How to Acquire Federal Surplus Real Property For Public Health Purposes
Occasionally, the General Services Administration, under the authority of the Federal Property and Administrative Services Act of 1949, identifies real property that is no longer required by the Federal government. Under the authority of the above Act and Title V of the McKinney-Vento Homeless Assistance Act, as amended, the Department of Health and Human Services (HHS) may transfer declared Federal surplus real estate to eligible non-Federal applicants for both public health and homeless purposes. Top of Page Surplus property is any excess real property not required by any Federal landholding agency for its needs or responsibilities, as determined by the Administrator of the General Services Administration (GSA). Surplus property can be both “on-site” and “off-site” real property. “On-site”property refers to: land; buildings, such as houses, hospitals, or barracks; and other types of structures. “Off-site” property is buildings and structures which are surplus but located on land which is not surplus and therefore, must be relocated. Top of Page Information about property for public health or homeless use can be obtained by contacting GSA at the following address in the area of interest: Property Disposal Division
General Services Administration
Thomas P. O’Neill Jr., Federal Building
10 Causeway Street
Boston, MA 02222
Phone: (617) 565-5700 Fax: (617) 565-5720
ME, VT, NH, RI, MA, CT, NY, NJ, IL, IN
MI, MN, WS, OH, PR, VI Property Disposal Division
General Services Administration
401 West Peachtree Street
Atlanta, GA 30308
Phone: (404) 331-5133 Fax: (404) 331-2727
MD, DE, VA, PA, WV, NC, MS, SC, TN,
GA, AL, FL, KY, DC Property Disposal Division
General Services Administration
819 Taylor Street
Fort Worth, TX 76102
Phone: (817) 978-2331 Fax: (817) 978-2063
KS, MO, IA, NE, AR, LA, NM, OK, TX,
MT, ND, SD, WY, UT, CO Property Disposal Division
General Services Administration
450 Golden Gate Avenue (4th Floor)
San Francisco, CA 94102
Phone: (415) 522-3429 Fax: (415) 522-3213
CA, NV, AZ, HI, Guam, American Samoa,
Trust Territory of Pacific Island, AK, WA,
OR, ID
In accordance with Title V of the McKinney Act, the Department of Housing and Urban Development (HUD) makes determinations on the suitability of Federal properties for use to assist homeless individuals. HUD publishes a list of its determinations in the Federal Register. The Federal Register advertises a list of these properties each Friday and may be found at local public libraries. The internet address for the Federal Register http://www.gpoaccess.gov/fr/index.html.
Additional information regarding these properties, as well as the Title V process, can be obtained by calling HUD’s toll-free number, 1-800-927-7588. Top of Page Those eligible for surplus real property include States and their political subdivisions and instrumentalities, and tax-supported and nonprofit institutions. To be eligible, institutions must also meet the following criteria as determined by HHS: - Propose a health or homeless program that is within the meaning of HHS’ statutes and regulations. Some potentially eligible programs include: hospitals; public health clinics; homeless services; public water and sewage systems; research; rehabilitation of the mentally or physically disabled; juvenile delinquent diagnostic, evaluation, and rehabilitation centers; animal control facilities; and other basic health programs.
- Request an amount of property that is within normal operating requirements of the proposed program.
- Have both the organizational and financial abilities to maintain the property and carry out the proposed program.
Top of Page When an organization identifies available surplus real property, suitable for its program, a formal written expression of interest must be submitted to HHS through the Program Support Center (PSC). Upon receipt of the expression of interest, PSC will provide an application instruction packet and will be available to assist with any questions regarding the application process. The letter of interest should identify the property, the date of publication in the Federal Register, and/or any numbers identifying the particular property. Briefly describe the proposed program, state the name of the organization, and explain whether it is a public body or a private nonprofit organization. A private nonprofit organization must also state that it is tax-exempt under 501(c)(3) of the 1986 Internal Revenue Code. The letter should be submitted to the PSC address listed in this pamphlet. Top of Page Various other laws and regulations apply to transfers of these properties, besides the previously mentioned statutes, including: The National Environmental Policy Act of 1969, The National Historic Preservation Act, The Archeological Resources Protection Act, and statutes which forbid discrimination because of race, religion, color, sex, disability, age or national origin. The United States must receive the full fair market value of any property to be transferred either through cash payment or a public benefit allowance which accrues over a predetermined period of years. In the case of land, with or without improvements, the accrual period is thirty (30) years. In the case of facilities acquired separately from land, whether for on-site or off-site use, the accrual period is the estimated remaining useful life of the facilities. The public benefit allowance (PBA) varies from 50% to 100%, depending on the type of facility and the proposed program. To assure accrual of the PBA, the property may only be used for the approved program and must not be sold, leased, mortgaged, or otherwise encumbered, without the prior approval of PSC. Transferees must also submit yearly reports regarding the use of the property. Failure to comply with any of the conditions and restrictions, may cause title to the property to revert to the United States. Property will not be approved for transfer unless it is needed at the time of application or in the near future. A property must be placed into its intended use within 12 months of transfer, or within 36 months where construction or major renovation is contemplated. If the time limits are not met, or a property ceases to be properly utilized for any period of time, the transferee will be required to pay for each month of nonuse, the percentage of the current value of the property which otherwise would have been earned through use. Payments will cease when the property is used as intended. Any property not properly utilized must be returned to the Government, re-transferred to another eligible public health institution, or sold for the benefit of the Government. Deed restrictions may be released with the consent of the Government upon payment of the current fair market value of the property minus the value of the already accrued PBA. Transferees are required to pay all external administrative costs incidental to transfers which include, but are not limited to, surveys, appraisals, legal fees, title search, and closing fees. Top of Page The U. S. Department of Health and Human Services’ regulations governing the program are found in Title 45 Code of Federal Regulations Parts 12 and 12.a. Information concerning the surplus real property program may be obtained by telephone, letter, or personal visit to the address below. Chief, Real Property Branch
Program Support Center
5600 Fishers Lane
Room 5B-17,
Rockville, MD 20857
Phone: (301) 443-2265
Fax: (301) 443-0084
rpb@psc.gov
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