I 
113TH CONGRESS 
2D SESSION 
H. R. 5626 
To provide uniform authority for executive departments to use funds from 
the disposal of Federal real property and to establish a pilot program 
in certain agencies for the use of public-private agreements to enhance 
the efficiency of Federal real property. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2014 
Ms. MICHELLE LUJAN GRISHAM of New Mexico introduced the following bill; 
which was referred to the Committee on Transportation and Infrastruc-
ture, and in addition to the Committee on Oversight and Government Re-
form, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To provide uniform authority for executive departments to 
use funds from the disposal of Federal real property 
and to establish a pilot program in certain agencies 
for the use of public-private agreements to enhance the 
efficiency of Federal real property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Property Low 
Hanging Fruit Act’’. 
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SEC. 2. UNIFORM AUTHORITY FOR EXECUTIVE DEPART-
MENTS TO USE FUNDS FROM DISPOSAL OF 
FEDERAL REAL PROPERTY. 
(a) AUTHORITY TO CONVEY.—The head of each ex-
ecutive department may— 
(1) convey, by sale, lease, exchange, or other-
wise, including through leaseback arrangements, real 
and related property, or interests therein, under 
their ownership and control; and 
(2) retain the net proceeds of such dispositions 
in an account within the general fund of the United 
States Treasury established for purposes of this sec-
tion, to be used in accordance with subsection (b). 
(b) USE OF FUNDS.—For purposes of subsection (a), 
the net proceeds of such dispositions retained in the ac-
count of an executive department pursuant to that sub-
section shall be available to the head of the executive de-
partment, until expended and without further appropria-
tion and in compliance with other applicable provisions of 
law, to pay any necessary and incidental costs incurred 
by such head in connection with Federal property manage-
ment activities of the executive department, including ac-
quisition, improvements, maintenance, reconstruction, or 
construction needs. In conducting these activities, an exec-
utive department may enter into agreements with the Gen-
eral Services Administration for assistance. 
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(c) REGULATIONS.—The Director of the Office of 
Management and Budget, in consultation with the Admin-
istrator of General Services and the Secretary of Defense, 
shall promulgate regulations to carry out this section. 
(d) DEFINITIONS.—In this section: 
(1) NET PROCEEDS.—The term ‘‘net proceeds’’, 
with respect to a disposition of property or interests 
under this section, means the rental, sales, and other 
sums received less the costs of the disposition. 
(2) EXECUTIVE DEPARTMENT.—The term ‘‘ex-
ecutive department’’ means an Executive department 
listed in section 101 of title 5, United States Code. 
SEC. 3. PUBLIC-PRIVATE AGREEMENT PILOT PROGRAM. 
(a) PLAN
FOR ENTERING INTO PUBLIC-PRIVATE 
AGREEMENTS.— 
(1) IN GENERAL.—The head of a covered agen-
cy shall develop and carry out a plan to enter into 
one or more agreements with a nongovernmental 
person, for the purposes described in paragraph (2). 
(2) PURPOSES.—The purposes of any agree-
ment entered into under paragraph (1) shall be— 
(A) to lease Federal real properties that 
are underutilized or excess, under the terms of 
subsection (c); and 
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(B) to develop, rehabilitate, or renovate fa-
cilities on such leased properties for the benefit 
of the covered agency. 
(3) NUMBER OF PROPERTIES.—A total of at 
least 5, and not more than 10, Federal real prop-
erties shall be leased under agreements entered into 
under paragraph (1). 
(b) AGREEMENT TERMS.— 
(1) IN GENERAL.—Each agreement entered into 
pursuant to this section— 
(A) shall have as its primary purpose the 
enhancement of the functional and economic ef-
ficiency of Federal real property; 
(B) shall be negotiated pursuant to such 
procedures as the head of the covered agency 
concerned considers necessary to promote com-
petition and protect the public interest; 
(C) shall provide a lease option to the 
United States to occupy space in the facilities 
acquired, constructed, or rehabilitated under 
the agreement, but shall not guarantee occu-
pancy by the United States; 
(D) shall describe the consideration, du-
ties, and responsibilities for which the United 
States and the nongovernmental person are re-
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sponsible and may provide for the alteration, re-
pair, or improvement of the real property as 
part or all of the consideration of the non-
governmental person, notwithstanding any pro-
vision of law, including section 1302 of title 40, 
United States Code; 
(E) shall provide— 
(i) that the United States shall not be 
liable for any actions, debts, or liability of 
the nongovernmental person; and 
(ii) that no person is authorized by 
the agreement to execute any instrument 
or document creating or evidencing any in-
debtedness unless such instrument or doc-
ument specifically disclaims any liability of 
the United States under the instrument or 
document; and 
(F) shall provide that the leasehold inter-
ests of the United States are senior to that of 
any lender to the nongovernmental person. 
(2) ABILITY
TO
PLEDGE
AS
COLLATERAL.— 
Subparagraph (F) shall not impair the ability of the 
nongovernmental person to pledge as collateral its 
leasehold interest under a lease with the United 
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States entered into pursuant to the terms of sub-
section (c). 
(c) LEASE OF REAL PROPERTY.— 
(1) AUTHORITY.—Notwithstanding any other 
provision of law, including sections 582 and 583 of 
title 40, United States Code, the head of a covered 
agency may lease real property under an agreement 
under subsection (a) to the nongovernmental person 
that is party to the agreement. 
(2) PERIOD OF LEASE.—A lease under this sub-
section may be for such period as the head of the 
covered agency determines appropriate. 
(3) RELATIONSHIP TO HOMELESS ASSISTANCE 
ACT.—Real property leased under this subsection 
shall not be considered unutilized or underutilized 
for purposes of section 501 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 
11411) and may be leased under this subsection 
without regard to any other provision of law. 
(d) SERVICES.—Notwithstanding any other provision 
of law, the head of a covered agency, or his or her des-
ignee, may provide services under an agreement under 
subsection (a) to the nongovernmental person that is party 
to the agreement on such terms as the head considers ap-
propriate. 
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(e) USE AND DEPOSIT OF REVENUES.— 
(1) USE OF REVENUES.—Notwithstanding any 
other provision of law, the head of a covered agency 
may retain and use any revenues derived from 
agreements entered into under this section for Fed-
eral property management activities of the covered 
agency, including acquisition, improvements, mainte-
nance, reconstruction, or construction needs. 
(2) DEPOSIT
OF
REVENUES.—Revenues re-
ceived by the head of a covered agency from an 
agreement under subsection (a) shall be deposited— 
(A) in the case of the General Services Ad-
ministration, into the fund created by section 
592 of title 40, United States Code; and 
(B) in the case of any other covered agen-
cy, into the account of the agency established 
under section 2(a). 
(f) PLAN.— 
(1) MATTERS COVERED.—The plan of a covered 
agency required under subsection (a) shall— 
(A) identify the Federal real properties 
that the head of the covered agency proposes to 
make available under the agreement or agree-
ments to be entered into with one or more non-
governmental persons; and 
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(B) include performance measures by 
which the proposed project or projects will be 
measured. 
(2) CONSULTATION WITH COUNCIL.—In devel-
oping the plan required under subsection (a), the 
head of a covered agency shall consult with the Fed-
eral Real Property Council. 
(g) SUBMISSIONS
TO CONGRESS
OF PLAN
AND 
AGREEMENTS.— 
(1) 
SUBMISSION
OF
PLAN
WITHIN
MONTHS.—The head of a covered agency shall sub-
mit to Congress the plan required by subsection (a) 
not later than 12 months after the date of the enact-
ment of this Act. 
(2) SUBMISSION OF EACH AGREEMENT TO CON-
GRESS BEFORE IMPLEMENTATION.—The head of a 
covered agency shall submit to Congress each agree-
ment entered into under subsection (a) and may not 
implement any such agreement until at least 30 days 
has expired after the date of submission to Con-
gress. The submission to Congress under this para-
graph shall also include— 
(A) an explanation of the agreement; 
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(B) the name, resources, and qualifications 
of the nongovernmental person or persons that 
are party to the agreement; 
(C) the name of any other nongovern-
mental person that submitted a proposal for the 
property that is the subject of the agreement; 
(D) the factors in support of the proposed 
project or projects covered by the agreement; 
and 
(E) the projected economic performance, 
including expenditures and receipts, arising 
from the agreement. 
(3) SUBMISSION OF ALL AGREEMENTS WITHIN 
3 YEARS.—The head of a covered agency shall sub-
mit to Congress all agreements to be entered into 
under the plan not later than 3 years after the date 
of the enactment of this Act. 
(h) PROJECTED ECONOMIC PERFORMANCE.—The 
head of a covered agency shall describe, in the budget sub-
mitted by the President pursuant to section 1105 of title 
31, United States Code, for a fiscal year, the projected 
economic performance, including expenditures and re-
ceipts, arising from each agreement entered into pursuant 
this section and in effect during such fiscal year. 
(i) DEFINITIONS.—In this section: 
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(1) COVERED
AGENCY.—The term ‘‘covered 
agency’’ means each of the following: 
(A) The Department of Defense. 
(B) The Department of Agriculture. 
(C) The Department of Energy. 
(D) The General Services Administration. 
(2) HEAD OF A COVERED AGENCY.—The term 
‘‘head of a covered agency’’ means each of the fol-
lowing: 
(A) The Secretary of Defense. 
(B) The Secretary of Agriculture. 
(C) The Secretary of Energy. 
(D) The Administrator of General Serv-
ices. 
(3) FEDERAL
REAL
PROPERTY.—The term 
‘‘Federal real property’’ means property, as that 
term is defined in section 102(9) of title 40, United 
States Code. 
(4) EXCESS.—The term ‘‘excess’’, with respect 
to Federal real property, means excess property as 
defined in section 102(3) of title 40, United States 
Code. 
(5) NONGOVERNMENTAL
PERSON.—The term 
‘‘nongovernmental person’’ means a limited liability 
company, limited partnership, corporation, business 
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trust, nonprofit entity, or such other form of entity 
as the head of a covered agency may designate. 
(6) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning provided in section 102(4) 
of title 40, United States Code. 
(j) REPORTS BY GOVERNMENT ACCOUNTABILITY OF-
FICE.—The Comptroller General of the United States 
shall submit to Congress two reports on the effectiveness 
of the public-private agreement pilot program under this 
section. The first report shall be submitted not later than 
5 years after the date of the enactment of this section, 
and the second report shall be submitted not later than 
10 years after such date of enactment. Each report shall 
include specific recommendations on how best to use pub-
lic-private agreements in all Federal agencies to improve 
Federal real property management. 
Æ 
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