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‘‘(2) Subject to subsection (e), any amounts
that the Secretary of Defense transfers, in such
amounts as provided in appropriation Acts to that
Fund from amounts authorized and appropriated to
the Department of Defense for the acquisition or
construction of military family housing or military
unaccompanied housing.
‘‘(3) Proceeds from the conveyance or lease of
property or facilities under section 2878 of this title
for the purpose of carrying out activities under this
subchapter with respect to military family housing
or military unaccompanied housing.
‘‘(4) Income derived from any activities under
this subchapter with respect to military family hous-
ing or military unaccompanied housing, income and
gains realized from investments under section 2875
of this title, and any return of capital invested as
part of such investments.
‘‘(5) Any amounts that the Secretary of the
Navy transfers to that Fund pursuant to section
2814(i)(3) of this title, subject to the restrictions on
the use of the transferred amounts specified in that
section.’’;
(C) by redesignating subsections (d) through
(g) as (c) through (f), respectively;
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(D) in subsection (c), as redesignated by sub-
paragraph (C),
(i) in paragraph (1), by striking ‘‘Family’’;
(ii) by striking paragraph (2); and
(iii) by redesignating paragraph (3) as
paragraph (2);
(E) in subsection (e), as redesignated by sub-
paragraph (C), by striking ‘‘a Fund under para-
graph (1)(B) or (2)(B) of subsection (c)’’ and in-
serting ‘‘the Fund under paragraph (2) of sub-
section (b)’’; and
(F) in subsection (f), as redesignated by sub-
paragraph (C)—
(i) 
in 
paragraph 
(1), 
by 
striking
$850,000,000’’ and inserting ‘‘$1,700,000,000’’
and
(ii) 
in 
paragraph 
(2), 
by 
striking
$150,000,000 and inserting $300,000,000.
(2) Section 2871(6) of such title 10 is amended by
striking ‘‘Family Housing Improvement Fund or the De-
partment of Defense Military Unaccompanied Housing
Improvement Fund’’ and inserting ‘‘Housing Improve-
ment Fund’’.
(3) Section 2875(e) of such title 10 is amended by
striking ‘‘Family Housing Improvement Fund or the De-
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partment of Defense Military Unaccompanied Housing
Improvement Fund’’ and inserting ‘‘Housing Improve-
ment Fund’’.
SEC. 2802. REPEAL OF SOURCE REQUIREMENTS FOR OVER-
SEAS FAMILY HOUSING CONSTRUCTION.
Section 803 of the Military Construction Authoriza-
tion Act, 1984 (Public Law 98–115; 97 Stat. 784), as
amended, is repealed.
Subtitle B—Real Property and
Facilities Administration
SEC. 2803. CONVEYANCE OF SURPLUS REAL PROPERTY
FOR NATURAL RESOURCE CONSERVATION
PURPOSES.
(a) IN GENERAL.—Chapter 159 of title 10, United
States Code, is amended by inserting after section 2669
the following new section:
‘‘§ 2669a. Conveyance of surplus real property for
natural resource conservation purposes
‘‘(a) AUTHORITY TO CONVEY.—The Secretary of a
military department, in his sole discretion, may convey
surplus real property under its jurisdiction that is suitable
and desirable for conservation purposes to any state or
local government, or instrumentality thereof, or nonprofit
organization that exists for the primary purpose of con-
servation of natural resources on real property. This au-
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thority shall only apply to surplus real property that the
disposing agency has certified has been made available for
public benefit transfer, has been available for a sufficient
time to potential claimants and for which there is no pend-
ing request for transfer to another Federal agency or for
conveyance to any other qualified recipient for public ben-
efit transfer, under the real property disposal processes
and authorities established pursuant to the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
471, et seq.). The consideration for such conveyance shall
be determined by the Secretary pursuant to subsection (e).
‘‘(b) DEED REQUIREMENTS.—The deed of convey-
ance of any surplus real property disposed of under this
subsection—
‘‘(1) shall provide that all such property shall
be used and maintained for the conservation of nat-
ural resources in perpetuity, and that in the event
that such property ceases to be used or maintained
for such purpose during such period, all or any por-
tion of such property shall in its then existing condi-
tion, at the option of the United States, revert to the
United States;
‘‘(2) may permit the grantee to convey the
property to another eligible entity; provided the Sec-
retary of the military department approves the con-
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veyance in writing and the property shall be subject
to the same covenants and terms and conditions as
provided in the deed from the United States;
‘‘(3) may permit incidental revenue-producing
activities that are compatible with the use of the
property for conservation purposes;
‘‘(4) may contain such additional terms, res-
ervation, restrictions and conditions as may be de-
termined by the Secretary to safeguard the interests
of the United States.
‘‘(c) RELEASE OF COVENANTS.—The Secretary, with
the concurrence of the Secretary of Interior, may grant
a release from the covenant described in subsection (b)
on the condition that the grantee pay the fair market
value, as determined by the Secretary, of the property at
the time of the release of the covenant. The Secretary may
reduce the amount owed for release of such covenant tak-
ing into account the value of the natural resource con-
servation benefit that has accrued during the period of the
conveyance and which benefit was not previously taken
into account in (a).
‘‘(d) LIMITATIONS.—Such conveyance shall not be
used in settlement of any litigation, dispute, or claim
against the United States, nor as a condition of allowing
any defense activity under any Federal, State, or local per-