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PSC Home | Administrative Operations |
Federal Occupational Health | Financial Management |
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Administrative OperationsFederal Property Assistance Program & McKinney-Vento Act Title V ProgramHow to Acquire Federal Surplus Real Property For Public Health PurposesIntroduction Occasionally, the General Services Administration, under the authority of the Federal Property and Administrative Services Act of 1949, identifies real property that is no longer required by the Federal government. Under the authority of the above Act and Title V of the McKinney-Vento Homeless Assistance Act, as amended, the Department of Health and Human Services (HHS) may transfer declared Federal surplus real estate to eligible non-Federal applicants for both public health and homeless purposes. What is Surplus Federal Property? Surplus property is any excess real property not required by any Federal landholding agency for its needs or responsibilities, as determined by the Administrator of the General Services Administration (GSA). Surplus property can be both “on-site” and “off-site” real property. “On-site”property refers to: land; buildings, such as houses, hospitals, or barracks; and other types of structures. “Off-site” property is buildings and structures which are surplus but located on land which is not surplus and therefore, must be relocated. Where Can Surplus Property Listings/Information be Found? Information about property for public health or homeless use can be obtained by contacting GSA at the following address in the area of interest:
In accordance with Title V of the McKinney Act, the Department of Housing
and Urban Development (HUD) makes determinations on the suitability of
Federal properties for use to assist homeless individuals. HUD publishes
a list of its determinations in the Federal Register. The Federal Register
advertises a list of these properties each Friday and may be found at
local public libraries. The internet address for the Federal Register
http://www.gpoaccess.gov/fr/index.html. Who is Eligible to Acquire Surplus Property Through This Program? Those eligible for surplus real property include States and their political subdivisions and instrumentalities, and tax-supported and nonprofit institutions. To be eligible, institutions must also meet the following criteria as determined by HHS:
When an organization identifies available surplus real property, suitable for its program, a formal written expression of interest must be submitted to HHS through the Program Support Center (PSC). Upon receipt of the expression of interest, PSC will provide an application instruction packet and will be available to assist with any questions regarding the application process. The letter of interest should identify the property, the date of publication in the Federal Register, and/or any numbers identifying the particular property. Briefly describe the proposed program, state the name of the organization, and explain whether it is a public body or a private nonprofit organization. A private nonprofit organization must also state that it is tax-exempt under 501(c)(3) of the 1986 Internal Revenue Code. The letter should be submitted to the PSC address listed in this pamphlet. Are there any Restrictions and/or Conditions Placed on Properties Transferred Under this Program? Various other laws and regulations apply to transfers of these properties, besides the previously mentioned statutes, including: The National Environmental Policy Act of 1969, The National Historic Preservation Act, The Archeological Resources Protection Act, and statutes which forbid discrimination because of race, religion, color, sex, disability, age or national origin. The United States must receive the full fair market value of any property to be transferred either through cash payment or a public benefit allowance which accrues over a predetermined period of years. In the case of land, with or without improvements, the accrual period is thirty (30) years. In the case of facilities acquired separately from land, whether for on-site or off-site use, the accrual period is the estimated remaining useful life of the facilities. The public benefit allowance (PBA) varies from 50% to 100%, depending on the type of facility and the proposed program. To assure accrual of the PBA, the property may only be used for the approved program and must not be sold, leased, mortgaged, or otherwise encumbered, without the prior approval of PSC. Transferees must also submit yearly reports regarding the use of the property. Failure to comply with any of the conditions and restrictions, may cause title to the property to revert to the United States. Property will not be approved for transfer unless it is needed at the time of application or in the near future. A property must be placed into its intended use within 12 months of transfer, or within 36 months where construction or major renovation is contemplated. If the time limits are not met, or a property ceases to be properly utilized for any period of time, the transferee will be required to pay for each month of nonuse, the percentage of the current value of the property which otherwise would have been earned through use. Payments will cease when the property is used as intended. Any property not properly utilized must be returned to the Government, re-transferred to another eligible public health institution, or sold for the benefit of the Government. Deed restrictions may be released with the consent of the Government upon payment of the current fair value of the property minus the value of the already accrued PBA. Transferees are required to pay all external administrative costs incidental to transfers which include, but are not limited to, surveys, appraisals, legal fees, title search, and closing fees.
The U. S. Department of Health and Human Services’ regulations governing the program are found in Title 45 Code of Federal Regulations Parts 12 and 12.a. Information concerning the surplus real property program may be obtained by telephone, letter, or personal visit to the address below.
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