Federal Real Property: Authorities and Actions Regarding Enhanced Use Leases and Sale of Unneeded Real Property Page: 2 of 37
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Some federal agencies have been granted authorities to enter into enhanced use
leases (EUL)-typically long-term agreements with public and private entities for the
use of federal property, resulting in cash and/or in-kind consideration for the
agency-or to retain the proceeds from the sale of real property. Given the large
number of unneeded properties being held by the federal government, you asked that
we review how agencies are using their disposal authorities. Therefore, we
addressed (1) what authorities the 10 largest real property holding agencies have to
enter into EULs and retain proceeds from the sale of real property; (2) the extent to
which agencies with authority to retain proceeds sold real property and how they
have used the proceeds; and (3) the relationship, if any, between agencies having the
authority to enter into EULs or retain sales proceeds and the amount of real property
that they retained or sold.
To address these questions, we analyzed agencies' legal authorities related to EULs
and the sale and retention of proceeds of real property; analyzed agency real property
and FRPP data; and gathered, analyzed, and synthesized documentary and
testimonial evidence of the 10 largest real property holding federal agencies (by value
of real property). These 10 agencies include the Department of Agriculture (USDA),
Department of Defense (DOD), Department of Energy (DOE), Department of the
Interior (DOI), Department of Justice (DOJ), Department of State (State),
Department of Veterans Affairs (VA), General Services Administration (GSA),
National Aeronautics and Space Administration (NASA), and the United States Postal
Service (USPS). For the purposes of this review, the term "real property" does not
include real property that DOD has or is planning to dispose of through the Base
Realignment and Closure Act (BRAC) process,4 lands managed by DOI or the Forest
Service (except for Forest Service administrative sites), and transfers of individual
properties specifically authorized by Congress. We also conducted site visits of real
property that agencies have recently sold, exchanged, or were attempting to sell, and
a property being leased under an EUL agreement and collected data from agencies on
their real property sales during fiscal years 2006 and 2007. (See encl. I for additional
information on our scope and methodology.)
We conducted our work in Arlington, Va.; Camp Verde, Ariz.; Colorado Springs, Colo.;
Denver; Estes Park, Colo.; Glendale, Ariz.; Guilderland, N.Y.; Hillsborough, N.J.;
Loveland, Colo.; Middle River, Md.; New York City; Peoria, Ariz.; Rotterdam, N.Y.;
Scotia, N.Y.; Scottsdale, Ariz.; Sedona, Ariz.; Tucson, Ariz.; and Washington, D.C.,
from April 2008 through February 2009.
Results in Brief
The 10 largest real property holding agencies have different authorities regarding
EULs and retention of proceeds from the sale of real property. As of the end of fiscal
4Under the BRAC process, the Secretary of Defense is authorized to close certain military bases and
dispose of property. In the scope of our review, we included real property disposed of by DOD
through its authority to convey or lease existing property and facilities outside of the BRAC process.
GAO-09-283R Real Property Disposal
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United States. Government Accountability Office. Federal Real Property: Authorities and Actions Regarding Enhanced Use Leases and Sale of Unneeded Real Property, text, February 17, 2009; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc300973/m1/2/: accessed September 25, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.