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114th Congress  }                                        { Rept. 114-578
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                        {       Part 1

======================================================================



 
              FEDERAL ASSETS SALE AND TRANSFER ACT OF 2016

                                _______
                                

  May 23, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4465]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 4465) to decrease the deficit by 
consolidating and selling Federal buildings and other civilian 
real property, and for other purposes, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     6
Legislative History and Consideration............................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
New Budget Authority and Tax Expenditures........................     6
Congressional Budget Office Cost Estimate........................     7
Performance Goals and Objectives.................................    10
Advisory of Earmarks.............................................    10
Duplication of Federal Programs..................................    10
Disclosure of Directed Rule Makings..............................    10
Federal Mandate Statement........................................    11
Preemption Clarification.........................................    11
Advisory Committee Statement.....................................    11
Applicability of Legislative Branch..............................    11
Section-by-Section Analysis of Legislation.......................    11
Changes in Existing Law Made by the Bill, as Reported............    15

                         Purpose of Legislation

    The purpose of H.R. 4465 is to save taxpayer money by 
shrinking the federal real property footprint by selling or 
redeveloping high value properties, consolidating federal 
space, maximizing utilization rates, and streamlining the 
disposal of unneeded assets.

                  Background and Need for Legislation

    H.R. 4465, the Federal Assets Sale and Transfer Act of 
2016, improves the management of Federal real property by 
consolidating and selling underutilized federal buildings and 
other civilian real property.

Opportunities to reduce costs

    Given the vast real estate holdings of the federal 
government, poor asset management and missed market 
opportunities cost taxpayers significant sums of money. For 
this reason, in 2003, the Government Accountability Office 
(GAO) placed real property management on its list of ``high 
risk'' government activities, where it remains today. Among the 
reasons GAO lists federal real property as high risk are 
``excess and underutilized real property'' and ``unreliable 
property data.'' While significant attention has been paid to 
addressing these issues, GAO noted in its 2015 ``High Risk 
series'' report that, ``the federal government continues to 
maintain too much excess and underutilized property.''\1\
---------------------------------------------------------------------------
    \1\GAO High Risk Series, GAO-15-290 (2015), p. 135.
---------------------------------------------------------------------------
    The high risk activities related to federal real property 
are significant; however, consistent and accurate data 
continues to be a challenge in measuring the full costs to the 
taxpayer. Considerable amounts of vacant or underperforming 
real estate assets can translate into significant costs 
associated with the operation, maintenance, and security of 
those properties.
    Domestically, the federal government owns more than 254,000 
buildings\2\ comprising a total of 2.5 billion square feet of 
space with an annual operating cost of $14.4 billion.\3\ The 
total amount of underutilized or vacant real estate has not 
been accurately ascertained likely due in large measure to poor 
data and inconsistent reporting requirements.\4\ For example, 
in fiscal year 2009, the number of underutilized buildings was 
45,190, comprising 341 million square feet of space costing 
$1.66 billion.\5\ However, in fiscal year 2010, there were 
77,000 buildings comprising 490 million square feet listed as 
underutilized or vacant, costing $1.66 billion annually.\6\ 
While those were global numbers (domestic and non-domestic), in 
the most recent Federal Real Property Summary Data Set for 
2014, which accounts for only domestic properties, 5,000 
buildings are listed as underutilized or vacant. This does not 
include all property categories and reflects only 43 percent of 
the total buildings. The same fiscal year 2014 Data Set lists 
31,465 ``assets'' as not currently needed, including buildings 
and structures.
---------------------------------------------------------------------------
    \2\This figure excludes land and 477,000 structures, costing $7.8 
billion annually, such as utility systems, roads and bridges, and 
parking structures.
    \3\FY 2014 Federal Real Property Profile Summary Open Data Set.
    \4\See Federal Real Property: Excess and Underutilized Property is 
an Ongoing Challenge, GAO-13-573T (April 2013); Federal Real Property: 
Strategic Focus Needed to Help Manage Vast and Diverse Warehouse 
Portfolio, GAO-15-41 (November 2014).
    \5\Federal Real Property: The Government Faces Challenges to 
Disposing of Unneeded Buildings, GAO-11-370T, (February 2011).
    \6\FY 2010 Federal Real Property Report, Federal Real Property 
Council, p. 6. See also Disposal of Unneeded Federal Buildings: 
Legislative Proposals in the 112th Congress, Congressional Research 
Service, August 6, 2012.
---------------------------------------------------------------------------

Reducing the real estate footprint

    Both the Committee and the Administration have been working 
to reduce the costs of office space by improving the space 
utilization rates of agencies and reducing their real estate 
footprint. Large real estate acquisitions, over $2.85 million 
annually, must be authorized by the House Committee on 
Transportation and Infrastructure and the Senate Committee on 
Environment and Public Works. Since the beginning of the 113th 
Congress, through efforts to get the General Services 
Administration's (GSA) tenant agencies to improve their space 
utilization, the Committee has authorized projects that will 
potentially result in up to $3 billion in savings to the 
taxpayer through lease cost avoidance, reduction of previously-
authorized projects, and consolidations.
    The Administration has also issued directives to reduce the 
amount of real estate used by federal agencies. On June 10, 
2010, the Administration issued a memorandum directing agencies 
to accelerate efforts to identify and eliminate excess 
properties. On March 14, 2013, the Office of Management and 
Budget (OMB) issued a Management Procedures Memorandum 
prohibiting agencies from increasing the total square footage 
of their domestic office and warehouse inventory compared to 
their fiscal year 2012 baseline--in effect requiring agencies 
to freeze their federal real property footprint. More recently, 
on March 25, 2015, OMB issued a directive for agencies to 
reduce their office and warehouse space by aggressively 
disposing of properties and making more efficient use of space. 
At the same time, the Administration released the National 
Strategy for the Efficient Use of Real Property, which proposed 
a five-year, three-step strategy to improve the efficiency and 
cost-effectiveness of federal real estate. The three-step 
approach includes freezing the footprint, improving the quality 
of data to more accurately analyze and measure opportunities, 
and reducing the footprint through accelerated disposals and 
improved space utilization.
    Unfortunately, despite executive orders and memoranda 
issued during two administrations and acts of Congress intended 
to improve the management of federal real property, these 
problems persist.\7\ The GAO has noted in recent years the 
continual problem of retention of excess and underutilized 
properties, despite efforts by both the Administration and 
Congress to reduce the amount and costs associated with 
unneeded properties.\8\
---------------------------------------------------------------------------
    \7\See, for example, Executive Order 13327, Federal Real Property 
Asset Management, signed by President George W. Bush, February 4, 2004; 
Presidential Memorandum, Disposing of Unneeded Federal Real Estate, 
signed by President Barack Obama, June 10, 2010; Public Buildings 
Cooperative Use Act of 1976; Public Law 108-447, Division H, Title IV, 
Section 412, December 8, 2004 (providing enhanced flexibility to GSA in 
real property management).
    \8\See Federal Real Property: Continued Efforts, Legislation, and 
Implementing GAO Recommendations Could Address Challenges, GAO-15-689T, 
June 16, 2015; Federal Real Property: Excess and Underutilized Property 
Is an Ongoing Challenge, GAO-13-573T, April 25, 2013.
---------------------------------------------------------------------------
    There are a number of examples of high value vacant and 
underutilized properties sitting for years, if not more than a 
decade and, only after action by the Committee either through 
hearings or legislation did GSA begin to take action. These 
include, for example, in Washington D.C. the West Heating Plant 
in the Georgetown area, the Old Post Office on Pennsylvania 
Avenue, and the Cotton Annex located right off the National 
Mall. Despite sitting in prime locations, these assets sat for 
years and, in two cases, were vacant yet were never disposed 
of, costing taxpayer money to maintain them. In the case of the 
Old Post Office, despite being used, the building was 
underutilized and GSA lost revenue on the property every year. 
Only through legislation directing GSA to redevelop that 
property, did GSA finally take steps to do so.

Hurdles to reducing the real estate footprint and the solution

    Over the years, the issue of getting federal agencies to 
sell or dispose of underutilized and unneeded properties has 
been a focus of GAO investigations, congressional hearings, and 
actions by administrations. Various hurdles to disposing of 
properties have been identified, including:
     Upfront costs to agencies--Preparing the 
properties for disposal costs money. For example, there are 
costs related to surveys, environmental assessments, and 
cleanup.
     Cumbersome disposal process--The current disposal 
process can be cumbersome and time-consuming, particularly for 
larger, more valuable assets, creating a disincentive for 
agencies to dispose of unneeded properties.
     Land-banking of high value assets--Either as a 
result of the costs, disposal process, or because an agency 
believes it may require space at some unspecified point in the 
future, agencies may hold on to higher value assets.
     Real estate activities may be required--Many 
valuable properties used by agencies may be underutilized; 
however, in order to make properties available for sale or 
disposition, money may be needed to relocate, consolidate, or 
acquire space to move the agency operations.
     Poor data and property management--Agencies may 
not maintain accurate data about their properties and space 
utilization, making it more difficult to identify properties 
available for disposal.\9\ In addition, agencies may not be in 
a position to determine if use of the property is optimized. 
For example, if a small government building sits in a larger, 
valuable plot of land, the building itself may be fully 
utilized, but the property underutilized, and may provide more 
value to the taxpayer if sold and the agency consolidated into 
other space.
---------------------------------------------------------------------------
    \9\Federal Real Property: Better Guidance and More Reliable Data 
Needed to Improve Management, GAO-14-757T (July 29, 2014).
---------------------------------------------------------------------------
     Prioritization--Other than the GSA, property 
management is not a part of the core mission of most agencies, 
and, as such, working to identify and make available 
underutilized properties may not be a priority.
    These hurdles not only cost the taxpayer money given 
ongoing maintenance and operation costs and unrealized return 
from selling them, but they minimize the number of properties 
made available for other public purposes, such as serving the 
homeless.\10\
---------------------------------------------------------------------------
    \10\Written Statement of Maria Foscarinis, Executive Director, 
National Law Center on Homelessness & Poverty, Subcommittee on Economic 
Development, Public Buildings, and Emergency Management hearing on 
``Saving Taxpayer Dollars in Federal Real Estate: Reducing the 
Government's Space Footprint,'' June 16, 2015.
---------------------------------------------------------------------------
    While GSA and some tenant agencies have begun to take steps 
to improve their space utilization, consolidate, and reduce 
their space footprint, resistance remains. In order to promote 
better utilization of space, realize financial returns on 
under-used high value assets, and improve efficiency, including 
energy efficiency, H.R. 4465 was introduced. The legislation is 
intended to create a process that would independently establish 
space standards, apply them to the federal inventory, and 
provide a streamlined manner to ensure actions are taken by 
agencies to reduce the federal real estate footprint.
    H.R. 4465 is intended to save taxpayer money by selling and 
redeveloping high value assets, consolidating facilities, 
maximizing utilization rates, and increasing the use of 
efficient space. H.R. 4465 would require the Board established 
in the legislation to examine federal real property across 
government--used and un-used--and make decisions based on the 
best return to the taxpayer.

Public Museums

    Federal Management Regulations (FMR) require a museum to be 
open for at least 1,000 posted hours annually in order to 
qualify as a public museum eligible to receive surplus 
property. The public policy principle behind this requirement 
is to ensure that surplus property is available to the public, 
but this principle can be satisfied in other ways. The 
Committee believes that the FMR regulation requiring that a 
non-profit museum have at least 1,000 posted hours in order to 
receive surplus property is arbitrary. The Committee believes 
the legislative language in Section 23 makes it clear that the 
Administrator consider a public museum eligible for surplus 
property if the organization accedes to any request submitted 
for access during business hours.
    The Administrator has a prominent role in executing the 
Administration's Freeze the Footprint Policy\11\ and subsequent 
Reduce the Footprint Policy.\12\ Both of these policies have 
been designed to reduce the federal real estate footprint with 
a specific focus on reducing the amount of warehouse space. 
Flexible criteria for the eligibility of non-profit museums to 
receive surplus property allow the Federal government to more 
easily dispose of surplus property and reduce the need for 
warehouse space. Changing the rules that governs a museum's 
eligibility to receive surplus property will achieve the dual 
policy goals of reducing the amount of Federal warehouse space 
needed and sharing surplus property with the public.
---------------------------------------------------------------------------
    \11\Implementation of OMB Memorandum M-12-12 Section 3: Freeze the 
Footprint, Office of Management and Budget, March 14, 2013.
    \12\National Strategy For the Efficient Use of Real Property 2015-
2020, Reducing the Federal Portfolio through Improved Space 
Utilization, Consolidation, and Disposal, Office of Management and 
Budget. March 25, 2015.
---------------------------------------------------------------------------

Conclusion

    The management of federal real property was a challenge 
even before appearing on GAO's High Risk list. The costs of 
real property are significant and most agencies do not have the 
incentives to minimize those costs. Properties sit vacant or 
woefully under-utilized, not only costing taxpayers billions of 
dollars but often are eye sores in local communities. And, 
despite the current budget climate, many agencies continue to 
hold onto properties they do not need, reducing efficiency and 
increasing costs. H.R. 4465 is intended to bring an independent 
process to the management of federal real property.

                                Hearings

    The Subcommittee held a number of hearings during the 112th 
Congress on subject matters contained in H.R. 4465. In the 
114th Congress, the Subcommittee held a hearing specifically 
related to H.R. 4465. In particular, the Subcommittee held the 
following hearing:
    ``Saving Taxpayer Dollars in Federal Real Estate: Reducing 
the Government's Space Footprint,'' held on June 16, 2015. 
Witnesses included, Representatives Jeff Denham and Jason 
Chaffetz, the Honorable David Mader, Controller, Office of 
Management and Budget, Mr. David Wise, Director, Physical 
Infrastructure Team, U.S. Government Accountability Office, Mr. 
Norman Dong, Commissioner, Public Buildings Service, General 
Services Administration, and Ms. Maria Foscarinis, Executive 
Director, National Law Center on Homelessness and Poverty. The 
hearing examined the issue of underutilized and vacant federal 
properties, costs to the taxpayer, challenges to selling or 
disposing of unneeded real property, and methods by which the 
federal government can reduce its space footprint and save 
taxpayer dollars by addressing those challenges.

                 Legislative History and Consideration

    On February 4, 2016, Representative Jeff Denham (R-CA), 
along with Representatives Chaffetz (R-UT), Shuster (R-PA), 
Cummings (D-MD), DeFazio (D-OR), Barletta (R-PA), and Carson 
(D-IN) introduced H.R. 4465, a bill to decrease the deficit by 
consolidating and selling federal buildings and other civilian 
real property, and for other purposes.
    On March 2, 2016, the Committee on Transportation and 
Infrastructure met in open session. No amendments were offered. 
H.R. 4465 was ordered reported by voice vote with a quorum 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no record votes taken in connection 
with consideration of H.R. 4465.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 4465 from the 
Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 19, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4465, the Federal 
Assets Sale and Transfer Act of 2016.
    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.

H.R. 4465--Federal Assets Sale and Transfer Act of 2016

    Summary: H.R. 4465 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 Public Buildings 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 charged with recommending specific operational 
efficiencies that could be implemented to reduce the inventory 
and cost of the government's real estate holdings. The 
legislation also would authorize the appropriation of $2 
million to fund the board and $40 million to implement the 
board's recommendations.
    Assuming appropriation of the specified amounts, CBO 
estimates that implementing H.R. 4465 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 H.R. 4465 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 4465 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 H.R. 4465 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
 
Public Buildings 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.

Public buildings reform board

    H.R. 4465 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. H.R. 4465 
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 between $500 million and $750 
million. Second, the legislation would require the board to 
recommend to OMB opportunities to consolidate, exchange, sell, 
or redevelop 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. 
H.R. 4465 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

    H.R. 4465 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 or achieve other operational efficiencies.

Other requirements

    H.R. 4465 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. H.R. 4465 would 
exempt properties recommended for sale by the board from those 
requirements, except for the 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 H.R. 4465 
could overcome such resistance is unclear.
    For these reasons, CBO has no basis to estimate whether the 
board's recommendations for $8 billion in changes to the 
federal government real estate holdings would result in 
additional receipts.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 4465 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On May 17, 2016, CBO transmitted a 
cost estimate for S. 2375, the Federal Asset Sale and Transfer 
Act of 2015, as ordered reported by the Senate Committee on 
Homeland Security and Governmental Affairs on December 9, 2015. 
On May 19, 2016, CBO transmitted a cost estimate for H.R. 4465, 
as ordered reported by the House Committee on Oversight and 
Government Reform on April 14, 2016. Both versions of H.R. 4465 
and S. 2375 aim to better manage federal real property by 
reducing the inventory of such property and the cost of 
maintaining the remaining inventory; CBO's estimate of their 
costs are the same.
    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.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
decrease the deficit by consolidating and selling Federal 
buildings and other civilian real property, and for other 
purposes.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 4465 establishes 
or reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that enacting H.R. 4465 does not direct the 
completion of a specific rule making within the meaning of 
section 551 of title 5, United States Code.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 4465 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation


Section 1: Short title

    Section 1 designates the short title of the Act as the 
``Federal Assets Sale and Transfer Act of 2016.''

Section 2: Purposes

    Section 2 lists the purposes of the bill to include: 
reducing and consolidating the footprint of federal buildings; 
maximizing the utilization rate; reducing leasing where 
appropriate; selling or redeveloping high value assets; 
reducing the operating and maintenance costs of Federal 
properties; reducing overlap in field offices; creating 
incentives for agencies to achieve greater efficiencies; 
facilitating sale or disposal of unneeded properties; improving 
the efficiency of real property transfers for the provision of 
services to the homeless; and achieving sustainability goals.
    The intention of this section is to highlight that real 
cost savings will only be produced through a combination of 
actions. While selling off properties already declared excess 
or surplus may help, many of those properties will realize 
little net income. Real savings are achieved by consolidations, 
co-locations, reducing field office overlap and tapping into 
the value of high value assets. These high value assets would 
not be of the nature that would be declared excess or surplus. 
These may be assets that are used to some extent but would 
produce a greater return to the taxpayer if sold or redeveloped 
and the federal tenants relocated to less valuable locations.

Section 3: Definitions

    Section 3 provides relevant definitions used in the 
legislation.

Section 4: Board

    Section 4 establishes a Board to carry out duties as 
described in the Act. The Board would be composed of seven 
members, including a chairman appointed by the President, by 
and with the advice and consent of the Senate, and 6 members 
appointed by the President. The six members would be appointed 
with input by the House and Senate leadership. The section sets 
terms for six years and requires that the composition of the 
members include expertise related to commercial real estate and 
development, government management or operations, and community 
development.
    The intention of the Committee is to ensure those on the 
Board include individuals with strong private sector real 
estate experience that will help identify properties and 
opportunities for savings.

Section 5: Board meetings

    Section 5 requires Board meetings to be public and open, 
establishes what constitutes a quorum, and ensures information 
is accessible to oversight committees and the GAO.
    An open process ensures appropriate input into the process 
and ensures the public and stakeholders are fully informed. The 
Committee expects the Board to utilize regional public meetings 
to help it identify appropriate federal properties and 
redevelopment opportunities for its recommendations.

Section 6: Compensation and travel expenses

    Section 6 sets the compensation rate for the Board members 
and allows for per diem reimbursement of travel expenses 
related to the work of the Board.

Section 7: Executive Director

    Section 7 provides for the appointment and compensation of 
an Executive Director.

Section 8: Staff

    Section 8 provides for additional staff through personnel 
detailed from federal agencies.

Section 9: Contracting authority

    Section 9 requires the Board to use, to the extent 
practicable, contracts, including non-appropriated contracts, 
entered into by GSA for services necessary to carry out the 
duties of the Board. Section 9 also requires the GSA to 
identify suitable space for the Board and requires the Board to 
utilize personal property already in the custody and control of 
GSA.

Section 10: Termination

    Section 10 terminates the Board in six years.

Section 11: Development of recommendations to Board

    Section 11 establishes a framework for the development of 
initial recommendations to be reviewed and submitted to the 
Office of Management and Budget (OMB) and to the Board. This 
section also requires the standards developed to incorporate 
key principles listed in section 2 and requires the 
recommendations to be submitted to the Board.
    The Board is also given access to necessary property data 
including the age and condition, operating costs, history of 
capital expenditures, sustainability metrics, number of federal 
employees and functions, and square footage. The number of 
employees and square footage data will ensure the Board can 
properly evaluate utilization rates. The Committee believes 
this data is critical to ensuring proper recommendations are 
developed. This data will assist the Board in evaluating what 
recommendations will yield the best return to the taxpayer 
given costs associated with particular properties.
    The Committee intends the standards be developed to 
maximize the reduction and optimization of the federal real 
property footprint and costs. The standards should result in 
the co-location of agencies and offices and standard 
utilizations rates across categories of properties, such as 
general purpose office space. In addition, the standards should 
ensure the sale of property at its highest and best use. In 
particular, the Board should identify high value assets for 
sale or redevelopment.

Section 12: Board duties

    Section 12 establishes general duties of the Board as 
identifying opportunities for the government to reduce its 
inventory and reduce costs, performing an independent analysis, 
developing final recommendations, and conducting public 
hearings. This section also sets an initial time for reporting 
its final recommendations (and then two additional rounds 
thereafter) to the President. The section requires the Board 
establish a website and requires the GAO to conduct reviews of 
the process. Additionally this section requires the Board to 
recommend not less than $500 million and not more than $750 
million in savings from the sale of high value properties in 
the first 180 days.
    This section also requires the Board to develop an 
accounting system to assist in the development of its 
recommendations. The intention is to ensure there is a standard 
accounting system to assist the Board in developing 
recommendations that will produce the highest return to the 
taxpayer.

Section 13: Review by OMB

    Section 13 establishes a process for review by OMB. It 
requires OMB to send to Congress its approval or disapproval of 
the recommendations. If OMB disapproves, the Board is provided 
additional time to revise its recommendations. If OMB fails to 
approve recommendations, the process ceases for that round. If 
OMB approves the recommendations, the recommendations go into 
effect.

Section 14: Implementation of Board recommendations

    Section 15 requires agencies to carry out the 
recommendations. It requires all activities to be initiated 
within 2 years and all actions completed in 6 years, unless 
notice is provided to OMB and Congress. The bill allows for 
agencies to take necessary steps to carry out the 
recommendations, except agencies are required to work within 
their existing authorities and, if necessary, work with GSA. 
The Committee expects GSA to be the lead agency with respect to 
the planning and execution of construction projects needed to 
execute the Board's recommendations.
    Except the initial recommendations related to the sale of 
high-value assets, all other properties included in subsequent 
recommendations will be submitted to the Secretary of Housing 
and Urban Development (HUD). HUD is required 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.

Section 15: Authorization of appropriations

    Section 15 authorizes $42 million for the Board and initial 
costs associated with implementing any recommendations.
    The Committee expects the initial funding will facilitate 
the creation of the Board and fund the initial costs to 
implement the recommendations. As there are often expenses to 
prepare properties for sale or to make them available, this is 
intended to cover those initial expenses. Future year funding 
is expected to be offset by the proceeds of property sales and 
redevelopments.

Section 16: Funding

    Section 16 establishes an account on the books of the 
Treasury for the salaries and expenses of the Board and 
establishes an account within the Federal Buildings Fund (FBF) 
to carry out actions related to the Board recommendations. The 
FBF account would be funded with proceeds from any action taken 
pursuant to the Board recommendations.

Section 17: Congressional approval of proposed projects

    Section 17 amends the Public Buildings Act by requiring 
prospectuses for future projects, unrelated to Board 
recommendations, to include a statement describing how the 
proposed project is consistent with principles in the Federal 
Assets Sale and Transfer Act of 2016.
    This section is intended to ensure that future projects 
submitted to the Committee by GSA through the prospectus 
process outlined in the Public Buildings Act also conform to 
the standards outlined in this legislation.

Section 18: Preclusion of judicial review

    Section 18 makes clear that actions of the Board and 
actions taken pursuant to sections 12 and 13 are not subject to 
judicial review.

Section 19: Implementation review by GAO

    Section 19 requires GAO, on at least an annual basis, 
monitor and review the implementation activities of federal 
agencies related to the Board recommendations.

Section 20: Agency retention of proceeds

    Section 20 provides for federal agencies to retain net 
proceeds from the disposal of properties, but such proceeds may 
only be used as authorized in appropriations Acts for the 
purpose of covering costs related to disposals. This section 
would be effective following the termination of the Board.

Section 21: Federal Real Property Database

    Section 21 codifies and sets requirements on a Federal Real 
Property Database. It requires GSA to publish a single, 
comprehensive, and descriptive database of all Federal real 
property under the custody and control of all executive 
agencies, except those excluded for national security reasons. 
This section requires the database to be available to other 
federal agencies and, to the extent consistent with national 
security and procurement laws, accessible by the public at no 
cost through a Web site.

Section 22: Streamlining McKinney-Vento Homeless Assistance Act

    Section 22 streamlines the process for identifying and 
disposing of suitable properties for use to benefit the 
homeless pursuant to section 501 of the McKinney-Vento Homeless 
Assistance Act.

Section 23: Additional property

    Section 23 clarifies the qualifications for a nonprofit 
museum to receive surplus personal property under the federal 
disposal process. It requires GSA to consider the level of 
access that a museum is willing to offer rather than a blanket 
rule on the number of hours the museum is open and available to 
the public.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 40, UNITED STATES CODE




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SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES

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CHAPTER 5--PROPERTY MANAGEMENT

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Subchapter III--DISPOSING OF PROPERTY

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Sec. 549. Donation of personal property through state agencies

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Public agency.--The term ``public agency'' 
        means--
                  (A) a State;
                  (B) a political subdivision of a State 
                (including a unit of local government or 
                economic development district);
                  (C) a department, agency, or instrumentality 
                of a State (including instrumentalities created 
                by compact or other agreement between States or 
                political subdivisions); or
                  (D) an Indian tribe, band, group, pueblo, or 
                community located on a state reservation.
          (2) State.--The term ``State'' means a State of the 
        United States, the District of Columbia, Puerto Rico, 
        the Virgin Islands, Guam, the Northern Mariana Islands, 
        and American Samoa.
          (3) State agency.--The term ``state agency'' means an 
        agency designated under state law as the agency 
        responsible for fair and equitable distribution, 
        through donation, of property transferred under this 
        section.
  (b) Authorization.--
          (1) In general.--The Administrator of General 
        Services, in the Administrator's discretion and under 
        regulations the Administrator may prescribe, may 
        transfer property described in paragraph (2) to a state 
        agency.
          (2) Property.--
                  (A) In general.--Property referred to in 
                paragraph (1) is any personal property that--
                          (i) is under the control of an 
                        executive agency; and
                          (ii) has been determined to be 
                        surplus property.
                  (B) Special rule.--In determining whether the 
                property is to be transferred for donation 
                under this section, no distinction may be made 
                between property capitalized in a working-
                capital fund established under section 2208 of 
                title 10 (or similar fund) and any other 
                property.
          (3) No cost.--Transfer of property under this section 
        is without cost, except for any costs of care and 
        handling.
  (c) Allocation and Transfer of Property.--
          (1) In general.--The Administrator shall allocate and 
        transfer property under this section in accordance with 
        criteria that are based on need and use and that are 
        established after consultation with state agencies to 
        the extent feasible. The Administrator shall give fair 
        consideration, consistent with the established 
        criteria, to an expression of need and interest from a 
        public agency or other eligible institution within a 
        State. The Administrator shall give special 
        consideration to an eligible recipient's request, 
        transmitted through the state agency, for a specific 
        item of property.
          (2) Allocation among states.--The Administrator shall 
        allocate property among the States on a fair and 
        equitable basis, taking into account the condition of 
        the property as well as the original acquisition cost 
        of the property.
          (3) Recipients and purposes.--The Administrator shall 
        transfer to a state agency property the state agency 
        selects for distribution through donation within the 
        State--
                  (A) to a public agency for use in carrying 
                out or promoting, for residents of a given 
                political area, a public purpose, including 
                conservation, economic development, education, 
                parks and recreation, public health, and public 
                safety;
                  (B) for purposes of education or public 
                health (including research), to a nonprofit 
                educational or public health institution or 
                organization that is exempt from taxation under 
                section 501 of the Internal Revenue Code of 
                1986 (26 U.S.C. 501), including--
                          (i) a medical institution, hospital, 
                        clinic, health center, or drug abuse 
                        treatment center;
                          (ii) a provider of assistance to 
                        homeless individuals or to families or 
                        individuals whose annual incomes are 
                        below the poverty line (as that term is 
                        defined in section 673 of the Community 
                        Services Block Grant Act (42 U.S.C. 
                        9902));
                          (iii) a school, college, or 
                        university;
                          (iv) a school for the mentally 
                        retarded or physically handicapped;
                          (v) a child care center;
                          (vi) a radio or television station 
                        licensed by the Federal Communications 
                        Commission as an educational radio or 
                        educational television station;
                          [(vii) a museum attended by the 
                        public;]
                          (vii) a museum attended by the 
                        public, and, for purposes of 
                        determining whether a museum is 
                        attended by the public, the 
                        Administrator shall consider a museum 
                        to be public if the nonprofit 
                        educational or public health 
                        institution or organization, at 
                        minimum, accedes to any request 
                        submitted for access during business 
                        hours;
                          (viii) a library serving free all 
                        residents of a community, district, 
                        State, or region; or
                          (ix) a historic light station as 
                        defined under section 305101(4) of 
                        title 54, including a historic light 
                        station conveyed under section 305103 
                        of title 54, notwithstanding the number 
                        of hours that the historic light 
                        station is open to the public; or
                  (C) for purposes of providing services to 
                veterans (as defined in section 101 of title 
                38), to an organization whose--
                          (i) membership comprises 
                        substantially veterans; and
                          (ii) representatives are recognized 
                        by the Secretary of Veterans Affairs 
                        under section 5902 of title 38.
          (4) Exception.--This subsection does not apply to 
        property transferred under subsection (d).
  (d) Department of Defense Property.--
          (1) Determination.--The Secretary of Defense shall 
        determine whether surplus personal property under the 
        control of the Department of Defense is usable and 
        necessary for educational activities which are of 
        special interest to the armed services, including 
        maritime academies, or military, naval, Air Force, or 
        Coast Guard preparatory schools.
          (2) Property usable for special interest 
        activities.--If the Secretary of Defense determines 
        that the property is usable and necessary for 
        educational activities which are of special interest to 
        the armed services, the Secretary shall allocate the 
        property for transfer by the Administrator to the 
        appropriate state agency for distribution through 
        donation to the educational activities.
          (3) Property not usable for special interest 
        activities.--If the Secretary of Defense determines 
        that the property is not usable and necessary for 
        educational activities which are of special interest to 
        the armed services, the property may be disposed of in 
        accordance with subsection (c).
  (e) State Plan of Operation.--
          (1) In general.--Before property may be transferred 
        to a state agency, the State shall develop a detailed 
        state plan of operation, in accordance with this 
        subsection and with state law.
          (2) Procedure.--
                  (A) Consideration of needs and resources.--In 
                developing and implementing the state plan of 
                operation, the relative needs and resources of 
                all public agencies and other eligible 
                institutions in the State shall be taken into 
                consideration. The Administrator may consult 
                with interested federal agencies to obtain 
                their views concerning the administration and 
                operation of this section.
                  (B) Publication and period for comment.--The 
                state plan of operation, and any major 
                amendment to the plan, may not be filed with 
                the Administrator until 60 days after general 
                notice of the proposed plan or amendment has 
                been published and interested persons have been 
                given at least 30 days to submit comments.
                  (C) Certification.--The chief executive 
                officer of the State shall certify and submit 
                the state plan of operation to the 
                Administrator.
          (3) Requirements.--
                  (A) State agency.--The state plan of 
                operation shall include adequate assurance that 
                the state agency has--
                          (i) the necessary organizational and 
                        operational authority and capability 
                        including staff, facilities, and means 
                        and methods of financing; and
                          (ii) established procedures for 
                        accountability, internal and external 
                        audits, cooperative agreements, 
                        compliance and use reviews, equitable 
                        distribution and property disposal, 
                        determination of eligibility, and 
                        assistance through consultation with 
                        advisory bodies and public and private 
                        groups.
                  (B) Equitable distribution.--The state plan 
                of operation shall provide for fair and 
                equitable distribution of property in the State 
                based on the relative needs and resources of 
                interested public agencies and other eligible 
                institutions in the State and their abilities 
                to use the property.
                  (C) Management control and accounting 
                systems.--The state plan of operation shall 
                require, for donable property transferred under 
                this section, that the state agency use 
                management control and accounting systems of 
                the same type as systems required by state law 
                for state-owned property. However, with 
                approval from the chief executive officer of 
                the State, the state agency may elect to use 
                other management control and accounting systems 
                that are effective to govern the use, inventory 
                control, accountability, and disposal of 
                property under this section.
                  (D) Return and redistribution for non-use.--
                The state plan of operation shall require the 
                state agency to provide for the return and 
                redistribution of donable property if the 
                property, while still usable, has not been 
                placed in use for the purpose for which it was 
                donated within one year of donation or ceases 
                to be used by the donee for that purpose within 
                one year of being placed in use.
                  (E) Request by recipient.--The state plan of 
                operation shall require the state agency, to 
                the extent practicable, to select property 
                requested by a public agency or other eligible 
                institution in the State and, if requested by 
                the recipient, to arrange shipment of the 
                property directly to the recipient.
                  (F) Service charges.--If the state agency is 
                authorized to assess and collect service 
                charges from participating recipients to cover 
                direct and reasonable indirect costs of its 
                activities, the method of establishing the 
                charges shall be set out in the state plan of 
                operation. The charges shall be fair and 
                equitable and shall be based on services the 
                state agency performs, including screening, 
                packing, crating, removal, and transportation.
                  (G) Terms, conditions, reservations, and 
                restrictions.--
                          (i) In general.--The state plan of 
                        operation shall provide that the state 
                        agency--
                                  (I) may impose reasonable 
                                terms, conditions, 
                                reservations, and restrictions 
                                on the use of property to be 
                                donated under subsection (c); 
                                and
                                  (II) shall impose reasonable 
                                terms, conditions, 
                                reservations, and restrictions 
                                on the use of a passenger motor 
                                vehicle and any item of 
                                property having a unit 
                                acquisition cost of $5,000 or 
                                more.
                          (ii) Special limitations.--If the 
                        Administrator finds that an item has 
                        characteristics that require special 
                        handling or use limitations, the 
                        Administrator may impose appropriate 
                        conditions on the donation of the 
                        property.
                  (H) Unusable property.--
                          (i) Disposal.--The state plan of 
                        operation shall provide that surplus 
                        personal property which the state 
                        agency determines cannot be used by 
                        eligible recipients shall be disposed 
                        of--
                                  (I) subject to the 
                                disapproval of the 
                                Administrator within 30 days 
                                after notice to the 
                                Administrator, through transfer 
                                by the state agency to another 
                                state agency or through 
                                abandonment or destruction if 
                                the property has no commercial 
                                value or if the estimated cost 
                                of continued care and handling 
                                exceeds estimated proceeds from 
                                sale; or
                                  (II) under this subtitle, on 
                                terms and conditions and in a 
                                manner the Administrator 
                                prescribes.
                          (ii) Proceeds from sale.--
                        Notwithstanding subchapter IV of this 
                        chapter and section 702 of this title, 
                        the Administrator, from the proceeds of 
                        sale of property described in 
                        subsection (b), may reimburse the state 
                        agency for expenses that the 
                        Administrator considers appropriate for 
                        care and handling of the property.
  (f) Cooperative Agreements With State Agencies.--
          (1) Parties to the agreement.--For purposes of 
        carrying out this section, a cooperative agreement may 
        be made between a state surplus property distribution 
        agency designated under this section and--
                  (A) the Administrator;
                  (B) the Secretary of Education, for property 
                transferred under section 550(c) of this title;
                  (C) the Secretary of Health and Human 
                Services, for property transferred under 
                section 550(d) of this title; or
                  (D) the head of a federal agency designated 
                by the Administrator, the Secretary of 
                Education, or the Secretary of Health and Human 
                Services.
          (2) Shared resources.--The cooperative agreement may 
        provide that the property, facilities, personnel, or 
        services of--
                  (A) a state agency may be used by a federal 
                agency; and
                  (B) a federal agency may be made available to 
                a state agency.
          (3) Reimbursement.--The cooperative agreement may 
        require payment or reimbursement for the use or 
        provision of property, facilities, personnel, or 
        services. Payment or reimbursement received from a 
        state agency shall be credited to the fund or 
        appropriation against which charges would otherwise be 
        made.
          (4) Surplus property transferred to state agency.--
                  (A) In general.--Under the cooperative 
                agreement, surplus property transferred to a 
                state agency for distribution pursuant to 
                subsection (c) may be retained by the state 
                agency for use in performing its functions. 
                Unless otherwise directed by the Administrator, 
                title to the retained property vests in the 
                state agency.
                  (B) Conditions.--Retention of surplus 
                property under this paragraph is subject to 
                conditions that may be imposed by--
                          (i) the Administrator;
                          (ii) the Secretary of Education, for 
                        property transferred under section 
                        550(c) of this title; or
                          (iii) the Secretary of Health and 
                        Human Services, for property 
                        transferred under section 550(d) of 
                        this title.

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             Subchapter IV--PROCEEDS FROM SALE OR TRANSFER


Sec. 571. General rules for deposit and use of proceeds

  [(a) Deposit in Treasury as Miscellaneous Receipts.--
          [(1) In general.--Except as otherwise provided in 
        this subchapter, proceeds described in paragraph (2) 
        shall be deposited in the Treasury as miscellaneous 
        receipts.
          [(2) Proceeds.--The proceeds referred to in paragraph 
        (1) are proceeds under this chapter from a--
                  [(A) transfer of excess property to a federal 
                agency for agency use; or
                  [(B) sale, lease, or other disposition of 
                surplus property.
  [(b) Payment of Expenses of Sale Before Deposit.--Subject to 
regulations under this subtitle, the expenses of the sale of 
old material, condemned stores, supplies, or other public 
property may be paid from the proceeds of sale so that only the 
net proceeds are deposited in the Treasury. This subsection 
applies whether proceeds are deposited as miscellaneous 
receipts or to the credit of an appropriation as authorized by 
law.]
  (a) Proceeds From Transfer or Sale of Real Property.--
          (1) Deposit of net proceeds.--Net proceeds described 
        in subsection (c) shall be deposited into the 
        appropriate real property account of the agency that 
        had custody and accountability for the real property at 
        the time the real property is determined to be excess.
          (2) Expenditure of net proceeds.--The net proceeds 
        deposited pursuant to paragraph (1) may only be 
        expended, as authorized in annual appropriations Acts, 
        for activities described in sections 543 and 545, 
        including paying costs incurred by the General Services 
        Administration for any disposal-related activity 
        authorized by this chapter.
          (3) Deficit reduction.--Any net proceeds described in 
        subsection (c) from the sale, lease, or other 
        disposition of surplus real property that are not 
        expended under paragraph (2) shall be used for deficit 
        reduction.
  (b) Effect on Other Sections.--Nothing in this section is 
intended to affect section 572(b), 573, or 574.
  (c) Net Proceeds.--The net proceeds described in this 
subsection are proceeds under this chapter, less expenses of 
the transfer or disposition as provided in section 572(a), from 
a--
          (1) transfer of excess real property to a Federal 
        agency for agency use; or
          (2) sale, lease, or other disposition of surplus real 
        property.
  (d) Proceeds From Transfer or Sale of Personal Property.--
          (1) In general.--Except as otherwise provided in this 
        subchapter, proceeds described in paragraph (2) shall 
        be deposited in the Treasury as miscellaneous receipts.
          (2) Proceeds.--The proceeds described in this 
        paragraph are proceeds under this chapter from--
                  (A) a transfer of excess personal property to 
                a Federal agency for agency use; or
                  (B) a sale, lease, or other disposition of 
                surplus personal property.
          (3) Payment of expenses of sale before deposit.--
        Subject to regulations under this subtitle, the 
        expenses of the sale of personal property may be paid 
        from the proceeds of sale so that only the net proceeds 
        are deposited in the Treasury. This paragraph applies 
        whether proceeds are deposited as miscellaneous 
        receipts or to the credit of an appropriation as 
        authorized by law.

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SUBTITLE II--PUBLIC BUILDINGS AND WORKS

           *       *       *       *       *       *       *


PART A--GENERAL

           *       *       *       *       *       *       *



CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

           *       *       *       *       *       *       *



Sec. 3307. Congressional approval of proposed projects

  (a) Resolutions Required Before Appropriations May Be Made.--
The following appropriations may be made only if the Committee 
on Environment and Public Works of the Senate and the Committee 
on Transportation and Infrastructure of the House of 
Representatives adopt resolutions approving the purpose for 
which the appropriation is made:
          (1) An appropriation to construct, alter, or acquire 
        any building to be used as a public building which 
        involves a total expenditure in excess of $1,500,000, 
        so that the equitable distribution of public buildings 
        throughout the United States with due regard for the 
        comparative urgency of need for the buildings, except 
        as provided in section 3305(b) of this title, is 
        ensured.
          (2) An appropriation to lease any space at an average 
        annual rental in excess of $1,500,000 for use for 
        public purposes.
          (3) An appropriation to alter any building, or part 
        of the building, which is under lease by the Federal 
        Government for use for a public purpose if the cost of 
        the alteration will exceed $750,000.
  (b) Transmission to Congress of Prospectus of Proposed 
Project.--To secure consideration for the approval referred to 
in subsection (a), the Administrator of General Services shall 
transmit to Congress a prospectus of the proposed facility, 
including--
          (1) a brief description of the building to be 
        constructed, altered, or acquired, or the space to be 
        leased, under this chapter;
          (2) the location of the building or space to be 
        leased and an estimate of the maximum cost to the 
        Government of the facility to be constructed, altered, 
        or acquired, or the space to be leased;
          (3) a comprehensive plan for providing space for all 
        Government officers and employees in the locality of 
        the proposed facility or the space to be leased, having 
        due regard for suitable space which may continue to be 
        available in existing Government-owned or occupied 
        buildings, especially those buildings that enhance the 
        architectural, historical, social, cultural, and 
        economic environment of the locality;
          (4) with respect to any project for the construction, 
        alteration, or acquisition of any building, a statement 
        by the Administrator that suitable space owned by the 
        Government is not available and that suitable rental 
        space is not available at a price commensurate with 
        that to be afforded through the proposed action;
          (5) a statement by the Administrator of the economic 
        and other justifications for not acquiring a building 
        identified to the Administrator under section 3303(c) 
        of this title as suitable for the public building needs 
        of the Government;
          (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 statement of how the proposed project is 
        consistent with the standards and criteria developed 
        under section 11(b) of the Federal Assets Sale and 
        Transfer Act of 2016.
  (c) Increase of Estimated Maximum Cost.--The estimated 
maximum cost of any project approved under this section as set 
forth in any prospectus may be increased by an amount equal to 
any percentage increase, as determined by the Administrator, in 
construction or alteration costs from the date the prospectus 
is transmitted to Congress. The increase authorized by this 
subsection may not exceed 10 percent of the estimated maximum 
cost.
  (d) Rescission of Approval.--If an appropriation is not made 
within one year after the date a project for construction, 
alteration, or acquisition is approved under subsection (a), 
the Committee on Environment and Public Works of the Senate or 
the Committee on Transportation and Infrastructure of the House 
of Representatives by resolution may rescind its approval 
before an appropriation is made.
  (e) Emergency Leases by the Administrator.--This section does 
not prevent the Administrator from entering into emergency 
leases during any period declared by the President to require 
emergency leasing authority. An emergency lease may not be for 
more than 180 days without approval of a prospectus for the 
lease in accordance with subsection (a).
  (f) Minimum Performance Requirements for Leased Space.--With 
respect to space to be leased, the Administrator shall include, 
to the maximum extent practicable, minimum performance 
requirements requiring energy efficiency and the use of 
renewable energy.
  (g) Limitation on Leasing Certain Space.--
          (1) In general.--The Administrator may not lease 
        space to accommodate any of the following if the 
        average rental cost of leasing the space will exceed 
        $1,500,000:
                  (A) Computer and telecommunications 
                operations.
                  (B) Secure or sensitive activities related to 
                the national defense or security, except when 
                it would be inappropriate to locate those 
                activities in a public building or other 
                facility identified with the Government.
                  (C) A permanent courtroom, judicial chamber, 
                or administrative office for any United States 
                court.
          (2) Exception.--The Administrator may lease space 
        with respect to which paragraph (1) applies if the 
        Administrator--
                  (A) decides, for reasons set forth in 
                writing, that leasing the space is necessary to 
                meet requirements which cannot be met in public 
                buildings; and
                  (B) submits the reasons to the Committee on 
                Environment and Public Works of the Senate and 
                the Committee on Transportation and 
                Infrastructure of the House of Representatives.
  (h) Dollar Amount Adjustment.--The Administrator annually may 
adjust any dollar amount referred to in this section to reflect 
a percentage increase or decrease in construction costs during 
the prior calendar year, as determined by the composite index 
of construction costs of the Department of Commerce. Any 
adjustment shall be expeditiously reported to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives.

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                 MCKINNEY-VENTO HOMELESS ASSISTANCE ACT




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      TITLE V--IDENTIFICATION AND USE OF SURPLUS FEDERAL PROPERTY

SEC. 501. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND REAL 
                    PROPERTY TO ASSIST THE HOMELESS.

  (a) Identification of Suitable Property.--The Secretary of 
Housing and Urban Development shall, on a quarterly basis, 
request information from each landholding agency regarding 
Federal public buildings and other Federal real properties 
(including fixtures) that are excess property or surplus 
property or that are described as unutilized or underutilized 
in surveys by the heads of landholding agencies under section 
202(b)(2) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 483(b)(2)). No later than 25 days after 
receiving a request from the Secretary, the head of each 
landholding agency shall transmit such information to the 
Secretary. No later than 30 days after receiving such 
information, the Secretary shall identify which of those 
buildings and other properties are suitable for use to assist 
the homeless.
  (b) Availability of Property.--(1) The Secretary shall 
promptly notify each Federal agency with respect to any 
property of that agency that the Secretary has identified under 
subsection (a). No later than 45 days after receipt of such a 
notice, the head of the appropriate landholding agency shall 
transmit to the Secretary the agency's response to property 
identifications contained in such notification, which shall 
include--
          (A) in the case of unutilized or underutilized 
        property--
                  (i) a statement of intention to determine the 
                property excess to the agency's needs;
                  (ii) a statement of intention to make the 
                property available for use to assist the 
                homeless; or
                  (iii) a statement of the reasons (including a 
                full explanation of the need) the property 
                cannot be determined excess to the agency's 
                needs or made available for use to assist the 
                homeless; and
          (B) in the case of excess property--
                  (i) a statement that there is no other 
                compelling Federal need for the property and, 
                therefore, the property will be determined 
                surplus; or
                  (ii) a statement that there is further and 
                compelling Federal need for the property 
                (including a full explanation of such need) and 
                that, therefore, the property is not presently 
                available for use to assist the homeless.
   (2) [(A)] All properties identified by the Secretary under 
subsection (a) shall be available for application--
          [(i)] (A) in the case of property other than surplus 
        property, for use to assist the homeless in accordance 
        with the provisions of this section; [and]
          [(ii)] (B) 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 
        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
          (C) in the case of surplus property, the provision of 
        permanent housing with or without supportive services 
        is an eligible use to assist the homeless under this 
        section.
  (3) The Secretary shall maintain a written public record of--
          (A) the identification of buildings and other 
        properties by the Secretary under this subsection and 
        the reasons for such identifications; and
          (B) the responses of landholding agencies to such 
        identifications.
  (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), the Secretary shall publish [in the Federal 
Register] on the Web site of the Department of Housing and 
Urban Development or the General Services Administration--
          (i) a list of all properties reviewed by the 
        Secretary under subsection (a); and
          (ii) a list of all properties that are available 
        under subsection (b)(2) for application for use to 
        assist the homeless.
  (B) Each publication of properties shall include a 
description and the location of each property (including the 
address and zip code) and the current classification of each 
property as unutilized, underutilized, excess property, or 
surplus property.
  (C) The Secretary shall make available to the public upon 
request all information in the possession of the Department of 
Housing and Urban Development (other than valuation 
information), regardless of format, about all properties 
reviewed and not identified as being suitable for use to assist 
the homeless, including the reasons such properties were not so 
identified.
  (D) The Secretary shall publish separately, on an annual 
basis, all properties identified as being suitable for use to 
assist the homeless, but reported to be unavailable, and the 
reasons such properties were unavailable.
  (2)(A) No later than 15 days after the last day of the 45-day 
period provided for under subsection (b)(1), the Secretary 
shall transmit a copy of the list of available properties 
published under paragraph (1)(A)(ii) to the United States 
Interagency Council on Homelessness. The Council shall 
immediately distribute to all State and regional homeless 
coordinators area-relevant portions of the list.
  (B) The Secretary, the Administrator, and the Secretary of 
Health and Human Services shall make such efforts as are 
necessary to ensure the widest possible dissemination of the 
information on such list.
  (C) The Secretary shall establish a toll-free number to 
provide the public with specific information about properties 
on such list.
  (3) The Secretary shall make available to the public upon 
request all information (other than valuation information) 
regardless of format in the possession of the Department of 
Housing and Urban Development about the properties published 
under paragraph (1)(A), including environmental assessment 
data. The Secretary shall maintain a current list of agency 
contacts for making referrals of inquiries for information 
about specific properties.
  (4)(A) On December 31 of each year, the head of each 
landholding agency shall report to the Secretary the current 
availability status and the current classification of each 
property controlled by the agency, that--
          (i) was included in a list published in that year by 
        the Secretary under paragraph (1)(A)(ii); and
          (ii) remains available for application for use to 
        assist the homeless or has become available for 
        application during that year.
  (B) No later than February 15 each year, the Secretary shall 
publish in the Federal Register a list of all properties 
reported under subparagraph (A) for the preceding year and the 
current classification of the properties.
  (C) For purposes of subparagraph (A), property shall not be 
considered to remain available for application for use to 
assist the homeless after the 60-day holding period provided 
under subsection (d) if--
          (i) an application for or written expression of 
        interest in the property is made under any law for use 
        of the property for any purpose; or
          (ii) the Administrator receives a bona fide offer to 
        purchase the property or advertises for the sale of the 
        property by public auction.
  (d) Holding Period.--(1) Properties published under 
subsection (c)(1)(A)(ii) as available for application for use 
to assist the homeless shall not be available for any other 
purpose for a [period of 60 days] period of 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) with respect to that written 
notice of intent.
  (3) Property that is reviewed by the Secretary under 
subsection (a) 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 United States 
Interagency Council on Homelessness. If no such review of the 
determination is requested within the 20-day period, such 
property will not be included in subsequent publications unless 
the landholding agency makes changes to the property (e.g. 
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) may be filed at any 
time after the [60-day period] 30-day period described in 
paragraph (1) has expired. In such case, an application 
submitted pursuant to the notice may be approved for disposal 
for use to assist the homeless only if the property remains 
available for application for use to assist the homeless. If 
the property remains available, the use to assist the homeless 
shall be given priority of consideration over other competing 
disposal opportunities under section 203 of the Federal 
Property and Administratives Services Act of 1949 (40 U.S.C. 
484), except as provided in subsection (f)(3)(A).
  (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).
  (e) Application for Property.--(1) A representative of the 
homeless may submit an application to the Secretary of Health 
and Human Services for any property that is published under 
subsection (c)(1)(A)(ii) as available for application for use 
to assist the homeless.
  (2)(A) No later than [90 days] 75 days after the submission 
of written notice of intent 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.
  (B) An initial application shall set forth--
          (i) the services that will be offered;
          (ii) the need for the services; and
          (iii) the experience of the applicant that 
        demonstrates the ability to provide the services.
  (3) No later than [25 days after receipt of a completed 
application] 10 days after receipt of an initial application , 
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.
  (4) If the Secretary of Health and Human Services approves an 
initial application, the applicant has 45 days in which to 
provide a final application that sets forth a reasonable plan 
to finance the approved program.
  (5) No later than 15 days after receipt of the final 
application, 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 an application.
  (f) Making Property Available to Representatives of the 
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) shall be made 
promptly [available by] available, at the applicant's 
discretion, by permit or lease, or by deed as a public health 
use under 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)), to the representative of the 
homeless that submitted the application.
  (2) Unutilized or underutilized property that is the subject 
of an agency's statement of intention under subsection 
(b)(1)(A)(ii) shall be made promptly available by the 
appropriate landholding agency to the approved applicant by 
lease or permit for a term of not less than 1 year, unless the 
applicant requests a shorter term.
  (3)(A) In disposing of surplus property by deed or lease 
under section 203 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 484), the Administrator and the 
Secretary of Health and Human Services shall give priority of 
consideration to uses to assist the homeless, unless the 
Administrator or the Secretary of Health and Human Services 
determines that a competing request for the property under 
section 203(k) of such Act is so meritorious and compelling as 
to outweigh the needs of the homeless.
  (B) Whenever the Administrator or the Secretary of Health and 
Human Services makes a determination under subparagraph (A), 
the Administrator or the Secretary of Health and Human Services 
shall transmit to the appropriate committees of the Congress an 
explanatory statement detailing the need satisfied by 
conveyance of the surplus property and the reasons for 
determining that such need was so meritorious and compelling as 
to outweigh the needs of the homeless.
  (4) For any property made available by lease to a 
representative of the homeless before the date of the enactment 
of the Stewart B. McKinney Homeless Assistance Amendments Act 
of 1990, the Secretary of Health and Human Services may, upon 
written request by the representative, convey such property by 
deed to the representative in accordance with, and subject to 
the requirements of, section 203(k) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 484(k)). The 
lease term shall not be affected if a deed is not granted.
  (g) Records.--The Secretary shall maintain a written public 
record of--
          (1) the reasons for determinations of the Secretary 
        under this section that property is suitable or 
        unsuitable for use to assist the homeless; and
          (2) the responses of landholding agencies under 
        subsection (b)(1).
  (h) Applicability to Property Under Base Closure Process.--
(1) The provisions of this section shall not apply to buildings 
and property at military installations that are approved for 
closure under the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note) after the date of the enactment of this subsection.
  (2) For provisions relating to the use to assist the homeless 
of buildings and property located at certain military 
installations approved for closure under such Act, or under 
title II of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
note), before such date, see section 2(e) of Base Closure 
Community Redevelopment and Homeless Assistance Act of 1994.
  (i) Definitions.--For purposes of this section--
          (1) the term ``Administrator'' means the 
        Administrator of General Services;
          (2) each of the terms ``excess property'' and 
        ``surplus property'' has the meaning given that term 
        under section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472);
          (3) the term ``landholding agency'' means a Federal 
        department or agency with statutory authority to 
        control real property;
          (4) the term ``representative of the homeless'' means 
        a State or local government agency, or private 
        nonprofit organization, which provides services to the 
        homeless; and
          (5) the term ``Secretary'' means the Secretary of 
        Housing and Urban Development, except as otherwise 
        provided.

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