
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC3374]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
  CHAPTER 41--DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT PROGRAM
 
                 SUBCHAPTER IV--MISCELLANEOUS PROVISIONS
 
Sec. 3374. Acquisition of property at or near military bases 
        which have been ordered to be closed
        

(a) Authorization; conditions precedent

    Notwithstanding any other provision of law, the Secretary of Defense 
is authorized to acquire title to, hold, manage, and dispose of, or, in 
lieu thereof, to reimburse for certain losses upon private sale of, or 
foreclosure against, any property improved with a one- or two-family 
dwelling which is situated at or near a military base or installation 
which the Department of Defense has, subsequent to November 1, 1964, 
ordered to be closed in whole or in part, if he determines--
        (1) that the owner of such property is, or has been, a Federal 
    employee employed at or in connection with such base or installation 
    (other than a temporary employee serving under a time limitation), a 
    nonappropriated fund instrumentality employee employed at a 
    nonappropriated fund instrumentality operated in connection with 
    such base or installation, or a member of the Armed Forces of the 
    United States assigned thereto;
        (2) that the closing of such base or installation, in whole or 
    in part, has required or will require the termination of such 
    owner's employment or service at or in connection with such base or 
    installation or, in the case of a member of the Armed Forces not 
    assigned to that base or installation at the time of public 
    announcement of such closing, will prevent any reassignment of such 
    member to the base or installation; and
        (3) that as the result of the actual or pending closing of such 
    base or installation in whole or in part, or if as the result of 
    such action and other similar action in the same area, there is no 
    present market for the sale of such property upon reasonable terms 
    and conditions.

(b) Eligibility for benefits; criteria

    (1) In order to be eligible for the benefits of this section, a 
civilian employee or a member of the Armed Forces--
        (A) must be assigned to or employed at or in connection with the 
    installation or activity at the time of public announcement of the 
    closure action, or employed by a nonappropriated fund 
    instrumentality operated in connection with such base or 
    installation;
        (B) must have been transferred from such installation or 
    activity, or terminated as an employee as a result of a reduction in 
    force, within six months prior to public announcement of the closure 
    action; or
        (C) must have been transferred from the installation or activity 
    on an overseas tour within three years prior to public announcement 
    of the closure action.

    (2) A member of the Armed Forces shall also be eligible for the 
benefits of this section if the member--
        (A) was transferred from the installation or activity within 
    three years prior to public announcement of the closure action; and
        (B) in connection with the transfer, was informed of a future, 
    programmed reassignment to the installation.

    (3) The eligibility of a civilian employee and member of the Armed 
Forces under paragraph (1) and a member of the Armed Forces under 
paragraph (2) for benefits under this section in connection with the 
closure of an installation or activity is subject to the additional 
conditions set out in paragraphs (4) and (5).
    (4) At the time of public announcement of the closure action, or at 
the time of transfer or termination as set forth above, such personnel 
or employees must--
        (A) have been the owner-occupant of the dwelling, or
        (B) have vacated the owned dwelling as a result of being ordered 
    into on-post housing during a six-month period prior to the closure 
    announcement.

    (5) As a consequence of such closure such employees or personnel 
must--
        (A) be required to relocate because of military transfer or 
    acceptance of employment beyond a normal commuting distance from the 
    dwelling for which compensation is sought, or
        (B) be unemployed, not as a matter of personal choice, and able 
    to demonstrate such financial hardship that they are unable to meet 
    their mortgage payments and related expenses.

(c) Election of benefits; mortgage loan encumbrance; foreclosure 
        expenses

    Such persons as the Secretary of Defense may determine to be 
eligible under the criteria set forth above shall elect either (1) to 
receive a cash payment as compensation for losses which may be or have 
been sustained in a private sale, in an amount not to exceed the 
difference between (A) 95 per centum of the fair market value of their 
property (as such value is determined by the Secretary of Defense) prior 
to public announcement of intention to close all or part of the military 
base or installation and (B) the fair market value of such property (as 
such value is so determined) at the time of the sale, or (2) to receive, 
as purchase price for their property, an amount not to exceed 90 per 
centum of prior fair market value as such value is determined by the 
Secretary of Defense, or the amount of the outstanding mortgages. The 
Secretary may also pay a person who elects to receive a cash payment 
under clause (1) of the preceding sentence an amount that the Secretary 
determines appropriate to reimburse the person for the costs incurred by 
the person in the sale of the property if the Secretary determines that 
such payment will benefit the person and is in the best interest of the 
Federal Government. Cash payment as compensation for losses sustained in 
a private sale shall not be made in any case in which the property is 
encumbered by a mortgage loan guaranteed, insured, or held by a Federal 
agency unless such mortgage loan is paid, assumed by a purchaser 
satisfactory to such Federal agency, or otherwise fully satisfied at or 
prior to the time such cash payment is made. Except in cases of payment 
as compensation for losses, in the event of foreclosure by mortgagees 
commenced on or after public announcement of intention to close all or 
part of the military base or installation the Secretary of Defense may 
reimburse or pay on account of eligible persons such sums as may be paid 
or be otherwise due and owing by such persons as the result of such 
foreclosure, including (without limiting the generality of the 
foregoing) direct costs of judicial foreclosure, expenses and 
liabilities enforceable according to the terms of their mortgages or 
promissory notes, and the amount of debts, if any, established against 
such persons by a Federal agency in the case of loans made, guaranteed, 
or insured by such agency following liquidation of the security for such 
loans.

(d) Fund for extension of financial assistance; capital and receipts; 
        availability of monies; covering into Treasury as miscellaneous 
        receipts; Federal title to and control of property; other laws 
        unaffected; foreign properties, exclusion

    There shall be in the Treasury a fund which shall be available to 
the Secretary of Defense for the purpose of extending the financial 
assistance provided above. The capital of such fund shall consist of 
such sums as may, from time to time, be appropriated thereto, and shall 
consist also of receipts from the management, rental, or sale of 
properties acquired under this section, which receipts shall be credited 
to the fund and shall be available, together with funds appropriated 
therefor, for purchase or reimbursement purposes as provided above, as 
well as to defray expenses arising in connection with the acquisition, 
management, and disposal of such properties, including payment of 
principal, interest, and expenses of mortgages or other indebtedness 
thereon, and including the cost of staff services and contract services, 
costs of insurance, and other indemnity. Any part of such receipts not 
required for such expenses shall be covered into the Treasury as 
miscellaneous receipts. Properties acquired under this section shall be 
conveyed to, and acquired in the name of, the United States. The 
Secretary of Defense shall have the power to deal with, rent, renovate, 
and dispose of, whether by sales for cash or credit or otherwise, any 
properties so acquired: Provided, however, That no contract for 
acquisition, or acquisition, shall be deemed to constitute a contract 
for or acquisition of family housing units in support of military 
installations or activities within the meaning of section 1594i \1\ of 
this title, nor shall it be deemed a transaction within the 
contemplation of section 2662 of title 10: Provided further, That no 
properties in foreign countries shall be acquired under this section, 
except in connection with compensation for property located on a base or 
installation pursuant to subsection (l) of this section.
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    \1\ See References in Text note below.
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(e) Fund as source of payments to States in lieu of taxes; limitation on 
        amount; allowance for public service expenditures

    Payments from the fund created by this section may be made in lieu 
of taxes to any State or political subdivision thereof, with respect to 
real property, including improvements thereon, acquired and held under 
this section. The amount so paid for any year upon such property shall 
not exceed the taxes which would be paid to the State or subdivision, as 
the case may be, upon such property if it were not exempt from taxation, 
and shall reflect such allowance as may be considered appropriate for 
expenditures, if any, by the Government for streets, utilities, or other 
public services to serve such property.

(f) Title requirements; terms and conditions of payment; finality of 
        decisions

    The title to any property acquired under this section, the 
eligibility for, and the amounts of, cash payable, and the 
administration of the preceding provisions of this section, shall 
conform to such requirements, and shall be administered under such 
conditions and regulations, as the Secretary of Defense may prescribe. 
Such regulations shall also prescribe the terms and conditions under 
which payments may be made and instruments accepted under this section, 
and all the determinations and decisions made pursuant to such 
regulations by the Secretary of Defense regarding such payments and 
conveyances and the terms and conditions under which they are approved 
or disapproved, shall be final and conclusive and shall not be subject 
to judicial review.

(g) Agreements between executive departments; delegation of functions; 
        finality of determinations; availability of Fund

    The Secretary of Defense is authorized to enter into such agreement 
with the Secretary of Housing and Urban Development as may be 
appropriate for the purposes of economy and efficiency of administration 
of this section. Such agreement may provide authority to the Secretary 
of Housing and Urban Development and his designee to make any or all of 
the determinations and take any or all of the actions which the 
Secretary of Defense is authorized to undertake pursuant to the 
preceding provisions of this section. Any such determinations shall be 
entitled to finality to the same extent as if made by the Secretary of 
Defense, and, in event the Secretaries of Defense and Housing and Urban 
Development so elect, the fund established pursuant to subsection (d) of 
this section shall be available to the Secretary of Housing and Urban 
Development to carry out the purposes thereof.

(h) Omitted

(i) Specific authorization for funds; expenditure of monies in Fund

    No funds may be appropriated for the acquisition of any property 
under authority of this section unless such funds have been specifically 
authorized for such purpose in a military construction authorization 
act, and no moneys in the fund created pursuant to subsection (d) of 
this section may be expended for any purpose except as may be provided 
in appropriation Acts.

(j) Omitted

(k) Reduction of operations at military base or installation

    The authority provided by this section to the Secretary of Defense 
shall also be available when the Department of Defense has ordered a 
reduction in the scope of operations at a military base or installation. 
All references in subsections (a), (b), (c), (n), and (o) of this 
section to ``closures'' or ``closings'' or words of similar effect shall 
be deemed to include the reduction in scope of operations at a base or 
installation.

(l) Foreign property losses

    Notwithstanding the provisions of subsection (a)(2) and subsection 
(b)(5) of this section, Federal employees or military personnel employed 
at or near a military base or installation outside the United States who 
are otherwise eligible under the criteria as set forth above shall be 
entitled to compensation for losses arising (1) out of the sale of 
property, or (2) out of the inability to sell property located on a base 
or installation, incident to the owner's transfer, reassignment, or 
involuntary termination of employment, which results in his relocation. 
Such employees or military personnel whose property is located off a 
base or installation shall be entitled to compensation under subsection 
(c) of this section for losses sustained in private sales. Such 
employees or personnel whose property is located on a base or 
installation, who sell or are unable to find a purchaser for such 
property, may surrender their interest in such property to the United 
States, and shall be entitled to compensation, notwithstanding lack of 
ownership of the land on which such property is located, in an amount 
equal to (A) 90 per centum of the sum of the present owner's purchase 
price of the dwelling and improvements, and all costs of ownership 
including interest on notes, utilities and services, maintenance and 
insurance, less (B) the total of all housing allowances received from 
the Government during ownership and occupancy of the dwelling, all rents 
collected, and the sale price, if any, received for the property, as 
determined by the Secretary of Defense: Provided, however, That the 
maximum compensation shall in no event exceed 90 per centum of the 
unamortized portion of the cost of the property, including improvements, 
at the time ownership is terminated, as reflected in the amortization 
schedule, if any, relating to such property. For the purpose of this 
subsection, the term ``United States'' means the several States and the 
District of Columbia.

(m) Eligibility for benefits as to closure actions announced after April 
        1, 1973; criteria

    In addition to the coverage provided above, the benefits of this 
section shall apply, as to closure actions in the several States and the 
District of Columbia announced after April 1, 1973, to otherwise 
eligible employees or personnel who are (1) employed or assigned either 
at or near the base or installation affected by the closure action, and 
(2) are required to relocate, due to transfer, reassignment or 
involuntary termination of employment, for reasons other than the 
closure action.

(n) Relocation assistance for Coast Guard personnel

    (1) Assistance under this section shall be provided by the Secretary 
of Defense with respect to Coast Guard bases and installations ordered 
to be closed, in whole or in part, after January 1, 1987. Such 
assistance shall be provided under terms equivalent to those under which 
assistance is provided under this section for closings of military bases 
and installations which are under the jurisdiction of the Secretary of 
Defense.
    (2) The Secretary of the department in which the Coast Guard is 
operating, if other than the Department of Defense, shall reimburse the 
Secretary of Defense for expenditures under this section made by the 
Secretary of Defense with respect to closings of Coast Guard bases and 
installations ordered when the Coast Guard is not operating as a service 
in the Navy. The Secretary of Defense and the Secretary of the 
department in which the Coast Guard is operating shall enter into an 
agreement under which the Secretary of the department in which the Coast 
Guard is operating shall carry out such reimbursement.

(o) Relocation assistance for nonappropriated fund instrumentality and 
        other civilian employees

    (1) Assistance under this section shall be provided by the Secretary 
of Defense with respect to nonappropriated fund instrumentality 
employees adversely affected by the closure of a base or installation 
ordered to be closed, in whole or in part, after December 31, 1988.
    (2) Notwithstanding subsection (b) of this section, a civilian 
employee who is serving overseas and is entitled to reemployment by the 
Federal Government (including a nonappropriated fund instrumentality of 
the United States) at or in connection with a base or installation 
ordered to be closed, in whole or in part, shall be entitled to the 
benefits of this section to the same extent as an employee employed at 
or in connection with that base or installation.
    (3) All payments to a nonappropriated fund instrumentality employee 
under this section shall be made from the funds available to the 
Secretary of Defense under subsection (d) of this section.
    (4) For purposes of this section:
        (A) The term ``nonappropriated fund instrumentality employee'' 
    means a civilian employee who--
            (i) is a citizen of the United States; and
            (ii) is paid from nonappropriated funds of Army and Air 
        Force Exchange Service, Navy Resale and Services Support Office, 
        Marine Corps exchanges, or any other instrumentality of the 
        United States under the jurisdiction of the Armed Forces which 
        is conducted for the comfort, pleasure, contentment, or physical 
        or mental improvement of members of the Armed Forces.

        (B) The term ``civilian employee'' has the meaning given the 
    term ``employee'' in section 2105(a) of title 5.

(Pub. L. 89-754, title X, Sec. 1013, Nov. 3, 1966, 80 Stat. 1290; Pub. 
L. 91-142, title VI, Sec. 602, Dec. 5, 1969, 83 Stat. 313; Pub. L. 91-
511, title VI, Sec. 612, Oct. 26, 1970, 84 Stat. 1225; Pub. L. 92-545, 
title VI, Sec. 601, Oct. 25, 1972, 86 Stat. 1150; Pub. L. 93-166, title 
V, Sec. 513(b), Nov. 29, 1973, 87 Stat. 679; Pub. L. 100-448, Sec. 11, 
Sept. 28, 1988, 102 Stat. 1842; Pub. L. 101-510, div. A, title III, 
Sec. 331, Nov. 5, 1990, 104 Stat. 1535; Pub. L. 102-190, div. B, title 
XXVIII, Sec. 2823, Dec. 5, 1991, 105 Stat. 1547; Pub. L. 102-484, div. 
A, title X, Sec. 1054(i), Oct. 23, 1992, 106 Stat. 2503; Pub. L. 103-
337, div. B, title XXVIII, Sec. 2805, Oct. 5, 1994, 108 Stat. 3053.)

                       References in Text

    Section 1594i of this title, referred to in subsec. (d), was 
repealed by Pub. L. 97-214, Sec. 7(3), July 12, 1982, 96 Stat. 173.

                          Codification

    Subsecs. (h) and (j) of this section amended section 1715n(a)(8) and 
repealed section 1735h of Title 12, Banks and Banking, respectively, 
with such repealed section being covered by this section.


                               Amendments

    1994--Subsec. (c). Pub. L. 103-337 inserted after first sentence 
``The Secretary may also pay a person who elects to receive a cash 
payment under clause (1) of the preceding sentence an amount that the 
Secretary determines appropriate to reimburse the person for the costs 
incurred by the person in the sale of the property if the Secretary 
determines that such payment will benefit the person and is in the best 
interest of the Federal Government.''
    1992--Subsec. (a)(1). Pub. L. 102-484 substituted ``member of the 
Armed Forces of the United States'' for ``serviceman''.
    1991--Subsec. (a)(1). Pub. L. 102-190, Sec. 2823(b)(1)(A), which 
directed the substitution of ``member of the Armed Forces of the United 
States'' for ``servicemen'' could not be executed because the word 
``servicemen'' did not appear. See 1992 Amendment note above.
    Subsec. (a)(2). Pub. L. 102-190, Sec. 2823(b)(1)(B), inserted before 
semicolon ``or, in the case of a member of the Armed Forces not assigned 
to that base or installation at the time of public announcement of such 
closing, will prevent any reassignment of such member to the base or 
installation''.
    Subsec. (b). Pub. L. 102-190, Sec. 2823(a), (b)(2), (3), substituted 
pars. (1) to (3) for former introductory provisions and pars. (1) to 
(3); designated first proviso of subsec. (b) as par. (4) and substituted 
``At'' for ``Provided, That, at'', redesignated cls. (i) and (ii) as 
subpars. (A) and (B), respectively, and substituted period for colon at 
end of subpar. (B); and designated second proviso of subsec. (b) as par. 
(5) and substituted ``As'' for ``Provided further, That as'' and 
redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively. 
Prior to amendment, former introductory provisions and pars. (1) to (3) 
read as follows: ``In order to be eligible for the benefits of this 
section such employees or military personnel must be or have been--
        ``(1) assigned to or employed at or in connection with the 
    installation or activity at the time of public announcement of the 
    closure action, or employed by a nonappropriated fund 
    instrumentality operated in connection with such base or 
    installation,
        ``(2) transferred from such installation or activity, or 
    terminated as employees as a result of reduction-in-force, within 
    six months prior to public announcement of the closure action, or
        ``(3) transferred from the installation or activity on an 
    overseas tour unaccompanied by dependents within fifteen months 
    prior to public announcement of the closure action:''.
    Subsec. (l). Pub. L. 102-190, Sec. 2823(b)(4), substituted 
``subsection (b)(5)'' for ``the second proviso of subsection (b)''.
    1990--Subsec. (a)(1). Pub. L. 101-510, Sec. 331(1), inserted ``, a 
nonappropriated fund instrumentality employee employed at a 
nonappropriated fund instrumentality operated in connection with such 
base or installation,'' after ``limitation)''.
    Subsec. (b)(1). Pub. L. 101-510, Sec. 331(2), inserted at end ``or 
employed by a nonappropriated fund instrumentality operated in 
connection with such base or installation,''.
    Subsec. (k). Pub. L. 101-510, Sec. 331(3), substituted ``(n), and 
(o)'' for ``and (n)''.
    Subsec. (o). Pub. L. 101-510, Sec. 331(4), added subsec. (o).
    1988--Subsec. (k). Pub. L. 100-448, Sec. 11(1), substituted ``(c), 
and (n)'' for ``and (c)''.
    Subsec. (n). Pub. L. 100-448, Sec. 11(2), added subsec. (n).
    1973--Subsec. (m). Pub. L. 93-166 added subsec. (m).
    1972--Subsec. (d). Pub. L. 92-545 inserted ``, except in connection 
with compensation for property located on a base or installation 
pursuant to subsection (j) of this section'' to provision prohibiting 
acquisition of properties in foreign countries under this section.
    Subsec. (l). Pub. L. 92-545 added subsec. (l).
    1970--Subsec. (a)(3). Pub. L. 91-511 inserted ``or if as the result 
of such action and other similar action in the same area,'' after 
``part,''.
    Subsec. (k). Pub. L. 91-511 added subsec. (k).
    1969--Subsec. (c). Pub. L. 91-142, Sec. 602(a), struck out ``and 
prior to the one hundred and twentieth day after November 3, 1966,'' 
after ``installation'' in third sentence.
    Subsec. (d). Pub. L. 91-142, Sec. 602(b), excluded acquisition of 
foreign properties under this section.


                    Effective Date of 1970 Amendment

    Section 612 of Pub. L. 91-511 provided that the amendment made by 
that section is effective Oct. 28, 1969.

                  Section Referred to in Other Sections

    This section is referred to in title 10 section 2832; title 12 
section 1715n.
