Surplus Property Utilization


To convey or lease all 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.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Agency: Department of Health and Human Services
Office: Program Support Center
Type(s) of Assistance Offered
Sale, Exchange, or Donation of Property and Goods
Program Accomplishments
Not Applicable.
Federal Property and Administrative Services Act of 1949, Section 203(k), Public Law 81-152, 40 U.S.C. 550,, Section 203(k), Public Law 81-152, 101 Stat. , 40 U.S.C 550; Stewart B. McKinney Homeless Assistance Act of 1987, Section 501, Public Law 100-77, 101 Stat. 509, 42 U.S.C 11301.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
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.
Beneficiary Eligibility
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 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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
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. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applicants interested in acquiring Federal real properties must contact Real Property Management Services, REL, PSC, DHHS.
Award Procedure
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.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
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 is made 25 days after a complete application is received.
Not Applicable.
Not Applicable.
How are proposals selected?
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. Where property can be divided, as many compatible programs as possible are accommodated.
How may assistance be used?
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. Property must be used for the approved purpose for a specific period of time (i.e., 30 years); property can not be sold, encumbered, mortgaged, etc. without prior approval of office; grantee required to submit annual utilization reports; grantee must not discriminate in its use of the property; etc.
What are the requirements after being awarded this opportunity?
Transferee is required to submit an annual utilization report on the operation and maintenance of the property. Cash reports are not applicable. Progess reports are only required on a case-by-case basis. Expenditure reports are not applicable. HHS program office conducts periodic site visits and requires the submittal of annual utilization report.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. The Department's Audit agency makes periodic audits of the headquarters operation and may make spot checks of the utilization by real property transferees.
Transferees of real property, who expend funds to rebuild, refurbish, or to otherwise improve property under restrictions, should maintain records of these costs in the event they wish to dispose of the property prior to termination of the restriction period.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
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 which will not extend beyond a total of a 20 year period. See the following for information on how assistance is awarded/released: Via deed or lease.
Who do I contact about this opportunity?
Regional or Local Office
Headquarters Office
Theresa M. Ritta 5600 Fishers Lane, Rockville, Maryland 20857 Email: Phone: (301) 443-2265
Website Address
Financial Information
Account Identification
(Sale, Exchange, or Donation of Property and Goods) FY 14 Not Separately Identifiable; FY 15 Not Separately Identifiable; and FY 16 Not Separately Identifiable
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Title 45, Subtitle A, Part 12, Disposal and Utilization of Surplus Real Property for Public Health Purposes. Literature: The following pamphlet is available from Real Property Services: "How to Acquire Federal Surplus Real Property for Public Health Purposes," at no charge.
Examples of Funded Projects
Not Applicable.


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