10 USC 2869 - Conveyance of property at military installations to support military construction or limit encroachment

(a) Conveyance Authorized; Consideration.— 

(1) The Secretary concerned may enter into an agreement to convey real property, including any improvements thereon, described in paragraph (2) to any person who agrees, in exchange for the real property
(A) to carry out a military construction project or land acquisition, including the acquisition of all right, title, and interest or a lesser interest in real property under an agreement entered into under section 2684a of this title to limit encroachments and other constraints on military training, testing, and operations; or
(B) to transfer to the Secretary concerned housing that is constructed or provided by the person and located at or near a military installation at which there is a shortage of suitable military family housing, military unaccompanied housing, or both.

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(2) Paragraph (1) applies with respect to real property under the jurisdiction of the Secretary concerned that
(A) is located on a military installation that is closed or realigned under a base closure law; or
(B) is located on a military installation not covered by subparagraph (A) and is determined to be excess to the needs of the Department of Defense.
(3) Subparagraph (B) of paragraph (2) shall apply only during the period beginning on the date of the enactment of the John Warner National Defense Authorization Act for Fiscal Year 2007 and ending on September 30, 2008. Any conveyance of real property described in such subparagraph for which the Secretary concerned has provided the advance public notice required by subsection (d)(1) before the expiration date may be completed after that date.
(b) Conditions on Conveyance Authority.— 
The fair market value of the military construction, military family housing, or military unaccompanied housing to be obtained by the Secretary concerned under subsection (a) in exchange for the conveyance of real property by the Secretary under such subsection shall be at least equal to the fair market value of the conveyed real property, as determined by the Secretary. If the fair market value of the military construction, military family housing, or military unaccompanied housing is less than the fair market value of the real property to be conveyed, the recipient of the property shall pay to the United States an amount equal to the difference in the fair market values.
(c) Pilot Program for Use of Authority.— 

(1) To the maximum extent practicable, the Secretary of each military department shall use the conveyance authority provided by subsection (a) at least once before December 31, 2004, for the purposes specified in such subsection.
(2) The value of the consideration received by the Secretary concerned in a conveyance carried out under this subsection shall not be less than $1,000,000.
(3) In the case of the report required under subsection (f) to be submitted in 2005, the Secretary of Defense shall include the following:
(A) A description of the conveyances carried out or proposed under this subsection.

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(B) A description of the procedures utilized to enter into any agreements for the conveyance of property under this subsection.
(C) An assessment of the utility of such procedures for the disposal of property at military installations closed or realigned under the base closure laws, and for securing services described in subsection (a), including an assessment of any time saved and cost-savings achieved as a result of the use of the conveyance authority provided by this section.
(D) An assessment of private sector interest in the use of the conveyance authority provided by this section.
(E) A description of the projects for which the Secretary concerned considered using the conveyance authority provided by this section, but did not do so, and an explanation of the decision.
(d) Advance Notice of Use of Authority.— 

(1) Notice of the proposed use of the conveyance authority provided by subsection (a) shall be provided in such manner as the Secretary of Defense may prescribe, including publication in the Federal Register and otherwise. When real property located at a military installation is proposed for conveyance by means of a public sale, the Secretary concerned may notify prospective purchasers that consideration for the property may be provided in the manner authorized by such subsection.
(2) The Secretary concerned may not enter into an agreement under subsection (a) for the conveyance of real property until
(A) the Secretary submits to Congress notice of the conveyance, including
(i) a description of the real property to be conveyed by the Secretary under the agreement;
(ii) a description of the military construction project, land acquisition, military family housing, or military unaccompanied housing to be carried out under the agreement in exchange for the conveyance of the property; and
(iii) the amount of any payment to be made under subsection (b) or under section 2684a (d) of this title to equalize the fair market values of the property to be conveyed and the military construction project, land acquisition, military family housing, or military unaccompanied housing to be carried out under the agreement in exchange for the conveyance of the property; and
(B) the waiting period applicable to that notice under paragraph (3) expires.
(3) If the notice submitted under paragraph (2) deals with the conveyance of real property located on a military installation that is closed or realigned under a base closure law or the conveyance of real property under an agreement entered into under section 2684a of this title, the Secretary concerned may enter into the agreement under subsection (a) for the conveyance of the property after a period of 21 days has elapsed from the date of receipt of the notice or, if over sooner, a period of 14 days has elapsed from the date on which a copy of the notice is provided in an electronic medium pursuant to section 480 of this title. In the case of other real property to be conveyed under subsection (a), the Secretary concerned may enter into the agreement only after a period of 60 days has elapsed from the date of receipt of the notice or, if over sooner, a period of 45 days has elapsed from the date on which the electronic copy is provided.
(e) Deposit and Use of Funds.— 

(1) Except as provided in paragraph (2), the Secretary concerned may deposit funds received under subsection (b) in the Department of Defense housing funds established under section 2883 (a) of this title.
(2) During the period specified in paragraph (3) of subsection (a), the Secretary concerned shall deposit funds received under subsection (b) in the appropriation Foreign Currency Fluctuations, Construction, Defense.
(3) The funds deposited under paragraph (2) shall be available, in such amounts as provided in appropriation Acts, for the purpose of paying increased costs of overseas military construction and family housing construction or improvement associated with unfavorable fluctuations in currency exchange rates. The use of such funds for this purpose does not relieve the Secretary concerned from the duty to provide advance notice to Congress under section 2853 (c) of this title whenever the Secretary approves an increase in the cost of an overseas project under such section.
(f) Annual Reports; Effect of Failure to Submit.— 

(1) Not later than March 15 of each year, the Secretary of Defense shall submit to Congress a report detailing the following:
(A) The extent to which the Secretaries concerned used the authority provided by subsection (a) during the preceding fiscal year to convey real property in exchange for military construction and military housing, including the total value of the real property that was actually conveyed during such fiscal year using such authority and the total value of the military construction and military housing services obtained in exchange.
(B) The plans for the use of such authority for the current fiscal year, the fiscal year covered by the budget, and the period covered by the current future-years defense program under section 221 of this title.
(C) The current inventory of unconveyed lands at military installations closed or realigned under a base closure law and of excess real property at military installations.
(2) If the report for a year is not submitted to Congress by the date specified in paragraph (1), the Secretary concerned may not enter into an agreement under subsection (a) after that date for the conveyance of real property until the date on which the report is finally submitted.
(g) Description of Property.— 
The exact acreage and legal description of real property conveyed under subsection (a) shall be determined by surveys satisfactory to the Secretary concerned.
(h) Additional Terms and Conditions.— 
The Secretary concerned may require such additional terms and conditions in connection with a conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.