Surplus Property Utilization

To convey or lease surplus Federal real properties made available by the disposal agency which are needed and usable by eligible organizations and institutions to carry out health programs, including homeless assistance programs.

The program makes surplus Federal real properties (land and/or building) available for acquisition by eligible organizations to be used for public health and homeless assistance purposes.

States, their political subdivisions and instrumentalities; tax-supported public health institutions, and nonprofit institutions which (except for institutions which lease property to assist the homeless under Title V of Public Law 100-77) have been held exempt from taxation under Section 501 (c) (3) of the 1986 Internal Revenue Code.

Anyone attending, working with or for, or served by the eligible applicants. Examples of potentially eligible use programs are hospitals, public health clinics, water and sewer systems, institutions for the rehabilitation of mentally or physically disabled, health research institutions, homeless assistance facilities, and other institutions with basic health programs.

Applicants must demonstrate current need for properties they request and the ability, programmatically and financally, to carry out the proposed program. Applicants must also provide documentation of its authority to hold title to real property and evidence of tax-exempt status.

Real property must be used for eligible health purposes including research. It may consist of land with or without buildings and other improvements or buildings only. A discount of up to 100 percent based on the proposed program use is granted. This discount applied against the fair value of the property, is earned by approved use over a prescribed period of 30 years for land with or without improvements, and a lesser time for leased facilities and improvements which are transferred without land. Allowance of less than 100 percent requires payment of the difference in cash at the time of conveyance. Property must be used for the purpose for which conveyed, and may not be sold, leased, mortgaged, or encumbered without consent of the Department.

Deed restrictions run for a period of 30 years and Agreements of Sale are normally for 5 years, after which the transferee has clear title to the property. Restrictions on leased property run for the period of the lease term.

Notice of availability of surplus real property is sent by the U.S. General Services Administration or the U.S. Department of Housing and Urban Development, to all known potentially interested institutions. When applying for real property, an informal pre-application conference either in person or by telephone is recommended. At that time, consultation and assistance are available to aid in the preparation of an application; but, only to address general application questions, not questions specific to a proposed program. Additionally, it is advisable that an applicant participate in a site tour of the property provided by the disposal agency. Applicants are required to submit factors for consideration of potential environmental impact, in accordance with the Environmental Questionnaire furnished with the application instructions.

Applicants interested in acquiring Federal real properties must contact Real Property Management Services, RLO, PSC, DHHS.

All applications must establish eligibility of the institution, its programs, and the proposed use to meet the program needs. A public benefit allowance formula, uniformly applied, determines the respective benefits of each program. Basic allowance of 50 percent is allowed to institutions meeting the following: (1) Proof of current need; (2) ability to operate and maintain; (3) suitability of facilities or adaptability for conversion; (4) requirement for utilization through period of restrictions; and (5) nondiscrimination because of race, color, sex, age, handicap, or national origin. Additional allowances are made for tax support, accreditation, hardship, integrated research, outpatient services, public services, and training programs. For competing programs, the one showing the greatest public benefit is selected. Applicants applying for property pursuant to Title V of McKinney-Vento for homeless assistance purposes are granted 100% public benefit allowance.

Real property is awarded to the applicant whose program(s) of use are determined to be in the highest public interest. Land (with or without improvements) is conveyed by quitclaim deed or lease; buildings for off-site removal are by agreement of sale.

Normally, approval or disapproval is made within 30 days after a completed application has been submitted for real property. For properties to assist homeless individuals under Title V of the McKinney Act, approval or disapproval of an initial application is made within 10 days after a complete, initial application is received; approval or disapproval of a final application is made within 15 days after a complete, final application is received.

There is no appeals process.