1. DOE Real Property Disposal Authorities, Options and Processes David Steinau Realty Specialist Real 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/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

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