S. Rept. 114-291 - FEDERAL ASSET SALE AND TRANSFER ACT OF 2015114th Congress (2015-2016)
Committee Report
| Report Type: | Senate Report |
|---|---|
| Accompanies: | S.2375 |
| Committees: |
S. Rept. 114-291 - 114th Congress (2015-2016)
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Senate Report 114-291 - FEDERAL ASSET SALE AND TRANSFER ACT OF 2015
[Senate Report 114-291]
[From the U.S. Government Publishing Office]
Calendar No. 544
114th Congress } { Report
SENATE
2d Session } { 114-291
_______________________________________________________________________
FEDERAL ASSET SALE AND TRANSFER ACT OF 2015
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 2375
TO DECREASE THE DEFICIT BY CONSOLIDATING AND SELLING
EXCESS FEDERAL TANGIBLE PROPERTY, AND FOR OTHER PURPOSES
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
July 6, 2016.--Ordered to be printed
________
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 WASHINGTON : 2016
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona THOMAS R. CARPER, Delaware
ROB PORTMAN, Ohio CLAIRE McCASKILL, Missouri
RAND PAUL, Kentucky JON TESTER, Montana
JAMES LANKFORD, Oklahoma TAMMY BALDWIN, Wisconsin
MICHAEL B. ENZI, Wyoming HEIDI HEITKAMP, North Dakota
KELLY AYOTTE, New Hampshire CORY A. BOOKER, New Jersey
JONI ERNST, Iowa GARY C. PETERS, Michigan
BEN SASSE, Nebraska
Christopher R. Hixon, Staff Director
Gabrielle D'Adamo Singer, Chief Counsel
Patrick J. Bailey, Chief Counsel for Governmental Affairs
Courtney J. Allen, Counsel
Gabrielle A. Batkin, Minority Staff Director
John P. Kilvington, Minority Deputy Staff Director
Mary Beth Schultz, Minority Chief Counsel
Brian F. Papp, Jr., Minority Professional Staff Member
Laura W. Kilbride, Chief Clerk
Calendar No. 544
114th Congress } { Report
SENATE
2d Session } { 114-291
======================================================================
TO DECREASE THE DEFICIT BY CONSOLIDATING AND SELLING EXCESS FEDERAL
TANGIBLE PROPERTY, AND FOR OTHER PURPOSES
_______
July 6, 2016.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 2375]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 2375) to decrease
the deficit by consolidating and selling excess Federal
tangible property, and for other purposes, having considered
the same, reports favorably thereon with an amendment in the
nature of a substitute and recommends that the bill, as
amended, do pass.
CONTENTS
Page
I. Purpose and Summary.............................................1
II. Background and Need for the Legislation.........................2
III. Legislative History.............................................6
IV. Section-by-Section Analysis.....................................6
V. Evaluation of Regulatory Impact................................11
VI. Congressional Budget Office Cost Estimate......................11
VII. Changes in Existing Law Made by the Bill, as Reported..........14
I. Purpose and Summary
The purpose of S. 2375, the Federal Asset Sale and Transfer
Act of 2015, is to reduce the costs of Federal real property
management. It establishes an independent Federal Real Property
Reform Board to identify opportunities for the Federal
Government to significantly reduce its real property inventory
and to reduce costs incurred in the operations and maintenance
of its assets. The bill also improves the efficiency of the
process for transferring Federal real properties for
homelessness assistance.
II. Background and the Need for Legislation
Federal real property management has been on the Government
Accountability Office's (GAO) High-Risk List since 2003 because
the Government ``continues to face long-standing challenges in
managing its real property.\1\ One challenge is ``the Federal
government continues to maintain too much excess and
underutilized property.''\2\ GAO asserted that the Federal
Government ``has not met the criteria for demonstrating
progress in reducing excess and underutilized real
property.''\3\
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\1\1 Gov't Accountability Office, GAO-15-290, High Risk Series 135
(Feb. 2015), available at http://www.gao.gov/assets/670/ 668415.pdf.
\2\Id.
\3\Id at 136.
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The Committee held an oversight hearing on June 16, 2015,
to discuss Federal real property management and evaluate
potential reforms.\4\ At the hearing, David Mader, the
Controller at the Office of Management and Budget (OMB)
testified that the Federal Government's real property inventory
consists of 1,615 underutilized buildings, 3,360 unutilized
buildings, and 4,465 buildings that were ``pure excess.\5\ In
his testimony, Norman Dong, Commissioner of the Public
Buildings Service under the General Services Administration
(GSA) stated:
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\4\Federal Real Property Reform: How Cutting Red Tape and Better
Management Could Achieve Billions in Savings: Hearing Before the S.
Comm. on Homeland Sec. and Governmental Affairs, 114th Cong. (2015)
[hereinafter ``June 16, 2015, HSGAC Hearing''].
\5\Id. (statement of David Mader, Controller, Off. of Mgmt. and
Budget).
I think everyone recognizes that we need to be far
more aggressive in terms of looking at the assets in
our portfolio, really asking that question of highest
and best use, and whether it is through disposition or
exchange or outlease, being far more aggressive in
terms of taking those properties that do not have much
use to the Federal Government and leveraging the sale
of that, working with the private sector.\6\
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\6\Id. (statement of Norman Dong, Commissioner, Pub. Buildings
Service, U.S. Gen. Services Admin.).
While Government officials would like to be more aggressive
in disposing of unneeded Federal real property, the property
disposal process can often be an onerous one, driven by
statutory requirements for agencies and GSA. There are more
than 20 steps that GSA or a Federal agency are required to
complete to dispose of a single surplus Federal real
property.\7\ The disposal process initiates when a Federal
agency reports a property as ``excess'' to its needs.\8\
Federal law defines ``excess property'' as ``property under the
control of a federal agency that the head of the agency
determines is not required to meet the agency's needs or
responsibilities.\9\ GSA must then determine whether the excess
property can be transferred to another Federal agency.\10\ If
GSA determines that an excess property ``is not required to
meet the needs or responsibilities of all federal agencies,''
the property is then deemed to be ``surplus property.''\11\
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\7\Office of Mgmt. and Budget, Exec. Office of the President,
National Strategy for the Efficient Use of Real Property: Reducing the
Federal Portfolio Through Improved Space Utilization, Consolidation,
and Disposal (2015), available at https://www.whitehouse.gov/sites/
default/files/omb/financial/national-strategy-efficient-use-real-
property.pdf [hereinafter ``OMB National Strategy''].
\8\U.S. Gen. Services Admin., The Disposal Process, available at
http://www.gsa.gov/portal/content/101694 [hereinafter ``GSA Disposal
Process''].
\9\40 U.S.C. Sec. 102.
\10\40 U.S.C. Sec. 521.
\11\40 U.S.C. Sec. 102(10).
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Once a property is deemed to be surplus, GSA must first
consider whether the property can be used for homeless
assistance.\12\ Under the McKinney-Vento Homeless Assistance
Act, Federal agencies report to the Department of Housing and
Urban Development (HUD) information regarding their Federal
public buildings and real properties that are excess, surplus,
or otherwise unutilized or underutilized.\13\ The Secretary of
HUD reviews these properties and identifies which properties
are suitable for homeless assistance.\14\ After the agencies
respond to the Secretary's identified properties, a list of
properties available for application for use to assist the
homeless is published in the Federal Register.\15\ Homeless
assistance providers can then apply to the Department of Health
and Human Services (HHS) to receive this property by deed or
lease.\16\ This entire process can take up to 290 days.\17\
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\12\GSA Disposal Process.
\13\42 U.S.C. Sec. 11411(a).
\14\Id.
\15\42 U.S.C. Sec. 11411(c).
\16\42 U.S.C. Sec. 11411(f).
\17\Gov't Accountability Office, GAO-14-739, Federal Real Property:
More Useful Information to Providers Could Improve the Homeless
Assistance Program 5 (Sept. 2014), available at http://www.gao.gov/
assets/670/666259.pdf.
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Since the passage of the McKinney-Vento Homeless Assistance
Act in 1987, at least 40,000 Federal properties were reported
to HUD as underutilized, unutilized, excess, or surplus.\18\
Approximately one quarter of these properties were determined
to be suitable and available for homeless assistance purposes,
2,533 Notices of Interest have been filed for approximately
1,200 of those 10,000 properties, and less than 500
applications were actually submitted to HHS for approximately
400 of those properties.\19\ In total, only 122 properties have
been transferred for use by the homeless since 1987, and only
81 of those properties are still being used as of March
2014.\20\
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\18\Id. at 15.
\19\Id.
\20\Id.
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At the June 2015 Committee hearing, witnesses expressed
concern about the process and effectiveness of screening
surplus properties for homelessness assistance.\21\ In his
testimony before the Committee, OMB Controller Mader stated:
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\21\June 16, 2015, HSGAC Hearing.
[W]hen you look at the results over 10 years, there
is not a lot. And I have got to think there is a way of
better categorizing the types of excess property so
that only those that truly would be usable for the
purpose intended by [the] McKinney-Vento [Homeless
Assistance Act] would actually go for that
consideration and allow us to move those other
properties quickly.\22\
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\22\Id. (statement of David Mader, Controller, Off. of Mgmt. and
Budget).
GSA Public Buildings Service Commissioner Norman Dong
agreed that ``it is an important objective to determine whether
we have any properties that have potential use for the
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homeless.'' However, Mr. Dong further clarified that:
[W]hen you actually look at the results that we have
seen and less than 2 percent of those properties
actually ending up for use by the homeless, it suggests
that the process is not very target-effective and that
there is probably a better way of supporting this
objective.\23\
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\23\Id. (statement of Norman Dong, Commissioner, Pub. Buildings
Service, U.S. Gen. Services Admin.).
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GAO agreed with the other two witnesses and explained:
Basically, there is such a vast number of properties
that are clearly unsuitable for the purposes of trying
to provide housing for the homeless. I mean, so many
buildings that are being screened. . . are in closed
military facilities and cannot be used for that
purpose, or they are in [Veterans' Affairs] campuses,
the same thing, or they are in remote areas. But they
all go through this process of screening, Federal
Register notices, and so forth, and the HUD
recordkeeping is cumbersome. It just is a really
awkward and time-consuming process . . . without a
whole lot of payoff.\24\
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\24\Id. (statement of David Wise, Director, Physical Infrastructure
Team, U.S. Gov't Accountability Off.).
Under current law, if a surplus property is not deemed
suitable or available for homeless use, GSA then determines
whether the property can be conveyed for a public benefit use
through another Federal agency.\25\ For example, the Department
of Education can seek the property for a school, classroom, or
other educational use.\26\ HHS can request a surplus property
to use to protect the public health, including for research
purposes.\27\ The Department of the Interior can request the
surplus property be transferred for a public park or recreation
area.\28\ GSA can donate the surplus property to the American
National Red Cross for charitable purposes.\29\ GSA may also
transfer the surplus property to a state or municipal
government if the Attorney General determines the property is
needed for a correctional facility or for other law enforcement
purposes.\30\ The Federal Emergency Management Agency may also
request that surplus property be transferred for emergency
management response purposes.\31\ Surplus Federal real property
can also be transferred for the Interstate System,\32\
highways,\33\ wildlife conservation,\34\ a port facility,\35\
public airports,\36\ or power transmission lines.\37\
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\25\GSA Disposal Process.
\26\40 U.S.C. Sec. 550(c).
\27\40 U.S.C. Sec. 550(d).
\28\40 U.S.C. Sec. 550(e).
\29\40 U.S.C. Sec. 551.
\30\40 U.S.C. Sec. 553(b)(1)-(2).
\31\40 U.S.C. Sec. 553(b)(3).
\32\23 U.S.C. Sec. 107.
\33\23 U.S.C. Sec. 317.
\34\16 U.S.C. Sec. 667b.
\35\40 U.S.C. Sec. 554.
\36\49 U.S.C. Sec. 47151.
\37\50 U.S.C. App. 1622(d).
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If the property remains after all options for transfer to a
Federal agency are exhausted, GSA then pursues a negotiated
sale with a state or local government for public use.\38\ If no
state or local governments seek such a sale, only then can GSA
dispose of a surplus Federal property through a competitive
sale to the public.\39\
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\38\GSA Disposal Process. See also 40 U.S.C. 545(d)(2).
\39\GSA Disposal Process. See also 40 U.S.C. 545.
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The Obama Administration, in its national strategy for
Federal real property management recognized that:
Administrative burden can increase the cost and time
required to execute disposals significantly. . . . The
process requirements are in place for good reasons,
such as ensuring environmental protection, the
preservation of significant historic properties, and
accurate documentation of land title. . . . Applying
these steps uniformly without flexibility for location,
asset type and size, and potential private or public
sector re-use options, often creates inefficiencies and
slows or limits the number of disposals executed.\40\
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\40\OMB National Strategy at 6.
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GAO testified before the Committee:
[T]here are certain actions the administration can
take, but there are some things outside their ability
to control. And where Congress can be helpful and be a
positive influence is helping in the disposal process
and the mitigation or the elimination possibly of the
competing stakeholder interests that have a large
influence on the disposal process. And that is where I
think the legislation can really be a driving force to
helping to expedite the disposal process and help
rationalize the Federal portfolio.\41\
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\41\June 16, 2015 HSGAC Hearing (statement of David Wise, Director,
Physical Infrastructure Team, U.S. Gov't Accountability Off.).
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Mr. Mader of OMB elaborated at the Committee hearing:
[T]he administration for the last several years has
been proposing legislation which would basically allow
us to create a process that would sort of look at the
entire Government portfolio, identify those properties,
regardless of Federal agency, you know, put them
together, put them for an up-or-down vote, dispose of
them, take a portion of those dollars that we get from
the disposal, and then plow them back in.\42\
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\42\Id. (statement of David Mader, Controller, Off. of Mgmt. and
Budget).
S. 2375, the Federal Asset Sale and Transfer Act, provides
the legislative relief needed to expedite property disposals
independent of the onerous process required under current
Federal laws and regulations. The bill establishes the Federal
Real Property Reform Board (``Board'') to be charged with
reviewing the entire Federal real property portfolio and
identifying underutilized, unutilized, excess, and surplus
properties. The Board will develop a list of high-value real
property assets recommended for co-location, consolidation,
disposal, or other actions. The Board's list of recommendations
will either be approved or disapproved in its entirety by OMB.
Once OMB approves of the Board's recommendations, Federal
agencies will carry out the Board's recommendations without
being subject to Federal laws and regulations that would
increase costs or cause delays in the disposal process. The
Board will then meet each subsequent fiscal year to identify
additional opportunities to improve efficient use of Federal
real properties. The Board will terminate after six years.
S. 2375 mitigates some significant challenges to disposing
of unneeded Federal real properties. The high-value real
property assets recommended for disposal by the Board will not
be subject to the McKinney-Vento Homeless Assistance Act. The
legislation also provides the Board with a separate fund within
the Federal Buildings Fund to deposit sales proceeds for
reinvestment in future property disposals.
Additionally, S. 2375 makes important changes to the
application process under the McKinney-Vento Act to streamline
the process for efficiency. The legislation eliminates the
requirement of a Federal Register notice of suitable properties
and modifies time requirements in the application process for a
more structured and delineated procedure that is practical for
the Federal Government and for homeless assistance providers.
The National Law Center on Homelessness and Poverty issued a
letter supporting this legislation ``because it contains
important provisions that will strengthen Title V of the
McKinney-Vento Homeless Assistance Act.''\43\
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\43\Letter from the National Law Center on Homelessness and Poverty
to U.S. Senator Ronald H. Johnson, Chairman, S. Comm. on Homeland
Security and Governmental Affairs, and U.S. Senator Thomas R. Carper,
Ranking Member, S. Comm. on Homeland Security and Governmental Affairs
(Dec. 9, 2015) (on file with Comm. staff).
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III. Legislative History
S. 2375, the Federal Asset Sale and Transfer Act, was
introduced on December 8, 2015, by Chairman Ron Johnson and
Senators Mark Warner, Roy Blunt, Rob Portman, and James
Lankford. The bill was referred to the Committee on Homeland
Security and Governmental Affairs.
The Committee considered S. 2375 at a business meeting on
December 9, 2015. During the business meeting, a substitute
amendment by Senators Johnson, Portman, Carper, and Lankford
was offered and adopted. Both the amendment and the legislation
as modified by the amendment were passed by voice vote with
Senators Johnson, Portman, Lankford, Ayotte, Ernst, Carper,
Tester, Baldwin, and Booker present.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section establishes the bill's title as the ``Federal
Asset Sale and Transfer Act of 2015.''
Section 2. Purpose
This section outlines the purpose of the Federal Asset Sale
and Transfer Act of 2015 to improve the management and reduce
the costs of the Federal government's real property inventory,
and lists ways in which the legislation will help achieve this
purpose.
Section 3. Definitions
This section defines ``Administrator'', ``Board'',
``Director'', ``Federal agency'', ``Federal civilian real
property and civilian real property'', ``field office'', and
``postal property''.
Section 4. Federal Real Property Reform Board
This section establishes an independent board called the
Federal Real Property Reform Board (the Board), and details its
composition and obligations. This section requires that the
Chairperson of the board shall be appointed by the President by
and with the advice and consent of the Senate. Members
appointed to the Board will have expertise in commercial real
estate and development, space optimization and utilization, and
community development. The Board will terminate six years after
the date of the enactment of this bill.
The Board will hold meetings that are open to the public
and announced 14 days in advance in the Federal Register,
except for meetings that will discuss classified information.
Under this section, Congressional committees of jurisdiction
will receive information, upon request, of the proceedings,
information, and deliberations of the Board.
Section 5. Development of recommendations to the Board
This section requires Federal agencies to report
information on their real property inventories and requires OMB
to develop standards and criteria for the Board to adhere to in
its review.
Subsection (a) requires each Federal agency to submit to
the OMB Director and the GSA Administrator a report on all
Federal real properties in the agencies' inventories and agency
recommendations on any properties that can be disposed of or
utilized in a different manner to reduce the Federal real
estate inventory, generate cost savings for the taxpayer, and
operational efficiencies that may be realized by the federal
government in the operation and maintenance of federal civilian
real properties.
Subsection (b) requires the OMB Director, in consultation
with the GSA Administrator, to review the agency
recommendations submitted under subsection (a) and to develop
consistent standards and criteria against which agency
recommendations will be reviewed. The standards and criteria
will be developed by considering several factors that inform on
the cost-effectiveness and efficiency of a Federal building,
how to maximize the use of a building, or how the disposal of a
building would achieve cost savings, generate revenue for the
Federal government, and impact the economy of the community
surrounding the building.
Subsection (c) directs the OMB Director to develop and
apply a clear standard space-utilization rate that provides the
Board with a data point for how much space of a real property
asset is actually being used by the agency. Considering the
diverse nature of the federal portfolio, this space-utilization
rate will be consistent across Federal agencies and throughout
each type of space.
Under subsection (d), the standards, criteria, and
recommendations developed by the OMB Director will be submitted
to the Board, published in the Federal Register, and submitted
to Congressional committees of jurisdiction and GAO. The Board
may also request additional information from a Federal agency
about a particular property.
Section 6. Duties of Board
This section charges the Board with identifying
opportunities to significantly reduce the Federal real property
inventory and reduce Federal real property costs.
Subsection (b) requires the Board to identify at least five
Federal properties that are not listed as surplus or excess and
that have a total fair market value of at least $500 million.
The Board will submit a list of these identified high-value
properties to Congress and the OMB Director. The GSA
Administrator must initiate the sale of the identified
properties and sell the identified properties within one year
at fair market value at the highest and best use.
Subsection (c) requires the Board to independently analyze
the real property inventories and recommendations submitted by
Federal agencies to OMB. The Board is not bound or limited by
the agency recommendations. If the Board determines that an
agency did not provide necessary information, data, or adequate
recommendations, the Board can develop recommendations based on
existing relevant data other than the agency's submission.
Subsection (d) allows the Board to consider proposals,
information, and other data submitted by the private sector and
by State and local officials. Any information received from
these sources will be made available to the public.
Under subsection (e), the Board is required to implement an
accounting system to independently evaluate the costs of and
returns on the recommendations provided to the Board. This will
assist the Board in developing its recommendations and in
determining the highest return to the taxpayer.
Subsection (f) requires the Board to conduct public
hearings. All testimony before the Board at a public hearing
shall be presented under oath.
Subsection (g) requires the Board to issue a report on the
Board's findings, conclusions, and recommendations. This report
must be submitted to the OMB Director and publicly posted on a
website maintained by the Board. While the Board is encouraged
to include consensus recommendations in this report,
recommendations supported by a majority of the Board may be
included if the Board cannot achieve a consensus.
Subsection (h) directs the Board to establish and maintain
a website to make relevant information available to the public.
Subsection (i) mandates that GAO submit a report to
Congress and the Board that includes a detailed analysis of the
Board's recommendations and a description of the selection
process used by the Board to develop the recommendations.
Section 7. Review by the Office of Management and Budget
This section describes the next steps to carry out the
Board's recommendations.
Under subsection (b), the OMB Director shall review and
submit a report on the approval or disapproval of the Board's
recommendations. During this time of review by OMB and before
the OMB Director submits the report required under this
subsection, the Board must testify before Congress about its
report if a committee of jurisdiction requests such testimony.
Subsection (c) describes the processes for when OMB
approves or disapproves of the recommendations submitted by the
Board.
Section 8. Implementation of Board recommendations
Subsection (a) establishes the required timelines for
Federal agencies to carry out the Board's recommendations. Each
recommended action taken by a Federal agency shall be
economically beneficial and cost-neutral or otherwise favorable
to the Federal Government. A procedure for handling extenuating
circumstances is outlined.
Subsection (b) allows Federal agencies to take all such
necessary and proper action related to any Federal building or
facility recommended for action by the Board.
Under subsection (c), when a Federal agency acts on a Board
recommendation, the agency will act within any of its delegated
authority. If the agency has not been delegated the necessary
authority to initiate action on a Board recommendation, the
Federal agency must work in partnership with the GSA
Administrator to carry out the Board recommendation.
Subsection (d) provides the GSA Administrator the
discretion to engage in certain transactions identified,
recommended or commenced under this bill, specifically
transactions which would convey a federal civilian real
property for less than fair market value, for no consideration
at all, or in a transaction that mandates the exclusion of
other market participants.
Subsection (e) lists Federal statutes which will not apply
for any recommendation of the Board.
Under subsection (f), the OMB Director must submit all
known information on the Federal real property assets included
in the recommendations of the Board to the Secretary of HUD.
The requirements under this subsection do not apply to the high
value assets identified under section 6(b) of this bill. The
Secretary of HUD is directed to identify any suitable
properties for use as a property benefitting the mission of
assistance to the homeless for the purposes of further
screening pursuant to Section 501 of the McKinney-Vento
Homeless Assistance Act within 30 days after receiving the
information submitted by the OMB Director.
Subsection (g) describes the requirements for addressing
environmental considerations that may arise in the transfer,
sale, or other disposal of Federal real property assets.
Paragraph (1) allows a Federal agency to enter into an
agreement with any entity to transfer real property by deed
pursuant to section 120(h)(3) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(CERCLA) to carry out a recommendation of the Board.
Paragraph (2) prohibits the head of a Federal agency from
entering into a deed of transfer for a Federal real property
asset described in paragraph (1) unless the agency head makes
one of two cost certifications pertaining to environmental
restoration, waste management, and environmental compliance
activities to the Board and to Congress.
Paragraph (3) allows a Federal agency to make payment to a
recipient of any Federal real property asset transfer for which
an agency head certified that the cost of environmental
compliance activities exceed the fair market value of the
asset. This payment may be the amount by which the
environmental compliance costs exceed the fair market value of
the asset, or the amount by which the costs HUD would have
incurred for environmental compliance activities exceeds the
fair market value of the asset.
Paragraph (4) requires the head of a Federal agency to
disclose to any recipient of a transferred Federal real
property asset of all information possessed by the agency
regarding the environmental restoration, waste management, and
environmental compliance activities that relate to the asset.
Under paragraph (5), when considering whether to grant any
time extensions for implementing a Board recommendation, the
OMB Director must give the highest weight to the need for
significant environmental remediation to an asset or a portion
of the asset.
Paragraph (6) is a savings provision that asserts that
nothing in this bill modifies, alters, or amends specified
federal statutes.
Section 9. Funding
This section requires the Department of Treasury to
establish a funding account for the Board and a fund to carry
out the Board's activities and recommendations. The fund shall
consist of amounts appropriated for activities related to the
Board's activities and implementing the Board's recommendations
and of amounts received from the sale of any Federal real
property asset pursuant to a Board recommendation. The
President is directed to submit to Congress a report, not less
frequently than annually, that includes an estimate of proceeds
from implementing the recommendations of the Board and the
obligations and expenditures needed to support those
recommendations.
Section 10. Congressional approval of proposed projects
This section will require that the GSA prospectus of a
proposed facility that is required to be submitted to Congress
for approval includes a cost-benefit analysis of the proposed
facility which evaluates the standards and criteria developed
by OMB and GSA under section 5(b) of this bill.
Section 11. Preclusion of judicial review
Under this section, actions taken by the Board, Federal
agencies, or OMB pursuant to activities required by this bill
will not be subject to judicial review.
Section 12. Implementation review by GAO
GAO is charged with monitoring and reviewing Federal
agencies' implementation of the Board's recommendations and
annually reporting to Congress on any findings and
recommendations for improvement.
Section 13. Streamlining the McKinney-Vento Homeless Assistance Act
This section modifies the McKinney-Vento Homeless
Assistance Act to improve efficiencies in the application
process and to accept applications for the use of surplus
property for permanent housing with or without supportive
services to assist the homeless.
Section 14. Authorization of appropriations
This section authorizes Congress to appropriate $2 million
for the salaries and expenses of the Board and $40 million for
activities needed to implement the Board's recommendations.
Appropriations to carry out the Board's recommendations are to
be deposited into the Federal Real Property Reform Board-Asset
Proceeds and Space Management Fund created in this bill.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
May 17, 2016.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2375, the Federal
Asset Sale and Transfer Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall.
Enclosure.
S. 2375--Federal Asset Sale and Transfer Act of 2015
Summary: S. 2375 aims to better manage federal real
property by reducing the inventory of such property and the
cost of maintaining the remaining inventory. The bill would
establish the Federal Real Property Reform Board (board) to
provide recommendations to the Office of Management and Budget
(OMB) regarding specific federal properties that should be
sold. The board would be required to recommend at least five
civilian facilities that should be offered for sale and that
have a combined estimated fair market value of at least $500
million. The legislation also would authorize the appropriation
of $2 million to fund the board and $40 million to implement
the boards recommendations.
Assuming appropriation of the specified amounts, CBO
estimates that implementing S. 2375 would cost $8 million in
2017 and about $40 million over the 2017-2021 period. If the
board's recommendations lead to the sale of facilities, the
legislation also would result in additional receipts. However,
CBO has no basis to estimate whether the board's
recommendations would result in the sale of any properties that
would not otherwise be sold under current law. Enacting the
bill would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply.
CBO estimates that enacting S. 2375 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
S. 2375 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated Cost to the Federal Government: The estimated
budgetary effects of S. 2375 are shown in the following table.
The costs of this legislation fall within all budget functions
that contain federal real property other than 050 (national
defense).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2017 2018 2019 2020 2021 2017-2021
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Federal Real Property Reform Board:
Authorization Level................................. 2 0 0 0 0 2
Estimated Outlays................................... * * * * * 2
Asset Proceeds and Space Management Fund:
Authorization Level................................. 40 0 0 0 0 40
Estimated Outlays................................... 7 7 7 7 6 34
Other Requirements:
Estimated Authorization Level....................... 1 * * * * 3
Estimated Outlays................................... 1 * * * * 3
Total Changes:
Estimated Authorization Level................... 43 0 0 0 0 45
Estimated Outlays............................... 8 7 7 7 6 39
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500.000; components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the end of 2016, that the
authorized amounts will be appropriated, and that spending will
follow historical patterns for similar management efforts.
Federal Real Property Reform Board
S. 2375 would establish an independent board to recommend
to OMB properties that could be sold in order to reduce the
inventory of federal civilian real property. The board would
consist of seven members appointed by the President. S. 2375
would specify two major objectives for the board. First, the
Board would be required to identify and recommend the sale of
at least five federal civilian properties with a combined
estimated fair market value of at least $500 million. Second,
the legislation would require the board to make annual
recommendations for consolidating, exchanging, selling, or
redeveloping federal properties to further reduce the inventory
of civilian real property and to reduce operating costs. All
recommendations made by the board would be available to the
public on a government website.
Under the bill, the board would terminate after six years.
S. 2375 would authorize the appropriation of $2 million for the
board's expenses. Assuming appropriation of those amounts, CBO
estimates the board would spend about $2 million over the 2017-
2021 period.
Asset proceeds and Space Management Fund
S. 2375 would establish a fund to help agencies cover any
costs associated with implementing the board's recommendations.
During its six-year term, the board would primarily work with
the General Services Administration (GSA) to consolidate,
reconfigure, redevelop, or co-locate agency operations in order
to make additional properties available for sale. The bill
would authorize the appropriation of $40 million for those
purposes. Assuming appropriation of the specified amount, CBO
estimates that agencies would spend about $7 million annually
over the 2017-2021 period to prepare federal properties for
sale.
Other requirements
S. 2375 would require GSA and federal civilian agencies to
prepare additional reports and recommendations about their real
property holding and would require GSA to improve its database
of federal property. CBO estimates that implementing those
provisions would increase the workloads of GSA and other
agencies. In addition, the Government Accountability Office
would be required to report on all the recommendations. Based
on information from GSA and some landholding agencies, CBO
estimates that those activities would cost $3 million over the
2017-2021 period; such spending would be subject to the
availability of appropriated funds.
Effect on Federal property sales
Under current law, before an agency can offer federal real
property that it considers to be surplus for sale to the
public, the agency must first offer that property to other
federal agencies, state and local governments, and in some
cases nonprofit organizations, at no cost. S. 2375 would exempt
properties recommended for sale by the board from those
requirements, except for purpose of alleviating homelessness.
CBO does not expect that exemption would increase the proceeds
from selling surplus properties above the expected amounts
under current law because other barriers to selling such
property will still exist.
Based on information from GSA and other agencies that hold
significant amounts of real property, CBO has concluded that
there are at least two other obstacles that constrain the
amount of property offered for sale and ultimately sold to the
public.\1\
---------------------------------------------------------------------------
\1\For more information on the barriers to selling federal real
property see Congressional Budget Office, letter to the Honorable
Darrell E. Issa containing an analysis of a proposal to expedite the
disposal of federal civilian real property (June 27, 2011).
---------------------------------------------------------------------------
First, agencies generally lack funds to prepare
properties for sale, including relocating any users of such
properties. To help implement the board's recommendations, the
bill would authorize appropriations to cover the costs of
moving, consolidating, marketing, renovating property. However,
those amounts may not be sufficient to cover such costs.
Furthermore, any additional proceeds from sales would depend on
the enactment of appropriated amounts and cannot be attributed
to this bill.
Second, many agencies resist efforts to sell
property and prefer to leverage the value of their holdings
rather than sell them outright. In most cases property-holding
agencies do not have access to any of the proceeds from a sale
of their property. However, they may have other authorities
that enable them to add to their budgetary resources; for
example, some agencies can lease unused real property and spend
those proceeds on mission-related or administrative purposes.
Whether or not the board that would be created by S. 2375 could
overcome such resistance is unclear.
For these reasons, CBO has no basis to estimate whether the
board's recommendations to sell at least five properties would
result in additional receipts.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 2375
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal spending: Matthew Pickford;
Impact on state, local, and tribal governments: Jon Sperl;
Impact on the private sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
* * * * * * *
SEC. 3307. CONGRESSIONAL APPROVAL OF PROPOSED PROJECTS
(a) * * *
(b) * * *
(1) * * *
* * * * * * *
(6) a statement of rents and other housing costs
currently being paid by the Government for federal
agencies to be housed in the building to be
constructed, altered, or acquired, or the space to be
leased [; and]
(7) with respect to any prospectus for the
construction, alteration, or acquisition of any
building or space to be leased, an estimate of the
future energy performance of the building or space and
a specific description of the use of energy efficient
and renewable energy systems, including photovoltaic
systems, in carrying out the project[.]; and
(8) a description of how the proposed project is
consistent with criteria established in section 5(b) of
the Federal Asset Sale and Transfer Act of 2015.
* * * * * * *
TITLE 42--THE PUBLIC HEALTH AND WELFARE
* * * * * * *
CHAPTER 119--HOMELESS ASSISTANCE
* * * * * * *
Subchapter V--Identification and Use of Surplus Federal Property
SEC. 11411. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND
REAL PROPERTY TO ASSIST THE HOMELESS
(a) * * *
(b) Availability of Property.--
(1) * * *
(2) * * *
(A) * * *
(i) * * *
(ii) [in the case of surplus
property, for use to assist the
homeless either in accordance with this
section or as a public health use in
accordance with section 550(a)-(d) of
title 40] in the case of surplus
property--
(I) for use to assist the
homeless either in accordance
with this section or as a
public health use in accordance
with paragraphs (1) and (4) of
section 203(k) of the Federal
Property and Administrative
Services Act of 1949 (40 U.S.C.
484(k)(1) and (4)); and
(II) to provide permanent
housing with or without
supportive services to assist
the homeless in accordance with
this section.
* * * * * * *
(c) Publication of Properties.--
(1) * * *
(A) No later than 15 days after the last day
of the 45-day period provided for under
subsection (b)(1) of this section, the
Secretary shall publish [in the Federal
Register] on the website of the Department of
Housing and Urban Development or the General
Services Administration--
* * * * * * *
(d) Holding Period.--
(1) Properties published under subsection
(c)(1)(A)(ii) of this section as available for
application for use to assist the homeless shall not be
available for any other purpose for a period of [60
days] 30 days beginning on the date of such
publication.
(2) If written notice of intent to apply for such a
property for use to assist the homeless is received by
the Secretary of Health and Human Services within the
[60-day period] 30-day period described under paragraph
(1), such property may not be made available for any
other purpose until the date the Secretary of Health
and Human Services or other appropriate landholding
agency has completed action on the application
submitted under subsection (e) of this section with
respect to that written notice of intent.
(3) Property that is reviewed by the Secretary under
subsection (a) of this section and that is not
identified by the Secretary as being suitable for use
to assist the homeless may not be made available for
any other purpose for 20 days after the determination
of unsuitability to allow for review of the
determination at the request of the representative of
the homeless. The Secretary shall disseminate
immediately this information to the regional offices of
the Department of Housing and Urban Development and to
the Interagency Council on the Homeless. If the
representative of the homeless does not request a
review of the determination of unsuitability during the
20-day period described in this paragraph, the property
shall not be included in any subsequent publication
under subsection (c)(1)(A)(ii) unless the landholding
agency makes changes to the property, including
improvements, that may change the unsuitable
determination and the Secretary subsequently determines
the property is suitable.
(4) * * *
(A) Written notice of intent to apply for a
property published under subsection
(c)(1)(A)(ii) of this section may be filed at
any time after the [60-day period] 30-day
period described in paragraph (1) has expired.
(B) Surplus property for which an application
has been approved shall be assigned promptly to
the Secretary of Health and Human Services for
disposition in accordance with and subject to
subsection (f) of this section.
(e) Application for Property.--
(1) * * *
(2) No later than [90 days] 75 days after the
submission of written notice to apply for a property,
an applicant shall submit [a complete application] an
initial application to the Secretary of Health and
Human Services. The Secretary of Health and Human
Services shall, with the concurrence of the appropriate
landholding agency, grant reasonable extensions. An
initial application shall set forth
(A) the services that will be offered,
(B) the need for the services, and
(C) the experience that the applicant has
that demonstrates the ability to provide the
services.
(3) No later than [25 days after receipt of a
completed application] 10 days after the date on which
the Secretary of Health and Human Services receives an
initial application under paragraph (2), the Secretary
of Health and Human Services shall review, make all
determinations, and complete all actions on the
application. The Secretary of Health and Human Services
shall maintain a written public record of all actions
taken in response to [an application] an initial
application.
(4) Not later than 45 days after the date on which
the Secretary of Health and Human Services approves an
initial application under paragraph (3), the applicant
shall submit to the Secretary of Health and Human
Services a final application, which shall set forth a
reasonable plan to finance the approved program.
(5) Not later than 15 days after the date on which
the Secretary of Health and Human Services receives a
final application under paragraph (4), the Secretary of
Health and Human Services shall review, make a final
determination, and complete all actions on the final
application. The Secretary of Health and Human Services
shall maintain a public record of all actions taken in
response to a final application.
(f) Making Property Available to Representatives of
Homeless.--
(1) Subject to the provisions of this subsection,
property for which the Secretary of Health and Human
Services has approved an application under subsection
(e) of this section shall be made promptly [available
by] available, at the discretion of the applicant, by
permit or lease, or by deed as a public health use
under paragraphs (1) and (4) of section 484(k) of title
40, to the representative of the homeless that
submitted the application.
* * * * * * *
[all]