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tals, clinics, facilities providing public health services, and similar utilization. The property applied for must be for a purpose for which the eligible organization would be authorized to expend its own funds to acquire.

(h) An applicant's plan of operation shall not be approved unless it includes a provision that the applicant will not discriminate because of race, color, creed, or national origin in the use of any portions of the property. $ 12.4 Limitations.

(a) Surplus property transferred pursuant to this part shall be disposed of “as is”, “where is", and without warranty of any kind.

(b) Unless excepted by the General Services Administration from the assignment of property to this Department, mineral rights will, in all cases, be conveyed together with the surface rights. However, where the property to be conveyed overlies a known mineral structure of commercial value, the Department, in its discretion will:

(1) Convey the mineral rights separately from the surface rights upon payment by the transferee of the fair value thereof, as determined by the Department, without application of the public benefit allowance; or

(2) Convey the mineral rights together with the surface rights with the requirement in the conveyance instrument that, during the period of restricted use, all revenues or the reasonable value, as determined by the Department, of benefits to the transferee deriving directly or indirectly from any and all mineral leases or royalties shall be considered to have been received and held in trust by the transferee for the United States and shall be subject to direction and control of the Department, together with a reservation to the Government, in the conveyance instrument, at its option, to revert title to any and all mineral interests conveyed at any time during the period of restricted use. $ 12,5 Awards.

Where there is more than one applicant for the same property, the following principles shall be observed:

(a) Greater consideration will be given to programs of utilization most nearly consistent with the Government's purpose in acquiring or using the property. For instance, a surplus hospital will be considered for transfer for a

health program in preference to an educational program.

(b) Property will be awarded to the applicant having a program of utilization which provides, in the opinion of the Department, the greatest public benefit.

(c) The Department will have, as an objective, the apportionment of an available property to fit the needs of as many applicant health and educational programs as is practicable. $ 12.6 Notice of available property.

Reasonable publicity shall be given to the availability of surplus real property which is suitable for assignment to the Department for disposal for educational or public health use. The Department shall establish procedures reasonably calculated to afford all eligible users having a legitimate interest in acquiring property for educational or public health purposes, including research, who show due diligence, a full and complete opportunity to make an application therefor: Provided, however, That publicity need not be given as to the availability of surplus real property which is occupied and being used by an applicant for eligible educational or public health purposes, including research, at the time the property is declared excess and the Department determines that the applicant has a continuing need for the property and that the transfer for such continued utilization by the applicant is in the best interest of the United States. $ 12.7 Applications for surplus real

property. Applications for surplus real property for educational or public health purposes, including research, shall be made to the Department through the regional office specified in the notice of availability. Where cooperative agreements have been entered into with State Agencies for Surplus Property and where a State instrumentality has been designated by State law or executive order to represent or assist educational and health institutions in acquiring Federal surplus real property, the applications will be made through such State Agencies or instrumentalities to regional offices of the Department. $ 12.8 Assignment of surplus real prop

erty. (a) Notice of interest in a specific property for educational or public health utilization shall be furnished the Gen

eral Services Administration or other Department, all revenues or the reasonagency having disposal jurisdiction by able value, as determined by the Departthe Department at the earliest possible ment, of benefits to the transferee derivdate,

ing directly or indirectly from such use (b) Requests to the Administrator, or shall be considered to have been received his designee disposal agency, for assign and held in trust by the transferee for ment of surplus real property to the the United States and shall be subject to Department for disposal for educational direction and control of the Department. and public health purposes, including re The provisions of this paragraph shall search, shall be based on the following not impair or affect the rights preserved conditions:

to the United States in subparagraph (5) (1) There is an acceptable application of this paragraph. for the property of record with the De (5) with respect to on-site property, partment.

in the event of noncompliance with any (2) The applicant is willing, author of the conditions of the transfer, title to ized, and in a position to assume immedi the property transferred, and right to ate care, custody, and maintenance of immediate possession shall, at the option the property.

of the Department, revert to the Govern(3) The applicant is able, willing and ment. In the event title is reverted to authorized to pay the external adminis the United States for noncompliance or trative expenses incident to a transfer. voluntarily reconveyed in lieu of reverter,

(c) A copy of each request for assign the transferee, at the option of the Dement of surplus real property shall be partment, shall be responsible and be refurnished the holding agency.

quired to reimburse the Government for

the decreased value of the property not $ 12.9 General disposal terms and condi. tions.

due to reasonable wear and tear, acts of

God, and alterations and conversions (a) Surplus real property disposals made by the transferee to adapt the under this part shall be limited to trans property to the educational or health actions wh are primarily for educa

use for which the property was acquired. tional or public health purposes, includ The Government shall, in addition thereing research. Transferees shall be

to, be reimbursed for such damages inentitled to public benefit allowances

cluding such costs as may be incurred in computed in consideration of benefits

recovering title to or possession of the which have accrued or may accrue to the

property as it may sustain as the result United States from the use of such prop of the noncompliance. erty for educational or public health (6) With respect to off-site property, purposes, including research.

in the event of noncompliance with any (b) Transfer of surplus real property of the terms and conditions of the transfor educational or public health purposes fer, the unearned public benefit allowis subject to the disapproval of the Ad ance shall, at the option of the Departministrator within 30 days after notice ment, become immediately due and is given to him of a proposed transfer. payable or, if the property or any portion

(c) Transfer shall be on the following thereof is sold, leased, or otherwise disterms and conditions:

posed of without authorization from the (1) The transferee shall be obligated

Department or its designee, such sale, to continuously utilize the property in lease, or other disposal shall be for the accordance with an approved plan of benefit and account of the United States operation.

and the United States shall be entitled (2) The transferee shall not be per to the proceeds of any such disposal. In mitted to sell, lease, mortgage, or other the event the transferee fails to remove wise dispose of the property except after the property or any portion thereof authorization by the Department or its within the time specified, then, in addidesignee.

tion to the rights reserved above, at the (3) The transferee shall file with the option of the Department, all right, title, Department such reports covering the and interest in and to such unremoved utilization of the property as may be property shall be retransferred to other required.

eligible applicants or shall be forfeited (4) In the event the property is sold, to the United States. leased, disposed of, or is used for purposes (7) With respect to onsite property, other than those set forth in the ap the Government, at its option, shall have proved plan without the consent of the the right during any period of emergency

declared by the President of the United the structures shall be equal to their estiStates or by the Congress of the United mated economic life. States to the full unrestricted use of the (d) Transferees by obtaining the consurplus real property, or of any portion sent of the Department may obtain thereof, disposed of in accordance with abrogation of the restrictions set forth the provisions of this part. Such use in the transfer terms, for all or any pormay be either exclusive or nonexclusive. tion of the property, upon payment to the Prior to the expiration or termination of Department in accordance with the folthe period of restricted use by the trans lowing conditions: feree, the Government shall not be ob (1) If the abrogation is requested by ligated to pay rent or any other fees or the institution for the purpose of serving charges during the period of emergency, the needs or purposes of a third party, except that the Government shall (i) payment shall be based upon the current bear the entire cost of maintenance of fair value of the property, less amortized such portion of the property used by it credit; or exclusively or over which it may have (2) If the abrogation is requested by exclusive possession or control, (ii) pay the institution for the purpose of using the fair share, commensurate with the the property as security for new conuse, of the cost of maintenance of such struction, for acquiring substitute or surplus real property as it may use non better facilities, or for relocating elseexclusively or over which it may have where, all for the purpose of further adnonexclusive possession or control, (iii) vancing or promoting the program for pay a fair rental for the use of improve which the property was originally conments or additions to the surplus real veyed, payment shall be based upon the property made by the purchaser or lessee original fair value as of the date of the without Government aid, and (iv) be re deed, less amortized credit, on condition sponsible for any damage to the surplus that the proceeds of sale obtained by the real property caused by its use, reason transferee in disposing of the property able wear and tear, the common enemy will be devoted to such program use. and acts of God excepted. Subsequent To assure this, appropriate agreements, to the expiration or termination of the supported by Surety Bond, or other asperiod of restricted use, the obligations surance that may be deemed by the Deof the Government shall be as set forth partment to be necessary or advisable, in the preceding sentence and in addi will be obtained from the grantee. tion, the Government shall be obligated (3) The Government's right of recapto pay a fair rental for all or any portion ture for use during a period of emergency of the conveyed premises which it uses. will not be released unless there are exNOTE: The final sentence above serves to

ceptional circumstances. clarify by publication a long-standing inter

(e) Related personal property shall be pretation of the obligations of the Govern transferred in accordance with real propment not explicitiy provided for prior to erty procedures and forms and shall be publication of that sentence and does not transferred only as part of the real proprepresent any alteration of policy or inter

erty transaction at the public benefit alpretation. It is, therefore, explanatory of

lowance granted therefor. Where rethe Government's obligations under conveyances executed prior to the date of its pub

lated personal property is involved in an lication as well as under conveyances exe

on-site transaction the related personal cuted subsequent thereto.

property may be transferred by a bill of

sale imposing restrictions for a period (8) The restrictions set forth in sub

not to exceed 5 years from the date of paragraph (1) through (6) of this para

transfer, other terms and conditions graph shall extend for the following

being tied to and made a part of the periods: (i) Thirty (30) years for land with or

real property transaction. without improvements being acquired for $ 12.10 Deferred use, disposal terms and use in place;

conditions. (ii) A minimum of five (5) years for (a) Surplus real property disposals facilities being acquired separately from under this section shall be limited to land whether they are for use onsite or transfers of land to States and their pooffsite. However, where the estimated litical subdivisions and instrumentalities economic life of the structures for the use and tax-supported educational or public for which they are requested is greater health institutions for use as sites for than five years, limitations on the use of school or public health facilities to be

constructed thereon within a maximum unpaid at the time of commencement of period of 8 years from date of transfer. utilization in accordance with this sec

(b) Transfers under this section shall tion. The transferee shall, at such time, be subject to all of the general terms and make full payment in cash of any balance conditions set forth in $ 12.9 (b), (c), of the fair value remaining after applica(1), (2), (3), (4), (5), and (7) and, in tion of such public benefit allowance. addition, the following special terms and (c) Prior to the transfer of any land conditions shall apply:

under this section, the transferee shall (1) Transferee shall be obligated to submit to the Department, together with continuously use the property, including its application, an opinion of the highest the proposed facilities constructed there legal officer of the State as to the auon, in conformance with its approved thority of the transferee to enter into plan, for a period of thirty (30) years the proposed transaction, accept the from the date of transfer.

property subject to the foregoing terms (2) The transferee shall be obligated and conditions and undertake the obligato construct all proposed facilities and tions provided for thereunder. commence utilization of the conveyed (d) After the facilities have been conproperty for educational or public health structed and the property has been purposes in conformance with the ap placed into required use in conformance proved plan no later than 8 years from with the approved plan, a transferee, by the date of transfer. The Department obtaining the consent of the Department, may, in its discretion, effect transfer may secure abrogation of the restrictions upon the requirement that construction set forth in the transfer terms, consistent be completed and utilization be com with the requirements of $ 12.9(d). menced within a period of time less than (e) Any installments, interest, or 8 years from the date of transfer.

other payments made against the fair (3) The transfer shall be made in con value of property transferred under this sideration of payments and public bene section shall, upon a forfeiture of title fits inuring to the United States equal to the property for breach of condition, to the fair value of the property as fol be forfeited. lows: Until such time as the facilities contemplated in the transferee's ap

$ 12.11 Special terms and conditions. proved plan have been constructed and (a) In the case of on-site disposals, placed in use in conformance therewith applicants shall be required to pay all the transferee shall pay to the United external administrative costs which shall States within 1 year from the date of include, but not be limited to taxes, surtransfer and annually thereafter on the veys, appraisals, inventorying costs, legal anniversary date thereof an amount fees, title search, certificate or abstract equal to three and one-third (343) per expenses, decontamination costs, governcent of the fair value of the property, to ment moving costs, closing fees in congether with interest at the prevailing rate nection with the transaction and service as determined by the Department for the charges, if any, made by State Agencies disposals of government real property for Surplus Property under the terms of upon the unpaid balance of the fair value a cooperative agreement with the Deof the property. At such time as the partment. facilities last mentioned shall have been (b) In transfers of off-site property, constructed and placed in use, which may applicants will be required to post perbe prior to but not later than the maxi formance bonds, make performance mum time fixed by the Department and guarantee deposits, or give such other specified in the instrument of transfer, assurances as may be required by the the transferee shall be entitled to a pub Department or the holding agency to lic benefit allowance, to be applied insure adequate site clearance and pay against the unpaid balance of the fair service charges, if any, made by State value computed upon the basis of the Agencies for Surplus Property under the benefit which has accrued or may accrue terms of a cooperative agreement with to the United States from the use of the Department. such property for educational or health (c) Whenever negotiations are underpurposes. In the case of a transfer on taken for disposal to nonprofit public less than 100 percent public benefit al health or educational organizations lowance, the public benefit allowance which are not instrumentalities of State shall be computed on and applied against or local governments of any surplus real the balance of the fair value remaining property which cost the Government one

million dollars or more, the Department (2) To sell such property for the beneshall give notice to the Attorney Gen fit and account of the United States; eral of the United States of the proposed (3) To return title to such property to disposal and the probable terms and the United States; or conditions thereof. The applicant shall (4) To abrogate the conditions and refurnish to the Department such informa strictions of the transfer, as set forth tion and documents as the Attorney Gen in $ 12.9(d), except that where property eral may determine to be appropriate or has never been placed in use for the purnecessary to enable him to give the ad poses for which transferred, abrogavice as provided for by section 207 of the tion will not be permitted except under Act or to determine whether any other extenuating circumstances. disposition or proposed disposition of the (b) Where the transferee desires to surplus real property violates the anti place the property in temporary use for trust laws of the United States.

a purpose other than that for which the (d) Where an applicant proposes to property was transferred, approval of the acquire and use in place improvements Department must be obtained, and will located on land which the Government be conditioned upon such terms as the does not own, he shall be required, before Department may impose, including but disposal shall be consummated, to ob not limited to the requirement that net tain a right to use the land commen revenues therefrom will be payable to surate with the duration of the restric the Department. tions applicable to the improvements.

$ 12.13

Form of conveyance. The applicant shall be required to assume, or obtain release of, the Govern

(a) Transfers of surplus real property ment's obligations respecting the land shall be on forms approved by the Genincluding but not limited to such obliga

eral Counsel of the Department and shall tions as restoration, waste, and rent.

include the disposal terms and conditions At the option of the Department, the

set forth in this part and such other applicant may be permitted to post a

terms and conditions as the General bond to indemnify the Government

Counsel may deem appropriate or necesagainst such obligations.

sary. (e) The Department may require the

(b) Transfers of on-site property norinclusion on the transfer document of mally shall be by quitclaim deed without any other provision deemed desirable or warranty of title. necessary.

$ 12.14 Compliance inspections and re(f) Where an eligible applicant for an

ports. on-site transfer proposes to construct new, or rehabilitate old facilities, the

The Department, or its designee, shall financing of which must be accomplished

make such compliance inspections as are through issuance of revenue bonds hav necessary and shall require of the transing terms inconsistent with the terms feree such compliance reports and acand conditions of transfer prescribed in tions as are deemed necessary. $ 12.9 (c), (d), and (e), the Department may, in its discretion, impose such alter

PART 13-ALLOCATION AND UTILInate terms and conditions of transfer in

ZATION OF SURPLUS PERSONAL lieu thereof as may be appropriate and effective to asure utilization of the prop

PROPERTY FOR EDUCATIONAL, erty for educational or public health pur PUBLIC HEALTH, AND CIVIL DEposes; provided, however, that the right FENSE PURPOSES to repossess in the event of national

Sec. emergency, as set forth in $ 12.9(C) (7)

13.1 Definitions. shall be reserved in every transfer.

13.2 Basic policy. & 12.12 Utilization.

13.3 Geographic scope.

13.4 Allocation of donable property. (a) Where property or any portion 13.5 Donations of personal property. thereof is not being utilized for the pur 13.6 Certifications by State Agencies and poses for which transferred, the trans


13.7 feree shall be required at the direction

State Agency agreements.

13.8 Certifications and agreements respectof the Department:

ing interstate distribution. (1) To retransfer such property to 13.9 Terms and conditions applicable to other health or educational user as the

transfers or retransfers of donable Department may direct;


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