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DOE Real Property Disposal - Outline

DOE Real Property Disposal Authorities, Options and Processes David Steinau Realty Specialist Real Estate Division (MA-651) May 21, 2013. DOE Real Property Disposal - Outline. Background/overview Federal Property Act DOE authorities Specific legislation Disposal process/outcomes

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DOE Real Property Disposal - Outline

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  1. DOE Real Property DisposalAuthorities, Options and ProcessesDavid SteinauRealty SpecialistReal Estate Division (MA-651)May 21, 2013

  2. DOE Real Property Disposal - Outline • Background/overview • Federal Property Act • DOE authorities • Specific legislation • Disposal process/outcomes • McKinney-Vento Act

  3. Overview/BackgroundThe “Big Picture” • Requirement to: • Review property holdings • ID unneeded/underutilized • Dispose (or try) • Policy emphasis on disposal • President’s 2010 memo • OMB freeze the footprint • GAO

  4. Federal Property Act • Federal Property & Administrative Services Act of 1949 (40 U.S. Code sec. 101, et seq.)(41 CFR 102) • Applies to all agencies, but DOE exempt for “atomic energy” • Agencies survey property holdings, declare excess to GSA • GSA screens excess property to other agencies • HUD screens for homeless assistance • Surplus property disposal options: • Public benefit conveyance • Negotiated sale • Public sale/auction

  5. Federal Property Act, cont. • Disposal by demolition, FMR 102-75.990 et seq. • No commercial value • Maintenance costs > sale proceeds • Determination by “duly authorized official” • GSA concurrence when donating to public bodies: • improvements > $250k • Land, any value

  6. Federal Property Act, cont. • Disposal of improvements without the underlying land, FMR 102-75.296 • Agency (w/o using GSA) may dispose of all improvements, fixtures, structures when underlying land is not being disposed of • Prefabricated structures may be considered personal property for disposal (102-75.160)

  7. DOE Authorities • Atomic Energy Act sec. 161g (42 USC 2201(g)) • “acquire, purchase, lease and hold” • “sell, lease, grant, and dispose” • Atomic Energy Communities Act (42 USC 2301, et seq.) • Oak Ridge, Los Alamos, Richland • Created towns out of Government property • Historic (1955), but still valid • cited in specific legislation in 1997

  8. Specific Legislation“Congress made me do it…” • Directs sale of specific property • May ID grantee (if so, don’t screen) • Often states price or “no consideration” • Los Alamos (P.L. 105-119) • Rocky Flats (P.L. 107-107) • NPR-3 (P.L. 105-261)

  9. Disposal Process/Outcomes • DOE O 430.1B: • Programs annually declare excess to APM • APM conducts internal DOE screening • Program plans/conducts disposal: • Demolition • GSA disposal under Property Act • GSA disposal under DOE authority • DOE disposal directed by special legislation • DOE disposal under DOE authority • Includes 10 CFR 770 economic development transfer

  10. McKinney-Vento Act • Title V makes Federal R.E. available to help homeless • Surplus, excess, unutilized or underutilized • AEA property exempt, but reporting recommended • Special legislation exempt, do not report

  11. McKinney-Vento Act, Process • Complete checklist, send to HUD • HUD determines suitability based on criteria: • National security • Flammable/explosive materials • Runway/military airfield clear zone • Floodway • Documented deficiencies (contamination/deterioration/natural hazards) • Inaccessible • GSA handles process for properties declared excess

  12. McKinney Act process, cont. • HUD informs agency of suitability determination w/in 30 days • 45 days for agency to respond re: availability • Federal Register publication • 20 days to appeal unsuitability determination • If no appeal, agency can dispose after 20 days • 60 day holding period for available properties • If no application for homeless use, may dispose • If application not approved in 90 days, may dispose

  13. McKinney Act process, cont. • If application approved: • Unutilized/underutilized property • Lease/permit by landholding agency • Agency discretion whether to allow lease/permit; length of term, conditions • Excess/surplus property • HHS requests assignment and issues lease, or • Public benefit conveyance w/reversion right

  14. McKinney Act - Litigation • Act passed in 1987, litigation began in 1988 • 1993 Order requires “quarterly canvasses” • Report newly-identified properties • DOE sites/programs report on ongoing basis • Update status of previously-reported properties • Demolished or sold/conveyed, e.g.

  15. McKinney Act Litigation, cont. • 2013 Order: “GSA shall produce to plaintiffs, on an annual basis, a list of properties that are reported as “excess” or “underutilized” for the purposes of the FRPP but that have not been reported to GSA as excess through Title V.” • FRPP list > McKinney list • Questions about why properties weren’t reported to HUD • Take-away: report to HUD, or document why not

  16. QUESTIONS? David Steinau Realty Specialist, MA-651 david.steinau@hq.doe.gov 202-287-1503

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