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 McKinney-Vento Act

Overview/Background The “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

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

Federal Property Act, cont. Disposal by demolition, FMR 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

Federal Property Act, cont. Disposal of improvements without the underlying land, FMR – 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 ( )

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

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 ) Rocky Flats (P.L ) NPR-3 (P.L )

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

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

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

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

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

McKinney Act - Litigation Act passed in 1987, litigation began in 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.

McKinney Act Litigation, cont 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

QUESTIONS? David Steinau Realty Specialist, MA