where the 

landholding agency or GSA has failed to 

meet the deadline within 30 days of 

such deadline. 

The Agencies also proposed to 

incorporate required statutory changes 

under FASTA to allow HUD to post 

suitability determinations on a HUD 

website or a successor technology that is 

equally accessible and available to the 

public. The proposed rule sought to 

update processes by removing the 

identified toll-free number and revising 


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it to state that HUD will establish and 

maintain ‘‘a toll-free number’’ for the 

public to obtain specific information 

about Title V property reviewed for 

suitability. The Agencies proposed that 

persons with inquiries regarding 

property suitability and other Title V 

related questions be instructed to 

submit questions through the HUD Title 

V website, or such other method as HUD 

may require, and that persons with 

disabilities may also request an 

alternative method for submitting 

inquiries when it may be necessary as 

a reasonable accommodation under 

Federal fair housing laws. 

5. Real Property Reported Excess to GSA 

Under the regulations, landholding 

agencies were required to submit a 

report to GSA of properties determined 

as excess along with a copy of any HUD 

suitability determination. These 

sections in HUD’s and GSA’s 

regulations were proposed to remain 

substantially the same but proposed to 

be updated for clarity. 

6. Suitability Criteria 

The proposed rule sought to revise the 

criteria that HUD uses to determine 

suitability to make the criteria clearer 

and more user-friendly for both the 

Agencies and applicants by dividing the 

suitability criteria into two categories: 

(1) properties deemed suitable unless 

the properties have any of certain listed 

characteristics, and (2) properties 

having characteristics that would make 

the property presumptively unsuitable, 

unless the landholding agencies provide 

further information for HUD to 

determine the property suitable. 

In the first category, the Agencies 

sought to revise the criteria relating to 

property located near a container or 

facility storing, handling, or processing 

flammable or explosive materials to 

provide for suitability if HUD can 

determine, based on information 

provided, that the property complies 

with the acceptable separation distance 

standards or that appropriate mitigating 

measures, as defined in 24 CFR 51.205, 

are already in place. The Agencies 

proposed to remove the reference to 

2000 feet and the references to gasoline 

stations, tank trucks, above ground 

containers ‘‘with a capacity of 100 

gallons or less,’’ and larger containers 

providing heating or power in favor of 

utilizing the more useful acceptable 

separation distance standards and 

excluding containers and facilities that 

are not hazards, as defined in 24 CFR 

51.201. Additionally, the Agencies 

sought to add coastal barriers as a 

suitability criterion. The Agencies also 

proposed to rename the documented 

deficiencies criterion as ‘‘Site Safety 

Conditions’’ and focus that criterion 

solely on a property’s physical 

characteristics. 

The Agencies proposed to move the 

criteria regarding floodways, national 

security concerns, runway clear zones, 

and inaccessible property into the 

second category of criteria, as property 

presumed unsuitable unless information 

to enable HUD to determine it suitable 

is provided. The proposed rule also 

sought to remove the reference in the 

regulations to floodways that have been 

‘‘contained or corrected’’ since the 

meaning of ‘‘corrected’’ was unclear and 

a floodplain that is ‘‘contained’’ might 

still adversely affect the use of portions 

of the site that are located within the 

‘‘contained’’ floodway to assist the 

homeless. 

The Agencies also included specific 

questions for public comment in the 

proposed rule regarding suitability 

criteria. The Agencies noted that they 

considered several changes to this 

section and did not expect the proposed 

changes to affect the number of 

properties deemed suitable. 

7. General Policies of HHS 

The Agencies proposed to add a 

section, General Policies of HHS, to 

mirror 45 CFR 12.3 instead of adopting 

that regulation by reference. The section 

highlights the minimum criteria for 

transfers of surplus property. 

8. Expressions of Interest Process 

Pursuant to FASTA, the time for 

eligible organizations to submit an 

expression of interest to HHS changed 

from 60 days to 30 days from the date 

of HUD’s publication of suitability. The 

Agencies proposed to capture this 

change in the regulations along with 

HHS’s proposal to accept such 

expressions of interest by email and an 

update to HHS’s physical address. 

Additionally, the Agencies proposed to 

amend this section to clarify that HUD’s 

determination of suitability does not 

mean a property is necessarily useable 

for the purpose stated in the 

application, nor does it guarantee 

subsequent conveyance or transfer of a 

property. 

9. Application Process and 

Requirements 

The Agencies proposed several 

changes to the application process based 

on current practice and statutory 

mandates. FASTA changed the time that 

an eligible organization must submit an 

initial application from 90 days to 75 

days after HHS’s receipt of an 

expression of interest, unless extended 

by HHS. Additionally, if HHS approves 

the initial application, then a final 

application, setting forth a reasonable 

financial plan, must be submitted 

within 45 days of HHS’s approval of the 

initial application. The proposed rule 

sought to incorporate this two-stage 

application process outlined in FASTA 

that HHS currently follows. 

FASTA also reduced the time for HHS 

to review an initial application from 25 

days to 10 days of its receipt. The 

proposed rule sought to reflect this 

change. It also proposed revising the 

ranking system and criteria HHS uses to 

assess applications by proposing that an 

initial application be evaluated based on 

the three statutory criteria: services 

offered; need; and experience and that 

all criteria be of equal weight, with 

failure to meet any one criterion 

resulting in the application being 

disapproved. 

The Agencies also proposed revisions 

to make the application requirements 

more clear, concise, and consistent with 

the instructions accompanying the 

application packet, including describing 

the specific document an applicant 

must submit with its application to 

demonstrate its ability to hold title to 

property for the requested purpose(s). 

The Agencies proposed that applicants 

certify, rather than merely indicate, that 

their use of the property and any 

modification(s) made to the property 

conform to all applicable building codes 

and local use restrictions, or similar 

limitations to ensure an applicant’s 

proposed program is capable of being 

developed and operated following 

transfer without hindrances. The 

Agencies also proposed incorporating 

within the regulation the existing 

practice of denying any request for 

lesser portions of the listed real 

property. Additionally, the proposed 

rule sought to advise applicants that the 

description of the proposed program 

must also include how the applicant 

intends to implement the program to 

assist HHS in rendering a determination 

on the adequacy and timeliness of a 

proposed program and likelihood of 

operational success. 

The Agencies also proposed 

additional updates to provide greater 

clarity regarding the application 

process. These proposed updates 

included (1) requiring that an applicant 

demonstrate both that there is an 

immediate need to acquire the property 

for the proposed program and the 

applicant’s ability to utilize all of the 

Federal real property for which it is 

applying; (2) clarifying that an applicant 

is required to provide details concerning 

modifications to the property that need 

to be completed before the program can 

become operational; and (3) requiring 


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that an applicant ‘‘demonstrate’’ its 

financial ability to finance and operate 

the proposed program rather than 

merely ‘‘indicate’’ its financial ability to 

do so. Additionally, the Agencies sought 

to memorialize current practice that 

permits HHS to grant, to an otherwise 

approved applicant, a short-term lease 

when a zoning change is required or an 

applicant’s financial plan proposes to 

utilize Low-Income Housing Tax Credits 

or other funding sources that typically 

take longer to process than other forms 

of financing, enabling the approved 

applicant to gain site control of the 

property that may be required for 

funding and allowing additional time to 

provide HHS the requisite information 

to ensure the Federal Government’s 

interest in the property is adequately 

protected. The proposed rule also 

sought to clarify property insurance 

requirements and the purpose thereof, 

thereby allowing for the omission of the 

reference to other provisions of the 

Agencies’ regulations. Additionally, it 

proposed requiring that an applicant 

provide evidence that it has notified the 

local government of its application 

rather than simply indicating in its 

application that it has done so. 

The Agencies also proposed revisions 

to clarify the requirements regarding the 

transfer of surplus property and to 

comply with FASTA. The Agencies 

proposed to incorporate HHS’s current 

policy that transfers by deed will only 

be made after the appropriate 

certification that the proposed program 

is not in conflict with State or local 

zoning restrictions, building codes, or 

similar limitations, omitting the need to 

reference other provisions of the 

Agencies’ regulations. 

10. Surplus Property Transfer 

Documents 

The proposed rule sought to add an 

entirely new section regarding transfer 

documents to conform to legislative 

changes, and for clarity it proposed 

including relevant provisions of 41 CFR 

part 102–75 and 45 CFR part 12 

pertaining to general terms and 

conditions of transfers. This proposed 

change was to improve the readability of 

the regulation and remove the need for 

additional cross-references. 

Additionally, the proposed rule sought 

to omit the requirement for reversion or 

abrogation of transferred property, at the 

discretion of HHS, should the property 

not be placed into use within 8 years to 

allow for more flexibility to resolve such 

issues on a case-by-case basis. 

11. Compliance With the National 

Environmental Policy Act of 1969 

(NEPA) and Other Related Acts 

(Environmental Impact) 

The regulation already provided 

general application requirements as they 

pertained to environmental information. 

The proposed rule sought to expand 

these sections to clarify and to mirror 

mandates and policies currently 

required by NEPA and other related 

Acts. 

12. No Applications Approved 

The Agencies proposed codifying 

changes made by FASTA within the 

regulations. Under FASTA, Federal real 

properties can only be held for 30 days 

to permit homeless providers an 

opportunity to submit a notice of 

interest instead of the previous 60-day 

holding period. Additionally, FASTA 

requires GSA or the landholding agency 

to proceed with disposal of surplus 

property 75 days following receipt of an 

initial expression of interest if no initial 

application or requests for extensions 

have been received by HHS, or within 

45 days after an approved initial 

application if no final application has 

been received. This means that no 

disposal action can be taken by GSA or 

the landholding agency, as appropriate, 

until all Title V actions are completed. 

The Agencies captured these changes in 

the proposed rule. 

13. Utilization and Enforcement 

The Agencies proposed adding a new 

section to clearly articulate a 

transferee’s utilization requirements and 

potential enforcement actions that may 

be taken, at the discretion of HHS, 

should noncompliance occur. HHS’s 

policies did not change but were 

included in the proposed regulation to 

clarify program requirements to 

applicants and transferees. This section 

also included the Federal Government’s 

requirements of transferees in the event 

of a reversion action. 

14. Other Uses 

The proposed rule sought to clarify 

the requirements of transferees should a 

transferee request approval to utilize the 

property, or a portion thereof, for uses 

other than those stated in the approved 

original application. 

15. Abrogation 

The abrogation process was discussed 

in various sections of the regulation, 

and the Agencies proposed to more 

clearly articulate the instances in which 

HHS may abrogate the conditions and 

restrictions in the transfer document. 

The proposed rule sought to address the 

abrogation process in its own section for 

clarity and simplicity. 

16. Compliance Inspections and Reports 

For clarifying purposes, the Agencies 

proposed to add this section to include 

provisions of 45 CFR 12.14 pertaining to 

compliance inspections and reports. 

HHS’s policies did not change but were 

included in the proposed regulation to 

be clearer for the public and remove the 

need for additional cross-references. 

17. No Right of Administrative Review 

for Agency Decisions 

Title V, as amended by FASTA, does 

not provide for internal administrative 

review of HHS application decisions. 

Accordingly, the Agencies proposed to 

codify HHS’s existing policy that no 

agency reconsideration or appeal shall 

be granted. HHS’s application decision 

constitutes final agency action in 

accordance with the Administrative 

Procedure Act (5 U.S.C. 704). 

18. Public Notice and Holding Period 

Under FASTA & Technical Changes 

The proposed rule sought to make 

changes throughout HUD’s and GSA’s 

regulations and implement FASTA 

amendments to the McKinney-Vento 

Act, including that suitability 

determinations for properties are 

published electronically on the HUD 

website and that HUD will post a list of 

all properties reviewed, including a 

description of the property, its address, 

and classification, on the HUD website, 

rather than in the Federal Register. The 

language ‘‘on the HUD website’’ was 

proposed to replace ‘‘Federal Register’’ 

as necessary, throughout HUD’s and 

GSA’s regulations. In addition, the 

Agencies proposed to remove 

identification of a specific toll-free 

number to accommodate any necessary 

changes to the toll-free number in the 

future and more closely align with 42 

U.S.C. 11411(c)(2)(C). The proposed rule 

also sought to clarify that the list of all 

properties published on the HUD 

website is sent to the United States 

Interagency Council on Homelessness 

within the same timeframe as HUD’s 

publishing of the list of all reviewed 

properties to the HUD website. 

Requirements for the agency annual 

suitable property report were proposed 

to be included in the regulations along 

with clarification that the list of all 

properties published in the Federal 

Register no later than February 15 of 

each year would be a list of all 

properties from the agency annual 

suitable property reports, reported to 

HUD. To reflect the transition to 

publishing electronically, the proposed 

rule also sought to remove the 


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requirement for physical copies of the 

list of all properties published in the 

Federal Register be available for review 

in HUD buildings. Additional technical 

changes were also proposed throughout 

the regulations for clarity. 

B. Changes to HUD’s Regulations 

The proposed changes to regulations 

found at 24 CFR part 581 related to each 

agency’s responsibilities under the 

McKinney-Vento Act to provide the 

public with a comprehensive 

understanding of the Title V process. 

HUD proposed that part 581 continue to 

contain HUD’s responsibilities under 

Title V while also publishing all 

changes discussed above, including new 

sections explained above in sections 

II.A.10, II.A.11, and II.A.13 through 

II.A.16. 

C. Changes to GSA’s Regulations 

The regulations found at 41 CFR part 

102–75, subpart H, relate to GSA’s role 

in the use of Federal real property to 

assist the homeless along with the other 

Agencies’ responsibilities. Since this 

regulation was published jointly with 

HUD and HHS, GSA proposed to update 

subpart H to include all changes 

discussed above, including new sections 

explained above in sections II.A.10, 

II.A.11, and II.A.13 through II.A.16. 

GSA also proposed to update subpart H 

to include a section on waivers 

previously contained in HUD’s 

regulations at 24 CFR 581.13 but never 

published in GSA’s regulations. Lastly, 

GSA proposed renumbering sections in 

subpart H throughout the regulation as 

noted above. 

D. Changes to HHS’s Regulations 

The regulations found at 45 CFR part 

12a solely relate to HHS’s portion of the 

proposed rule. HHS proposed to update 

part 12a to include all changes 

discussed above, except sections that 

are not applicable to HHS, which 

include sections II.A.3 through II.A.6. 

HHS proposed that the changes to part 

12a also include new sections explained 

in sections II.A.10, II.A.11, and II.A.13 

through II.A.16. 

III. This Final Rule 

In response to public comments and 

in further consideration of issues 

addressed at the proposed rule stage, the 

Agencies are publishing a final rule 

with limited changes, resulting in a final 

rule that is similar to the proposed rule. 

The changes the final rule makes are 

discussed in turn. 

A. Changes Within the Applicability 

Section 

In paragraph (b)(12) of the 

‘‘Applicability’’ section found at 24 CFR 

581.2, 41 CFR 102–75.1161, and 45 CFR 

12a.2, the Agencies are removing the 

proposed phrase ‘‘owned by’’ and 

replacing it with ‘‘under the control of’’ 

for accuracy, as no landholding agency 

‘‘owns’’ real property because all real 

property is owned by the United States. 

B. Changes Within the Definitions 

Section and Other Related References 

In the ‘‘Definitions’’ section, the final 

rule also provides clarity regarding its 

use of the word Encumbrance, defining 

it to mean any non-approved use by a 

transferee or a third party that limits the 

full utilization of the transferred 

property, regardless of time period. The 

Agencies concluded that failure to 

include this definition could have the 

unintended effect of both confusing 

transferees as to what actions require 

HHS’s official written approval, as well 

as hindering HHS’s statutorily 

authorized enforcement efforts. In 

alignment with this addition to the 

regulation’s definitions, the Agencies 

also remove terms like ‘‘sell’’ or ‘‘lease’’ 

in the ‘‘Transfer documents’’ section 

found at 24 CFR 581.14, 41 CFR 102– 

75.1172, and 45 CFR 12a.7 when found 

alongside the term ‘‘encumbrance,’’ as 

those terms are now obsolete. 

The definition of Eligible organization 

is also updated in this final rule to 

centralize the discussions about the 

requirements of eligible organizations 

found in other portions of the rule. In 

line with this, the Agencies also omit 

proposed paragraph (c) of 24 CFR 581.9, 

41 CFR 102–75.1168, and 45 CFR 12a.3 

related to the requirements of eligible 

organizations and proposed language in 

paragraph (a)(2) of 24 CFR 581.11, 41 

CFR 102–75.1170, and 45 CFR 12a.5 

related to the application process and 

requirements, as the revision of the 

definition rendered the restatements 

redundant and created the possibility of 

causing confusion. 

Lastly, the final rule text omits the 

proposed definition of Substantial 

Noncompliance which was initially 

included in the proposed rule to give 

applicants and their lenders assurance 

that property generally does not get 

reverted based on technical violations of 

deed language or regulatory 

requirements. After further 

consideration, the Agencies have 

determined that inclusion of the term 

Substantial noncompliance unduly 

limits HHS’s ability to initiate 

compliance action when warranted. As 

such, this final rule omits the proposed 

definition of Substantial noncompliance 

from the proposed rule. 

C. Changes Within the Application 

Process and Requirements Section and 

Other Related Sections 

Within paragraph (a)(1) of the 

‘‘Application process and requirements’’ 

section found at 24 CFR 581.11, 41 CFR 

102–75.1170, and 45 CFR 12a.5, this 

final rule adds clarifying language to 

memorialize existing policy intended to 

prevent disparate treatment of 

applicants by deed as opposed to 

applicants who initially apply for a 

lease but later wish to convert the lease 

to a deed. The Agencies determined that 

failure to include this provision would 

allow applicants to be treated differently 

and create ambiguity, which the 

Agencies aim to prevent. Additionally, 

in response to public comments 

regarding the need for site control to 

obtain financing, the final rule adds 

language to indicate that should an 

applicant wish to convert a lease to a 

deed, HHS will issue a letter of 

commitment to a lessee indicating that 

provided its application meets all 

application criteria, including securing 

all necessary financing that complies 

with Federal Government requirements, 

HHS will issue a deed. 

The Agencies received public 

comments that addressed financing and 

expressed concern as to how the Title V 

program would be funded. As a result, 

this final rule adopts clearer language 

regarding financing by changing 

proposed references to funding 

requirements contained in paragraph 

(a)(7)(iv) of the ‘‘Application process 

and requirements’’ section found at 24 

CFR 581.11, 41 CFR 102–75.1170, and 

45 CFR 12a.5 from an applicant showing 

an ‘‘ability to obtain’’ funds to showing 

that it ‘‘will obtain’’ such funds. This 

revision clarifies applicant requirements 

and clarifies that transferees are 

required to fund property and program 

operations. The Agencies’ experience 

administering the Title V process has 

provided decades of examples showing 

that most programs have failed for 

financial reasons; therefore, it is critical 

that a solid financial plan is in place, 

and this clarification supports that end 

goal. 

This final rule also adds language to 

the property insurance requirements in 

paragraph (a)(9) at 24 CFR 581.11, 41 

CFR 102–75.1170, and 45 CFR 12a.5 and 

omits unnecessary detail found in 

paragraph (f)(6) of the ‘‘Transfer 

documents’’ section proposed at 24 CFR 

581.14, 41 CFR 102–75.1172, and 45 

CFR 12a.7. The added language in 

paragraph (a)(9) addresses existing 

issues regarding insurance proceeds and 


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makes clear that, in the event of a 

covered loss, the transferee must hold 

all proceeds in trust and obtain HHS’s 

written concurrence before disbursing 

funds. The Agencies reason that this 

change would ensure that the property 

is returned to its previous or better 

condition, that homeless services are 

resumed, and the Federal Government’s 

residual interest in the property is 

protected. The Agencies find this 

clarification necessary as failure to 

include it may unnecessarily hamper 

the Federal Government’s efforts to both 

ensure that the property is repaired and 

recover the funds if the property is not 

repaired. Given this added clarification, 

the Agencies found the detail in 

paragraph (f)(6) of the ‘‘Transfer 

documents’’ section within the 

proposed rule to be extraneous and 

potentially confusing, and thus this 

final rule omits the proposed language. 

This final rule also provides 

additional detail about HHS’s discretion 

in paragraph (d)(1) of the ‘‘Application 

process and requirements’’ section 

found at 24 CFR 581.11, 41 CFR 102– 

75.1170, and 45 CFR 12a.5, by including 

the phrase ‘‘if time permits’’ to 

accompany the existing language 

regarding HHS’s discretion to return an 

application or ask an applicant to 

provide additional information. This 

additional detail gives the applicant a 

greater understanding of the conditions 

under which HHS will exercise this 

discretion. 

D. Changes Within the Action on 

Approved Applications Section 

This final rule omits language in 

paragraph (a)(2)(i) of the ‘‘Action on 

approved applications’’ section 

proposed at 24 CFR 581.12, 41 CFR 

102–75.1171, and 45 CFR 12a.6 

regarding leases for approved unutilized 

and underutilized properties, as it 

conflicted with the definition of Lease 

and maintained the landholding 

agency’s ability to determine the length 

of time that the property will be 

available. Additionally, in the case of 

permits, the prior language was 

inconsistent with the statutory 

definition thus the Agencies determined 

these changes to be necessary. 

E. Changes Within the Transfer 

Documents Section 

For accuracy, the Agencies provide 

changes in paragraph (f)(12) of the 

‘‘Transfer documents’’ section found at 

24 CFR 581.14, 41 CFR 102–75.1172, 

and 45 CFR 12a.7 regarding the time 

period of 30 years for which the terms 

and conditions apply for a property. The 

revision clarifies that public benefit is 

measured in months rather than years (a 

360-month period rather than a 30-year 

period) and improves consistency 

because abrogation procedures also use 

months. This ensures that a transferred 

property is utilized for a full 360-month 

period, not simply during the course of 

a 30-year period, particularly in 

instances of noncompliance. As such, 

the change reflects the fact that the 

period of restriction may be amended to 

account for lack of use or change in 

program. Using years in most cases 

would be cumbersome and inaccurate. 

In paragraphs (i) and (f)(2) at 24 CFR 

581.14, 41 CFR 102–75.1172, and 45 

CFR 12a.7, this rule clarifies HHS’s 

existing policy of requiring ‘‘written’’ 

consent by clearly stating that written 

consent must be obtained for abrogation 

approvals and will be required for any 

encumbrances of the property for any 

purposes other than those set forth in an 

approved plan. The Agencies 

determined that the clarification and 

consistency for applications was 

necessary to avoid confusion in the 

administration of the program. 

Additionally, the Agencies received 

public comments suggesting that the 

proposed rule does not provide 

applicants sufficient time to renovate 

surplus property for use in 

homelessness assistance programs, 

particularly affordable permanent 

housing development projects. As a 

result, the Agencies revised paragraph 

(f)(1)(ii), to provide a transferee an 

additional 12 months (or up to a total 

of 48 months from the date of transfer) 

to place the property into use. 

Additionally, as explained above in 

section III.C., which discusses changes 

within the Application Process and 

Requirements section, this final rule 

also revises paragraph (f)(6) of the 

‘‘Transfer documents’’ section within 

the proposed rule in relation to property 

insurance requirements. 

F. Changes to Other Sections of the Rule 

In the ‘‘Other uses’’ section found at 

24 CFR 581.19, 41 CFR 102–75.1177, 

and 45 CFR 12a.11, the Agencies add a 

requirement that the transferee lengthen 

the time of restrictions in applicable 

situations to mirror existing HHS policy 

and clarify that a grantee may not 

benefit from its non-use of the property 

or noncompliance with the approved 

program of use. The Agencies also 

provided greater clarify for transferees 

regarding the consequences of failure to 

abide by the requirements outlined for 

other uses of the property. 

Additionally, throughout the 

regulation, the Agencies provide minor 

adjustments to word choice, such as 

changing ‘‘United States’’ to ‘‘Federal 

Government’’ in the ‘‘Application 

process and requirements’’ section 

proposed at 24 CFR 581.11, 41 CFR 

102–75.1170, and 45 CFR 12a.5 or 

‘‘useable’’ to ‘‘fit for use’’ in the 

‘‘Expression of interest process’’ section 

proposed at 24 CFR 581.10, 41 CFR 

102–75.1169, and 45 CFR 12a.4. These 

changes are made to provide greater 

clarity for the public. 

Additionally, the Agencies 

incorporated provisions of severability 

proposed at 45 CFR 12a.15, 24 CFR 

581.23, and 41 CFR 102–75.1182 to 

clarify that the rule’s provisions are 

intended to be severable from one 

another. Because the various 

components of this rule have functions 

that can operate independently from 

other portions of the rule, should a court 

find any of these revisions invalid, the 

Agencies believe that severability is 

both proper and practical. Furthermore, 

the Agencies’ roles in the Title V 

process are distinct and separate, 

requiring independent judgement and 

action by each agency. The Agencies 

agree that successful legal challenges to 

provisions of the rule that affect one 

agency should not impair other 

provisions of the rule that are related to 

another agency. For these reasons, this 

rule adds a severability clause to each 

agency’s portion of the rule. 

IV. Public Comments 

The public comment period for the 

proposed rule closed on May 19, 2023. 

The Agencies received a total of 23 

comments regarding the proposed rule. 

HUD received 11 comments and HHS 

received 12 comments related to the 

rule. These comments were received 

from individuals, non-profit housing 

organizations, and nonprofit legal 

service providers. The Agencies have 

provided collective responses to the 

comments received. 

A. Support for the Proposed Rule 

Commenters expressed general 

support for the proposed rule. 

Commenters stated that they believed 

the proposed rule would provide 

needed services and homes to persons 

experiencing homelessness, including 

women, children, and older people, 

which would improve access to shelter 

and healthcare and noted a need for 

housing and services for persons 

experiencing homelessness. One 

commenter noted a disruption created 

by laws against encampments and stated 

that there is a need for persons 

experiencing homelessness to have 

access to proper shelter. Another 

commenter noted an increase in the 

population of homeless individuals. 

One commenter stated that the proposed 

rule would provide suitable properties 


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for persons experiencing homelessness 

while not hindering the Federal 

Government. 

Commenters also expressed support 

for updating the terminology in the Title 

V program. Commenters stated that 

updating the terminology used by the 

Agencies will clarify the meaning of 

words such as ‘‘applicants,’’ 

‘‘homelessness,’’ and other terms. 

Commenters also noted that the 

proposed rule would clarify which 

properties are affected by the Title V 

program. One commenter stated that 

updating the terminology will also aid 

policymakers and citizens in 

understanding the target population 

affected by the proposed rule. 

Commenters also noted the impact of 

the rule on specific groups. One 

commenter stated that the proposed rule 

would revise current terminology to 

include survivors of intimate partner 

violence in the definition of 

‘‘homeless.’’ This commenter stated that 

a lack of housing resources and 

financial assistance remains a 

significant reason why survivors of 

intimate partner violence are less likely 

to leave abusers. Several commenters 

stated that veterans also constitute a 

significant portion of the homeless 

population. One commenter stated that 

the rule will benefit veterans 

experiencing homelessness. 

Commenters also supported 

provisions in the proposed rule that 

would change the program requirements 

from having an applicant ‘‘indicate’’ 

ability to finance and operate a 

proposed program to having them 

demonstrate their ability to do so. 

Commenters were supportive of the 

change, stating that it would allow 

applicants to more easily apply to the 

Title V program to receive available 

Federal properties. 

Commenters noted that the proposed 

rule would have positive implications 

for healthcare on the Federal level. One 

commenter stated that the proposed rule 

would help the Federal Government 

provide better assistance to those in 

need of housing and would improve 

Federal supervision over facilities to 

prevent or punish violations of Federal 

regulations. Another commenter stated 

that Federal properties having facilities 

to connect with mental health 

treatment, regular primary care, and 

substance use disorder treatment can 

help to reduce the number of illnesses 

and increase the possibility of people 

seeking medical care. One commenter 

also stated that the proposed rule 

provided greater clarity regarding the 

location of hazardous items close to safe 

items. 

The Agencies’ Response: The 

Agencies appreciate the support for the 

proposed rule. The Agencies agree there 

is a need for housing and services for 

persons experiencing homelessness in 

their communities. The Title V program 

recognizes the needs of homeless 

individuals by facilitating the transfer of 

suitable and available excess, surplus, 

unutilized, and underutilized Federal 

properties for homeless assistance. The 

Agencies also agree that updating 

terminology used by the Agencies will 

help clarify the processes in the Title V 

program and assist the Agencies in 

implementing the Title V program. 

The Agencies also support revising 

the definition of ‘‘homeless’’ in the rule 

to the statutory definition of ‘‘homeless’’ 

at 42 U.S.C. 11302, as Public Law 117– 

103 recently amended the part of the 

definition of ‘‘homeless individual’’ in 

subsection (b) of 42 U.S.C. 11302 to 

further address those who are 

experiencing trauma or lack of safety 

related to, or fleeing or attempting to 

flee, domestic violence, dating violence, 

sexual assault, stalking, and other 

dangerous, traumatic, or life-threatening 

conditions relating to the violence 

against the individual or a family 

member in the individual’s or family’s 

current housing situation, including 

where the health and safety of children 

are jeopardized; has no other safe 

residence; and lacks the resources to 

obtain other safe permanent housing. 

The Agencies acknowledge and share 

the commenters’ concerns regarding 

veterans experiencing homelessness. 

The Agencies intend the revisions to the 

Title V program in the rule to facilitate 

the transfer of suitable and available 

excess, surplus, unutilized, and 

underutilized Federal properties for 

homeless assistance, including veterans 

experiencing homelessness. Lastly, the 

Agencies agree that the rule makes the 

suitability criteria clearer for both the 

Agencies and applicants in the Title V 

program. 

B. Concerns Regarding Underuse of 

Title V and Impact on Underserved 

Communities 

Commenters stated that the program 

created under Title V of the McKinneyVento Act has been underused. One 

commenter stated that, despite 

improvements in the rate of applications 

and approvals as a result of the Federal 

Assets Sale and Transfer Act of 2016 

(FASTA), Title V’s overall approval 

rates have remained low. The 

commenter also stated that Executive 

Order 13985, ‘‘Advancing Racial Equity 

and Support for Underserved 

Communities Through the Federal 

Government,’’ requires executive 

agencies to recognize and work to 

redress inequities in their policies and 

programs that serve as barrier to equal 

opportunity. This commenter stated that 

due to past racially discriminatory 

housing policies, Black, multiracial, 

American Indian/Alaskan Natives, and 

Native Hawaiians and Pacific Islanders 

disproportionately experience 

homelessness. 

The Agencies’ Response: Regarding 

underutilization of the Title V program, 

the Agencies note that the number, 

condition, and location of properties are 

not solely under the Agencies’ purview, 

but instead are solely based on 

determinations made by all Federal 

Landholding Agencies as to what 

properties are no longer needed to fulfill 

their agency mission. Additionally, HHS 

is required to disapprove any 

application where an applicant fails to 

meet any one of the statutory and 

regulatory application review criteria. 

While HHS supports more Title V 

transfers, HHS also has no control over 

the number of and quality of 

applications it receives. 

With regard to the commenter’s note 

on advancing racial equity, the Agencies 

acknowledge the disproportionality in 

the homelessness system and is 

continuing efforts to address inequities 

and barriers in obtaining housing facing 

Black, multiracial, Native American, 

Native Alaskan, Native Hawaiians and 

Pacific Islanders. 

C. Concerns Related to Practical and 

Procedural Issues 

Commenters provided concerns 

related to both practical and procedural 

issues. Commenters noted a lack of 

clarity regarding where available 

properties can be accessed to inquire for 

use for an emergency shelter. 

Additionally, providing a procedural 

suggestion, one commenter stated that 

the proposed rule was a necessary 

update that should be completed at least 

every five years, which would allow the 

Agencies to stay up to date with changes 

in the Agencies’ practices and 

procedures as well as outdated 

information. One commenter stated they 

agree with utilizing Federal surplus real 

property to house the homeless by 

giving possession of the property to 

State and local governments, but the 

commenter also stated that the proposed 

rule would ‘‘be giving more ‘power’ to 

the government and taking it away from 

the citizens.’’ Additionally, a 

commenter stated that as the Title V 

program is tax exempt, the Federal 

Government will have to ‘‘come up with 

ways on how to fund this program in 

order to make it successful,’’ which may 

include use of certain grants. The 


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commenter further stated that the 

Federal Government budgeting system 

will be affected since the Federal 

Government will need to propose a way 

to invest in this program. The 

commenter also said that the program 

will put ‘‘more pressure on the Federal 

government to have to develop certain 

organizations and vouchers that will 

assist this program.’’ 

The Agencies’ Response: In reference 

to the comments about lack of clarity 

regarding where available properties can 

be accessed to inquire about use for an 

emergency shelter, HUD posts 

properties determined to be suitable to 

assist the homeless on its website 

(https://www.hud.gov/program_offices/ 

comm_planning/titlev/weekly). The tollfree Title V Information Number is (800) 

927–7588. HUD also transmits to the 

United States Interagency Council on 

Homelessness (USICH) a copy of the list 

of all suitable properties and, no later 

than February 15 of each year, publishes 

a list of all properties in the annual 

suitable property reports, reported to 

HUD in the Federal Register. Please 

note that HUD would only determine 

that properties are suitable to assist the 

homeless in accordance with the 

requirements and specific criteria 

described in the proposed rule and not 

that property would be appropriate for 

a particular use such as an emergency 

shelter. 

In response to the suggestion that the 

Agencies update procedures every five 

years, the Agencies note that 

rulemakings under Title V of the 

McKinney-Vento Act are conducted 

under the Administrative Procedure Act 

(APA) (5 U.S.C. 551–559). Rulemaking, 

in compliance with the APA, is a 

process with many requirements that 

may, depending on the complexity of 

the proposed rule and other factors, take 

years to complete. In addition, it takes 

time for landholding agencies and 

representatives of the homeless to 

update their processes and procedures 

to follow any changes in a revised final 

rule. It is generally not necessary or 

feasible to complete rulemaking every 

five years and such an artificial timeline 

would be unduly burdensome on the 

Agencies and divert resources from the 

efficient operation of the Title V 

program. 

The Agencies are not clear what the 

commenter means when stating that the 

proposed rule will take power away 

from the citizens and give it to the 

government. The commenter does not 

explain further what more power the 

government would have and the 

Agencies believe that the commenter 

could be referencing the continued 

government possession of the property 

if transferred to a state or local 

government. Title V authorizes the 

transfer of excess, surplus, unutilized, 

and underutilized Federal properties 

that are determined to be suitable and 

available for use to assist the homeless 

to representatives of the homeless. A 

representative of the homeless means a 

State or local government agency, or 

private nonprofit organization which 

provides, or proposes to provide, 

services to the homeless. To the extent 

the Title V program takes anything away 

from citizens, the Agencies assume the 

commenter meant that, had the property 

been sold instead of placed into the 

Title V program, citizens could lobby for 

the sale proceeds to be allocated 

elsewhere. 

Lastly, in regards to the commenter’s 

concerns about budgeting and funding, 

a recipient of Federal surplus real 

property (which is transferred at nocost) has the responsibility of financing 

all aspects of the transferred property 

and program operations. HHS 

appropriations are limited to the 

administration of the Title V program 

and no other funds are available to HHS 

for the program. While Federal grants 

may be a source of financing, transferees 

are not entitled to Federal grants and 

Federal grants are not the only available 

source of funding. Transferees utilize 

various methods to fund projects 

including State and local grants, loans, 

fundraising, etc. Additionally, when a 

property is transferred, the Federal 

Government no longer has custody and 

accountability of the property saving the 

Federal Government from those 

expenses. 

D. Concern Regarding HHS’s 

Interpretation of Current Regulations 

One commenter characterized HHS’s 

interpretation of the current regulations 

and the proposed rule as preventing 

homeless service providers from using 

Federal tax credits, including Low 

Income Housing Tax Credits (LIHTCs) to 

fund surplus property acquisition. This 

commenter stated that it believed HHS’s 

interpretation of the regulations 

governing Title V is that applicants 

must show they have full funding for a 

project and that this interpretation is 

without statutory or regulatory basis. 

The commenter stated that HHS denies 

applicants who cannot demonstrate they 

have attained complete funding at the 

time of their application, even if the 

applicant has a history of successfully 

funding and implementing projects. The 

commenter said that many affordable 

housing developments use sources of 

funding that cannot be committed to in 

advance, including allocations from city 

budgets and LIHTCs. The commenter 

stated that HHS’s actions to deny 

applicants who cannot demonstrate that 

they have obtained complete funding in 

fact create an obstacle for applicants as 

it requires Title V applicants to secure 

funding before receiving a property 

while many funders require the 

applicants to secure property before 

providing funding. The commenter 

noted that while the proposed rule 

shows intention to help applicants by 

providing for a one-year lease to enable 

site control required for funding, the 

proposed rule does not meet the site 

control requirements of the LIHTC 

programs. The commenter stated that 

homeless service providers cannot 

obtain evidence of Title V site control 

without documentation of LIHTCs but 

cannot obtain LIHTCs without 

documentation of Title V site control. 

The commenter also referenced 

examples of organizations that it noted 

had been impacted by HHS’s 

interpretation of the regulations to 

require that financing for a development 

project be secured at the time of 

application, as evidenced by HHS’s 

denial of their applications. 

The Agencies’ Response: The 

Agencies appreciate the commenter’s 

perspective. The Agencies would note 

that the proposed rule was written to 

clarify the minimum requirements for a 

financial plan to be considered 

reasonable. In so doing, the 

requirements for homeless service 

providers to obtain financing and for the 

Federal Government to protect its 

residual interest in the property were 

considered when drafting the rule. As 

the commenter stated, the rule provides 

for a one-year lease to enable site 

control by stating ‘‘A lease of one year, 

extendable at HHS’s discretion, with the 

concurrence of GSA or the landholding 

agency, may be granted when the 

applicant’s initial application is 

approved and the applicant’s final 

application outlining the applicant’s 

financial plan is found to be otherwise 

reasonable based on the criteria in 

paragraph (a)(7) [of the Application 

Process and Requirements section of 

this rule], but either a change in zoning 

is required or the financial plan 

proposes to utilize Low-Income Housing 

Tax Credits or other funding sources 

that typically take longer to process than 

other forms of financing.’’ While the 

commenter states Title V applicants 

cannot obtain LIHTCs without 

documentation of site control, the 

Agencies have approved multiple 

transferees that have acquired property 

via an initial lease and those transferees 

successfully obtained financing, 

including with LIHTCs. The Agencies 


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appreciate the commenter’s concerns 

but believe there is evidence of prior 

successful applicants that provide 

evidence directly counter to the 

commenter’s concerns and demonstrate 

that past projects have demonstrated 

that a lease is sufficient site control for 

purposes of obtaining financing. 

Lastly, it is inappropriate to speak 

with particularity regarding any denial 

of a specific individual applicant’s 

application through this final rule. 

Generally speaking, each application 

and applicant are different, and 

financing that may be acceptable for one 

applicant’s proposed project may not 

work for another applicant’s proposal. 

Additionally, HHS reviews all 

applications based on the same statutory 

and regulatory application criteria and 

holds applicants to the same standards. 

While HHS supports efforts to increase 

housing and supportive services to 

people experiencing homelessness, HHS 

is also required to protect the interests 

of the Federal Government and 

taxpayers in the property by ensuring 

that an applicant has the means to 

develop and operate a program. 

E. Concern Regarding Allowed Time To 

Renovate Surplus Property 

Commenters stated that neither the 

Title V regulations nor the proposed 

rule provided applicants sufficient time 

to renovate surplus property for use in 

homelessness assistance programs. A 

commenter stated that the requirement 

that an applicant begin operation of a 

property within 12 to 36 months is 

impossible to meet for many programs 

because affordable housing 

developments will usually take 4 to 7 

years from acquisition to be brought into 

use. The commenter stated that the 

amount of time transferees have to put 

Federal property into use should be 

increased, which would greatly expand 

the number and types of affordable 

housing development available through 

Title V. Commenters recommended 

revisions to the language of the 

proposed rule under 24 CFR 

581.14(f)(1)(ii), 45 CFR 12a.7(f)(1)(ii), 

and 41 CFR.102- 75.1172(f)(1)(ii) to 

strike language requiring that the 

property be placed into use within 12 

months or 36 months from the date of 

transfer and add language that required 

operation within eight years of the date 

of the deed or lease or, for multi-phase 

projects, the date of completion of the 

first phase of the project. 

The Agencies’ Response: The 

Agencies appreciate the commenter’s 

perspective. In the Agencies’ experience 

administering the Title V program over 

the past 30 years, the majority of 

programs satisfactorily meet the timing 

requirement. In only rare instances and 

under unusual circumstances is the 

requirement not met. When the time 

period is not met, a transferee is 

required to make a nonuse payment 

until such time as the property is placed 

into full use. However, the Agencies 

acknowledge that this timing 

requirement may have precluded certain 

projects from being pursued. This final 

rule now provides HHS the discretion to 

waive the nonuse payment if the 

transferee makes a sufficient showing of 

continued progress to place the property 

into use or if an unforeseeable event 

occurs which prevents the property 

from being put into use within the 

applicable timeframe. That ability for 

HHS to waive the nonuse payment 

should address the concern raised by 

commenters should unique 

circumstances arise and allow for HHS 

to consider those circumstances without 

disrupting program operations with a 

standard that has been generally met 

over the past 30 years. In response to 

commenters’ concerns, the final rule 

also provides the transferee with a 

period of 48 months from the date of 

transfer to place the surplus property 

into use, allowing additional time for 

the transferee to conduct any 

appropriate updates to the property that 

may include additional construction of 

facilities or other major renovation. 

F. Concern About Sanctions for 

Noncompliance 

One commenter stated that Title V’s 

current regulations do not provide 

recipients of Federal property sufficient 

time to cure potential issues before 

sanctions are enforced. This commenter 

stated that the proposed rule also does 

not provide transferees with a hearing or 

appeals process or clarification of HHS’s 

protocols, including what constitutes 

various types of noncompliance. The 

commenter said that HHS has 

significantly unlimited discretion to 

have the property reverted back to the 

Federal Government, even in 

circumstances outside of the transferee’s 

control. Commenters stated that, due to 

this lack of clarity from HHS, transferees 

who received Federal property through 

the Title V program face a significant 

risk of reversion back to the Federal 

Government, which deters potential 

project managers and partners from 

projects. A commenter also stated that 

the risk of reversion is also problematic 

for financing projects with tax credit 

investors and lenders. 

A commenter recommended adding 

new language to the rule to create the 

opportunity for transferees to cure 

‘‘inadvertent noncompliance’’ as well as 

for investors and lenders to participate 

in the process, encouraging further 

investment in Title V properties. The 

commenter stated that reversion is an 

unnecessary sanction in the Title V 

program as other methods may be used 

for enforcement. 

The Agencies’ Response: The 

Agencies appreciate the commenters’ 

perspectives. Potential applicants are 

made aware of noncompliance sanctions 

at 45 CFR 12a.10, which notes sanctions 

that HHS may impose should a 

transferee breach one or more of the 

transfer terms. Any risk of reversion or 

other sanction would then also be 

known for partners for financing 

projects when potential applicants are 

made aware of the terms of their award. 

These sanctions are necessary to 

preserve the integrity of the program 

and ensure that transferred property is 

being properly utilized to serve 

homeless communities and for no other 

purpose. HHS takes into consideration 

the circumstances of the noncompliance 

for each action when determining the 

appropriate enforcement action tailored 

to the type of noncompliance. For 

example, reversion could be a remedial 

measure for noncompliance, but HHS 

makes every attempt to work with the 

transferee to resolve a matter of 

noncompliance prior to initiating a 

reversion action. In situations of 

administrative or technical 

noncompliance where paperwork may 

have been entered or submitted in error, 

HHS may direct corrective action within 

an appropriate time period prior to 

indicating any potential for reversion of 

the property. During a cure period, HHS 

may request additional information, or 

the party may provide additional 

materials for HHS’s consideration when 

determining what sanctions for 

noncompliance may be issued. If 

ultimately HHS determines that 

reversion is the appropriate sanction, 

both GSA and the Department of Justice 

must concur in HHS’s decision to revert 

property before a court action can be 

initiated. 

G. Suggestion To Repurpose Properties 

One commenter stated that to create 

more affordable housing, more 

properties should be repurposed under 

the Title V: Federal Surplus Program for 

use by the homeless services system. 

This commenter noted that the U.S. 

Interagency Council on Homelessness 

recommended increasing the number of 

properties that are repurposed for use by 

the homeless services system in the 

Title V: Federal Surplus Property 

Program to expand affordable housing. 

The Agencies’ Response: The 

Agencies appreciate this commenter’s 

perspective. Through process 


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improvements implemented by HUD in 

this final rule, along with more focused 

outreach to homeless service providers, 

the intent is to highlight the most usable 

properties and increase as much as 

possible the use of properties 

transferred through the Title V process. 

H. Suggested Changes to the Proposed 

Rule 

One commenter suggested that 

language be added to the rule to allow 

applicants to submit letters of intent and 

financing commitments in order to 

show their ability to obtain funding. 

This commenter stated that this change 

would be consistent with the Agencies’ 

underlying statutory authority and 

allow the agencies to approve more 

applications for surplus Federal 

property to fulfill the underlying 

purpose of the Title V program: to 

affirmatively further fair housing. 

Another commenter noted support for 

the proposed rule’s requirement for 

transferees to allow HHS to conduct 

compliance inspections but suggested 

adding a mandatory bi-annual 

inspection requirement to the proposed 

rule. The commenter stated that these 

inspections will set a standard for all 

persons who are considering using the 

facility for needs. Additionally, 

commenters stated that adding a biannual inspection requirement would 

demonstrate care on the part of the 

Agencies for the sustainability of the 

building as well as that proactive and 

preventative maintenance among real 

estate companies. 

Another commenter suggested the 

proposed rule account for persons with 

disabilities in addition to persons 

experiencing homelessness and that the 

rule include giving property to 

individuals with disabilities and 

individuals experiencing homelessness 

to create homesteads. 

One commenter noted the 

stigmatization of homeless individuals, 

the potential causes and effects of 

homelessness, and the role of the 

Federal Government in addressing 

homelessness. The commenter stated 

that the government should allocate 

funding to building group homes for 

homeless individuals in different zip 

codes. 

One commenter stated that they 

recommend using high-end hotels at 

billionaires’ expense to house 

disadvantaged people. 

The Agencies’ Response: The 

Agencies appreciate the commenter’s 

suggestion to allow for letters of intent 

and financing commitment. The 

Agencies have concerns about the 

practical application of this, as what 

may be acceptable in one situation may 

be unacceptable in another. HHS’s 

review of a financial plan focuses on 

individual proposals in light of specific 

project and program plans, the 

applicant’s experience and resources, 

and conditions of the requested 

property. It is an applicant’s 

responsibility to ensure its application 

presents all information requested to set 

forth a reasonable financial plan as 

defined at 45 CFR 12a.5(a)(7), 

evidencing the adequacy and certainty 

of funding to carry forth the proposed 

program. A reasonable financial plan 

cannot be fully satisfied merely by 

letters of intent, as letters of intent are 

not contractual or binding. Applicants 

are not prohibited from submitting 

letters, but as indicated above, HHS 

would assess them in its evaluation of 

the entire financial plan to understand 

whether any letter or submitted 

information is relevant to HHS’s 

determination that the financial plan is 

satisfactory. 

Due to the short 15-day timeframe 

imposed on HHS, by statute, to review 

an applicant’s financial plan, HHS’s 

evaluation is limited to the content 

within the application. If the applicant 

does not present evidence in its 

financial plan that the government’s 

interest is protected, HHS may deny an 

application or approve an application 

for lease acquisition with an 

opportunity to acquire the property by 

deed once an applicant satisfies HHS’s 

requirements to ensure that the Federal 

Government’s interest in the property is 

adequately protected. A lease to a 

property has proven to be acceptable 

site control for purposes of obtaining 

financing. 

Regarding the suggestion to add a 

mandatory bi-annual inspection into the 

rule’s compliance requirement, the 

Agencies would note that the proposed 

rule at 45 CFR 12a.13 requires that 

transferees allow HHS to conduct 

compliance inspections and submit, at a 

minimum, annual utilization reports 

regarding the operation and 

maintenance of the property. As written, 

HHS has the discretion to conduct 

compliance inspections and request 

property reports at any time a transferee 

is under the period of use restrictions, 

which is useful, particularly in 

instances of noncompliance. HHS 

determines when and how often to 

conduct inspections based on various 

circumstances, including but not 

limited to, open compliance cases, 

issues reported by adjacent property 

owners, length of time since last 

inspection, etc. HHS takes compliance 

action to ensure transferred property is 

both properly maintained and operated 

to provide services to the homeless. 

In reference to one commenter’s 

suggestion that the Agencies create 

homesteads for individuals with 

disabilities and those experiencing 

homelessness, Title V authorizes the 

transfer of excess, surplus, unutilized, 

and underutilized Federal properties 

that are determined to be suitable and 

available for use to assist the homeless. 

While many persons who meet the 

definition of homeless may also have a 

disability, Title V does not permit 

properties under Title V to be 

transferred to assist persons with a 

disability who do not meet the 

definition of homeless. 

Lastly, in reference to the suggestion 

to use hotels or build group homes for 

homeless individuals, the commenter’s 

proposal is not within the scope of the 

program. Title V of the McKinney-Vento 

Act only applies to excess, surplus, 

unutilized, and underutilized Federallyowned properties and does not apply to 

privately owned properties such as 

hotels. Additionally, the Title V 

program does not provide funds to 

construct or rehab housing for the 

homeless. 

V. Findings and Certifications 

Regulatory Review—Executive Orders 

12866, 13563, and 14094 

Under Executive Order 12866 

(Regulatory Planning and Review), as 

amended by Executive Order 14094, a 

determination must be made by the 

Office of Management and Budget 

(OMB) regarding whether a regulatory 

action is significant and therefore 

subject to review in accordance with the 

requirements of the Executive order. 

Executive Order 13563 (Improving 

Regulations and Regulatory Review) 

directs executive agencies to analyze 

regulations that are ‘‘outmoded, 

ineffective, insufficient, or excessively 

burdensome, and to modify, streamline, 

expand, or repeal them in accordance 

with what has been learned.’’ Executive 

Order 13563 also directs that, where 

relevant, feasible, and consistent with 

regulatory objectives, and to the extent 

permitted by law, agencies are to 

identify and consider regulatory 

approaches that reduce burdens and 

maintain flexibility and freedom of 

choice for the public. Executive Order 

14094 amends section 3(f) of Executive 

Order 12866, among other things. 

This final rule was determined to be 

a significant regulatory action under 

section 3(f) of Executive Order 12866, as 

amended by Executive Order 14094 

(although not a significant regulatory 

action under section 3(f)(1) the order). 

The Agencies prepared an initial 

Regulatory Impact Analysis (RIA) that 


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addresses the costs and benefits of the 

rule and is part of the docket file for this 

rule. 

Environmental Review 

Actions resulting from this rule 

amendment may constitute ‘‘major 

Federal actions significantly affecting 

the quality of the human environment.’’ 

42 U.S.C. 4332(2)(C). A detailed 

statement under the National 

Environmental Policy Act of 1969 

(NEPA) is not specifically required for 

purposes of the rule amendment. 

Actions involving specific property 

transactions may require further NEPA 

analysis, however, as an action may not 

be covered by the categorical exclusion 

published at 47 FR 2414–02 on January 

11, 1982. HHS will, prior to making a 

final decision to convey or lease, or to 

amend, reform, or grant an approval or 

release with respect to a previous 

conveyance or lease of surplus property 

for homeless assistance purposes, 

ensure an environmental review and/or 

assessment is conducted, if applicable, 

and appropriately document the 

proposed transaction, in keeping with 

applicable provisions of NEPA. 

The Environmental Assessment and 

Finding of No Significant Impact 

(FONSI) issued when the proposed rule 

was published remain applicable to this 

final rule. The FONSI is available for 

public inspection on 

www.regulations.gov. 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (UMRA) (2 U.S.C. 1531–1538) 

establishes requirements for Federal 

agencies to assess the effects of their 

regulatory actions on State, local, and 

Tribal governments and on the private 

sector. This final rule does not impose 

any Federal mandate on any State, local, 

or Tribal government, or on the private 

sector, within the meaning of UMRA. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. 

This final rule imposes no additional 

requirements on a substantial number of 

small entities as defined by the RFA. 

The rule conforms the Agencies’ 

existing regulations with required 

statutory changes under the Federal 

Assets Sale and Transfer Act of 2016 

and other legislative changes, and to 

address certain issues that have arisen 

since the inception of the program. This 

rule also provides for HUD’s suitability 

determinations to be published 

electronically rather than in the Federal 

Register. Accordingly, the undersigned 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits, to the extent 

practicable and permitted by law, an 

agency from publishing any rule that 

has federalism implications if the rule 

either imposes substantial direct 

compliance costs on State and local 

governments and is not required by 

statute, or preempts State law, unless 

the relevant requirements of section 6 of 

the Executive order are met. This rule 

does not have federalism implications 

and does not impose substantial direct 

compliance costs on State and local 

governments or preempt State law 

within the meaning of the Executive 

order. 

Paperwork Reduction Act 

The information collection 

requirements for part 581 contained in 

this rule pertain to HHS’s Title V 

application. HHS’s information 

collection requirements have been 

approved by OMB under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3520) and assigned OMB control 

number 0937–0191. In accordance with 

the Paperwork Reduction Act, an agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information, unless the 

collection displays a currently valid 

OMB control number. 

Congressional Review Act 

Pursuant to Subtitle E of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (codified at 5 

U.S.C. 801–808), also known as the 

Congressional Review Act or CRA, the 

Office of Information and Regulatory 

Affairs in OMB has determined that this 

rule does not meet the criteria set forth 

in 5 U.S.C. 804(2). 

List of Subjects 

24 CFR Part 581 

Administrative practice and 

procedure, Homeless, Reporting and 

recordkeeping requirements, Surplus 

Government property. 

41 CFR Part 102–75 

Federal buildings and facilities, 

Government property management, 

Rates and fares, Surplus Government 

property. 

45 CFR Part 12a 

Grant programs—health, Grant 

programs—housing and community 

development, Government property, 

Homeless, Housing, Public assistance 

programs, Surplus Government 

property. 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

Accordingly, for the reasons stated 

above, HUD amends 24 CFR part 581 as 

follows: 

PART 581—USE OF FEDERAL REAL 

PROPERTY TO ASSIST THE 

HOMELESS 

■ 1. The authority citation for part 581 

continues to read as follows: 

Authority: 42 U.S.C. 11411 note; 42 U.S.C. 

3535(d). 

■ 2. Amend § 581.1 as follows: 

■ a. Revise the definitions of Applicant 

and Eligible organization; 

■ b. Add the definition of Encumbrance 

in alphabetical order; 

■ c. Revise the definitions of Excess 

property and Homeless; 

■ d. Add the definition of HUD website 

in alphabetical order; 

■ e. Remove the definition of ICH; 

■ f. Revise the definitions of 

Landholding agency, Lease, Non-profit 

organization, Permit, and Property; 

■ g. Add the definition of Related 

personal property in alphabetical order; 

■ h. Remove the definition of Regional 

homeless coordinator; 

■ i. Revise the definition of Screen; 

■ j. Add the definition of State in 

alphabetical order; 

■ k. Remove the definition of State 

homeless coordinator; 

■ l. Revise the definitions of Suitable 

property and Surplus property; and 

■ m. Add the definitions of Transfer 

document and Transferee in 

alphabetical order. 

The revisions and additions read as 

follows: 

§ 581.1 Definitions. 

Applicant means any eligible 

organization that has submitted an 

application to the Department of Health 

and Human Services to obtain use of a 

certain suitable property to assist the 

homeless. 

* * * * * 

Eligible organization means a State or 

local government agency, or a private, 

non-profit organization that provides 

assistance to the homeless, and that is 

authorized under the State law in which 

the property is located to carry out the 

activity for which it requests property 

and enter into an agreement with the 


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Federal Government for use of property 

for the purposes of this part. Eligible 

organizations that are private, non-profit 

organizations interested in applying for 

suitable property must be tax exempt 

under section 501(c)(3) of the Internal 

Revenue Code at the time of application 

and remain tax exempt throughout the 

time the Federal Government retains a 

reversionary interest in the property. 

Encumbrance means any nonapproved use by a transferee or a third 

party that limits the full utilization of 

the transferred property, regardless of 

time period, and includes liens, 

easements, restrictive covenants, 

licenses, leases, mortgages, informal 

agreements, and unaddressed trespass. 

Excess property means any property 

under the control of a Federal executive 

agency that the head of the agency 

determines is not required to meet the 

agency’s needs or responsibilities, 

pursuant to 40 U.S.C. 524. 

* * * * * 

Homeless is defined in 42 U.S.C. 

11302. This term is synonymous with 

‘‘homeless individual’’ and ‘‘homeless 

person.’’ 

* * * * * 

HUD website means a website 

maintained by HUD providing 

information about HUD, including any 

successor websites or technologies that 

are equally accessible and available to 

the public. 

Landholding agency means the 

Federal department or agency with 

statutory authority to control property. 

For purposes of this part, the 

landholding agency is typically the 

Federal department or agency that had 

custody and accountability on behalf of 

the Federal Government, of a certain 

piece of property at the time that such 

property was reported to HUD for a 

suitability determination pursuant to 42 

U.S.C. 11411. 

Lease means an agreement in writing 

between either HHS for surplus 

property or landholding agencies for 

underutilized and unutilized properties 

and the applicant giving rise to the 

relationship of lessor and lessee for the 

use of Federal property for a term of at 

least one year under the conditions set 

forth in the lease document. 

Non-profit organization means an 

organization recognized as a non-profit 

by the State in which the organization 

operates, no part of the net earnings of 

which inures to the benefit of any 

member, founder, contributor, or 

individual; that has a voluntary board; 

that has an accounting system or has 

designated an entity that will maintain 

a functioning accounting system for the 

organization in accordance with 

generally accepted accounting 

procedures; and that practices 

nondiscrimination in the provision of 

assistance. 

Permit means a license granted by a 

landholding agency to use unutilized or 

underutilized property for a specific 

amount of time, usually one year or less, 

under terms and conditions determined 

by the landholding agency. A permit 

does not grant to the recipient an estate 

in land or any interest in the property. 

Property means real property 

consisting of vacant land or buildings, 

or a portion thereof, that is excess, 

surplus, or designated as unutilized or 

underutilized in surveys by the heads of 

landholding agencies conducted 

pursuant to 40 U.S.C. 524. 

Related personal property means any 

personal property that is located on real 

property and is either an integral part of 

or useful in the operation of that 

property or is determined by GSA to be 

otherwise related to the property. 

* * * * * 

Screen means the process by which 

GSA surveys Federal executive agencies 

to determine if they have an interest in 

using excess Federal property to carry 

out a particular agency mission, and 

then surveys State, local, and non-profit 

entities, to determine if any such entity 

has an interest in using surplus Federal 

property to carry out a specific public 

use. 

State means a State of the United 

States, and includes the District of 

Columbia, the Commonwealth of Puerto 

Rico, and the Territories and 

possessions of the United States. 

Suitable property means that HUD has 

determined that a certain property 

satisfies the criteria listed in § 581.6. 

Surplus property means any excess 

property not required by any Federal 

landholding agency for its needs or the 

discharge of its responsibilities, as 

determined by GSA. 

Transfer document means a lease, 

deed, or permit transferring surplus, 

unutilized, or underutilized property. 

Transferee means an eligible entity 

that acquires Federal property by lease, 

deed, or permit. 

* * * * * 

■ 3. Revise §§ 581.2 through 581.12 to 

read as follows: 

Sec. 

* * * * * 

581.2 Applicability. 

581.3 Collecting the information. 

581.4 Suitability determination. 

581.5 Real property reported excess to GSA. 

581.6 Suitability criteria. 

581.7 Determination of availability for 

suitable properties. 

581.8 Public notice of determination. 

581.9 General policies of HHS. 

581.10 Expression of interest process. 

581.11 Application process and 

requirements. 

581.12 Action on approved applications. 

* * * * * 

§ 581.2 Applicability. 

(a) This part applies to Federal 

property that has been designated by 

Federal landholding agencies as 

unutilized, underutilized, excess, or 

surplus and is therefore subject to the 

provisions of Title V of the McKinney 

Act, as amended (42 U.S.C. 11411). 

(b) The following categories of 

properties are not subject to this part 

(regardless of whether they may be 

unutilized or underutilized): 

(1) Buildings and property at military 

installations that were approved for 

closure under the Defense Base Closure 

and Realignment Act of 1990 (part A of 

title XXIX of Pub. L. 101–510; 10 U.S.C. 

2687 note) after October 25, 1994. 

(2) Machinery and equipment not 

determined to be related personal 

property by the landholding agency or 

GSA or determined to be related 

personal property that the landholding 

agency or GSA chooses to dispose of 

separate from real property. 

(3) Government-owned, contractoroperated machinery, equipment, land, 

and other facilities reported excess for 

sale only to the using contractor and 

subject to a continuing military 

requirement. 

(4) Properties subject to special 

legislation directing a particular action. 

(5) Properties subject to a court order 

that is binding on the Federal 

Government and, for any reason, 

precludes transfer for use to assist the 

homeless under the authority of 42 

U.S.C. 11411. 

(6) Property not subject to Federal 

Real Property Council reporting 

requirements in accordance with 40 

U.S.C. 623(i). 

(7) Mineral rights interests 

independent of surface rights. 

(8) Air space interests independent of 

surface rights. 

(9) Indian Reservation land subject to 

40 U.S.C. 523. 

(10) Property interests subject to 

reversion. 

(11) Easements. 

(12) Any building or fixture that is 

excess, or surplus, that is on land under 

the control of a landholding agency, 

where the underlying land is not excess 

or surplus. 

(13) Property purchased in whole or 

in part with Federal funds if title to the 

property is not held by a Federal 

landholding agency as defined in this 

part. 


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§ 581.3 Collecting the information. 

(a) Canvass of landholding agencies. 

On a quarterly basis, HUD will canvass 

each landholding agency to collect 

information about property described as 

unutilized, underutilized, excess or 

surplus in accordance with 40 U.S.C. 

524; however, HUD will accept property 

information between canvasses. Each 

canvass will collect information on 

properties not previously reported, and 

about property reported previously 

where the status or classification of the 

property has changed, or improvements 

have been made to the property. HUD 

will request descriptive information on 

properties sufficient to make a 

reasonable determination, under the 

criteria described in this section, of the 

suitability of a property for use to assist 

the homeless. Landholding agencies 

must report property information to 

HUD using the property checklist 

developed by HUD for that purpose. 

Property checklists submitted in 

response to a canvass must be submitted 

to HUD within 25 days of receipt of the 

canvass. 

(b) Agency annual suitable property 

report. By December 31 of each year, 

each landholding agency must notify 

HUD of the current availability status 

and classification of each property 

controlled by the agency that: 

(1) Was included in a list of suitable 

properties published that year by HUD; 

and 

(2) Remains available for application 

for use to assist the homeless or has 

become available for application during 

that year. 

(c) GSA inventory. HUD will collect 

information, in the same manner as 

described in paragraph (a) of this 

section, from GSA regarding property 

that is in GSA’s current inventory of 

excess or surplus property. 

(d) Change in status. If the 

information provided on the property 

checklist changes subsequent to HUD’s 

determination of suitability, including 

any improvements or other alterations 

to the physical condition of the land or 

the buildings on the property, and the 

property remains unutilized, 

underutilized, excess, or surplus, the 

landholding agency must submit a 

revised property checklist in response to 

the next quarterly canvass. HUD will 

review for suitability and, if it differs 

from the previous determination, repost 

the property information on the HUD 

website. For example, property 

determined unsuitable due to extensive 

deterioration may have had 

improvements, or property determined 

suitable may subsequently be found to 

be extensively deteriorated. 

§ 581.4 Suitability determination. 

(a) Suitability determination. Within 

30 days after the receipt of a completed 

property checklist from landholding 

agencies either in response to a 

quarterly canvass, or between canvasses, 

HUD will determine, using the criteria 

set forth in § 581.6 whether a property 

is suitable for use to assist the homeless 

and report its determination to the 

landholding agency. Properties that are 

under lease, contract, license, or 

agreement by which a Federal agency 

retains a real property interest or which 

are scheduled to become unutilized or 

underutilized will be reviewed for 

suitability no earlier than six months 

prior to the expected date when the 

property will become unutilized or 

underutilized. 

(b) Scope of suitability. HUD will 

determine the suitability of a property 

for use to assist the homeless without 

regard to any particular use. 

(c) Environmental information. HUD 

will evaluate the environmental 

information contained in property 

checklists forwarded to HUD by the 

landholding agencies solely for the 

purpose of determining suitability of 

properties under the criteria in § 581.6. 

(d) Record of suitability 

determination. HUD will assign an 

identification number to each property 

reviewed for suitability. HUD will 

maintain a public record of the 

following: 

(1) The suitability determination for a 

particular piece of property, and the 

reasons for that determination; and 

(2) The landholding agency’s response 

to the determination pursuant to the 

requirements of § 581.7(a). 

(e) Property determined unsuitable. 

Property that is reviewed by HUD under 

this section and that is determined 

unsuitable for use to assist the homeless 

may not be made available for any other 

purpose for 20 days after publication of 

a notice of unsuitability on the HUD 

website. 

(f) Procedures for appealing 

unsuitability determinations. (1) To 

request review of a determination of 

unsuitability, a representative of the 

homeless must contact HUD, in writing, 

through the U.S. Mail, email, or the 

HUD website, or such other method as 

HUD may require, within 20 days of 

publication of the notice of 

unsuitability. 

(2) Requests for review of a 

determination of unsuitability may be 

made only by representatives of the 

homeless. 

(3) The request for review must 

specify the grounds on which it is 

based, i.e., HUD has improperly applied 

the criteria or HUD has relied on 

incorrect or incomplete information in 

making the determination (e.g., that 

property is in a floodplain but not in a 

floodway). 

(4) Upon receipt of a request to review 

a determination of unsuitability, HUD 

will notify the landholding agency or 

GSA that such a request has been made. 

The landholding agency or GSA shall 

have 20 days from receipt of the notice 

from HUD, or an extended period agreed 

to between HUD and the landholding 

agency or GSA, to provide any 

information pertinent to the review. The 

landholding agency or GSA must refrain 

from initiating disposal procedures until 

HUD has completed its reconsideration 

regarding unsuitability. If the 

landholding agency or GSA fails to meet 

the deadline, HUD will move forward 

with the appeal review with the 

property information it already has and 

information submitted in the appeal 

request provided by the representative 

of the homeless. 

(i) HUD will act on all requests for 

review within 30 days of receipt of the 

landholding agency’s or GSA’s 

response, or, if the landholding agency 

or GSA failed to meet the deadline, 

within 30 days of such deadline, and 

will notify the representative of the 

homeless and the landholding agency or 

GSA in writing of its decision. 

(ii) If a property is determined 

suitable as a result of the review, HUD 

will request the landholding agency’s or 

GSA’s determination of availability 

pursuant to § 581.7, upon receipt of 

which HUD will promptly publish the 

determination on the HUD website. 

§ 581.5 Real property reported excess to 

GSA. 

(a) Each landholding agency must 

submit a report to GSA of properties it 

determines excess. Each landholding 

agency must also provide a copy of 

HUD’s suitability determination, if any, 

including HUD’s identification number 

for the property. 

(b) If a landholding agency reports an 

excess property to GSA that HUD has 

already determined to be suitable for 

use to assist the homeless, GSA will 

screen the property pursuant to 

paragraph (h) of this section and will 

advise HUD of the availability of the 

property for use by the homeless as 

provided in paragraph (e) of this 

section. In lieu of the preceding 

sentence, GSA may submit a new 

checklist to HUD and follow the 

procedures in paragraphs (c) through (h) 

of this section. 

(c) If a landholding agency reports an 

excess property to GSA that has not 

been reviewed by HUD for homeless 

assistance suitability, GSA will 


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complete a property checklist, based on 

information provided by the 

landholding agency, and will forward 

this checklist to HUD for a suitability 

determination. This checklist will 

reflect any change in classification, such 

as from unutilized or underutilized to 

excess or surplus. 

(d) Within 30 days after GSA’s 

submission, HUD will advise GSA of the 

suitability determination. 

(e) When GSA receives notification 

from HUD listing suitable excess 

properties, GSA will transmit a response 

to HUD within 45 days regarding the 

availability of the property. GSA’s 

response will include the following for 

each identified property: 

(1) A statement that there is no other 

compelling Federal need for the 

property and, therefore, the property 

will be determined surplus; or 

(2) 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. 

(f) When GSA submits a checklist to 

HUD in accordance with paragraphs (b) 

and (c) of this section, the information 

regarding the availability of the 

property, as specified in paragraph (e)(1) 

and (2) of this section, may be included 

with the checklist if it is known at the 

time of submittal. 

(g) When a surplus property is 

determined as suitable, confirmed as 

available by GSA, and notice is 

published on the HUD website, GSA 

will concurrently notify HHS, State and 

local government units, and known 

homeless assistance providers that have 

expressed interest in the particular 

property, and other organizations, as 

appropriate, concerning suitable 

properties. 

(h) Upon submission of a Report of 

Excess to GSA, GSA may screen the 

property for Federal use. In addition, 

GSA may screen State and local 

governmental units and eligible nonprofit organizations to determine 

interest in the property in accordance 

with 41 CFR part 102–75. (See 41 CFR 

102–75.1220, 102–75.255, and 102– 

75.350.) 

(i) The landholding agency will retain 

custody and accountability and will 

protect and maintain any property that 

is reported excess to GSA as provided 

in 41 CFR 102–75.965. 

§ 581.6 Suitability criteria. 

(a) In general, properties will be 

determined suitable unless a property’s 

characteristics include one or more of 

the following conditions: 

(1) Flammable or explosive hazards. 

Property located less than an acceptable 

separation distance (under the standards 

in 24 CFR part 51, subpart C, and the 

HUD Guidebook, ‘‘Siting of HUDAssisted Projects Near Hazardous 

Facilities’’ or successor guidebook) from 

any stationary above-ground container 

or facility which stores, handles, or 

processes hazardous substances of an 

explosive or fire prone nature 

(excluding containers and facilities that 

are not hazards as defined in 24 CFR 

51.201), unless HUD can determine 

during the review period based on 

information provided by the 

landholding agency that appropriate 

mitigating measures, as defined in 24 

CFR 51.205, are already in place. 

(2) Coastal barriers. Property located 

in a System Unit, as defined at 16 U.S.C. 

3502(7), under the Coastal Barrier 

Resources Act, as amended (16 U.S.C. 

3501 et seq.). 

(3) Site safety conditions. Property 

with a documented and extensive 

condition(s) that represents a clear 

threat to personal physical safety or 

health. Such conditions may include, 

but are not limited to, significant 

contamination from hazardous 

substances, as defined by 42 U.S.C. 

9601, periodic flooding, sinkholes, or 

landslides. 

(b) In the cases in paragraphs (b)(1) 

through (4) of this section, properties 

will be determined unsuitable, unless 

the landholding agencies provide 

information to enable HUD to determine 

the property is suitable: 

(1) Inaccessible. Property that is 

inaccessible, meaning that the property 

is not accessible by road (including 

property on small offshore islands) or is 

landlocked (e.g., can be reached only by 

crossing private property and there is no 

established right or means of entry). 

(2) National security. Property located 

in an area to which the general public 

is denied access in the interest of 

national security (e.g., where a special 

pass or security clearance is a condition 

of entry to the property), unless there is 

an alternative method to gain access 

without compromising national 

security. 

(3) Runway clear zones. Property 

located within a runway clear zone or 

a military airfield clear zone. 

(4) Floodway. Property located in a 

floodway, unless only an incidental 

portion of the property is in the 

floodway and that incidental portion 

does not affect the use of the remainder 

of the property to assist the homeless. 

§ 581.7 Determination of availability for 

suitable properties. 

Within 45 days after receipt of 

notification from HUD pursuant to 

§ 581.4(a) that a property has been 

determined to be suitable, each 

landholding agency or GSA must 

transmit to HUD a statement of one of 

the following: 

(a) In the case of unutilized or 

underutilized property— 

(1) An intention to declare the 

property excess; 

(2) An intention to make the property 

available for use to assist the homeless; 

or 

(3) The reasons why the property 

cannot be declared excess or made 

available for use to assist the homeless. 

The reasons given must be different 

from those listed as suitability criteria in 

§ 581.6. 

(b) In the case of excess property 

which has been reported to GSA— 

(1) A statement that there is no 

compelling Federal need for the 

property, and, therefore, the property 

will be determined surplus; or 

(2) A statement that there is a further 

and compelling Federal need for the 

property (including a full explanation of 

such need) and therefore, the property 

is not presently available for use to 

assist the homeless. 

§ 581.8 Public notice of determination. 

(a) No later than 15 days after the 

most recent 45-day period has elapsed 

for receiving responses from the 

landholding agencies or GSA regarding 

availability, HUD will post on the HUD 

website a list of all properties reviewed, 

including a description of the property, 

its address, and classification. The 

following designations will be made: 

(1) Properties that are suitable and 

available. 

(2) Properties that are suitable and 

unavailable. 

(3) Properties that are suitable and to 

be declared excess. 

(4) Properties that are unsuitable. 

(b) HUD will establish and maintain 

a toll-free number for the public to 

obtain specific information about 

properties in paragraph (a) of this 

section. 

(c) No later than 15 days after the 

most recent 45-day period has elapsed 

for receiving responses from the 

landholding agencies or GSA regarding 

availability, HUD will transmit to the 

United States Interagency Council on 

Homelessness (USICH) a copy of the list 

of all properties in paragraph (a) of this 

section. The USICH will immediately 

distribute to all State and regional 

homeless coordinators area-relevant 

portions of the list. The USICH will 


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encourage the State and regional 

homeless coordinators to disseminate 

this information widely. 

(d) No later than February 15 of each 

year, HUD will publish in the Federal 

Register a list of all properties in the 

agency annual suitable property reports, 

reported to HUD pursuant to § 581.3(b). 

(e) HUD will publish an annual list of 

properties determined suitable, but 

which agencies reported unavailable 

including the reasons such properties 

are not available. 

§ 581.9 General policies of HHS. 

(a) It is the policy of HHS to foster and 

assure maximum utilization of surplus 

property for homeless assistance 

purposes. 

(b) Transfers may be made only to 

eligible organizations. 

(c) Property will be requested for 

assignment only when HUD has made a 

final determination that the property is 

suitable for use to assist the homeless, 

GSA has determined it is available, and 

HHS has determined it is needed for 

homeless assistance purposes. The 

amount of real and related personal 

property to be transferred shall not 

exceed normal operating requirements 

of the applicant. Such property will not 

be requested for assignment unless it is 

needed at the time of application for 

homeless assistance purposes or will be 

so needed within the immediate or 

foreseeable future. 

(d) Transfers by deed will be made 

only after the applicant’s financial plan 

is approved and the applicant provides 

certification that the proposed program 

is permissible under all applicable State 

and local zoning restrictions, building 

codes, and similar limitations. 

(e) In instances of noncompliance, 

transferees are provided an opportunity 

to cure the noncompliance pursuant to 

45 CFR 12a.10. 

§ 581.10 Expression of interest process. 

(a) Properties published by HUD as 

suitable and available, pursuant to 

§ 581.8, for application for use to assist 

the homeless shall not be available for 

any other purpose for a period of 30 

days beginning on the date the list of 

properties is published on the HUD 

website. Any eligible organization 

interested in any underutilized, 

unutilized, excess, or surplus property 

for use to assist the homeless must send 

HHS a written expression of interest in 

that property within 30 days after the 

property has been published on the 

HUD website. 

(b) Although a property may be 

determined suitable by HUD, HUD’s 

determination does not mean a property 

is necessarily fit for use for the 

purpose(s) stated in the application, nor 

does it guarantee subsequent 

conveyance or transfer of a property. 

(c) If a written expression of interest 

to apply for suitable property for use to 

assist the homeless is received by HHS 

within the 30-day holding period, such 

property may not be made available for 

any other purpose until the date HHS or 

the appropriate landholding agency has 

completed action on the application 

submitted pursuant to that expression of 

interest. 

(d)(1) The expression of interest 

should identify the specific property, 

briefly describe the proposed use, 

include the name of the organization, 

and indicate whether it is a public body 

or a private, non-profit organization. 

The expression of interest must be sent 

to HHS by email, rpb@psc.hhs.gov, or by 

mail at the following address: 

Department of Health and Human 

Services, Program Manager, Federal 

Real Property Assistance Program, Real 

Estate Logistics and Operations, 5600 

Fishers Lane, Rockville, Maryland 

20852. 

(2) HHS will notify the landholding 

agency (for unutilized and underutilized 

properties) or GSA (for excess and 

surplus properties) when an expression 

of interest has been received for a 

certain property. 

(e) An expression of interest may be 

sent to and accepted by HHS any time 

after the 30-day holding period has 

expired only if the property remains 

available as determined by GSA or the 

landholding agency for application to 

assist the homeless. In such a case, an 

application submitted pursuant to this 

expression of interest may be approved 

for use by the homeless if: 

(1) There are no pending applications 

or written expressions of interest made 

under any law for use of the property for 

any purpose; and 

(2) In the case of excess or surplus 

property, GSA has not received a bona 

fide offer to purchase that property or 

advertised for the sale of the property by 

public auction. 

§ 581.11 Application process and 

requirements. 

(a) Upon receipt of an expression of 

interest, HHS will send an application 

packet to the interested entity. The 

application packet requires the 

applicant to provide certain 

information, including the following— 

(1) Acquisition type. The applicant 

must state whether it is requesting 

acquisition of the property by lease, 

deed, or permit. A lease of one year, 

extendable at HHS’s discretion, with the 

concurrence of GSA or the landholding 

agency, may be granted when the 

applicant’s initial application is 

approved and the applicant’s final 

application outlining the applicant’s 

financial plan is found to be otherwise 

reasonable based on the criteria in 

paragraph (a)(7) of this section, but 

either a change in zoning is required or 

the financial plan proposes to utilize 

Low-Income Housing Tax Credits or 

other funding sources that typically take 

longer to process than other forms of 

financing. Applicants that initially 

apply for transfer by lease or permit and 

subsequently request transfer by deed 

will follow the same bifurcated 

application process, including 

deadlines, contained in 42 U.S.C. 11411. 

Should an applicant wish to transition 

from acquisition by lease to acquisition 

by deed, HHS will issue a letter of 

commitment to a lessee indicating that, 

provided its application meets all 

application criteria, including securing 

of all necessary financing that complies 

with Federal Government requirements, 

HHS will issue a deed. 

(2) Description of the applicant 

organization. The applicant must 

document that it satisfies the definition 

of an eligible organization as specified 

in § 581.1. 

(3) Description of the property 

desired. The applicant must describe 

the listed property desired, including 

existing zoning. Applicants must certify 

that any modification(s) made to and 

use of the property will conform to all 

applicable building codes, and local use 

restrictions, or similar limitations. In 

accordance with GSA policy, 

determinations regarding parcelization 

are made prior to screening. Therefore, 

expressions of interest and applications 

for portions of listed properties will not 

be accepted. 

(4) Description of the proposed 

program. The applicant must fully 

describe the proposed program and plan 

of use, including implementation plans. 

(5) Demonstration of need. The 

applicant must demonstrate that the 

property is needed for homeless 

assistance purposes at the time of 

application and how the program will 

address the needs of the homeless 

population to be assisted. The applicant 

must demonstrate that it has an 

immediate need and ability to utilize all 

of the property for which it is applying. 

(6) Demonstrate that the property is 

suitable and adaptable for the proposed 

program and plan of use. The applicant 

must fully explain why the property is 

suitable and describe what, if any, 

modification(s) will be made to the 

property before the program becomes 

operational. 

(7) Ability to finance and operate the 

proposed program. If the applicant’s 


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initial application is approved, the 

applicant must set forth a reasonable 

plan to finance the approved program 

within 45 days of the initial approval. 

To be considered reasonable, the plan 

must, at a minimum: 

(i) Specifically describe all 

anticipated costs and sources of funding 

for the proposed program, including any 

property modifications; 

(ii) Be accompanied by supporting 

documentation which demonstrates that 

the proposed plan is likely to succeed; 

(iii) Demonstrate that the applicant is 

ready, willing, able, and authorized to 

assume care, custody, and maintenance 

of the property; 

(iv) Demonstrate that it has secured 

the necessary dedicated funds, or will 

obtain such funds, to carry out the 

approved proposed program and plan of 

use for the property, including 

administrative expenses incident to the 

transfer by deed, lease, or permit; 

(v) Not diminish the value of the 

Federal Government’s interest in the 

property nor impair the Federal 

Government’s ability to revert and 

immediately dispose of the property free 

of any and all liens, encumbrances, or 

anything else which renders the 

property unmarketable. Deed transfers 

will only be made after an applicant 

demonstrates its financial plan 

adequately protects the Federal 

Government’s interest in the property; 

and 

(vi) Neither subject the Federal 

Government’s interest in the property to 

foreclosure nor impose obligations (e.g., 

extended use agreements) on the 

Federal Government. 

(8) Compliance with nondiscrimination requirements. Each 

applicant under this part must certify in 

writing that it will comply with all 

requirements of Federal law and HHS 

policy, as amended, relating to nondiscrimination, including the following: 

the Fair Housing Act (42 U.S.C. 3601– 

3619) and implementing regulations at 

24 CFR part 100; and, as applicable, 

Executive Order 11063 (Equal 

Opportunity in Housing) and 

implementing regulations at 24 CFR part 

107; Title VI of the Civil Rights Act of 

1964 (42 U.S.C. 2000d to d–4) (Nondiscrimination in Federally Assisted 

Programs) and implementing 

regulations at 24 CFR part 1; section 

1557 of the Affordable Care Act and 

implementing regulations at 45 CFR part 

92; the prohibitions against 

discrimination on the basis of age under 

the Age Discrimination Act of 1975 (42 

U.S.C. 6101–6107) and implementing 

regulations at 24 CFR part 146; and the 

prohibitions against discrimination 

against otherwise qualified individuals 

with disabilities under section 504 of 

the Rehabilitation Act of 1973 (29 U.S.C. 

794) and implementing regulations at 24 

CFR part 8; and Titles II or III of the 

Americans with Disabilities Act and 

implementing regulations at 28 CFR part 

35 or 36, as applicable. The applicant 

must maintain the required records to 

demonstrate compliance with all 

applicable Federal laws and HHS 

policies related to non-discrimination. 

(9) Insurance and indemnification. 

The applicant must certify that it will 

insure the property against loss, 

damage, or destruction to protect the 

residual financial interest of the United 

States. The United States shall be 

named as an additional insured. 

Applicants must provide proof of 

insurance annually or upon request. 

Failure to maintain sufficient insurance 

may result in adverse action, including 

reversion of the property, at the 

discretion of HHS. In the event of a 

covered loss, the transferee must hold 

all insurance proceeds in trust and 

obtain written concurrence from HHS 

before disbursing the funds. Applicants, 

and all affiliated parties utilizing the 

property, as approved by HHS, must 

indemnify the United States and hold 

the United States harmless for all 

actions involving use of the property. 

(10) Historic preservation. Where 

applicable, the applicant must provide 

information that will enable HHS to 

comply with Federal historic 

preservation requirements. 

(11) Environmental information. The 

applicant must provide sufficient 

information to allow HHS to analyze the 

potential impact of the applicant’s 

proposal on the environment, in 

accordance with the instructions 

provided with the application packet. 

HHS will assist applicants in obtaining 

any pertinent environmental 

information in the possession of HUD, 

GSA, or the landholding agency. 

However, the burden is on the applicant 

to submit sufficient documentation for 

analysis by HHS. 

(12) Local government notification. 

The applicant must certify that it has 

notified the applicable unit of general 

local government responsible for sewer, 

water, police, and fire services, in 

writing, of its proposed program for the 

specific property and submit a copy of 

that written notification. 

(13) Zoning and local use restrictions. 

An applicant requesting a deed must 

certify that it has consulted all State and 

local governmental entities that will 

have jurisdiction over the property and 

that the proposed use will comply with 

all applicable zoning and local use 

restrictions, including local building 

code requirements. An applicant that 

applies for a lease or permit is not 

required to comply with local zoning 

requirements, as long as the Federal 

Government retains ownership of the 

property. Deed transfers will only be 

made after the applicant has provided 

acceptable written proof that the 

proposed program is not in conflict with 

State or local zoning laws and 

restrictions, building codes, or similar 

limitations. 

(b) Scope of evaluations. Due to the 

short time frame imposed by statute for 

evaluating applications, HHS’s 

evaluation will, generally, be limited to 

the information contained in the 

application. It is therefore incumbent on 

applicants to provide thorough and 

complete applications. 

(c) Deadline for initial application. An 

initial application must be received by 

HHS, at the email address in 

§ 581.10(d)(1) or other address indicated 

by HHS, within 75 days after an 

expression of interest is received from a 

particular applicant for that property. 

Upon written request from the 

applicant, HHS may, in its discretion, 

grant extensions authorized by 42 U.S.C. 

11411(e)(2)(A), provided that the 

appropriate landholding agency or GSA 

concurs with the extension. 

(d) Evaluation of initial application. 

(1) Upon receipt of an initial 

application, HHS will review it for 

completeness, and, if incomplete and 

time permits, may, in its discretion, 

return it or ask the applicant to furnish 

any missing or additional required 

information prior to final evaluation of 

the initial application. 

(2) HHS will evaluate each initial 

application within 10 days of receipt 

and will promptly advise the applicant 

of its decision. All initial applications 

will be reviewed on the basis of the 

following elements: 

(i) Services offered. The extent and 

range of proposed services, such as 

meals, shelter, job training, and 

counseling. 

(ii) Need. The demand for the 

program, the program’s ability to satisfy 

unmet needs of the community, and the 

degree to which the available property 

will be fully utilized. 

(iii) Experience. Demonstrated ability 

to provide the services, such as prior 

success in operating similar programs 

and recommendations attesting to that 

fact by Federal, State, and local 

authorities. 

(e) Deadline and evaluation of final 

application. (1) If HHS approves an 

initial application, HHS will notify the 

applicant and provide the applicant 45 

days in which to provide a final 

application. The final application shall 

set forth a reasonable plan to finance, as 


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89886 Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Rules and Regulations 

specified in paragraph (a)(7) of this 

section, the approved program as set 

forth in the initial application. 

Applicants may not modify the 

approved initial application within its 

final application proposal. 

(2) Upon receipt of the final 

application, HHS will make a 

determination within 15 days and notify 

the applicant. 

(3) Unlike with initial applications, 

requests for extensions are not 

authorized by 42 U.S.C. 11411 and thus 

will not be considered for final 

applications. 

(4) Applications are evaluated on a 

first-come, first-served basis. HHS will 

notify all organizations that have 

submitted expressions of interest for a 

particular property whether an earlier 

application received for that property 

has been approved. 

(f) Competing applications. If HHS 

receives more than one final application 

simultaneously, HHS will evaluate all 

applications and make a determination 

based on each application’s merit. HHS 

will rank approved applications based 

on the elements listed in paragraph (a) 

of this section, and notify the 

landholding agency, or GSA, as 

appropriate, of the approved applicant. 

§ 581.12 Action on approved applications. 

(a) Unutilized and underutilized 

properties. (1) When HHS approves an 

application, it will so notify the 

applicant and forward a copy of the 

application to the landholding agency. 

The landholding agency will execute 

the lease, or permit document, as 

appropriate, in consultation with the 

applicant. 

(2) The landholding agency maintains 

the discretion to decide the following: 

(i) The length of time the property 

will be available. 

(ii) The terms and conditions of the 

lease or permit document (except that a 

landholding agency may not charge any 

fees or impose any costs). 

(b) Excess and surplus properties. (1) 

When HHS approves an application, it 

will so notify the applicant and request 

that GSA assign the property to HHS for 

transfer. Requests to GSA for the 

assignment of surplus property to HHS 

for homeless assistance purposes will be 

based on the following conditions: 

(i) HHS has a fully approved 

application for the property; 

(ii) The applicant is able, willing, and 

authorized to assume immediate care, 

custody, and maintenance of the 

property; 

(iii) The applicant is able, willing and 

authorized to pay the administrative 

expenses incident to the transfer; and 

(iv) The applicant has secured the 

necessary funds, or had demonstrated 

the ability to obtain such funds, to carry 

out the approved program of use of the 

property. 

(2) Upon receipt of an acceptable 

assignment, HHS will execute the 

transfer document in accordance with 

the procedures and requirements set out 

in this part and any other terms and 

conditions HHS and GSA determine are 

appropriate or necessary. Custody and 

accountability of the property will 

remain throughout the lease term with 

the landholding agency (i.e., the agency 

which initially reported the property as 

excess) and throughout the deed term 

with the transferee. 

(3) Prior to assignment to HHS, GSA 

may consider other Federal uses and 

other important national needs in 

deciding the disposition of surplus 

property. Priority of consideration will 

normally be given to uses to assist the 

homeless. However, both GSA and HHS 

may consider any competing request for 

the property made under 40 U.S.C. 550 

that is so meritorious and compelling 

that it outweighs the needs of the 

homeless. 

(4) Whenever GSA or HHS decides in 

favor of a competing request over a 

request for property for homeless 

assistance, the agency making the 

decision will transmit to the appropriate 

committees of Congress an explanatory 

statement which details 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. Add §§ 581.14 through 581.23 to 

read as follows: 

Sec. 

* * * * * 

581.14 Surplus property transfer 

documents. 

581.15 Unsuitable properties. 

581.16 Compliance with the National 

Environmental Policy Act of 1969 and 

other related Acts (environmental 

impact). 

581.17 No applications approved. 

581.18 Utilization and enforcement. 

581.19 Other uses. 

581.20 Abrogation. 

581.21 Compliance inspections and reports. 

581.22 No right of administrative review for 

agency decisions. 

581.23 Severability. 

* * * * * 

§ 581.14 Surplus property transfer 

documents. 

(a) Surplus property may be conveyed 

to eligible organizations pursuant to 40 

U.S.C. 550(d) and 42 U.S.C. 11411, as 

amended, by lease or deed, at the 

applicant’s discretion. 

(b) Transfers of surplus property for 

homeless assistance purposes are in 

exchange for the transferee’s agreement 

to fully utilize the property for homeless 

assistance purposes in accordance with 

the terms specified in the transfer 

document. 

(c) A transfer of surplus property for 

homeless assistance purposes is subject 

to the disapproval of GSA within 30 

days after notice is given to GSA of the 

proposed transfer. 

(d) Surplus property transferred 

pursuant to this part will be disposed on 

an ‘‘as is, where is’’ basis without 

warranty of any kind except as may be 

stated in the transfer document. 

(e) Unless excepted by GSA in its 

assignment, the disposal of property 

includes mineral rights associated with 

the surface estate. 

(f) Transfers of surplus property under 

this part will be made with the 

following general terms and conditions: 

(1) For the period provided in the 

transfer document, the transferee shall 

utilize all the surplus property it 

receives solely and continuously for the 

approved program and plan of use, in 

accordance with 42 U.S.C. 11411 and 

this part, except that: 

(i) The transferee has 12 months from 

the date of transfer to place the surplus 

property into use, if HHS did not 

approve in writing, construction of new 

facilities or major renovation of the 

property when it approved the final 

application; 

(ii) The transferee has 48 months from 

the date of transfer to place the surplus 

property into use, if the transferee 

proposes construction of new facilities 

or major renovation of the property and 

HHS approves it in writing at the time 

it approves the final application; 

(iii) If the applicable time limitation is 

not met, the transferee shall either 

commence payments in cash to the 

Federal Government for each month 

thereafter during which the proposed 

use has not been implemented or take 

such other action as set forth at § 581.18 

as is deemed appropriate by HHS. Such 

monthly payments shall be computed 

on the basis of the current fair market 

value of the property, as conveyed, at 

the time of the first payment and 

dividing it by 360 months. At HHS’s 

discretion, the payment may be waived 

if the transferee makes a sufficient 

showing of continued progress to place 

the property into use or if an 

unforeseeable event occurs which 

prevents the property from being put 

into use within the applicable 

timeframe; and 

(iv) HHS may permit use of surplus 

property at any time during the period 

of restriction by an entity other than the 

transferee in accordance with § 581.19. 


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(2) The transferee will not be 

permitted to encumber, or dispose of the 

property, or impair full utilization 

thereof, without the prior written 

authorization of HHS. In the event the 

property is encumbered, sold, or 

disposed of, or is used for any purposes 

other than those set forth in an 

approved plan without the written 

consent of HHS, all revenues or the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from such use, as determined 

by HHS, will be considered to have been 

received and held in trust by the 

transferee for the account of the United 

States and will be subject to the 

direction and control of HHS. The 

provisions of this paragraph (f)(2) shall 

not impair or affect the rights reserved 

to the United States in paragraph (f)(8) 

of this section, or the right of HHS to 

impose conditions to its consent. 

(3) The transferee will file with HHS 

such reports on its maintenance and use 

of the transferred property and any 

other reports or information deemed 

necessary by HHS. 

(4) The transferee shall pay all 

administrative costs incidental to the 

transfer, including but not limited to— 

transfer taxes; surveys; appraisals; title 

searches; the transferee’s legal fees; and 

recordation expenses. Transferee is 

solely responsible for such costs and 

may not seek reimbursement from the 

Federal Government for any reason. 

(5) The transferee shall protect, 

preserve, maintain, and repair the 

property to ensure that the property 

remains in as good a condition as when 

received. 

(6) The transferee shall protect the 

residual financial interest of the United 

States in the surplus property by 

insurance or such other means as HHS 

directs. 

(7) The transferee shall abide by all 

applicable Federal civil rights laws 

including those specified in the 

covenants and conditions contained in 

the transfer document, prohibiting the 

transferee from discriminating on the 

basis of, including but not limited to, 

race, color, national origin, religion, sex, 

familial status, or disability in the use 

of the property. 

(8) In the event of noncompliance 

with any conditions of the deed as 

determined by HHS, whether caused by 

the legal or other inability of the 

transferee, its successors and assigns, to 

perform any of the obligations of the 

transfer document, the Federal 

Government has an immediate right of 

reentry thereon, and to cause all right, 

title, and interest in and to the property 

to revert to the United States, and the 

transferee shall forfeit all right, title, and 

interest in and to the property. In such 

event, transferee shall execute a 

quitclaim deed and take all other 

actions necessary to return the property 

to the United States within ninety (90) 

days of a written request from the 

Federal Government, extended only at 

the discretion of the Federal 

Government. Transferee shall cooperate 

with the United States in the event of a 

reversion and agrees that the United 

States need not seek judicial 

intervention before exercising its right 

to revert, reenter, and reconvey the 

property. 

(9) In the event title is reverted to the 

United States for noncompliance or 

voluntarily reconveyed to the United 

States, the transferee shall, at the option 

of HHS, be required to: reimburse the 

United States for the decrease in value 

of the property not due to market 

conditions, reasonable wear and tear, 

acts of God, or approved alterations 

completed by the transferee to adapt the 

property to the homeless use for which 

the property was transferred; and 

reimburse the United States for any 

costs incurred in reverting title to or 

possession of the property, including 

reasonable attorneys’ fees. 

(10) With respect to leased property, 

in the event of noncompliance with any 

of the conditions of the lease, as 

determined by HHS or the landholding 

agency, the right of occupancy and 

possession shall, at the option of HHS 

or the landholding agency, be 

terminated. In the event a leasehold is 

terminated by the United States for 

noncompliance or is voluntarily 

surrendered, the lessee shall be 

required, at the option of HHS, to 

reimburse the United States for the 

decrease in value of the property not 

due to market conditions, reasonable 

wear and tear, acts of God, or approved 

alterations completed by the lessee to 

adapt the property to the homeless use 

for which the property was leased. With 

respect to any termination of leasehold 

resulting from noncompliance, the 

United States, shall, in addition thereto, 

be reimbursed for such costs as may be 

incurred in recovering possession of the 

property, including reasonable 

attorneys’ fees. 

(11) Any other term or condition that 

HHS and GSA determine appropriate or 

necessary. 

(12) With respect to surplus property 

transferred by deed, the terms and 

conditions including those in this 

paragraph (f), apply for a period of three 

hundred sixty (360) months of use in 

accordance with a program of use 

approved in writing by HHS. The three 

hundred sixty months (360) period may, 

in HHS’s sole discretion, be extended or 

restarted in the event the property is not 

fully utilized or is retransferred to a 

successor entity. Expiration of the terms 

and conditions in this paragraph (f) does 

not release the transferee from 

continuing compliance, as appropriate, 

with any conditions that may run with 

the land, e.g., environmental conditions 

and/or historic preservation covenants. 

Such conditions will continue to be the 

responsibility of the transferee and 

successors. 

(13) With respect to surplus property 

transferred by lease, the terms and 

conditions including those in this 

paragraph (f), extend for the entire 

initial lease and for any subsequent 

renewal periods, unless specifically 

excluded in writing by HHS. 

(g) Related personal property may be 

transferred or leased as a part of the 

realty and in accordance with real 

property procedures. 

(h) Transferees will be responsible for 

the protection and maintenance of the 

property during the time that they 

possess the property. Upon termination 

of the lease term or reversion of title to 

the United States, the transferee will be 

responsible for removing improvements 

made to the property if directed to by 

the United States and, in such event, 

will be responsible for restoration of the 

property or the costs associated with 

restoring the property. If improvements 

made by the transferee are not 

voluntarily removed by the transferee 

and the United States consents, they 

will become the property of the United 

States. If the United States does not 

consent, the transferee shall reimburse 

the United States for reasonable costs of 

removal. GSA or the landholding 

agency, as appropriate, will assume 

responsibility for protection and 

maintenance of a property when the 

lease terminates or title reverts. 

(i) Transferees, by obtaining the 

written consent of HHS, may abrogate 

the restrictions set forth in paragraph (f) 

of this section for all or any portion of 

the property in accordance with the 

provisions of § 581.20. 

§ 581.15 Unsuitable properties. 

The landholding agency or GSA will 

defer action to dispose of properties 

determined unsuitable for homeless 

assistance for 20 days after the date that 

notice of a property is posted on the 

HUD website. HUD will inform 

landholding agencies or GSA if an 

appeal of an unsuitability determination 

is filed by a representative of the 

homeless pursuant to § 581.4(f). HUD 

will advise the agency to refrain from 

initiating disposal procedures until 

HUD has completed its reconsideration 

process regarding unsuitability. 


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Thereafter, or if no appeal has been filed 

after 20 days, GSA or the appropriate 

landholding agency may proceed with 

disposal action in accordance with 

applicable law. 

§ 581.16 Compliance with the National 

Environmental Policy Act of 1969 and other 

related Acts (environmental impact). 

(a) HHS, prior to making a final 

decision to convey or lease, or to 

amend, reform, or grant an approval or 

release with respect to a previous 

conveyance or lease of, surplus property 

for homeless purposes, will act in 

accordance with applicable provisions 

of the National Environmental Policy 

Act of 1969, the National Historic 

Preservation Act of 1966, the National 

Archeological Data Preservation Act, 

and other related acts. No lease to use 

surplus property shall allow the lessee 

to make, or cause to be made, any 

irreversible change in the conditions of 

said property, and no lease shall be 

employed for the purpose of delaying or 

avoiding compliance with the 

requirements of these Acts, unless 

approved by the United States. 

(b) Applicants shall be required to 

provide such information as HHS deems 

necessary to make an assessment of the 

impact of the proposed Federal action 

on the human environment. Materials 

contained in the applicant’s official 

request, responses to a standard 

questionnaire prescribed by HHS, as 

well as other relevant information, will 

be used by HHS in making said 

assessment. 

(c) If the assessment reveals: 

(1) That the proposed Federal action 

involved properties of historical 

significance which are listed, or eligible 

for listing, in the National Register of 

Historic Places; or 

(2) That a more than insignificant 

impact on the human environment is 

reasonably foreseeable as a result of the 

proposed action; or 

(3) That the proposed Federal action 

could result in irreparable loss or 

destruction of archeologically 

significant items or data, HHS will, 

except as provided for in paragraph (d) 

of this section, prepare and distribute, 

or cause to be prepared or distributed, 

such notices and statements and obtain 

such approvals as are required by the 

Acts cited in paragraph (a) of this 

section. 

(d) If a proposed action involves other 

Federal agencies in a sequence of 

actions, or a group of actions, directly 

related to each other because of their 

functional interdependence, HHS may 

enter into and support a lead agency 

agreement to designate a single lead 

agency which will assume primary 

responsibility for coordinating the 

assessment of environmental effects of 

proposed Federal actions, preparing and 

distributing such notices and 

statements, or obtaining such approvals, 

as are required by the Acts cited in 

paragraph (a) of this section. The 

procedures of the designated lead 

agency will be utilized in conducting 

the environmental assessment. In the 

event of disagreement between HHS and 

another Federal agency, HHS will 

reserve the right to abrogate the lead 

agency agreement with the other Federal 

agency. 

§ 581.17 No applications approved. 

(a) At the end of the 30-day holding 

period described in § 581.10(a), HHS 

will notify GSA, or the landholding 

agency, as appropriate, if an expression 

of interest has been received for a 

certain property. Where there is no 

expression of interest, GSA or the 

landholding agency, as appropriate, will 

proceed with disposal in accordance 

with applicable law. 

(b) Upon notice from HHS that all 

applications have been disapproved, or 

if no initial applications have been 

received within 75 days after an 

expression of interest, or no final 

application has been received within 45 

days after an approved initial 

application, disposal may proceed in 

accordance with applicable law. 

§ 581.18 Utilization and enforcement. 

(a) Sanctions. For instances of 

noncompliance relating to surplus 

property transfers, HHS may impose, 

after providing an opportunity to cure to 

the transferee, any or all of the following 

sanctions in its sole discretion, as 

applicable: 

(1) Where property or any portion 

thereof was not used or is not being 

used for the purposes for which 

transferred, or is sold, leased or 

subleased, encumbered, disposed of, or 

used for purposes other than those in 

the approved program and plan of use, 

without the prior written consent of 

HHS, HHS may require the transferee 

to— 

(i) Place the property into immediate 

use for an approved purpose and extend 

the period of restriction in the transfer 

document for an additional term as 

determined by HHS; 

(ii) Hold in trust all revenues and the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from that use for the United 

States subject to the direction and 

control of HHS; 

(iii) Return title to such property to 

the United States or to relinquish any 

leasehold interest therein; 

(iv) Abrogate the conditions and 

restrictions of the transfer, as set forth 

in § 581.20; 

(v) Make cash payments to the United 

States, as directed by HHS, equivalent to 

the current fair market rental value of 

the surplus property, as transferred, for 

each month during which the program 

and plan of use has not been 

implemented and continues to not be 

implemented; or 

(vi) Any other remedy that HHS 

determines appropriate or necessary. 

(2) Where the transferee desires to 

place the property into temporary use to 

assist the homeless other than that for 

which the property was transferred, 

written approval from HHS must be 

obtained, and will be conditioned upon 

HHS’s authority to permit the use and 

such terms as HHS may impose. 

(3) If HHS or the landholding agency 

determines that a lessee or sublessee of 

a transferee is in noncompliance with a 

term or condition of the lease, or if the 

lessee voluntarily surrenders the 

premises, HHS may require termination 

of the lease and impose sanctions 

described in paragraph (a)(1) of this 

section, as appropriate. 

(b) Reversion. When HHS 

recommends reversion of the property 

for noncompliance, HHS will seek 

GSA’s concurrence. GSA will respond 

to HHS’s concurrence request within 30 

days of its receipt. If GSA concurs, GSA 

will work with HHS to complete the 

reversion of the property. If GSA does 

not concur to the reversion 

recommendation, GSA will issue, to 

HHS, a written determination: stating 

the reason(s) for the disapproval; and 

acknowledging that HHS has 

recommended reversion and, therefore, 

the property is no longer within HHS’s 

Title V program. The Federal 

Government will implement a response 

to the noncompliance that is in its best 

interests. 

§ 581.19 Other uses. 

(a) A transferee may permit the use of 

all or a portion of the surplus property 

by another eligible entity as described in 

§ 581.1 for homeless assistance 

purposes, only upon those terms and 

conditions HHS determines appropriate, 

if: 

(1) The transferee submits a written 

request to HHS explaining the purpose 

of and need for another eligible entity’s 

use of the property, program plan, and 

other relevant information requested by 

HHS; 

(2) HHS determines that the proposed 

use would not substantially limit the 

program and plan of use by the 

transferee and that the use will not 

unduly burden the Federal Government; 


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(3) HHS’s written consent is obtained 

by the transferee in advance; 

(4) HHS approves the use instrument 

in advance and in writing; 

(5) The transferee agrees to lengthen 

the period of restrictions as determined 

by HHS; and 

(6) HHS advises GSA and there is no 

disapproval by GSA within thirty (30) 

days. 

(b) A transferee that does not follow 

paragraph (a) of this section will be 

deemed to be not in compliance with 

the terms and conditions of the Title V 

program and subject to enforcement 

action, including reversion of the 

property. 

§ 581.20 Abrogation. 

(a) HHS may abrogate the conditions 

and restrictions in the transfer 

document if: 

(1) The transferee submits to HHS a 

written request that HHS abrogate the 

conditions and restrictions in the 

transfer document as to all or any 

portion of the surplus property; 

(2) HHS determines the terms and 

conditions of the proposed abrogation 

and determines that the proposed 

abrogation is in the best interest of the 

United States; and 

(3) HHS transmits the abrogation 

request to GSA and there is no 

disapproval by GSA within 30 days after 

notice is given. If GSA disapproves, 

GSA will state, in writing, to HHS the 

reason(s) for the disapproval. 

(b) HHS abrogates the conditions and 

restrictions in the transfer document 

only upon receipt of the appropriate 

consideration, including cash payment, 

to the United States, as directed by 

HHS, which is based on the formula 

contained in the transfer document, and 

any other terms and conditions HHS 

deems appropriate to protect the interest 

of the United States. 

§ 581.21 Compliance inspections and 

reports. 

Transferees are required to allow HHS 

to conduct compliance inspections and 

to submit such compliance reports and 

actions as are deemed necessary by 

HHS. At a minimum, the transferee will 

be required to submit an annual 

utilization report regarding the 

operation and maintenance of the 

property, including current images of 

the entire property and such 

information as HHS shall require. 

§ 581.22 No right of administrative review 

for agency decisions. 

There is no right to administrative 

review within HHS, including requests 

for reconsideration or appeal, of agency 

decisions on applications and other 

discretionary decisions. 

§ 581.23 Severability. 

Any provision of this part held to be 

invalid or unenforceable with respect to 

certain parties or circumstances shall be 

construed so as to continue to give the 

maximum effect to the provision 

permitted by law unless such holding is 

that the provision of this part is invalid 

and unenforceable in all circumstances, 

in which event the provision shall be 

severable from the remainder of this 

part and shall not affect the remainder 

thereof. 

GENERAL SERVICES 

ADMINISTRATION 

Accordingly, for the reasons stated 

above, GSA amends 41 CFR part 102– 

75 as follows: 

PART 102–75—REAL PROPERTY 

DISPOSAL 

■ 5. The authority citation for part 102– 

75 continues to read as follows: 

Authority: 40 U.S.C. 121(c), 521–523, 541– 

559; E.O. 12512, 50 FR 18453, 3 CFR, 1985 

Comp., p. 340. 

■ 6. Revise subpart H to read as follows: 

Subpart H—Use of Federal Real 

Property To Assist the Homeless 

Sec. 

Definitions 

102–75.1160 What definitions apply to this 

subpart? 

Applicability 

102–75.1161 What is the applicability of 

this subpart? 

Collecting the Information 

102–75.1162 How will information be 

collected? 

Suitability Determination 

102–75.1163 Who issues the suitability 

determination? 

Real Property Reported Excess to GSA 

102–75.1164 For the purposes of this 

subpart, what is the policy concerning 

real property reported excess to GSA? 

Suitability Criteria 

102–75.1165 What are suitability criteria? 

Determination of Availability 

102–75.1166 What is the policy concerning 

determination of availability statements 

for suitable properties? 

Public Notice of Determination 

102–75.1167 What is the policy concerning 

making public the notice of 

determination? 

General Policies of HHS 

102–75.1168 What are the general policies 

of HHS? 

Expression of Interest Process 

102–75.1169 How may eligible 

organizations express interest in 

properties to assist the homeless? 

Application Process and Requirements 

102–75.1170 How may eligible 

organizations apply for the use of 

properties to assist the homeless? 

Action on Approved Applications 

102–75.1171 What action must be taken on 

approved applications? 

Surplus Property Transfer Documents 

102–75.1172 What documents are used for 

the transfer of surplus property for use 

to assist the homeless? 

Unsuitable Properties 

102–75.1173 What action must be taken on 

properties determined unsuitable for 

homeless assistance? 

Compliance With the National 

Environmental Policy Act of 1969 and Other 

Related Acts (Environmental Impact) 

102–75.1174 What are the requirements for 

compliance with the National 

Environmental Policy Act of 1969 and 

other related Acts (environmental 

impact) for the transfer of Federal real 

property for use to assist the homeless? 

No Applications Approved 

102–75.1175 What action must be taken if 

there is no expression of interest or 

approved application? 

Utilization and Enforcement 

102–75.1176 What are the utilization and 

enforcement requirements for property 

transferred for use to assist the 

homeless? 

Other Uses 

102–75.1177 What are the requirements for 

other uses of a transferred property? 

Abrogation 

102–75.1178 What are the conditions of 

abrogation for property transferred to 

assist the homeless? 

Compliance Inspections and Reports 

102–75.1179 What compliance inspections 

and reports are required? 

No Right of Administrative Review for 

Agency Decisions 

102–75.1180 Is there a right of 

administrative review for agency 

decisions within HHS? 

Waivers 

102–75.1181 May any requirement of this 

subpart be waived? 

Severability 

102–75.1182 Are the provisions of this 

subpart severable? 

102–75.1183–102–75.1219 [Reserved] 


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Definitions 

§ 102–75.1160 What definitions apply to 

this subpart? 

Applicant means any eligible 

organization that has submitted an 

application to the Department of Health 

and Human Services to obtain use of a 

certain suitable property to assist the 

homeless. 

Checklist or property checklist means 

the form developed by HUD for use by 

landholding agencies to report the 

information to be used by HUD in 

making determinations of suitability. 

Classification means a property’s 

designation as unutilized, 

underutilized, excess, or surplus. 

Day means one calendar day, 

including weekends and holidays. 

Eligible organization means a State or 

local government agency, or a private, 

non-profit organization that provides 

assistance to the homeless, and that is 

authorized under the State law in which 

the property is located to carry out the 

activity for which it requests property 

and enter into an agreement with the 

Federal Government for use of property 

for the purposes of this part. Eligible 

organizations that are private, non-profit 

organizations interested in applying for 

suitable property must be tax exempt 

under section 501(c)(3) of the Internal 

Revenue Code at the time of application 

and remain tax exempt throughout the 

time the Federal Government retains a 

reversionary interest in the property. 

Encumbrance means any nonapproved use by a transferee or a third 

party that limits the full utilization of 

the transferred property, regardless of 

time period, and includes liens, 

easements, restrictive covenants, 

licenses, leases, mortgages, informal 

agreements, and unaddressed trespass. 

Excess property means any property 

under the control of a Federal executive 

agency that the head of the agency 

determines is not required to meet the 

agency’s needs or responsibilities, 

pursuant to 40 U.S.C. 524. 

GSA means the General Services 

Administration. 

HHS means the Department of Health 

and Human Services. 

Homeless is defined in 42 U.S.C. 

11302. This term is synonymous with 

‘‘homeless individual’’ and ‘‘homeless 

person.’’ 

HUD means the Department of 

Housing and Urban Development. 

HUD website means a website 

maintained by HUD providing 

information about HUD, including any 

successor websites or technologies that 

are equally accessible and available to 

the public. 

Landholding agency means the 

Federal department or agency with 

statutory authority to control property. 

For purposes of this subpart, the 

landholding agency is typically the 

Federal department or agency that had 

custody and accountability on behalf of 

the Federal Government, of a certain 

piece of property at the time that such 

property was reported to HUD for a 

suitability determination pursuant to 42 

U.S.C. 11411. 

Lease means an agreement in writing 

between either HHS for surplus 

property or landholding agencies for 

underutilized and unutilized properties 

and the applicant giving rise to the 

relationship of lessor and lessee for the 

use of Federal property for a term of at 

least one year under the conditions set 

forth in the lease document. 

Non-profit organization means an 

organization recognized as a non-profit 

by the State in which the organization 

operates, no part of the net earnings of 

which inures to the benefit of any 

member, founder, contributor, or 

individual; that has a voluntary board; 

that has an accounting system or has 

designated an entity that will maintain 

a functioning accounting system for the 

organization in accordance with 

generally accepted accounting 

procedures; and that practices 

nondiscrimination in the provision of 

assistance. 

Permit means a license granted by a 

landholding agency to use unutilized or 

underutilized property for a specific 

amount of time, usually one year or less, 

under terms and conditions determined 

by the landholding agency. A permit 

does not grant to the recipient an estate 

in land or any interest in the property. 

Property means real property 

consisting of vacant land or buildings, 

or a portion thereof, that is excess, 

surplus, or designated as unutilized or 

underutilized in surveys by the heads of 

landholding agencies conducted 

pursuant to 40 U.S.C. 524. 

Related personal property means any 

personal property that is located on real 

property and is either an integral part of 

or useful in the operation of that 

property or is determined by GSA to be 

otherwise related to the property. 

Representative of the homeless means 

a State or local government agency, or 

private nonprofit organization that 

provides, or proposes to provide, 

services to the homeless. 

Screen means the process by which 

GSA surveys Federal executive agencies 

to determine if they have an interest in 

using excess Federal property to carry 

out a particular agency mission, and 

then surveys State, local and non-profit 

entities, to determine if any such entity 

has an interest in using surplus Federal 

property to carry out a specific public 

use. 

State means a State of the United 

States, and includes the District of 

Columbia, the Commonwealth of Puerto 

Rico, and the Territories and 

possessions of the United States. 

Suitable property means that HUD has 

determined that a certain property 

satisfies the criteria listed in § 102– 

75.1165. 

Surplus property means any excess 

property not required by any Federal 

landholding agency for its needs or the 

discharge of its responsibilities, as 

determined by GSA. 

Transfer document means a lease, 

deed, or permit transferring surplus, 

unutilized, or underutilized property. 

Transferee means an eligible entity 

that acquires Federal property by lease, 

deed, or permit. 

Underutilized means an entire 

property or portion thereof, with or 

without improvements which is used 

only at irregular periods or 

intermittently by the accountable 

landholding agency for current program 

purposes of that agency, or which is 

used for current program purposes that 

can be satisfied with only a portion of 

the property. 

Unsuitable property means that HUD 

has determined that a particular 

property does not satisfy the criteria in 

§ 102–75.1165. 

Unutilized property means an entire 

property or portion thereof, with or 

without improvements, not occupied for 

current program purposes for the 

accountable executive agency or 

occupied in caretaker status only. 

Applicability 

§ 102–75.1161 What is the applicability of 

this subpart? 

(a) This subpart applies to Federal 

property that has been designated by 

Federal landholding agencies as 

unutilized, underutilized, excess, or 

surplus and is therefore subject to the 

provisions of Title V of the McKinney 

Act, as amended (42 U.S.C. 11411). 

(b) The following categories of 

properties are not subject to this subpart 

(regardless of whether they may be 

unutilized or underutilized): 

(1) Buildings and property at military 

installations that were approved for 

closure under the Defense Base Closure 

and Realignment Act of 1990 (part A of 

title XXIX of Pub. L. 101–510; 10 U.S.C. 

2687 note) after October 25, 1994. 

(2) Machinery and equipment not 

determined to be related personal 

property by the landholding agency or 

GSA or determined to be related 

personal property that the landholding 


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agency or GSA chooses to dispose of 

separate from real property. 

(3) Government-owned, contractoroperated machinery, equipment, land, 

and other facilities reported excess for 

sale only to the using contractor and 

subject to a continuing military 

requirement. 

(4) Properties subject to special 

legislation directing a particular action. 

(5) Properties subject to a court order 

that is binding on the Federal 

Government and, for any reason, 

precludes transfer for use to assist the 

homeless under the authority of 42 

U.S.C. 11411. 

(6) Property not subject to Federal 

Real Property Council reporting 

requirements in accordance with 40 

U.S.C. 623(i). 

(7) Mineral rights interests 

independent of surface rights. 

(8) Air space interests independent of 

surface rights. 

(9) Indian Reservation land subject to 

40 U.S.C. 523. 

(10) Property interests subject to 

reversion. 

(11) Easements. 

(12) Any building or fixture that is 

excess, or surplus, that is on land under 

the control of a landholding agency, 

where the underlying land is not excess 

or surplus. 

(13) Property purchased in whole or 

in part with Federal funds if title to the 

property is not held by a Federal 

landholding agency as defined in this 

subpart. 

Collecting the Information 

§ 102–75.1162 How will information be 

collected? 

(a) Canvass of landholding agencies. 

On a quarterly basis, HUD will canvass 

each landholding agency to collect 

information about property described as 

unutilized, underutilized, excess or 

surplus in accordance with 40 U.S.C. 

524; however, HUD will accept property 

information between canvasses. Each 

canvass will collect information on 

properties not previously reported, and 

about property reported previously 

where the status or classification of the 

property has changed, or improvements 

have been made to the property. HUD 

will request descriptive information on 

properties sufficient to make a 

reasonable determination, under the 

criteria described in this section, of the 

suitability of a property for use to assist 

the homeless. Landholding agencies 

must report property information to 

HUD using the property checklist 

developed by HUD for that purpose. 

Property checklists submitted in 

response to a canvass must be submitted 

to HUD within 25 days of receipt of the 

canvass. 

(b) Agency annual suitable property 

report. By December 31 of each year, 

each landholding agency must notify 

HUD of the current availability status 

and classification of each property 

controlled by the agency that: 

(1) Was included in a list of suitable 

properties published that year by HUD; 

and 

(2) Remains available for application 

for use to assist the homeless or has 

become available for application during 

that year. 

(c) GSA inventory. HUD will collect 

information, in the same manner as 

described in paragraph (a) of this 

section, from GSA regarding property 

that is in GSA’s current inventory of 

excess or surplus property. 

(d) Change in status. If the 

information provided on the property 

checklist changes subsequent to HUD’s 

determination of suitability, including 

any improvements or other alterations 

to the physical condition of the land or 

the buildings on the property, and the 

property remains unutilized, 

underutilized, excess, or surplus, the 

landholding agency must submit a 

revised property checklist in response to 

the next quarterly canvass. HUD will 

review for suitability and, if it differs 

from the previous determination, repost 

the property information on the HUD 

website. For example, property 

determined unsuitable due to extensive 

deterioration may have had 

improvements, or property determined 

suitable may subsequently be found to 

be extensively deteriorated. 

Suitability Determination 

§ 102–75.1163 Who issues the suitability 

determination? 

(a) Suitability determination. Within 

30 days after the receipt of a completed 

property checklist from landholding 

agencies either in response to a 

quarterly canvass, or between canvasses, 

HUD will determine, using the criteria 

set forth in 24 CFR 581.6 whether a 

property is suitable for use to assist the 

homeless and report its determination to 

the landholding agency. Properties that 

are under lease, contract, license, or 

agreement by which a Federal agency 

retains a real property interest or which 

are scheduled to become unutilized or 

underutilized will be reviewed for 

suitability no earlier than six months 

prior to the expected date when the 

property will become unutilized or 

underutilized. 

(b) Scope of suitability. HUD will 

determine the suitability of a property 

for use to assist the homeless without 

regard to any particular use. 

(c) Environmental information. HUD 

will evaluate the environmental 

information contained in property 

checklists forwarded to HUD by the 

landholding agencies solely for the 

purpose of determining suitability of 

properties under the criteria in § 102– 

75.1166. 

(d) Record of suitability 

determination. HUD will assign an 

identification number to each property 

reviewed for suitability. HUD will 

maintain a public record of the 

following: 

(1) The suitability determination for a 

particular piece of property, and the 

reasons for that determination; and 

(2) The landholding agency’s response 

to the determination pursuant to the 

requirements of § 102–75.1166(a). 

(e) Property determined unsuitable. 

Property that is reviewed by HUD under 

this section and that is determined 

unsuitable for use to assist the homeless 

may not be made available for any other 

purpose for 20 days after publication of 

a notice of unsuitability on the HUD 

website. 

(f) Procedures for appealing 

unsuitability determinations. (1) To 

request review of a determination of 

unsuitability, a representative of the 

homeless must contact HUD, in writing, 

through the U.S. Mail, email, or the 

HUD website, or such other method as 

HUD may require, within 20 days of 

publication of the notice of 

unsuitability. 

(2) Requests for review of a 

determination of unsuitability may be 

made only by representatives of the 

homeless. 

(3) The request for review must 

specify the grounds on which it is 

based, i.e., HUD has improperly applied 

the criteria or HUD has relied on 

incorrect or incomplete information in 

making the determination (e.g., that 

property is in a floodplain but not in a 

floodway). 

(4) Upon receipt of a request to review 

a determination of unsuitability, HUD 

will notify the landholding agency or 

GSA that such a request has been made. 

The landholding agency or GSA shall 

have 20 days from receipt of the notice 

from HUD, or an extended period agreed 

to between HUD and the landholding 

agency or GSA, to provide any 

information pertinent to the review. The 

landholding agency or GSA must refrain 

from initiating disposal procedures until 

HUD has completed its reconsideration 

regarding unsuitability. If the 

landholding agency or GSA fails to meet 

the deadline, HUD will move forward 

with the appeal review with the 

property information it already has and 

information submitted in the appeal 


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request provided by the representative 

of the homeless. 

(i) HUD will act on all requests for 

review within 30 days of receipt of the 

landholding agency’s or GSA’s 

response, or, if the landholding agency 

or GSA failed to meet the deadline, 

within 30 days of such deadline, and 

will notify the representative of the 

homeless and the landholding agency or 

GSA in writing of its decision. 

(ii) If a property is determined 

suitable as a result of the review, HUD 

will request the landholding agency’s or 

GSA’s determination of availability 

pursuant to § 102–75.1166, upon receipt 

of which HUD will promptly publish 

the determination on the HUD website. 

Real Property Reported Excess to GSA 

§ 102–75.1164 For the purposes of this 

subpart, what is the policy concerning real 

property reported excess to GSA? 

(a) Each landholding agency must 

submit a report to GSA of properties it 

determines excess. Each landholding 

agency must also provide a copy of 

HUD’s suitability determination, if any, 

including HUD’s identification number 

for the property. 

(b) If a landholding agency reports an 

excess property to GSA that HUD has 

already determined to be suitable for 

use to assist the homeless, GSA will 

screen the property pursuant to 

paragraph (h) of this section and will 

advise HUD of the availability of the 

property for use by the homeless as 

provided in paragraph (e) of this 

section. In lieu of the preceding 

sentence, GSA may submit a new 

checklist to HUD and follow the 

procedures in paragraphs (c) through (h) 

of this section. 

(c) If a landholding agency reports an 

excess property to GSA that has not 

been reviewed by HUD for homeless 

assistance suitability, GSA will 

complete a property checklist, based on 

information provided by the 

landholding agency, and will forward 

this checklist to HUD for a suitability 

determination. This checklist will 

reflect any change in classification, such 

as from unutilized or underutilized to 

excess or surplus. 

(d) Within 30 days after GSA’s 

submission, HUD will advise GSA of the 

suitability determination. 

(e) When GSA receives notification 

from HUD listing suitable excess 

properties, GSA will transmit a response 

to HUD within 45 days. GSA’s response 

will include the following for each 

identified property: 

(1) A statement that there is no other 

compelling Federal need for the 

property and, therefore, the property 

will be determined surplus; or 

(2) 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. 

(f) When GSA submits a checklist to 

HUD in accordance with paragraphs (b) 

and (c) of this section, the information 

regarding the availability of the 

property, as specified in paragraph (e)(1) 

and (2) of this section, may be included 

with the checklist if it is known at the 

time of submittal. 

(g) When a surplus property is 

determined as suitable, confirmed as 

available by GSA, and notice is 

published on the HUD website, GSA 

will concurrently notify HHS, State and 

local government units, and known 

homeless assistance providers that have 

expressed interest in the particular 

property, and other organizations, as 

appropriate, concerning suitable 

properties. 

(h) Upon submission of a Report of 

Excess to GSA, GSA may screen the 

property for Federal use. In addition, 

GSA may screen State and local 

governmental units and eligible nonprofit organizations to determine 

interest in the property in accordance 

with this part. (See §§ 102–75.1220, 

102–75.255, and 102–75.350.) 

(i) The landholding agency will retain 

custody and accountability and will 

protect and maintain any property that 

is reported excess to GSA as provided 

in § 102–75.965. 

Suitability Criteria 

§ 102–75.1165 What are suitability criteria? 

(a) In general, properties will be 

determined suitable unless a property’s 

characteristics include one or more of 

the following conditions: 

(1) Flammable or explosive hazards. 

Property located less than an acceptable 

separation distance (under the standards 

in 24 CFR part 51, subpart C, and the 

HUD Guidebook, ‘‘Siting of HUDAssisted Projects Near Hazardous 

Facilities’’ or successor guidebook) from 

any stationary aboveground container or 

facility which stores, handles, or 

processes hazardous substances of an 

explosive or fire prone nature 

(excluding containers and facilities that 

are not hazards as defined in 24 CFR 

51.201), unless HUD can determine 

during the review period based on 

information provided by the 

landholding agency that appropriate 

mitigating measures, as defined in 24 

CFR 51.205, are already in place. 

(2) Coastal barriers. Property located 

in a System Unit, as defined at 16 U.S.C. 

3502(7), under the Coastal Barrier 

Resources Act, as amended (16 U.S.C. 

3501 et seq.). 

(3) Site safety conditions. Property 

with a documented and extensive 

condition(s) that represents a clear 

threat to personal physical safety or 

health. Such conditions may include, 

but are not limited to, significant 

contamination from hazardous 

substances, as defined by 42 U.S.C. 

9601, periodic flooding, sinkholes, or 

landslides. 

(b) In the cases in paragraphs (b)(1) 

through (4) of this section, properties 

will be determined unsuitable, unless 

the landholding agencies provide 

information to enable HUD to determine 

the property is suitable: 

(1) Inaccessible. Property that is 

inaccessible, meaning that the property 

is not accessible by road (including 

property on small offshore islands) or is 

landlocked (e.g., can be reached only by 

crossing private property and there is no 

established right or means of entry). 

(2) National security. Property located 

in an area to which the general public 

is denied access in the interest of 

national security (e.g., where a special 

pass or security clearance is a condition 

of entry to the property), unless there is 

an alternative method to gain access 

without compromising national 

security. 

(3) Runway clear zones. Property 

located within a runway clear zone or 

a military airfield clear zone. 

(4) Floodway. Property located in a 

floodway, unless only an incidental 

portion of the property is in the 

floodway and that incidental portion 

does not affect the use of the remainder 

of the property to assist the homeless. 

Determination of Availability 

§ 102–75.1166 What is the policy 

concerning determination of availability 

statements for suitable properties? 

Within 45 days after receipt of 

notification from HUD pursuant to 

§ 102–75.1162(a) that a property has 

been determined to be suitable, each 

landholding agency or GSA must 

transmit to HUD a statement of one of 

the following: 

(a) In the case of unutilized or 

underutilized property— 

(1) An intention to declare the 

property excess; 

(2) An intention to make the property 

available for use to assist the homeless; 

or 

(3) The reasons why the property 

cannot be declared excess or made 

available for use to assist the homeless. 

The reasons given must be different 

from those listed as suitability criteria in 

§ 102–75.1165. 


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(b) In the case of excess property 

which has been reported to GSA— 

(1) A statement that there is no 

compelling Federal need for the 

property, and, therefore, the property 

will be determined surplus; or 

(2) A statement that there is a further 

and compelling Federal need for the 

property (including a full explanation of 

such need) and therefore, the property 

is not presently available for use to 

assist the homeless. 

Public Notice of Determination 

§ 102–75.1167 What is the policy 

concerning making public the notice of 

determination? 

(a) No later than 15 days after the 

most recent 45-day period has elapsed 

for receiving responses from the 

landholding agencies or GSA regarding 

availability, HUD will post on the HUD 

website a list of all properties reviewed, 

including a description of the property, 

its address, and classification. The 

following designations will be made: 

(1) Properties that are suitable and 

available. 

(2) Properties that are suitable and 

unavailable. 

(3) Properties that are suitable and to 

be declared excess. 

(4) Properties that are unsuitable. 

(b) HUD will establish and maintain 

a toll-free number for the public to 

obtain specific information about 

properties in paragraph (a) of this 

section. 

(c) No later than 15 days after the 

most recent 45-day period has elapsed 

for receiving responses from the 

landholding agencies or GSA regarding 

availability, HUD will transmit to the 

United States Interagency Council on 

Homelessness (USICH) a copy of the list 

of all properties in paragraph (a) of this 

section. The USICH will immediately 

distribute to all State and regional 

homeless coordinators area-relevant 

portions of the list. The USICH will 

encourage the State and regional 

homeless coordinators to disseminate 

this information widely. 

(d) No later than February 15 of each 

year, HUD will publish in the Federal 

Register a list of all properties in the 

agency annual suitable property reports, 

reported to HUD pursuant to § 102– 

75.1162(b). 

(e) HUD will publish an annual list of 

properties determined suitable, but 

which agencies reported unavailable 

including the reasons such properties 

are not available. 

General Policies of HHS 

§ 102–75.1168 What are the general 

policies of HHS? 

(a) It is the policy of HHS to foster and 

assure maximum utilization of surplus 

property for homeless assistance 

purposes. 

(b) Transfers may be made only to 

eligible organizations. 

(c) Property will be requested for 

assignment only when HUD has made a 

final determination that the property is 

suitable for use to assist the homeless, 

GSA has determined it is available, and 

HHS has determined it is needed for 

homeless assistance purposes. The 

amount of real and related personal 

property to be transferred shall not 

exceed normal operating requirements 

of the applicant. Such property will not 

be requested for assignment unless it is 

needed at the time of application for 

homeless assistance purposes or will be 

so needed within the immediate or 

foreseeable future. 

(d) Transfers by deed will be made 

only after the applicant’s financial plan 

is approved and the applicant provides 

certification that the proposed program 

is permissible under all applicable State 

and local zoning restrictions, building 

codes, and similar limitations. 

(e) In instances of noncompliance, 

transferees are provided an opportunity 

to cure the noncompliance pursuant to 

45 CFR 12a.10. 

Expression of Interest Process 

§ 102–75.1169 How may eligible 

organizations express interest in properties 

to assist the homeless? 

(a) Properties published by HUD as 

suitable and available, pursuant to 

§ 102–75.1167, for application for use to 

assist the homeless shall not be 

available for any other purpose for a 

period of 30 days beginning on the date 

the list of properties is published on the 

HUD website. Any eligible organization 

interested in any underutilized, 

unutilized, excess, or surplus property 

for use to assist the homeless must send 

HHS a written expression of interest in 

that property within 30 days after the 

property has been published on the 

HUD website. 

(b) Although a property may be 

determined suitable by HUD, HUD’s 

determination does not mean a property 

is necessarily fit for use for the 

purpose(s) stated in the application, nor 

does it guarantee subsequent 

conveyance or transfer of a property. 

(c) If a written expression of interest 

to apply for suitable property for use to 

assist the homeless is received by HHS 

within the 30-day holding period, such 

property may not be made available for 

any other purpose until the date HHS or 

the appropriate landholding agency has 

completed action on the application 

submitted pursuant to that expression of 

interest. 

(d)(1) The expression of interest 

should identify the specific property, 

briefly describe the proposed use, 

include the name of the organization, 

and indicate whether it is a public body 

or a private, non-profit organization. 

The expression of interest must be sent 

to HHS by email, rpb@psc.hhs.gov, or by 

mail at the following address: 

Department of Health and Human 

Services, Program Manager, Federal 

Real Property Assistance Program, Real 

Estate Logistics and Operations, 5600 

Fishers Lane, Rockville, Maryland 

20852. 

(2) HHS will notify the landholding 

agency (for unutilized and underutilized 

properties) or GSA (for excess and 

surplus properties) when an expression 

of interest has been received for a 

certain property. 

(e) An expression of interest may be 

sent to and accepted by HHS any time 

after the 30-day holding period has 

expired only if the property remains 

available as determined by GSA or the 

landholding agency for application to 

assist the homeless. In such a case, an 

application submitted pursuant to this 

expression of interest may be approved 

for use by the homeless if: 

(1) There are no pending applications 

or written expressions of interest made 

under any law for use of the property for 

any purpose; and 

(2) In the case of excess or surplus 

property, GSA has not received a bona 

fide offer to purchase that property or 

advertised for the sale of the property by 

public auction. 

Application Process and Requirements 

§ 102–75.1170 How may eligible 

organizations apply for the use of 

properties to assist the homeless? 

(a) Upon receipt of an expression of 

interest, HHS will send an application 

packet to the interested entity. The 

application packet requires the 

applicant to provide certain 

information, including the following— 

(1) Acquisition type. The applicant 

must state whether it is requesting 

acquisition of the property by lease, 

deed, or permit. A lease of one year, 

extendable at HHS’s discretion, with the 

concurrence of GSA or the landholding 

agency, may be granted when the 

applicant’s initial application is 

approved and the applicant’s final 

application outlining the applicant’s 

financial plan is found to be otherwise 

reasonable based on the criteria in 

paragraph (a)(7) of this section, but 


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either a change in zoning is required or 

the financial plan proposes to utilize 

Low-Income Housing Tax Credits or 

other funding sources that typically take 

longer to process than other forms of 

financing. Applicants that initially 

apply for transfer by lease or permit and 

subsequently request transfer by deed 

will follow the same bifurcated 

application process, including 

deadlines, contained in 42 U.S.C. 11411. 

Should an applicant wish to transition 

from acquisition by lease to acquisition 

by deed, HHS will issue a letter of 

commitment to a lessee indicating that, 

provided its application meets all 

application criteria, including securing 

of all necessary financing that complies 

with Federal Government requirements, 

HHS will issue a deed. 

(2) Description of the applicant 

organization. The applicant must 

document that it satisfies the definition 

of an eligible organization as specified 

in § 102–75.1160. 

(3) Description of the property 

desired. The applicant must describe 

the listed property desired, including 

existing zoning. Applicants must certify 

that any modification(s) made to and 

use of the property will conform to all 

applicable building codes, and local use 

restrictions, or similar limitations. In 

accordance with GSA policy, 

determinations regarding parcelization 

are made prior to screening. Therefore, 

expressions of interest and applications 

for portions of listed properties will not 

be accepted. 

(4) Description of the proposed 

program. The applicant must fully 

describe the proposed program and plan 

of use, including implementation plans. 

(5) Demonstration of need. The 

applicant must demonstrate that the 

property is needed for homeless 

assistance purposes at the time of 

application and how the program will 

address the needs of the homeless 

population to be assisted. The applicant 

must demonstrate that it has an 

immediate need and ability to utilize all 

of the property for which it is applying. 

(6) Demonstrate that the property is 

suitable and adaptable for the proposed 

program and plan of use. The applicant 

must fully explain why the property is 

suitable and describe what, if any, 

modification(s) will be made to the 

property before the program becomes 

operational. 

(7) Ability to finance and operate the 

proposed program. If the applicant’s 

initial application is approved, the 

applicant must set forth a reasonable 

plan to finance the approved program 

within 45 days of the initial approval. 

To be considered reasonable, the plan 

must, at a minimum: 

(i) Specifically describe all 

anticipated costs and sources of funding 

for the proposed program, including any 

property modifications; 

(ii) Be accompanied by supporting 

documentation which demonstrates that 

the proposed plan is likely to succeed; 

(iii) Demonstrate that the applicant is 

ready, willing, able, and authorized to 

assume care, custody, and maintenance 

of the property; 

(iv) Demonstrate that it has secured 

the necessary dedicated funds, or will 

obtain such funds, to carry out the 

approved proposed program and plan of 

use for the property, including 

administrative expenses incident to the 

transfer by deed, lease, or permit; 

(v) Not diminish the value of the 

Federal Government’s interest in the 

property nor impair the Federal 

Government’s ability to revert and 

immediately dispose of the property free 

of any and all liens, encumbrances, or 

anything else which renders the 

property unmarketable. Deed transfers 

will only be made after an applicant 

demonstrates its financial plan 

adequately protects the Federal 

Government’s interest in the property; 

and 

(vi) Neither subject the Federal 

Government’s interest in the property to 

foreclosure nor impose obligations (e.g., 

extended use agreements) on the 

Federal Government. 

(8) Compliance with nondiscrimination requirements. Each 

applicant under this part must certify in 

writing that it will comply with all 

requirements of Federal law and HHS 

policy, as amended, relating to nondiscrimination, including the following: 

the Fair Housing Act (42 U.S.C. 3601– 

3619) and implementing regulations at 

24 CFR part 100; and, as applicable, 

Executive Order 11063 (Equal 

Opportunity in Housing) and 

implementing regulations at 24 CFR part 

107; Title VI of the Civil Rights Act of 

1964 (42 U.S.C. 2000d to d–4) (Nondiscrimination in Federally Assisted 

Programs) and implementing 

regulations at 24 CFR part 1 and 45 CFR 

part 80; section 1557 of the Affordable 

Care Act and implementing regulations 

at 45 CFR part 92; the prohibitions 

against discrimination on the basis of 

age under the Age Discrimination Act of 

1975 (42 U.S.C. 6101–6107) and 

implementing regulations at 24 CFR part 

146 and 44 CFR part 91; and the 

prohibitions against discrimination 

against otherwise qualified individuals 

with disabilities under section 504 of 

the Rehabilitation Act of 1973 (29 U.S.C. 

794) and implementing regulations at 24 

CFR part 8 and 45 CFR part 84. The 

applicant must maintain the required 

records to demonstrate compliance with 

all applicable Federal laws and HHS 

policies related to non-discrimination. 

(9) Insurance and indemnification. 

The applicant must certify that it will 

insure the property against loss, 

damage, or destruction to protect the 

residual financial interest of the United 

States. The United States shall be 

named as an additional insured. 

Applicants must provide proof of 

insurance annually or upon request. 

Failure to maintain sufficient insurance 

may result in adverse action, including 

reversion of the property, at the 

discretion of HHS. In the event of a 

covered loss, the transferee must hold 

all insurance proceeds in trust and 

obtain written concurrence from HHS 

before disbursing the funds. Applicants, 

and all affiliated parties utilizing the 

property, as approved by HHS, must 

indemnify the United States and hold 

the United States harmless for all 

actions involving use of the property. 

(10) Historic preservation. Where 

applicable, the applicant must provide 

information that will enable HHS to 

comply with Federal historic 

preservation requirements. 

(11) Environmental information. The 

applicant must provide sufficient 

information to allow HHS to analyze the 

potential impact of the applicant’s 

proposal on the environment, in 

accordance with the instructions 

provided with the application packet. 

HHS will assist applicants in obtaining 

any pertinent environmental 

information in the possession of HUD, 

GSA, or the landholding agency. 

However, the burden is on the applicant 

to submit sufficient documentation for 

analysis by HHS. 

(12) Local government notification. 

The applicant must certify that it has 

notified the applicable unit of general 

local government responsible for sewer, 

water, police, and fire services, in 

writing, of its proposed program for the 

specific property and submit a copy of 

that written notification. 

(13) Zoning and local use restrictions. 

An applicant requesting a deed must 

certify that it has consulted all State and 

local governmental entities that will 

have jurisdiction over the property and 

that the proposed use will comply with 

all applicable zoning and local use 

restrictions, including local building 

code requirements. An applicant that 

applies for a lease or permit is not 

required to comply with local zoning 

requirements, as long as the Federal 

Government retains ownership of the 

property. Deed transfers will only be 

made after the applicant has provided 

acceptable written proof that the 

proposed program is not in conflict with 


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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Rules and Regulations 89895 

State or local zoning laws and 

restrictions, building codes, or similar 

limitations. 

(b) Scope of evaluations. Due to the 

short time frame imposed by statute for 

evaluating applications, HHS’s 

evaluation will, generally, be limited to 

the information contained in the 

application. It is therefore incumbent on 

applicants to provide thorough and 

complete applications. 

(c) Deadline for initial application. An 

initial application must be received by 

HHS, at the email address in § 102– 

75.1169(d)(1) or other address indicated 

by HHS, within 75 days after an 

expression of interest is received from a 

particular applicant for that property. 

Upon written request from the 

applicant, HHS may, in its discretion, 

grant extensions authorized by 42 U.S.C. 

11411(e)(2)(A), provided that the 

appropriate landholding agency or GSA 

concurs with the extension. 

(d) Evaluation of initial application. 

(1) Upon receipt of an initial 

application, HHS will review it for 

completeness, and, if incomplete and 

time permits, may, in its discretion, 

return it or ask the applicant to furnish 

any missing or additional required 

information prior to final evaluation of 

the initial application. 

(2) HHS will evaluate each initial 

application within 10 days of receipt 

and will promptly advise the applicant 

of its decision. All initial applications 

will be reviewed on the basis of the 

following elements: 

(i) Services offered. The extent and 

range of proposed services, such as 

meals, shelter, job training, and 

counseling. 

(ii) Need. The demand for the 

program, the program’s ability to satisfy 

unmet needs of the community, and the 

degree to which the available property 

will be fully utilized. 

(iii) Experience. Demonstrated ability 

to provide the services, such as prior 

success in operating similar programs 

and recommendations attesting to that 

fact by Federal, State, and local 

authorities. 

(e) Deadline and evaluation of final 

application. (1) If HHS approves an 

initial application, HHS will notify the 

applicant and provide the applicant 45 

days in which to provide a final 

application. The final application shall 

set forth a reasonable plan to finance, as 

specified in paragraph (a)(6) of this 

section, the approved program as set 

forth in the initial application. 

Applicants may not modify the 

approved initial application within its 

final application proposal. 

(2) Upon receipt of the final 

application, HHS will make a 

determination within 15 days and notify 

the applicant. 

(3) Unlike with initial applications, 

requests for extensions are not 

authorized by 42 U.S.C. 11411 and thus 

will not be considered for final 

applications. 

(4) Applications are evaluated on a 

first-come, first-served basis. HHS will 

notify all organizations that have 

submitted expressions of interest for a 

particular property whether an earlier 

application received for that property 

has been approved. 

(f) Competing applications. If HHS 

receives more than one final application 

simultaneously, HHS will evaluate all 

applications and make a determination 

based on each application’s merit. HHS 

will rank approved applications based 

on the elements listed in paragraph (a) 

of this section, and notify the 

landholding agency, or GSA, as 

appropriate, of the approved applicant. 

Action on Approved Applications 

§ 102–75.1171 What action must be taken 

on approved applications? 

(a) Unutilized and underutilized 

properties. (1) When HHS approves an 

application, it will so notify the 

applicant and forward a copy of the 

application to the landholding agency. 

The landholding agency will execute 

the lease, or permit document, as 

appropriate, in consultation with the 

applicant. 

(2) The landholding agency maintains 

the discretion to decide the following: 

(i) The length of time the property 

will be available. 

(ii) The terms and conditions of the 

lease or permit document (except that a 

landholding agency may not charge any 

fees or impose any costs). 

(b) Excess and surplus properties. (1) 

When HHS approves an application, it 

will so notify the applicant and request 

that GSA assign the property to HHS for 

transfer. Requests to GSA for the 

assignment of surplus property to HHS 

for homeless assistance purposes will be 

based on the following conditions: 

(i) HHS has a fully approved 

application for the property; 

(ii) The applicant is able, willing, and 

authorized to assume immediate care, 

custody, and maintenance of the 

property; 

(iii) The applicant is able, willing and 

authorized to pay the administrative 

expenses incident to the transfer; and 

(iv) The applicant has secured the 

necessary funds, or had demonstrated 

the ability to obtain such funds, to carry 

out the approved program of use of the 

property. 

(2) Upon receipt of an acceptable 

assignment, HHS will execute the 

transfer document in accordance with 

the procedures and requirements set out 

in this subpart and any other terms and 

conditions HHS and GSA determines 

are appropriate or necessary. Custody 

and accountability of the property will 

remain throughout the lease term with 

the landholding agency (i.e., the agency 

which initially reported the property as 

excess) and throughout the deed term 

with the transferee. 

(3) Prior to assignment to HHS, GSA 

may consider other Federal uses and 

other important national needs in 

deciding the disposition of surplus 

property. Priority of consideration will 

normally be given to uses to assist the 

homeless. However, both GSA and HHS 

may consider any competing request for 

the property made under 40 U.S.C. 550 

that is so meritorious and compelling 

that it outweighs the needs of the 

homeless. 

(4) Whenever GSA or HHS decides in 

favor of a competing request over a 

request for property for homeless 

assistance, the agency making the 

decision will transmit to the appropriate 

committees of Congress an explanatory 

statement which details 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. 

Surplus Property Transfer Documents 

§ 102–75.1172 What documents are used 

for the transfer of surplus property for use 

to assist the homeless? 

(a) Surplus property may be conveyed 

to eligible organizations pursuant to 40 

U.S.C. 550(d) and 42 U.S.C. 11411, as 

amended, by lease or deed, at the 

applicant’s discretion. 

(b) Transfers of surplus property for 

homeless assistance purposes are in 

exchange for the transferee’s agreement 

to fully utilize the property for homeless 

assistance purposes in accordance with 

the terms specified in the transfer 

document. 

(c) A transfer of surplus property for 

homeless assistance purposes is subject 

to the disapproval of GSA within 30 

days after notice is given to GSA of the 

proposed transfer. 

(d) Surplus property transferred 

pursuant to this subpart will be 

disposed on an ‘‘as is, where is’’ basis 

without warranty of any kind except as 

may be stated in the transfer document. 

(e) Unless excepted by GSA in its 

assignment, the disposal of property 

includes mineral rights associated with 

the surface estate. 

(f) Transfers of surplus property under 

this subpart will be made with the 

following general terms and conditions: 


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(1) For the period provided in the 

transfer document, the transferee shall 

utilize all the surplus property it 

receives solely and continuously for the 

approved program and plan of use, in 

accordance with 42 U.S.C. 11411 and 

this subpart, except that: 

(i) The transferee has 12 months from 

the date of transfer to place the surplus 

property into use, if HHS did not 

approve in writing, construction of new 

facilities or major renovation of the 

property when it approved the final 

application; 

(ii) The transferee has 48 months from 

the date of transfer to place the surplus 

property into use, if the transferee 

proposes construction of new facilities 

or major renovation of the property and 

HHS approves it in writing at the time 

it approves the final application; 

(iii) If the applicable time limitation is 

not met, the transferee shall either 

commence payments in cash to the 

Federal Government for each month 

thereafter during which the proposed 

use has not been implemented or take 

such other action as set forth at § 102– 

75.1176 as is deemed appropriate by 

HHS. Such monthly payments shall be 

computed on the basis of the current fair 

market value of the property, as 

conveyed, at the time of the first 

payment and dividing it by 360 months. 

At HHS’s discretion, the payment may 

be waived if the transferee makes a 

sufficient showing of continued 

progress to place the property into use 

or if an unforeseeable event occurs 

which prevents the property from being 

put into use within the applicable 

timeframe; and 

(iv) HHS may permit use of surplus 

property at any time during the period 

of restriction by an entity other than the 

transferee in accordance with § 102– 

75.1177. 

(2) The transferee will not be 

permitted to encumber, or dispose of the 

property, or impair full utilization 

thereof, without the prior written 

authorization of HHS. In the event the 

property is encumbered, sold, or 

disposed of, or is used for any purposes 

other than those set forth in an 

approved plan without the written 

consent of HHS, all revenues or the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from such use, as determined 

by HHS, will be considered to have been 

received and held in trust by the 

transferee for the account of the United 

States and will be subject to the 

direction and control of HHS. The 

provisions of this paragraph (f)(2) shall 

not impair or affect the rights reserved 

to the United States in paragraph (f)(8) 

of this section, or the right of HHS to 

impose conditions to its consent. 

(3) The transferee will file with HHS 

such reports on its maintenance and use 

of the surplus property and any other 

reports or information deemed 

necessary by HHS. 

(4) The transferee shall pay all 

administrative costs incidental to the 

transfer, including but not limited to— 

transfer taxes; surveys; appraisals; title 

search; the transferee’s legal fees; 

recordation expenses, etc. Transferee is 

solely responsible for such costs and 

may not seek reimbursement from the 

Federal Government for any reason. 

(5) The transferee shall protect, 

preserve, maintain, and repair the 

property to ensure that the property 

remains in as good a condition as when 

received. 

(6) The transferee shall protect the 

residual financial interest of the United 

States in the surplus property by 

insurance or such other means as HHS 

directs. 

(7) The transferee shall abide by all 

applicable Federal civil rights laws 

including those specified in the 

covenants and conditions contained in 

the transfer document, prohibiting the 

transferee from discriminating on the 

basis of, including but not limited to, 

race, color, national origin, religion, sex, 

familial status, or disability in the use 

of the property. 

(8) In the event of noncompliance 

with any conditions of the deed as 

determined by HHS, whether caused by 

the legal or other inability of the 

transferee, its successors and assigns, to 

perform any of the obligations of the 

transfer document, the Federal 

Government has an immediate right of 

reentry thereon, and to cause all right, 

title, and interest in and to the property 

to revert to the United States, and the 

transferee shall forfeit all right, title, and 

interest in and to the property. In such 

event, transferee shall execute a 

quitclaim deed and take all other 

actions necessary to return the property 

to the United States within ninety (90) 

days of a written request from the 

Federal Government, extended only at 

the discretion of the Federal 

Government. Transferee shall cooperate 

with the United States in the event of a 

reversion and agrees that the United 

States need not seek judicial 

intervention before exercising its right 

to revert, reenter, and reconvey the 

property. 

(9) In the event title is reverted to the 

United States for noncompliance or 

voluntarily reconveyed to the United 

States, the transferee shall, at the option 

of HHS, be required to: reimburse the 

United States for the decrease in value 

of the property not due to market 

conditions, reasonable wear and tear, 

acts of God, or approved alterations 

completed by the transferee to adapt the 

property to the homeless use for which 

the property was transferred; and 

reimburse the United States for any 

costs incurred in reverting title to or 

possession of the property, including 

reasonable attorneys’ fees. 

(10) With respect to leased property, 

in the event of noncompliance with any 

of the conditions of the lease, as 

determined by HHS or the landholding 

agency, the right of occupancy and 

possession shall, at the option of HHS 

or the landholding agency, be 

terminated. In the event a leasehold is 

terminated by the United States for 

noncompliance or is voluntarily 

surrendered, the lessee shall be 

required, at the option of HHS, to 

reimburse the United States for the 

decrease in value of the property not 

due to market conditions, reasonable 

wear and tear, acts of God, or approved 

alterations completed by the lessee to 

adapt the property to the homeless use 

for which the property was leased. With 

respect to any termination of leasehold 

resulting from noncompliance, the 

United States, shall, in addition thereto, 

be reimbursed for such costs as may be 

incurred in recovering possession of the 

property, including reasonable 

attorneys’ fees. 

(11) Any other term or condition that 

HHS and GSA determine appropriate or 

necessary. 

(12) With respect to surplus property 

transferred by deed, the terms and 

conditions including those in this 

paragraph (f), apply for a period of three 

hundred sixty (360) months of use in 

accordance with a program of use 

approved in writing by HHS. The three 

hundred sixty months (360) period may, 

in HHS’s sole discretion, be extended or 

restarted in the event the property is not 

fully utilized or is retransferred to a 

successor entity. Expiration of the terms 

and conditions in this paragraph (f) does 

not release the transferee from 

continuing compliance, as appropriate, 

with any conditions that may run with 

the land, e.g., environmental conditions 

and/or historic preservation covenants. 

Such conditions will continue to be the 

responsibility of the transferee and 

successors. 

(13) With respect to surplus property 

transferred by lease, the terms and 

conditions including those in this 

paragraph (f), extend for the entire 

initial lease and for any subsequent 

renewal periods, unless specifically 

excluded in writing by HHS. 

(g) Related personal property may be 

transferred or leased as a part of the 


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realty and in accordance with real 

property procedures. 

(h) Transferees will be responsible for 

the protection and maintenance of the 

property during the time that they 

possess the property. Upon termination 

of the lease term or reversion of title to 

the United States, the transferee will be 

responsible for removing improvements 

made to the property if directed to by 

the United States and, in such event, 

will be responsible for restoration of the 

property or the costs associated with 

restoring the property. If improvements 

made by the transferee are not 

voluntarily removed by the transferee 

and the United States consents, they 

will become the property of the United 

States. If the United States does not 

consent, the transferee shall reimburse 

the United States for reasonable costs of 

removal. GSA or the landholding 

agency, as appropriate, will assume 

responsibility for protection and 

maintenance of a property when the 

lease terminates or title reverts. 

(i) Transferees, by obtaining the 

written consent of HHS, may abrogate 

the restrictions set forth in paragraph (f) 

of this section for all or any portion of 

the property in accordance with the 

provisions of § 102–75.1178. 

Unsuitable Properties 

§ 102–75.1173 What action must be taken 

on properties determined unsuitable for 

homeless assistance? 

The landholding agency or GSA will 

defer action to dispose of properties 

determined unsuitable for homeless 

assistance for 20 days after the date that 

notice of a property is posted on the 

HUD website. HUD will inform 

landholding agencies or GSA if an 

appeal of an unsuitability determination 

is filed by a representative of the 

homeless pursuant to § 102–75.1163(f). 

HUD will advise the agency to refrain 

from initiating disposal procedures until 

HUD has completed its reconsideration 

process regarding unsuitability. 

Thereafter, or if no appeal has been filed 

after 20 days, GSA or the appropriate 

landholding agency may proceed with 

disposal action in accordance with 

applicable law. 

Compliance With the National 

Environmental Policy Act of 1969 and 

Other Related Acts (Environmental 

Impact) 

§ 102–75.1174 What are the requirements 

for compliance with the National 

Environmental Policy Act of 1969 and other 

related Acts (environmental impact) for the 

transfer of Federal real property for use to 

assist the homeless? 

(a) HHS, prior to making a final 

decision to convey or lease, or to 

amend, reform, or grant an approval or 

release with respect to a previous 

conveyance or lease of, surplus property 

for homeless purposes, will act in 

accordance with applicable provisions 

of the National Environmental Policy 

Act of 1969, the National Historic 

Preservation Act of 1966, the National 

Archeological Data Preservation Act, 

and other related acts. No lease to use 

surplus property shall allow the lessee 

to make, or cause to be made, any 

irreversible change in the conditions of 

said property, and no lease shall be 

employed for the purpose of delaying or 

avoiding compliance with the 

requirements of these Acts, unless 

approved by the United States. 

(b) Applicants shall be required to 

provide such information as HHS deems 

necessary to make an assessment of the 

impact of the proposed Federal action 

on the human environment. Materials 

contained in the applicant’s official 

request, responses to a standard 

questionnaire prescribed by HHS, as 

well as other relevant information, will 

be used by HHS in making said 

assessment. 

(c) If the assessment reveals: 

(1) That the proposed Federal action 

involved properties of historical 

significance which are listed, or eligible 

for listing, in the National Register of 

Historic Places; or 

(2) That a more than insignificant 

impact on the human environment is 

reasonably foreseeable as a result of the 

proposed action; or 

(3) That the proposed Federal action 

could result in irreparable loss or 

destruction of archeologically 

significant items or data, HHS will, 

except as provided for in paragraph (d) 

of this section, prepare and distribute, 

or cause to be prepared or distributed, 

such notices and statements and obtain 

such approvals as are required by the 

Acts cited in paragraph (a) of this 

section. 

(d) If a proposed action involves other 

Federal agencies in a sequence of 

actions, or a group of actions, directly 

related to each other because of their 

functional interdependence, HHS may 

enter into and support a lead agency 

agreement to designate a single lead 

agency which will assume primary 

responsibility for coordinating the 

assessment of environmental effects of 

proposed Federal actions, preparing and 

distributing such notices and 

statements, or obtaining such approvals, 

as are required by the Acts cited in 

paragraph (a) of this section. The 

procedures of the designated lead 

agency will be utilized in conducting 

the environmental assessment. In the 

event of disagreement between HHS and 

another Federal agency, HHS will 

reserve the right to abrogate the lead 

agency agreement with the other Federal 

agency. 

No Applications Approved 

§ 102–75.1175 What action must be taken 

if there is no expression of interest or 

approved application? 

(a) At the end of the 30-day holding 

period described in § 102–75.1169(a), 

HHS will notify GSA, or the 

landholding agency, as appropriate, if 

an expression of interest has been 

received for a certain property. Where 

there is no expression of interest, GSA 

or the landholding agency, as 

appropriate, will proceed with disposal 

in accordance with applicable law. 

(b) Upon notice from HHS that all 

applications have been disapproved, or 

if no initial applications have been 

received within 75 days after an 

expression of interest, or no final 

application has been received within 45 

days after an approved initial 

application, disposal may proceed in 

accordance with applicable law. 

Utilization and Enforcement 

§ 102–75.1176 What are the utilization and 

enforcement requirements for property 

transferred for use to assist the homeless? 

(a) Sanctions. For instances of 

noncompliance relating to surplus 

property transfers, HHS may impose, 

after providing an opportunity to cure to 

the transferee, any or all of the following 

sanctions in its sole discretion, as 

applicable: 

(1) Where property or any portion 

thereof was not used or is not being 

used for the purposes for which 

transferred, or is sold, leased or 

subleased, encumbered, disposed of, or 

used for purposes other than those in 

the approved program and plan of use, 

without the prior written consent of 

HHS, HHS may require the transferee 

to— 

(i) Place the property into immediate 

use for an approved purpose and extend 

the period of restriction in the transfer 

document for an additional term as 

determined by HHS; 

(ii) Hold in trust all revenues and the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from that use for the United 

States subject to the direction and 

control of HHS; 

(iii) Return title to such property to 

the United States or to relinquish any 

leasehold interest therein; 

(iv) Abrogate the conditions and 

restrictions of the transfer, as set forth 

in § 102–75.1178; 

(v) Make cash payments to the United 

States, as directed by HHS, equivalent to 


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the current fair market rental value of 

the surplus property, as transferred, for 

each month during which the program 

and plan of use has not been 

implemented and continues to not be 

implemented; or 

(vi) Any other remedy that HHS 

determines appropriate or necessary. 

(2) Where the transferee desires to 

place the property into temporary use to 

assist the homeless other than that for 

which the property was transferred, 

written approval from HHS must be 

obtained, and will be conditioned upon 

HHS’s authority to permit the use and 

such terms as HHS may impose. 

(3) If HHS or the landholding agency 

determines that a lessee or sublessee of 

a transferee is in noncompliance with a 

term or condition of the lease, or if the 

lessee voluntarily surrenders the 

premises, HHS may require termination 

of the lease and impose sanctions 

described in paragraph (a)(1) of this 

section, as appropriate. 

(b) Reversion. When HHS 

recommends reversion of the property 

for noncompliance, HHS will seek 

GSA’s concurrence. GSA will respond 

to HHS’s concurrence request within 30 

days of its receipt. If GSA concurs, GSA 

will work with HHS to complete the 

reversion of the property. If GSA does 

not concur to the reversion 

recommendation, GSA will issue, to 

HHS, a written determination: stating 

the reason(s) for the disapproval; and 

acknowledging that HHS has 

recommended reversion and, therefore, 

the property is no longer within HHS’s 

Title V program. The Federal 

Government will implement a response 

to the noncompliance that is in its best 

interests. 

Other Uses 

§ 102–75.1177 What are the requirements 

for other uses of a transferred property? 

(a) A transferee may permit the use of 

all or a portion of the surplus property 

by another eligible entity as described in 

§ 102–75.1160 for homeless assistance 

purposes, only upon those terms and 

conditions HHS determines appropriate, 

if: 

(1) The transferee submits a written 

request to HHS explaining the purpose 

of and need for another eligible entity’s 

use of the property, program plan, and 

other relevant information requested by 

HHS; 

(2) HHS determines that the proposed 

use would not substantially limit the 

program and plan of use by the 

transferee and that the use will not 

unduly burden the Federal Government; 

(3) HHS’s written consent is obtained 

by the transferee in advance; 

(4) HHS approves the use instrument 

in advance and in writing; 

(5) The transferee agrees to lengthen 

the period of restrictions as determined 

by HHS; and 

(6) HHS advises GSA and there is no 

disapproval by GSA within thirty (30) 

days. 

(b) A transferee that does not follow 

paragraph (a) of this section will be 

deemed to be not in compliance with 

the terms and conditions of the Title V 

program and subject to enforcement 

action, including reversion of the 

property. 

Abrogation 

§ 102–75.1178 What are the conditions of 

abrogation for property transferred to assist 

the homeless? 

(a) HHS may abrogate the conditions 

and restrictions in the transfer 

document if: 

(1) The transferee submits to HHS a 

written request that HHS abrogate the 

conditions and restrictions in the 

transfer document as to all or any 

portion of the surplus property; 

(2) HHS determines the terms and 

conditions of the proposed abrogation 

and determines that the proposed 

abrogation is in the best interest of the 

United States; and 

(3) HHS transmits the abrogation 

request to GSA and there is no 

disapproval by GSA within 30 days after 

notice is given. If GSA disapproves, 

GSA will state, in writing, to HHS the 

reason(s) for the disapproval. 

(b) HHS abrogates the conditions and 

restrictions in the transfer document 

only upon receipt of the appropriate 

consideration, including cash payment, 

to the United States, as directed by 

HHS, which is based on the formula 

contained in the transfer document, and 

any other terms and conditions HHS 

deems appropriate to protect the interest 

of the United States. 

Compliance Inspections and Reports 

§ 102–75.1179 What compliance 

inspections and reports are required? 

Transferees are required to allow HHS 

to conduct compliance inspections and 

to submit such compliance reports and 

actions as are deemed necessary by 

HHS. At a minimum, the transferee will 

be required to submit an annual 

utilization report regarding the 

operation and maintenance of the 

property, including current images of 

the entire property and such 

information as HHS shall require. 

No Right of Administrative Review for 

Agency Decisions 

§ 102–75.1180 Is there a right of 

administrative review for agency decisions 

within HHS? 

There is no right to administrative 

review within HHS, including requests 

for reconsideration or appeal, of agency 

decisions on applications and other 

discretionary decisions. 

Waivers 

§ 102–75.1181 May any requirement of this 

subpart be waived?? 

The Secretary of HUD may waive any 

requirement of this subpart (over which 

the Secretary of HUD has jurisdiction) 

that is not required by law, whenever it 

is determined that undue hardship 

would result from applying the 

requirement, or where application of the 

requirement would adversely affect the 

purposes of the program. Each waiver 

will be in writing and will be supported 

by documentation of the pertinent facts 

and grounds. The Secretary periodically 

will publish notice of granted waivers 

on the HUD website. 

Severability 

§ 102–75.1182 Are the provisions of this 

subpart severable? 

Any provision of this subpart held to 

be invalid or unenforceable with respect 

to certain parties or circumstances shall 

be construed so as to continue to give 

the maximum effect to the provision 

permitted by law unless such holding is 

that the provision of this subpart is 

invalid and unenforceable in all 

circumstances, in which event the 

provision shall be severable from the 

remainder of this subpart and shall not 

affect the remainder thereof. 

§§ 102–75.1183–102–75.1219 [Reserved] 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Accordingly, for the reasons stated 

above, HHS amends 45 CFR part 12a as 

follows: 

■ 7. Revise part 12a to read as follows: 

PART 12a—USE OF FEDERAL REAL 

PROPERTY TO ASSIST THE 

HOMELESS 

Sec. 

12a.1 Definitions. 

12a.2 Applicability. 

12a.3 General policies. 

12a.4 Expression of interest process. 

12a.5 Application process and 

requirements. 

12a.6 Action on approved applications. 

12a.7 Transfer documents. 

12a.8 Compliance with the National 

Environmental Policy Act of 1969 and 


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other related Acts (environmental 

impact). 

12a.9 No applications approved. 

12a.10 Utilization and enforcement. 

12a.11 Other uses. 

12a.12 Abrogation. 

12a.13 Compliance inspections and reports. 

12a.14 No right of administrative review for 

agency decisions. 

12a.15 Severability. 

Authority: 42 U.S.C. 11411; 40 U.S.C. 550. 

§ 12a.1 Definitions. 

Applicant means any eligible 

organization that has submitted an 

application to the Department of Health 

and Human Services to obtain use of a 

certain suitable property to assist the 

homeless. 

Classification means a property’s 

designation as unutilized, 

underutilized, excess, or surplus. 

Day means one calendar day, 

including weekends and holidays. 

Eligible organization means a State or 

local government agency, or a private, 

non-profit organization that provides 

assistance to the homeless, and that is 

authorized under the State law in which 

the property is located to carry out the 

activity for which it requests property 

and enter into an agreement with the 

Federal Government for use of property 

for the purposes of this part. Eligible 

organizations that are private, non-profit 

organizations interested in applying for 

suitable property must be tax exempt 

under section 501(c)(3) of the Internal 

Revenue Code at the time of application 

and remain tax exempt throughout the 

time the Federal Government retains a 

reversionary interest in the property. 

Encumbrance means any nonapproved use by a transferee or a third 

party that limits the full utilization of 

the transferred property, regardless of 

time period, and includes liens, 

easements, restrictive covenants, 

licenses, leases, mortgages, informal 

agreements, and unaddressed trespass. 

Excess property means any property 

under the control of a Federal executive 

agency that the head of the agency 

determines is not required to meet the 

agency’s needs or responsibilities, 

pursuant to 40 U.S.C. 524. 

GSA means the General Services 

Administration. 

HHS means the Department of Health 

and Human Services. 

Homeless is defined in 42 U.S.C. 

11302. This term is synonymous with 

‘‘homeless individual’’ and ‘‘homeless 

person.’’ 

HUD means the Department of 

Housing and Urban Development. 

HUD website means a website 

maintained by HUD providing 

information about HUD, including any 

successor websites or technologies that 

are equally accessible and available to 

the public. 

Landholding agency means the 

Federal department or agency with 

statutory authority to control property. 

For purposes of this part, the 

landholding agency is typically the 

Federal department or agency that had 

custody and accountability on behalf of 

the Federal Government, of a certain 

piece of property at the time that such 

property was reported to HUD for a 

suitability determination pursuant to 42 

U.S.C. 11411. 

Lease means an agreement in writing 

between either HHS for surplus 

property or landholding agencies for 

underutilized and unutilized properties 

and the applicant giving rise to the 

relationship of lessor and lessee for the 

use of Federal property for a term of at 

least one year under the conditions set 

forth in the lease document. 

Non-profit organization means an 

organization recognized as a non-profit 

by the State in which the organization 

operates, no part of the net earnings of 

which inures to the benefit of any 

member, founder, contributor, or 

individual; that has a voluntary board; 

that has an accounting system or has 

designated an entity that will maintain 

a functioning accounting system for the 

organization in accordance with 

generally accepted accounting 

procedures; and that practices 

nondiscrimination in the provision of 

assistance. 

Permit means a license granted by a 

landholding agency to use unutilized or 

underutilized property for a specific 

amount of time, usually one year or less, 

under terms and conditions determined 

by the landholding agency. A permit 

does not grant to the recipient an estate 

in land or any interest in the property. 

Property means real property 

consisting of vacant land or buildings, 

or a portion thereof, that is excess, 

surplus, or designated as unutilized or 

underutilized in surveys by the heads of 

landholding agencies conducted 

pursuant to 40 U.S.C. 524. 

Related personal property means any 

personal property that is located on real 

property and is either an integral part of 

or useful in the operation of that 

property or is determined by GSA to be 

otherwise related to the property. 

Representative of the homeless means 

a State or local government agency, or 

private nonprofit organization that 

provides, or proposes to provide, 

services to the homeless. 

Screen means the process by which 

GSA surveys Federal executive agencies 

to determine if they have an interest in 

using excess Federal property to carry 

out a particular agency mission, and 

then surveys State, local, and non-profit 

entities, to determine if any such entity 

has an interest in using surplus Federal 

property to carry out a specific public 

use. 

State means a State of the United 

States, and includes the District of 

Columbia, the Commonwealth of Puerto 

Rico, and the Territories and 

possessions of the United States. 

Suitable property means that HUD has 

determined that a certain property 

satisfies the criteria listed in 24 CFR 

581.6. 

Surplus property means any excess 

property not required by any Federal 

landholding agency for its needs or the 

discharge of its responsibilities, as 

determined by GSA. 

Transfer document means a lease, 

deed, or permit transferring surplus, 

unutilized, or underutilized property. 

Transferee means an eligible entity 

that acquires Federal property by lease, 

deed, or permit. 

Underutilized means an entire 

property or portion thereof, with or 

without improvements which is used 

only at irregular periods or 

intermittently by the accountable 

landholding agency for current program 

purposes of that agency, or which is 

used for current program purposes that 

can be satisfied with only a portion of 

the property. 

Unutilized property means an entire 

property or portion thereof, with or 

without improvements, not occupied for 

current program purposes for the 

accountable executive agency or 

occupied in caretaker status only. 

§ 12a.2 Applicability. 

(a) This part applies to Federal 

property that has been designated by 

Federal landholding agencies as 

unutilized, underutilized, excess, or 

surplus and is therefore subject to the 

provisions of Title V of the McKinney 

Act, as amended (42 U.S.C. 11411). 

(b) The following categories of 

properties are not subject to this part 

(regardless of whether they may be 

unutilized or underutilized): 

(1) Buildings and property at military 

installations that were approved for 

closure under the Defense Base Closure 

and Realignment Act of 1990 (part A of 

title XXIX of Pub. L. 101–510; 10 U.S.C. 

2687 note) after October 25, 1994. 

(2) Machinery and equipment not 

determined to be related personal 

property by the landholding agency or 

GSA or determined to be related 

personal property that the landholding 

agency or GSA chooses to dispose of 

separate from real property. 

(3) Government-owned, contractoroperated machinery, equipment, land, 


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and other facilities reported excess for 

sale only to the using contractor and 

subject to a continuing military 

requirement. 

(4) Properties subject to special 

legislation directing a particular action. 

(5) Properties subject to a court order 

that is binding on the Federal 

Government and, for any reason, 

precludes transfer for use to assist the 

homeless under the authority of 42 

U.S.C. 11411. 

(6) Property not subject to Federal 

Real Property Council reporting 

requirements in accordance with 40 

U.S.C. 623(i). 

(7) Mineral rights interests 

independent of surface rights. 

(8) Air space interests independent of 

surface rights. 

(9) Indian Reservation land subject to 

40 U.S.C. 523. 

(10) Property interests subject to 

reversion. 

(11) Easements. 

(12) Any building or fixture that is 

excess, or surplus, that is on land under 

the control of a landholding agency, 

where the underlying land is not excess 

or surplus. 

(13) Property purchased in whole or 

in part with Federal funds if title to the 

property is not held by a Federal 

landholding agency as defined in this 

part. 

§ 12a.3 General policies. 

(a) It is the policy of HHS to foster and 

assure maximum utilization of surplus 

property for homeless assistance 

purposes. 

(b) Transfers may be made only to 

eligible organizations. 

(c) Property will be requested for 

assignment only when HUD has made a 

final determination that the property is 

suitable for use to assist the homeless, 

GSA has determined it is available, and 

HHS has determined it is needed for 

homeless assistance purposes. The 

amount of real and related personal 

property to be transferred shall not 

exceed normal operating requirements 

of the applicant. Such property will not 

be requested for assignment unless it is 

needed at the time of application for 

homeless assistance purposes or will be 

so needed within the immediate or 

foreseeable future. 

(d) Transfers by deed will be made 

only after the applicant’s financial plan 

is approved and the applicant provides 

certification that the proposed program 

is permissible under all applicable State 

and local zoning restrictions, building 

codes, and similar limitations. 

(e) In instances of noncompliance, 

transferees are provided an opportunity 

to cure the noncompliance pursuant to 

§ 12a.10. 

§ 12a.4 Expression of interest process. 

(a) Properties published by HUD as 

suitable and available, pursuant to 24 

CFR 581.8, for application for use to 

assist the homeless shall not be 

available for any other purpose for a 

period of 30 days beginning on the date 

the list of properties is published on the 

HUD website. Any eligible organization 

interested in any underutilized, 

unutilized, excess, or surplus property 

for use to assist the homeless must send 

HHS a written expression of interest in 

that property within 30 days after the 

property has been published on the 

HUD website. 

(b) Although a property may be 

determined suitable by HUD, HUD’s 

determination does not mean a property 

is necessarily fit for use for the 

purpose(s) stated in the application, nor 

does it guarantee subsequent 

conveyance or transfer of a property. 

(c) If a written expression of interest 

to apply for suitable property for use to 

assist the homeless is received by HHS 

within the 30-day holding period, such 

property may not be made available for 

any other purpose until the date HHS or 

the appropriate landholding agency has 

completed action on the application 

submitted pursuant to that expression of 

interest. 

(d)(1) The expression of interest 

should identify the specific property, 

briefly describe the proposed use, 

include the name of the organization, 

and indicate whether it is a public body 

or a private, non-profit organization. 

The expression of interest must be sent 

to HHS by email, rpb@psc.hhs.gov, or by 

mail at the following address: 

Department of Health and Human 

Services, Program Manager, Federal 

Real Property Assistance Program, Real 

Estate Logistics and Operations, 5600 

Fishers Lane, Rockville, Maryland 

20852. 

(2) HHS will notify the landholding 

agency (for unutilized and underutilized 

properties) or GSA (for excess and 

surplus properties) when an expression 

of interest has been received for a 

certain property. 

(e) An expression of interest may be 

sent to and accepted by HHS any time 

after the 30-day holding period has 

expired only if the property remains 

available as determined by GSA or the 

landholding agency for application to 

assist the homeless. In such a case, an 

application submitted pursuant to this 

expression of interest may be approved 

for use by the homeless if: 

(1) There are no pending applications 

or written expressions of interest made 

under any law for use of the property for 

any purpose; and 

(2) In the case of excess or surplus 

property, GSA has not received a bona 

fide offer to purchase that property or 

advertised for the sale of the property by 

public auction. 

§ 12a.5 Application process and 

requirements. 

(a) Upon receipt of an expression of 

interest, HHS will send an application 

packet to the interested entity. The 

application packet requires the 

applicant to provide certain 

information, including the following— 

(1) Acquisition type. The applicant 

must state whether it is requesting 

acquisition of the property by lease, 

deed, or permit. A lease of one year, 

extendable at HHS’s discretion, with the 

concurrence of GSA or the landholding 

agency, may be granted when the 

applicant’s initial application is 

approved and the applicant’s final 

application outlining the applicant’s 

financial plan is found to be otherwise 

reasonable based on the criteria in 

paragraph (a)(7) of this section, but 

either a change in zoning is required or 

the financial plan proposes to utilize 

Low-Income Housing Tax Credits or 

other funding sources that typically take 

longer to process than other forms of 

financing. Applicants that initially 

apply for transfer by lease or permit and 

subsequently request transfer by deed 

will follow the same bifurcated 

application process, including 

deadlines, contained in 42 U.S.C. 11411. 

Should an applicant wish to transition 

from acquisition by lease to acquisition 

by deed, HHS will issue a letter of 

commitment to a lessee indicating that, 

provided its application meets all 

application criteria, including securing 

of all necessary financing that complies 

with Federal Government requirements, 

HHS will issue a deed. 

(2) Description of the applicant 

organization. The applicant must 

document that it satisfies the definition 

of an eligible organization as specified 

in § 12a.1. 

(3) Description of the property 

desired. The applicant must describe 

the listed property desired, including 

existing zoning. Applicants must certify 

that any modification(s) made to and 

use of the property will conform to all 

applicable building codes, and local use 

restrictions, or similar limitations. In 

accordance with GSA policy, 

determinations regarding parcelization 

are made prior to screening. Therefore, 

expressions of interest and applications 

for portions of listed properties will not 

be accepted. 

(4) Description of the proposed 

program. The applicant must fully 


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describe the proposed program and plan 

of use, including implementation plans. 

(5) Demonstration of need. The 

applicant must demonstrate that the 

property is needed for homeless 

assistance purposes at the time of 

application and how the program will 

address the needs of the homeless 

population to be assisted. The applicant 

must demonstrate that it has an 

immediate need and ability to utilize all 

of the property for which it is applying. 

(6) Demonstrate that the property is 

suitable and adaptable for the proposed 

program and plan of use. The applicant 

must fully explain why the property is 

suitable and describe what, if any, 

modification(s) will be made to the 

property before the program becomes 

operational. 

(7) Ability to finance and operate the 

proposed program. If the applicant’s 

initial application is approved, the 

applicant must set forth a reasonable 

plan to finance the approved program 

within 45 days of the initial approval. 

To be considered reasonable, the plan 

must, at a minimum: 

(i) Specifically describe all 

anticipated costs and sources of funding 

for the proposed program, including any 

property modifications; 

(ii) Be accompanied by supporting 

documentation which demonstrates that 

the proposed plan is likely to succeed; 

(iii) Demonstrate that the applicant is 

ready, willing, able, and authorized to 

assume care, custody, and maintenance 

of the property; 

(iv) Demonstrate that it has secured 

the necessary dedicated funds, or will 

obtain such funds, to carry out the 

approved proposed program and plan of 

use for the property, including 

administrative expenses incident to the 

transfer by deed, lease, or permit; 

(v) Not diminish the value of the 

Federal Government’s interest in the 

property nor impair the Federal 

Government’s ability to revert and 

immediately dispose of the property free 

of any and all liens, encumbrances, or 

anything else which renders the 

property unmarketable. Deed transfers 

will only be made after an applicant 

demonstrates its financial plan 

adequately protects the Federal 

Government’s interest in the property; 

and 

(vi) Neither subject the Federal 

Government’s interest in the property to 

foreclosure nor impose obligations (e.g., 

extended use agreements) on the 

Federal Government. 

(8) Compliance with nondiscrimination requirements. Each 

applicant under this part must certify in 

writing that it will comply with all 

requirements of Federal law and HHS 

policy, as amended, relating to nondiscrimination, including the following: 

the Fair Housing Act (42 U.S.C. 3601– 

3619) and implementing regulations at 

24 CFR part 100; and, as applicable, 

Executive Order 11063 (Equal 

Opportunity in Housing) and 

implementing regulations at 24 CFR part 

107; Title VI of the Civil Rights Act of 

1964 (42 U.S.C. 2000d to d–4) (Nondiscrimination in Federally Assisted 

Programs) and implementing 

regulations at 45 CFR part 80; section 

1557 of the Affordable Care Act and 

implementing regulations at 45 CFR part 

92; the prohibitions against 

discrimination on the basis of age under 

the Age Discrimination Act of 1975 (42 

U.S.C. 6101–6107) and implementing 

regulations at 45 CFR part 91; and the 

prohibitions against discrimination 

against otherwise qualified individuals 

with disabilities under section 504 of 

the Rehabilitation Act of 1973 (29 U.S.C. 

794) and implementing regulations at 45 

CFR part 84. The applicant must 

maintain the required records to 

demonstrate compliance with all 

applicable Federal laws and HHS 

policies related to non-discrimination. 

(9) Insurance and indemnification. 

The applicant must certify that it will 

insure the property against loss, 

damage, or destruction to protect the 

residual financial interest of the United 

States. The United States shall be 

named as an additional insured. 

Applicants must provide proof of 

insurance annually or upon request. 

Failure to maintain sufficient insurance 

may result in adverse action, including 

reversion of the property, at the 

discretion of HHS. In the event of a 

covered loss, the transferee must hold 

all insurance proceeds in trust and 

obtain written concurrence from HHS 

before disbursing the funds. Applicants, 

and all affiliated parties utilizing the 

property, as approved by HHS, must 

indemnify the United States and hold 

the United States harmless for all 

actions involving use of the property. 

(10) Historic preservation. Where 

applicable, the applicant must provide 

information that will enable HHS to 

comply with Federal historic 

preservation requirements. 

(11) Environmental information. The 

applicant must provide sufficient 

information to allow HHS to analyze the 

potential impact of the applicant’s 

proposal on the environment, in 

accordance with the instructions 

provided with the application packet. 

HHS will assist applicants in obtaining 

any pertinent environmental 

information in the possession of HUD, 

GSA, or the landholding agency. 

However, the burden is on the applicant 

to submit sufficient documentation for 

analysis by HHS. 

(12) Local government notification. 

The applicant must certify that it has 

notified the applicable unit of general 

local government responsible for sewer, 

water, police, and fire services, in 

writing, of its proposed program for the 

specific property and submit a copy of 

that written notification. 

(13) Zoning and local use restrictions. 

An applicant requesting a deed must 

certify that it has consulted all State and 

local governmental entities that will 

have jurisdiction over the property and 

that the proposed use will comply with 

all applicable zoning and local use 

restrictions, including local building 

code requirements. An applicant that 

applies for a lease or permit is not 

required to comply with local zoning 

requirements, as long as the Federal 

Government retains ownership of the 

property. Deed transfers will only be 

made after the applicant has provided 

acceptable written proof that the 

proposed program is not in conflict with 

State or local zoning laws and 

restrictions, building codes, or similar 

limitations. 

(b) Scope of evaluations. Due to the 

short time frame imposed by statute for 

evaluating applications, HHS’s 

evaluation will, generally, be limited to 

the information contained in the 

application. It is therefore incumbent on 

applicants to provide thorough and 

complete applications. 

(c) Deadline for initial application. An 

initial application must be received by 

HHS, at the email address in 

§ 12a.4(d)(1) or other address indicated 

by HHS, within 75 days after an 

expression of interest is received from a 

particular applicant for that property. 

Upon written request from the 

applicant, HHS may, in its discretion, 

grant extensions authorized by 42 U.S.C. 

11411(e)(2)(A), provided that the 

appropriate landholding agency or GSA 

concurs with the extension. 

(d) Evaluation of initial application. 

(1) Upon receipt of an initial 

application, HHS will review it for 

completeness, and, if incomplete and 

time permits, may, in its discretion, 

return it or ask the applicant to furnish 

any missing or additional required 

information prior to final evaluation of 

the initial application. 

(2) HHS will evaluate each initial 

application within 10 days of receipt 

and will promptly advise the applicant 

of its decision. All initial applications 

will be reviewed on the basis of the 

following elements: 

(i) Services offered. The extent and 

range of proposed services, such as 


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meals, shelter, job training, and 

counseling. 

(ii) Need. The demand for the 

program, the program’s ability to satisfy 

unmet needs of the community, and the 

degree to which the available property 

will be fully utilized. 

(iii) Experience. Demonstrated ability 

to provide the services, such as prior 

success in operating similar programs 

and recommendations attesting to that 

fact by Federal, State, and local 

authorities. 

(e) Deadline and evaluation of final 

application. (1) If HHS approves an 

initial application, HHS will notify the 

applicant and provide the applicant 45 

days in which to provide a final 

application. The final application shall 

set forth a reasonable plan to finance, as 

specified in paragraph (a)(7) of this 

section, the approved program as set 

forth in the initial application. 

Applicants may not modify the 

approved initial application within its 

final application proposal. 

(2) Upon receipt of the final 

application, HHS will make a 

determination within 15 days and notify 

the applicant. 

(3) Unlike with initial applications, 

requests for extensions are not 

authorized by 42 U.S.C. 11411 and thus 

will not be considered for final 

applications. 

(4) Applications are evaluated on a 

first-come, first-served basis. HHS will 

notify all organizations that have 

submitted expressions of interest for a 

particular property whether an earlier 

application received for that property 

has been approved. 

(f) Competing applications. If HHS 

receives more than one final application 

simultaneously, HHS will evaluate all 

applications and make a determination 

based on each application’s merit. HHS 

will rank approved applications based 

on the elements listed in paragraph (a) 

of this section, and notify the 

landholding agency, or GSA, as 

appropriate, of the approved applicant. 

§ 12a.6 Action on approved applications. 

(a) Unutilized and underutilized 

properties. (1) When HHS approves an 

application, it will so notify the 

applicant and forward a copy of the 

application to the landholding agency. 

The landholding agency will execute 

the lease, or permit document, as 

appropriate, in consultation with the 

applicant. 

(2) The landholding agency maintains 

the discretion to decide the following: 

(i) The length of time the property 

will be available. 

(ii) The terms and conditions of the 

lease or permit document (except that a 

landholding agency may not charge any 

fees or impose any costs). 

(b) Excess and surplus properties. (1) 

When HHS approves an application, it 

will so notify the applicant and request 

that GSA assign the property to HHS for 

transfer. Requests to GSA for the 

assignment of surplus property to HHS 

for homeless assistance purposes will be 

based on the following conditions: 

(i) HHS has a fully approved 

application for the property; 

(ii) The applicant is able, willing, and 

authorized to assume immediate care, 

custody, and maintenance of the 

property; 

(iii) The applicant is able, willing and 

authorized to pay the administrative 

expenses incident to the transfer; and 

(iv) The applicant has secured the 

necessary funds, or had demonstrated 

the ability to obtain such funds, to carry 

out the approved program of use of the 

property. 

(2) Upon receipt of an acceptable 

assignment, HHS will execute the 

transfer document in accordance with 

the procedures and requirements set out 

in this part and any other terms and 

conditions HHS and GSA determine are 

appropriate or necessary. Custody and 

accountability of the property will 

remain throughout the lease term with 

the landholding agency (i.e., the agency 

which initially reported the property as 

excess) and throughout the deed term 

with the transferee. 

(3) Prior to assignment to HHS, GSA 

may consider other Federal uses and 

other important national needs in 

deciding the disposition of surplus 

property. Priority of consideration will 

normally be given to uses to assist the 

homeless. However, both GSA and HHS 

may consider any competing request for 

the property made under 40 U.S.C. 550 

that is so meritorious and compelling 

that it outweighs the needs of the 

homeless. 

(4) Whenever GSA or HHS decides in 

favor of a competing request over a 

request for property for homeless 

assistance, the agency making the 

decision will transmit to the appropriate 

committees of Congress an explanatory 

statement which details 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. 

§ 12a.7 Transfer documents. 

(a) Surplus property may be conveyed 

to eligible organizations pursuant to 40 

U.S.C. 550(d) and 42 U.S.C. 11411, as 

amended, by lease or deed, at the 

applicant’s discretion. 

(b) Transfers of surplus property for 

homeless assistance purposes are in 

exchange for the transferee’s agreement 

to fully utilize the property for homeless 

assistance purposes in accordance with 

the terms specified in the transfer 

document. 

(c) A transfer of surplus property for 

homeless assistance purposes is subject 

to the disapproval of GSA within 30 

days after notice is given to GSA of the 

proposed transfer. 

(d) Surplus property transferred 

pursuant to this part will be disposed on 

an ‘‘as is, where is’’ basis without 

warranty of any kind except as may be 

stated in the transfer document. 

(e) Unless excepted by GSA in its 

assignment, the disposal of property 

includes mineral rights associated with 

the surface estate. 

(f) Transfers of surplus property under 

this part will be made with the 

following general terms and conditions: 

(1) For the period provided in the 

transfer document, the transferee shall 

utilize all the surplus property it 

receives solely and continuously for the 

approved program and plan of use, in 

accordance with 42 U.S.C. 11411 and 

this part, except that: 

(i) The transferee has 12 months from 

the date of transfer to place the surplus 

property into use, if HHS did not 

approve in writing, construction of new 

facilities or major renovation of the 

property when it approved the final 

application; 

(ii) The transferee has 48 months from 

the date of transfer to place the surplus 

property into use, if the transferee 

proposes construction of new facilities 

or major renovation of the property and 

HHS approves it in writing at the time 

it approves the final application; 

(iii) If the applicable time limitation is 

not met, the transferee shall either 

commence payments in cash to the 

Federal Government for each month 

thereafter during which the proposed 

use has not been implemented or take 

such other action as set forth at § 12a.10 

as is deemed appropriate by HHS. Such 

monthly payments shall be computed 

on the basis of the current fair market 

value of the property, as conveyed, at 

the time of the first payment and 

dividing it by 360 months. At HHS’s 

discretion, the payment may be waived 

if the transferee makes a sufficient 

showing of continued progress to place 

the property into use or if an 

unforeseeable event occurs which 

prevents the property from being put 

into use within the applicable 

timeframe; and 

(iv) HHS may permit use of surplus 

property at any time during the period 


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of restriction by an entity other than the 

transferee in accordance with § 12a.11. 

(2) The transferee will not be 

permitted to encumber, or dispose of the 

property, or impair full utilization 

thereof, without the prior written 

authorization of HHS. In the event the 

property is encumbered, sold, or 

disposed of, or is used for any purposes 

other than those set forth in an 

approved plan without the written 

consent of HHS, all revenues or the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from such use, as determined 

by HHS, will be considered to have been 

received and held in trust by the 

transferee for the account of the United 

States and will be subject to the 

direction and control of HHS. The 

provisions of this paragraph (f)(2) shall 

not impair or affect the rights reserved 

to the United States in paragraph (f)(8) 

of this section, or the right of HHS to 

impose conditions to its consent. 

(3) The transferee will file with HHS 

such reports on its maintenance and use 

of the transferred property and any 

other reports or information deemed 

necessary by HHS. 

(4) The transferee shall pay all 

administrative costs incidental to the 

transfer, including but not limited to— 

transfer taxes; surveys; appraisals; title 

searches; the transferee’s legal fees; and 

recordation expenses. Transferee is 

solely responsible for such costs and 

may not seek reimbursement from the 

Federal Government for any reason. 

(5) The transferee shall protect, 

preserve, maintain, and repair the 

property to ensure that the property 

remains in as good a condition as when 

received. 

(6) The transferee shall protect the 

residual financial interest of the United 

States in the surplus property by 

insurance or such other means as HHS 

directs. 

(7) The transferee shall abide by all 

applicable Federal civil rights laws 

including those specified in the 

covenants and conditions contained in 

the transfer document, prohibiting the 

transferee from discriminating on the 

basis of, including but not limited to, 

race, color, national origin, religion, sex, 

familial status, or disability in the use 

of the property. 

(8) In the event of noncompliance 

with any conditions of the deed as 

determined by HHS, whether caused by 

the legal or other inability of the 

transferee, its successors and assigns, to 

perform any of the obligations of the 

transfer document, the Federal 

Government has an immediate right of 

reentry thereon, and to cause all right, 

title, and interest in and to the property 

to revert to the United States, and the 

transferee shall forfeit all right, title, and 

interest in and to the property. In such 

event, transferee shall execute a 

quitclaim deed and take all other 

actions necessary to return the property 

to the United States within ninety (90) 

days of a written request from the 

Federal Government, extended only at 

the discretion of the Federal 

Government. Transferee shall cooperate 

with the United States in the event of a 

reversion and agrees that the United 

States need not seek judicial 

intervention before exercising its right 

to revert, reenter, and reconvey the 

property. 

(9) In the event title is reverted to the 

United States for noncompliance or 

voluntarily reconveyed to the United 

States, the transferee shall, at the option 

of HHS, be required to: reimburse the 

United States for the decrease in value 

of the property not due to market 

conditions, reasonable wear and tear, 

acts of God, or approved alterations 

completed by the transferee to adapt the 

property to the homeless use for which 

the property was transferred; and 

reimburse the United States for any 

costs incurred in reverting title to or 

possession of the property, including 

reasonable attorneys’ fees. 

(10) With respect to leased property, 

in the event of noncompliance with any 

of the conditions of the lease, as 

determined by HHS or the landholding 

agency, the right of occupancy and 

possession shall, at the option of HHS 

or the landholding agency, be 

terminated. In the event a leasehold is 

terminated by the United States for 

noncompliance or is voluntarily 

surrendered, the lessee shall be 

required, at the option of HHS, to 

reimburse the United States for the 

decrease in value of the property not 

due to market conditions, reasonable 

wear and tear, acts of God, or approved 

alterations completed by the lessee to 

adapt the property to the homeless use 

for which the property was leased. With 

respect to any termination of leasehold 

resulting from noncompliance, the 

United States, shall, in addition thereto, 

be reimbursed for such costs as may be 

incurred in recovering possession of the 

property, including reasonable 

attorneys’ fees. 

(11) Any other term or condition that 

HHS and GSA determine appropriate or 

necessary. 

(12) With respect to surplus property 

transferred by deed, the terms and 

conditions including those in this 

paragraph (f), apply for a period of three 

hundred sixty (360) months of use in 

accordance with a program of use 

approved in writing by HHS. The three 

hundred sixty months (360) period may, 

in HHS’s sole discretion, be extended or 

restarted in the event the property is not 

fully utilized or is retransferred to a 

successor entity. Expiration of the terms 

and conditions in this paragraph (f) does 

not release the transferee from 

continuing compliance, as appropriate, 

with any conditions that may run with 

the land, e.g., environmental conditions 

and/or historic preservation covenants. 

Such conditions will continue to be the 

responsibility of the transferee and 

successors. 

(13) With respect to surplus property 

transferred by lease, the terms and 

conditions including those in this 

paragraph (f), extend for the entire 

initial lease and for any subsequent 

renewal periods, unless specifically 

excluded in writing by HHS. 

(g) Related personal property may be 

transferred or leased as a part of the 

realty and in accordance with real 

property procedures. 

(h) Transferees will be responsible for 

the protection and maintenance of the 

property during the time that they 

possess the property. Upon termination 

of the lease term or reversion of title to 

the United States, the transferee will be 

responsible for removing improvements 

made to the property if directed to by 

the United States and, in such event, 

will be responsible for restoration of the 

property or the costs associated with 

restoring the property. If improvements 

made by the transferee are not 

voluntarily removed by the transferee 

and the United States consents, they 

will become the property of the United 

States. If the United States does not 

consent, the transferee shall reimburse 

the United States for reasonable costs of 

removal. GSA or the landholding 

agency, as appropriate, will assume 

responsibility for protection and 

maintenance of a property when the 

lease terminates or title reverts. 

(i) Transferees, by obtaining the 

written consent of HHS, may abrogate 

the restrictions set forth in paragraph (f) 

of this section for all or any portion of 

the property in accordance with the 

provisions of § 12a.12. 

§ 12a.8 Compliance with the National 

Environmental Policy Act of 1969 and other 

related Acts (environmental impact). 

(a) HHS, prior to making a final 

decision to convey or lease, or to 

amend, reform, or grant an approval or 

release with respect to a previous 

conveyance or lease of, surplus property 

for homeless purposes, will act in 

accordance with applicable provisions 

of the National Environmental Policy 

Act of 1969, the National Historic 

Preservation Act of 1966, the National 


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89904 Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Rules and Regulations 

Archeological Data Preservation Act, 

and other related acts. No lease to use 

surplus property shall allow the lessee 

to make, or cause to be made, any 

irreversible change in the conditions of 

said property, and no lease shall be 

employed for the purpose of delaying or 

avoiding compliance with the 

requirements of these Acts, unless 

approved by the United States. 

(b) Applicants shall be required to 

provide such information as HHS deems 

necessary to make an assessment of the 

impact of the proposed Federal action 

on the human environment. Materials 

contained in the applicant’s official 

request, responses to a standard 

questionnaire prescribed by HHS, as 

well as other relevant information, will 

be used by HHS in making said 

assessment. 

(c) If the assessment reveals: 

(1) That the proposed Federal action 

involved properties of historical 

significance which are listed, or eligible 

for listing, in the National Register of 

Historic Places; or 

(2) That a more than insignificant 

impact on the human environment is 

reasonably foreseeable as a result of the 

proposed action; or 

(3) That the proposed Federal action 

could result in irreparable loss or 

destruction of archeologically 

significant items or data, HHS will, 

except as provided for in paragraph (d) 

of this section, prepare and distribute, 

or cause to be prepared or distributed, 

such notices and statements and obtain 

such approvals as are required by the 

Acts cited in paragraph (a) of this 

section. 

(d) If a proposed action involves other 

Federal agencies in a sequence of 

actions, or a group of actions, directly 

related to each other because of their 

functional interdependence, HHS may 

enter into and support a lead agency 

agreement to designate a single lead 

agency which will assume primary 

responsibility for coordinating the 

assessment of environmental effects of 

proposed Federal actions, preparing and 

distributing such notices and 

statements, or obtaining such approvals, 

as are required by the Acts cited in 

paragraph (a) of this section. The 

procedures of the designated lead 

agency will be utilized in conducting 

the environmental assessment. In the 

event of disagreement between HHS and 

another Federal agency, HHS will 

reserve the right to abrogate the lead 

agency agreement with the other Federal 

agency. 

§ 12a.9 No applications approved. 

(a) At the end of the 30-day holding 

period described in § 12a.4(a), HHS will 

notify GSA, or the landholding agency, 

as appropriate, if an expression of 

interest has been received for a certain 

property. Where there is no expression 

of interest, GSA or the landholding 

agency, as appropriate, will proceed 

with disposal in accordance with 

applicable law. 

(b) Upon notice from HHS that all 

applications have been disapproved, or 

if no initial applications have been 

received within 75 days after an 

expression of interest, or no final 

application has been received within 45 

days after an approved initial 

application, disposal may proceed in 

accordance with applicable law. 

§ 12a.10 Utilization and enforcement. 

(a) Sanctions. For instances of 

noncompliance relating to surplus 

property transfers, HHS may impose, 

after providing an opportunity to cure to 

the transferee, any or all of the following 

sanctions in its sole discretion, as 

applicable: 

(1) Where property or any portion 

thereof was not used or is not being 

used for the purposes for which 

transferred, or is sold, leased or 

subleased, encumbered, disposed of, or 

used for purposes other than those in 

the approved program and plan of use, 

without the prior written consent of 

HHS, HHS may require the transferee 

to— 

(i) Place the property into immediate 

use for an approved purpose and extend 

the period of restriction in the transfer 

document for an additional term as 

determined by HHS; 

(ii) Hold in trust all revenues and the 

reasonable value of other benefits 

received by the transferee directly or 

indirectly from that use for the United 

States subject to the direction and 

control of HHS; 

(iii) Return title to such property to 

the United States or to relinquish any 

leasehold interest therein; 

(iv) Abrogate the conditions and 

restrictions of the transfer, as set forth 

in § 12a.12; 

(v) Make cash payments to the United 

States, as directed by HHS, equivalent to 

the current fair market rental value of 

the surplus property, as transferred, for 

each month during which the program 

and plan of use has not been 

implemented and continues to not be 

implemented; or 

(vi) Any other remedy that HHS 

determines appropriate or necessary. 

(2) Where the transferee desires to 

place the property into temporary use to 

assist the homeless other than that for 

which the property was transferred, 

written approval from HHS must be 

obtained, and will be conditioned upon 

HHS’s authority to permit the use and 

such terms as HHS may impose. 

(3) If HHS or the landholding agency 

determines that a lessee or sublessee of 

a transferee is in noncompliance with a 

term or condition of the lease, or if the 

lessee voluntarily surrenders the 

premises, HHS may require termination 

of the lease and impose sanctions 

described in paragraph (a)(1) of this 

section, as appropriate. 

(b) Reversion. When HHS 

recommends reversion of the property 

for noncompliance, HHS will seek 

GSA’s concurrence. GSA will respond 

to HHS’s concurrence request within 30 

days of its receipt. If GSA concurs, GSA 

will work with HHS to complete the 

reversion of the property. If GSA does 

not concur to the reversion 

recommendation, GSA will issue, to 

HHS, a written determination: stating 

the reason(s) for the disapproval; and 

acknowledging that HHS has 

recommended reversion and, therefore, 

the property is no longer within HHS’s 

Title V program. The Federal 

Government will implement a response 

to the noncompliance that is in its best 

interests. 

§ 12a.11 Other uses. 

(a) A transferee may permit the use of 

all or a portion of the surplus property 

by another eligible entity as described in 

§ 12a.1 for homeless assistance 

purposes, only upon those terms and 

conditions HHS determines appropriate, 

if: 

(1) The transferee submits a written 

request to HHS explaining the purpose 

of and need for another eligible entity’s 

use of the property, program plan, and 

other relevant information requested by 

HHS; 

(2) HHS determines that the proposed 

use would not substantially limit the 

program and plan of use by the 

transferee and that the use will not 

unduly burden the Federal Government; 

(3) HHS’s written consent is obtained 

by the transferee in advance; 

(4) HHS approves the use instrument 

in advance and in writing; 

(5) The transferee agrees to lengthen 

the period of restrictions as determined 

by HHS; and 

(6) HHS advises GSA and there is no 

disapproval by GSA within thirty (30) 

days. 

(b) A transferee that does not follow 

paragraph (a) of this section will be 

deemed to be not in compliance with 

the terms and conditions of the Title V 

program and subject to enforcement 

action, including reversion of the 

property. 


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Federal Register / Vol. 89, No. 219 / Wednesday, November 13, 2024 / Rules and Regulations 89905 

§ 12a.12 Abrogation. 

(a) HHS may abrogate the conditions 

and restrictions in the transfer 

document if: 

(1) The transferee submits to HHS a 

written request that HHS abrogate the 

conditions and restrictions in the 

transfer document as to all or any 

portion of the surplus property; 

(2) HHS determines the terms and 

conditions of the proposed abrogation 

and determines that the proposed 

abrogation is in the best interest of the 

United States; and 

(3) HHS transmits the abrogation 

request to GSA and there is no 

disapproval by GSA within 30 days after 

notice is given. If GSA disapproves, 

GSA will state, in writing, to HHS the 

reason(s) for the disapproval. 

(b) HHS abrogates the conditions and 

restrictions in the transfer document 

only upon receipt of the appropriate 

consideration, including cash payment, 

to the United States, as directed by 

HHS, which is based on the formula 

contained in the transfer document, and 

any other terms and conditions HHS 

deems appropriate to protect the interest 

of the United States. 

§ 12a.13 Compliance inspections and 

reports. 

Transferees are required to allow HHS 

to conduct compliance inspections and 

to submit such compliance reports and 

actions as are deemed necessary by 

HHS. At a minimum, the transferee will 

be required to submit an annual 

utilization report regarding the 

operation and maintenance of the 

property, including current images of 

the entire property and such 

information as HHS shall require. 

§ 12a.14 No right of administrative review 

for agency decisions. 

There is no right to administrative 

review within HHS, including requests 

for reconsideration or appeal, of agency 

decisions on applications and other 

discretionary decisions. 

§ 12a.15 Severability. 

Any provision of this part held to be 

invalid or unenforceable with respect to 

certain parties or circumstances shall be 

construed so as to continue to give the 

maximum effect to the provision 

permitted by law unless such holding is 

that the provision of this part is invalid 

and unenforceable in all circumstances, 

in which event the provision shall be 

severable from the remainder of this 

part and shall not affect the remainder 

thereof. 

Adrianne Todman, 

Acting Secretary, HUD. 

Robin Carnahan, 

Administrator, GSA. 

Xavier Becerra, 

Secretary, HHS. 

[FR Doc. 2024–25722 Filed 11–12–24; 8:45 am] 

BILLING CODE 4210–67–P; 4150–24–P; 6820–14–P 


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