Peters Introduces Bipartisan Legislation to Create Leasing Program for Underutilized Space Held by Federal Agencies

WASHINGTON, D.C. - U.S. SenatorGary Peters (MI), Chairman of the Homeland Security and Governmental Affairs Committee, introduced bipartisan legislation to create a program that allows federal agencies to lease underutilized properties with approval from the Administrator of the General Services Administration (GSA), and to use the rent payments to help fund capital projects and facilities maintenance. Currently, many federal agencies hold underused property that they need and cannot sell - but could be fully utilized by other public or private entities. Revenue generated by leasing properties to fund important projects would save taxpayer dollars and cut down on government waste.

"Properties that federal agencies need, but are underused, present an opportunity for our government to generate revenue that can fund important projects, save taxpayer dollars, and root out waste," said Senator Peters. "This commonsense, bipartisan bill will help other public and private organizations make productive use of underutilized government property, and at the same time help federal agencies improve their facilities and reduce costs."

The Saving Money and Accelerating Repairs Through Leasing (SMART Leasing) Act would create a pilot program to allow federal agencies to sublease underutilized non-excess real property and related personal property to any person or entity at fair market value, including another department or agency of the federal government or an entity of a state or local government. The legislation requires the GSA Administrator to certify that any lease will not have a negative impact on the mission of the federal agencies, and that the terms and conditions of the lease protect the interests of the country. The bill limits the number of leases to six per year to determine the impacts of this program through 2024, at which point GSA can advise Congress on whether the program should be extended or expanded. The legislation was modeled on a similar program used by the National Aeronautics and Space Administration (NASA) - which has generated millions of dollars in revenue for the agency to use on capital projects and facilities maintenance.

Peters' legislation builds on his previous efforts to ensure that federal property is being used efficiently and prevents government waste. A provision based on legislation he authored requiring agencies to consider leases or short-term rentals when those options are more cost effective than purchasing equipment was signed into law in 2018. Another bill authored by Peters that directed federal agencies to more frequently identify unneeded property that could be sold or given away to their public and private sector partners was also signed into law in 2018.

###