Recent Legislation

PL 114-287: Federal Asset Sales and Transfer Act of 2016

In brief, FASTA would establish a commission to identify excess properties for sale, with the proceeds reinvested to fuel additional sales over a six-year period aimed at helping the federal government shed substantial millions of dollars in excess property. The effort picks up on previous bills like the Civilian Property Realignment Acts of 2011 and 2013, and the Federal Real Property Asset Management Reform Act of 2013, which all failed.

This latest bill also aims to decrease the deficit by consolidating and selling excess Federal tangible property and would establish an independent board to be known as the Federal Tangible Property Management Reform Board. The Board would consist of seven members whose terms would be for six years. Of particular interest, the Board would have to assemble a database of all Federal civilian real property owned, leased or controlled by agencies, including age and condition of the property; operating costs; history of capital expenditures; sustainability metrics; number of Federal employees and functions housed in the respective property; and the square footage of each property; and would indicate properties reported as excess and declared surplus which no space, considering the diverse nature of the Federal portfolio and consistent with nongovernmental space use rates; develop a strategy to reduce the reliance of Federal agencies on leased space for long-term needs if ownership would be less costly; provide guidance on eliminating inefficiencies in the Federal leasing process; and develop a list of all leases (other than Postal Service and national security properties). longer met the needs of the agency.

The Board would have to identify not less than 5 Federal civilian real properties that were not surplus or excess having a total fair market value of not less than $500,000,000; and each agency would have to submit a report of excess properties which within 120 days after that, initiate the sale of those excess properties at fair market value at highest and best use.

From the perspective of the Industry, not later than one year after the date of the enactment of this Act, GSA is to publish a single, comprehensive, and descriptive database of all Federal tangible property under the custody and control of all Federal agencies (other than national security properties) and make the database publicly accessible at no cost through GSA’s Website.

Net proceeds are to be deposited into the appropriate tangible property account of the custodial agency; the net proceeds resulting from such sales can be expended as authorized in annual appropriations Acts, with any unexpended used for deficit reduction.

PL 114-318: Federal Property Management Reform Act of 2016

Sponsored by Rep. Jeff Denham (R-CA) and Rep. Jason Caffetz (R-UT), this Act would increase the efficiency and effectiveness of the Federal Government in managing property of the Federal Government on the part of the United States Postal Service, and establish a Federal Real Property Council to develop guidance on and ensure the implementation of strategies for better managing Federal property. Including development of utilization rates consistent throughout each category of space, considering the diverse nature of the Federal portfolio and consistent with nongovernmental space use rates; develop a strategy to reduce the reliance of Federal agencies on leased space for long-term needs if ownership would be less costly; provide guidance on eliminating inefficiencies in the Federal leasing process; and develop a list of all leases (other than Postal Service and national security properties).

Update: These Acts were signed into law by then President Barack Obama on December 16, 2016. FASTA is waiting on the appointment of its Commissioner by President Trump and the six Assistant Commissioners by the House and Senate, as well as on the appropriation by Congress of its operating budget of $42 million. OMB will have general oversight of FASTA and GSA is preparing a data call in accordance with the Act for all land holding agencies; GSA is also to design a template for use with the Commission’s recommendations for the disposal of underutilized surplus property.



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for more info please contact Dennis Eisen