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S. 1398 (113th): Federal Real Property Asset Management Reform Act of 2013

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The text of the bill below is as of Nov 19, 2013 (Reported by Senate Committee). The bill was not enacted into law.

II

Calendar No. 249

113th CONGRESS

1st Session

S. 1398

[Report No. 113–122]

IN THE SENATE OF THE UNITED STATES

July 30, 2013

(for himself, Mr. Coburn, Mr. Pryor, Mr. Begich, Mr. Portman, Mr. Tester, and Ms. Ayotte) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

November 19, 2013

Reported by , without amendment

A BILL

To require the Federal Government to expedite the sale of underutilized Federal real property.

1.

Short title

This Act may be cited as the Federal Real Property Asset Management Reform Act of 2013 .

2.

Purpose

The purpose of this Act is to increase the efficiency and effectiveness of the Federal Government in managing real property by—

(1)

requiring agencies to maintain an up-to-date inventory of real property;

(2)

establishing a Federal Real Property Council to develop guidance on and ensure the implementation of strategies for better managing Federal real property; and

(3)

authorizing a pilot program to expedite the disposal of surplus real property.

3.

Property management and expedited disposal of real property

Chapter 5 of subtitle I of title 40, United States Code, is amended by adding at the end the following:

VII

Property management and expedited disposal of real property

621.

Definitions

In this subchapter:

(1)

Administrator

The term Administrator means the Administrator of General Services.

(2)

Council

The term Council means the Federal Real Property Council established by section 623(a).

(3)

Director

The term Director means the Director of the Office of Management and Budget.

(4)

Disposal

The term disposal means any action that constitutes the removal of any real property from the Federal inventory, including sale, deed, demolition, or exchange.

(5)

Excess property

The term excess property means any real property under the control of a Federal agency that the head of the Federal agency determines is not required to meet the needs or responsibilities of the Federal agency.

(6)

Federal agency

The term Federal agency means—

(A)

an executive department or independent establishment in the executive branch of the Government; or

(B)

a wholly owned Government corporation.

(7)

Field office

The term field office means any office of a Federal agency that is not the headquarters office location for the Federal agency.

(8)

Postal property

The term postal property means any building owned by the United States Postal Service.

(9)

Surplus property

(A)

In general

The term surplus property means excess real property that is not required to meet the needs or responsibilities of any Federal agency.

(B)

Exclusions

The term surplus property does not include—

(i)

any military installation (as defined in section 2910 of the Defense Base Closure and Realignment Act of 1990 ( 10 U.S.C. 2687 note; Public Law 101–510 ));

(ii)

any property that is excepted from the definition of the term property under section 102;

(iii)

Indian and native Eskimo property held in trust by the Federal Government as described in section 3301(a)(5)(C)(iii);

(iv)

real property operated and maintained by the Tennessee Valley Authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831 et seq.);

(v)

any real property the Director excludes for reasons of national security;

(vi)

any public lands (as defined in section 203 of the Public Lands Corps Act of 1993 (16 U.S.C. 1722)) administered by—

(I)

the Secretary of the Interior, acting through—

(aa)

the Director of the Bureau of Land Management;

(bb)

the Director of the National Park Service;

(cc)

the Commissioner of Reclamation; or

(dd)

the Director of the United States Fish and Wildlife Service; or

(II)

the Secretary of Agriculture, acting through the Chief of the Forest Service; or

(vii)

any property operated and maintained by the United States Postal Service.

(10)

Underutilized property

The term underutilized property means a portion or the entirety of any real property, including any improvements, that is used—

(A)

irregularly or intermittently by the accountable Federal agency for program purposes of the Federal agency; or

(B)

for program purposes that can be satisfied only with a portion of the property.

622.

Duties of Federal agencies

Each Federal agency shall—

(1)

maintain adequate inventory controls and accountability systems for real property under the control of the Federal agency;

(2)

develop current and future workforce projections so as to have the capacity to assess the needs of the Federal workforce regarding the use of real property;

(3)

continuously survey real property under the control of the Federal agency to identify excess property, underutilized property, and other real property suitable to be used for—

(A)

colocation with other Federal agencies; or

(B)

consolidation with other facilities;

(4)

promptly report excess property and underutilized property to the Administrator;

(5)

establish goals that will lead the Federal agency to reduce excess property and underutilized property in the inventory of the Federal agency;

(6)

submit to the Council a report on all excess property and underutilized property in the inventory of the Federal agency, including—

(A)

whether underutilized property can be better utilized; and

(B)

the extent to which the Federal agency believes that the underutilized property serves the needs of the Federal agency to retain underutilized property;

(7)

adopt workplace practices, configurations, and management techniques that can achieve increased levels of productivity and decrease the need for real property assets;

(8)

assess leased space to identify space that is not fully used or occupied;

(9)

on an annual basis and subject to the guidance of the Council—

(A)

conduct an inventory of real property under control of the Federal agency; and

(B)

make an assessment of each real property, which shall include—

(i)

the age and condition of the property;

(ii)

the size of the property in square footage and acreage;

(iii)

the geographical location of the property, including an address and description;

(iv)

the extent to which the property is being utilized;

(v)

the actual annual operating costs associated with the property;

(vi)

the total cost of capital expenditures associated with the property;

(vii)

sustainability metrics associated with the property;

(viii)

the number of Federal employees and functions housed at the property;

(ix)

the extent to which the mission of the Federal agency is dependent on the property;

(x)

the estimated amount of capital expenditures projected to maintain and operate the property over each of the next 5 years after the date of enactment of this subchapter; and

(xi)

any additional information required by the Administrator to carry out section 624; and

(10)

provide to the Council and the Administrator the information described in paragraph (9)(B) to be used for the establishment and maintenance of the database described in section 624.

623.

Colocation among United States Postal Service properties

(a)

Identification of postal property

Each year, the Postmaster General may—

(1)

identify a list of postal properties with space available for use by Federal agencies; and

(2)

submit the list to the Council.

(b)

Submission of list of postal properties to Federal agencies

(1)

In general

Not later than 30 days after the completion of a list under subsection (a), the Council shall provide the list to each Federal agency.

(2)

Review by Federal agencies

Not later than 90 days after the receipt of the list submitted under paragraph (1), each Federal agency shall—

(A)

review the list;

(B)

identify real property assets under the control of the Federal agency; and

(C)

recommend colocations if appropriate.

(c)

Terms of colocation

On approval of the recommendations under subsection (b) by the Postmaster General and the applicable agency head, the Federal agency or appropriate landholding entity may work with the Postmaster General to establish appropriate terms of a lease for each postal property.

624.

Establishment of a Federal Real Property Council

(a)

Establishment

There is established a Federal Real Property Council.

(b)

Purpose

The purpose of the Council shall be—

(1)

to develop guidance and ensure implementation of an efficient and effective real property management strategy;

(2)

to identify opportunities for the Federal Government to better manage real property assets; and

(3)

to reduce the costs of managing real property, including operations, maintenance, and security.

(c)

Composition

(1)

In general

The Council shall be composed exclusively of—

(A)

the senior real property officers of each Federal agency;

(B)

the Deputy Director for Management of the Office of Management and Budget;

(C)

the Controller of the Office of Management and Budget;

(D)

the Administrator; and

(E)

any other full-time or permanent part-time Federal officials or employees, as the Chairperson determines to be necessary.

(2)

Chairperson

The Deputy Director for Management of the Office of Management and Budget shall serve as Chairperson of the Council.

(3)

Executive Director

(A)

In general

The Chairperson shall designate an Executive Director to assist in carrying out the duties of the Council.

(B)

Qualifications; full-time

The Executive Director shall—

(i)

be appointed from among individuals who have substantial experience in the areas of commercial real estate and development, real property management, and Federal operations and management; and

(ii)

serve full time.

(d)

Meetings

(1)

In general

The Council shall meet subject to the call of the Chairperson.

(2)

Minimum

The Council shall meet not fewer than 4 times each year.

(e)

Duties

The Council, in consultation with the Director and the Administrator, shall—

(1)

not later than 1 year after the date of enactment of this subchapter, establish a real property management plan template, to be updated annually, which shall include performance measures, specific milestones, measurable savings, strategies, and government-wide goals based on the goals established under section 622(5) to reduce surplus property or to achieve better utilization of underutilized property, and evaluation criteria to determine the effectiveness of real property management that are designed—

(A)

to enable Congress and heads of Federal agencies to track progress in the achievement of real property management objectives on a government-wide basis;

(B)

to improve the management of real property; and

(C)

to allow for comparison of the performance of Federal agencies against industry and other public sector agencies in terms of performance;

(2)

develop standard use rates consistent throughout each category of space and with nongovernmental space use rates;

(3)

develop a strategy to reduce the reliance of Federal agencies on leased space for long-term needs if ownership would be less costly;

(4)

provide guidance on eliminating inefficiencies in the Federal leasing process;

(5)

compile a list of real property assets that are field offices that are suitable for colocation with other real property assets; and

(6)

not later than 1 year after the date of enactment of this subchapter and annually during the 4 year period beginning on the date that is 1 year after the date of enactment of this subchapter and ending on the date that is 5 years after the date of enactment of this subchapter, the Council shall submit to the Director a report that contains—

(A)

a list of the remaining excess property, surplus property, and underutilized properties of each Federal agency;

(B)

the progress of the Council toward developing guidance for Federal agencies to ensure that the assessment required under section 622(9)(B) is carried out in a uniform manner; and

(C)

the progress of Federal agencies toward achieving the goals established under section 622(5).

(f)

Consultation

In carrying out the duties described in subsection (e), the Council shall also consult with representatives of—

(1)

State, local, tribal authorities, and affected communities; and

(2)

appropriate private sector entities and nongovernmental organizations that have expertise in areas of—

(A)

commercial real estate and development;

(B)

government management and operations;

(C)

space planning;

(D)

community development, including transportation and planning; and

(E)

historic preservation.

(g)

Council resources

The Director and the Administrator shall provide staffing, and administrative support for the Council, as appropriate.

625.

Federal real property inventory and database

(a)

In general

Not later than 1 year after the date of enactment of this subchapter, the Administrator shall establish and maintain a single, comprehensive, and descriptive database of all real property under the custody and control of all Federal agencies.

(b)

Contents

The database shall include—

(1)

information provided to the Administrator under section 622(9)(B); and

(2)

a list of real property disposals completed, including—

(A)

the date and disposal method used for each real property;

(B)

the proceeds obtained from the disposal of each real property;

(C)

the amount of time required to dispose of the real property, including the date on which the real property is designated as excess property;

(D)

the date on which the property is designated as surplus property and the date on which the property is disposed; and

(E)

all costs associated with the disposal.

(c)

Accessibility

(1)

Committees

The database established under subsection (a) shall be made available on request to the Committee on Homeland Security and Governmental Affairs and the Committee on Environment and Public Works of the Senate and the Committee on Oversight and Government Reform and the Committee on Transportation and Infrastructure of the House of Representatives.

(2)

General public

Not later than 3 years after the date of enactment of this subchapter and to the extent consistent with national security, the Administrator shall make the database established under subsection (a) accessible to the public at no cost through the website of the General Services Administration.

626.

Limitation on certain leasing authorities

(a)

In general

Except as provided in subsection (b), not later than December 31 of each year following the date of enactment of this subchapter, a Federal agency with independent leasing authority shall submit to the Council a list of all leases, including operating leases, in effect on the date of enactment of this subchapter that includes—

(1)

the date on which each lease was executed;

(2)

the date on which ease lease will expire;

(3)

a description of the size of the space;

(4)

the location of the property;

(5)

the tenant agency;

(6)

the total annual rental rate; and

(7)

the amount of the net present value of the total estimated legal obligations of the Federal Government over the life of the contract.

(b)

Exception

Subsection (a) shall not apply to—

(1)

the United States Postal Service;

(2)

the Department of Veterans Affairs; or

(3)

any other property the President excludes from subsection (a) for reasons of national security.

627.

Expedited disposal pilot program

(a)

Establishment

The Director shall establish a pilot program to dispose of, by sale, transfer, or other means of disposal, any surplus property.

(1)

Properties for expedited disposal

(A)

In general

On an annual basis, the Director may authorize the expedited disposal of not more than 200 surplus properties.

(B)

Priority

In determining which properties to dispose of, the Director shall give priority to surplus properties that have the highest fair market value and the greatest potential for disposal.

(C)

Costs associated with disposal

(i)

In general

The Administrator may obligate an amount to pay any direct and indirect costs under section 572 related to identifying and preparing properties to be reported as excess property by a Federal agency.

(ii)

Reimbursement

An amount obligated under clause (i) shall be paid from the proceeds of any sale of real property under this subsection.

(iii)

Net proceeds

Net proceeds shall be distributed under subsection (b).

(D)

Maximum net proceeds

Any real property authorized to be disposed of by sale of under subparagraph (A) shall disposed of in a manner that, as determined by the Administrator in consultation with the head of the applicable Federal agency, is structured and marketed to maximize the value to the Federal Government.

(E)

Monetary proceeds requirement

Surplus property may be disposed of under this section only if disposal of the property will generate monetary proceeds to the Federal Government that—

(i)

exceed the costs of disposal of the property; and

(ii)

are not less than 90 percent of fair market value.

(2)

Applicability of certain law

Any expedited disposal of real property conducted under this section shall not be subject to—

(A)

any section of An Act Authorizing the Transfer of Certain Real Property for Wildlife, or other Purposes ( 16 U.S.C. 667b );

(B)

sections 107 and 317 of title 23;

(C)

sections 545(b)(8), 550, 553, 554, and 1304(b);

(D)

section 501 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11411 );

(E)

section 47151 of title 49; or

(F)

section 13(d) of the Surplus Property Act of 1944 ( 50 U.S.C. App. 1622(d) ).

(3)

Effect

Except as provided in paragraph (2), nothing in this subchapter terminates or in any way limits the authority of any Federal agency under any other provision of law to dispose of real property.

(b)

Use of proceeds

(1)

In general

Of the proceeds received from the disposal of any real property under this subchapter—

(A)

not less than 80 percent shall be returned to the general fund of the Treasury for debt reduction;

(B)

the lesser of 18 percent or the share of proceeds otherwise authorized to be retained under law shall be retained by the Federal agency that has custody and is accountable for the real property, subject to paragraph (2);

(C)

not greater than 2 percent shall be made available to carry out section 627, subject to annual appropriations; and

(D)

any remaining share of the proceeds shall be returned to the general fund of the Treasury for Federal budget deficit reduction.

(2)

Limitation on use of proceeds

Any proceeds retained by Federal agencies under this section shall be—

(A)

deposited into the appropriate real property account of the Federal agency that had custody and accountability for the real property, with the funds expended only as authorized in annual appropriations Acts;

(B)

used—

(i)

by not later than 2 years after the date of disposal of the real property; and

(ii)

only for activities relating to Federal real property asset management and disposal; and

(C)

if not used by the date described in subparagraph (B)(i), shall be deposited in the Treasury and used for Federal budget deficit reduction.

(c)

Public benefit

(1)

Conveyance

Except as provided in paragraph (2), if a real property authorized to be disposed of under subsection (a) has not been disposed of by the date that is 2 years after the date the property is listed for sale, the Director, in consultation with the Administrator and the Secretary of Housing and Urban Development, may consider a request from the disposing Federal agency that the real property be conveyed to State and local governments or nonprofit organizations for various public purposes or uses as permitted by applicable law.

(2)

Predominant use and size standards

(A)

In general

Any real property authorized to be disposed of under subsection (a) shall not be conveyed under paragraph (1) if—

(i)

the predominant use of the property is not for housing; and

(ii)
(I)

the area of the property is not less than 25,000 square feet; or

(II)

the appraised fair market value of the property is greater than $1,000,000.

(B)

Appraised fair market value

The appraised fair market value described in subparagraph (A)(ii)(II) shall be determined by the Federal agency with custody or control of the property, in consultation with the Administrator and standard appraisal practice.

(d)

Enforcement

(1)

Increase in size of inventory

Except as provided in paragraph (2), if a Federal agency fails to make available for public sale the real property authorized to be disposed of under subsection (a) by the date that is 18 months after the date on which the authorization is made under subsection (a), that Federal agency, except for specific exceptions promulgated by the Director, shall not increase the size of the civilian real property inventory, unless the square footage of the increase is offset, within an appropriate time as determined by the Director, through consolidation, colocation, or disposal of another building space from the inventory of that Federal agency.

(2)

Exception

Paragraph (1) shall not apply to a Federal agency that acquires any real property not under the administrative jurisdiction of the Federal Government, by sale or lease, until the Director submits a certification to Congress of the disposal of all of those surplus properties.

(e)

Termination of authority

The authority provided by this section terminates on the date that is 5 years after the date of enactment of this subchapter.

628.

Homeless assistance grants

(a)

Definitions

In this section:

(1)

Eligible nonprofit organization

The term eligible nonprofit organization means a nonprofit organization that is a representative of the homeless.

(2)

Homeless

The term homeless has the meaning given the term in section 103 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11302 ), except that subsection (c) of that section shall not apply.

(3)

Permanent housing

The term permanent housing has the meaning given the term section 401 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).

(4)

Private nonprofit organization

The term private nonprofit organization has the meaning given the term in section 401 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 ).

(5)

Representative of the homeless

The term representative of the homeless has the meaning given the term in section 501(i) of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11411(i) ).

(6)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

(7)

Transitional housing

The term transitional housing has the meaning given the term in section 401 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 ).

(b)

Grant authority

(1)

In general

To the extent amounts are made available under section 626(b)(1)(B) for use under this section, the Secretary shall make grants to eligible private nonprofit organizations through the continuum of care program established under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq.), to purchase real property suitable for use to assist the homeless in accordance with subsection (c).

(2)

Terms and conditions

Except as otherwise provided in this section, a grant under this section shall be subject to the same terms and conditions as a grant under the continuum of care program established under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq.).

(c)

Use of properties for housing or shelter for the homeless

(1)

Eligible uses

An eligible private nonprofit organization that receives a grant under subsection (b) shall use the amounts received only to purchase or rehabilitate real property for use to provide permanent housing, transitional housing, or temporary shelter to the homeless.

(2)

Term of use

The Secretary may not make a grant under subsection (b) to an eligible private nonprofit organization unless the eligible private nonprofit organization provides to the Secretary such assurances as the Secretary determines necessary to ensure that any real property purchased or rehabilitated using amounts received under the grant is used only for the uses described in paragraph (1) for a period of not less than 15 years.

(d)

Preference

In awarding grants under subsection (b), the Secretary shall give preference to eligible private nonprofit organizations that operate within areas in which Federal real property is being sold under the disposal program authorized under section 626.

(e)

Regulations

The Secretary may promulgate such regulations as are necessary to carry out this section.

.

4.

Report of the Comptroller General

(a)

Draft

Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a draft report on the expedited disposal pilot program established by the amendments made by section 3.

(b)

Final

Not later than 5 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a final report on the expedited disposal pilot program established by the amendments made by section 3.

5.

Technical and Conforming Amendment

The table of sections for chapter 5 of subtitle I of title 40, United States Code, is amended by inserting after the item relating to section 611 the following:

SUBCHAPTER VII—Property management and expedited disposal of real property

621. Definitions.

622. Duties of Federal agencies.

623. Colocation among United States Postal Service properties.

624. Establishment of a Federal Real Property Council.

625. Federal real property inventory and database.

626. Limitation on certain leasing authorities.

627. Expedited disposal pilot program.

628. Homeless assistance grants.

.

November 19, 2013

Reported without amendment