Since the enactment of the Defense Base Closure and Realignment Act of 1990, as amended (Base Closure Act), transfer or disposal of former military installations has been governed by relatively consistent legal requirements. This report provides an overview of the transfer and disposal authorities available under the law for military installations closed during the 2005 round, and indicate how amendments to the Base Closure Act have altered the property transfer and disposal process. Transfer, Disposal, and Leasing Authorities

The transfer or disposal of federal property is primarily performed by the General Services Administration (GSA) pursuant to the Federal Property and Administrative Services Act of 1949 (FPASA). Thus, local communities can significantly affect the BRAC property transfer and disposal decisions made at the federal level. Ultimately, it is the responsibility of the transferring DOD component to review the applications and make a determination as to whether the transfer is appropriate based on several factors:
the requirement for additional property must be valid and appropriate; the proposed use is consistent with the highest and best use of the property; the proposed transfer will not have an adverse impact on the transfer of any remaining portion of the installation; the proposed transfer will not establish a new program or substantially increase the level of a component's or agency's existing programs; the application offers fair market value for the property, unless waived; the proposed transfer addresses applicable environmental responsibilities to the satisfaction of the Secretary concerned; and the proposed transfer is in the best interest of the Government. If no DOD components or other federal agencies pursue acquisition, or if DOD denies an application for transfer, the property is determined to be surplus and the disposal process begins. Public Benefit Transfers

Public benefit transfers are authorized under FPASA and allow for conveyance of property at a discount or for no cost for specified public purposes. In general, a conservation conveyance is to be for reduced cost. However, in 2009, noting that many "negotiations between the Department of Defense and local redevelopment authorities ... over the value of property to be disposed under an economic development conveyance (EDC) have stalled over the past 2 years due to difficulties in the nation's financial markets, the deterioration of local economic conditions, and the potential of legislative changes," Congress further amended the Base Closure Act with respect to utilization of a no cost EDC. The process first requires screening to determine if other DOD components or federal agencies have a need for the property. Compliance with these authorities generally requires an analysis of suitability for homeless assistance or a public benefit transfer. Public auctions and negotiated sales are generally available, although it would appear that fair market value must generally be obtained under these authorities.
The Defense Base Closure and Realignment Act of 1990 (P.L. 100-526) and the Federal Property and Administrative Services Act of 1949 (P.L. 81-152) provide the basic framework for the transfer and disposal of military installations closed during the base realignment and closure (BRAC) process. In general, property at BRAC installations is first subjected to screening for use by the Department of Defense and by other federal agencies. If no federal use for the property can be found or if an application for transfer is rejected, the property is deemed "surplus" to the needs of the federal government and made available for disposal through other mechanisms.
At this point, BRAC property is subjected to two simultaneous evaluation processes: the redevelopment planning process performed by a local redevelopment authority composed of various interested representatives of the community affected by the BRAC action; and a Department of Defense analysis prepared under the aegis of the National Environmental Policy Act and, eventually, informed by the local redevelopment plan.
As a part of this process, screening of the property must be performed to determine if a homeless assistance use would be appropriate. There are also a variety of "public benefit transfers," under which the property may be conveyed for various specified public purposes at reduced cost. It is also possible to dispose of BRAC property through the use of a public auction or negotiated sale, for which fair market value or a proxy for fair market value must generally be obtained. Finally the law governing the BRAC process authorizes economic development conveyances, through which a local redevelopment authority may obtain the property for specified purposes, sometimes for no consideration.
The BRAC property transfer process has been altered, both legislatively and administratively, throughout the numerous authorized closure rounds. Most recently, the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) amended the law with respect to economic development conveyances at no cost to local redevelopment authorities. This report provides an overview of the various authorities available under the current law and describes the planning process for the redevelopment of BRAC properties.