The problem of surplus federal property dates back decades, well before the Public Buildings Reform Board was created. By 2003, the Government Accountability Office had placed the management of federal real property on a “high risk” list, in part because of longstanding difficulties unloading unneeded property.
The General Services Administration functions as the federal landlord, managing the buildings the government owns. But it cannot sell a building unless the agency occupying it declares it “excess.” And agencies have had little incentive to do that.
It might cost an agency less to maintain a building on an annual basis than to relocate employees to a smaller space and prepare the old building for sale, even if it makes sense in the long run to get the property off its books. And agencies may not benefit financially from a sale because the proceeds often go directly to the Treasury Department.
If an agency does deem a building “excess,” there are additional hurdles: The property must first be offered to other agencies and, if there are no takers, made available for homeless services and other uses. The process can take years, leading to a backlog.
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In the federal government’s 2015 fiscal year, agencies reported more than 7,000 excess or underutilized properties, according to the Government Accountability Office.
Attempts have been made, through Republican and Democratic administrations, to remedy the problem. A bipartisan breakthrough came in 2016 with the passage of the Federal Assets Sale and Transfer Act, known as FASTA, modeled on a successful process of whittling down Defense Department installations after the Cold War. FASTA, it was hoped, would do for civilian properties what the Base Realignment and Closure process had done for military sites.