89TH CONGRESS 2D SESSION

S. 3411

IN THE SENATE OF THE UNITED STATES

MAY 25, 1966

Mr. SPARKMAN introduced the following bill; which was read twice and referred to the Committee on Banking and Currency

A BILL

To provide authority to the Secretary of Defense to acquire properties and provide other relief for certain homeowners whose properties are situated at or near military installations which have been ordered to be closed.

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Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That, notwithstanding any other provision of law, the Secre4 tary of Defense is authorized to acquire title to, hold, manage 5 and dispose of, or, in lieu thereof, to reimburse for certain 6 losses upon private sale of, or foreclosure against, any prop7 erty improved with a one- or two-family dwelling, which 8 is situated at or near a military base or installation which 9 the Department of Defense has, subsequent to November

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1 1, 1964, ordered to be closed in whole or in part, if he

2 determines

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(a) 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) or a serviceman assigned thereto; and

(b) 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; and

(c) that as the result of the actual or pending closing of such base or installation, in whole or in part, there is no present market for the sale of such property upon reasonable terms and conditions.

SEC. 2. In order to be eligible for the benefits of this 17 Act such employees or military personnel must be or have

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(a) Assigned to or employed at or in connection with the installation or activity at the time of public announcement of the closure action, or

(b) 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

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(c) Transferred from the installation or activity

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on an overseas tour unaccompanied by dependents within

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fifteen months prior to public announcement of the closure action:

5 Provided, That, at the time of public announcement of the 6 closure action, or at the time of transfer or termination as 7 set forth above, such personnel or employees must have: (i) Been the owner-occupant of the dwelling, or

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(ii) Have vacated the owned dwelling as a result of being ordered into on-post housing during a six11 month period prior to the closure announcement:

12 Provided further, That as a consequence of such closure such 13 employees or personnel must be:

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(i) Required to relocate because of military transfer or acceptance of employment beyond a normal commuting distance from the dwelling for which compensa

tion is sought, or

(ii) Not unemployed 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.

SEC. 3. Such persons as the Secretary of Defense may 23 determine to be eligible under the criteria set forth above 24 shall elect to receive either a cash payment as partial com25 pensation for losses which may be sustained in a private sale,

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1 not to exceed 5 per centum of the fair market value of their 2 property prior to public announcement of intention to close 3 all or part of the military base or installation, or to receive, 4 as purchase price for their property, an amount not to exceed 5 90 per centum of prior fair market value as such value is 6 determined by the Secretary of Defense, or the amount of 7 the outstanding mortgages, or such lesser amount as the 8 Secretary of Defense determines prior to that election to be 9 reasonable. In the event of foreclosure by mortgagees com10 menced prior to the one hundred and twentieth day after 11 enactment hereof, the Secretary may pay or reimburse for 12 direct costs of foreclosure, including deficiency judgments, if any, as may be adjudged by a court of competent jurisdiction. SEC. 4. There shall be in the Treasury a fund which 15 shall be available to the Secretary of Defense for the purpose 16 of extending the financial assistance provided above. The 17 capital of such fund shall consist of such sums as may, from 18 time to time, be appropriated thereto, and shall consist also 19 of receipts from the management, rental, or sale of properties 20 acquired under this Act, which receipts shall be credited to 21 the fund and shall be available, together with funds appro22 priated therefor, for purchase or reimbursement purposes as

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provided above, as well as to defray expenses arising in con24 nection with the acquisition, management, and disposal of 25 such properties, including payment of principal, interest, and

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1 expenses of mortgages or other indebtedness thereon, and 2 including the cost of staff services and contract services, costs 3 of insurance and other indemnity. Any part of such receipts 4 not required for such expenses shall be covered into the 5 Treasury as miscellaneous receipts. Properties acquired 6 under this Act shall be conveyed to, and acquired in the 7 name of, the United States. The Secretary of Defense shall 8 have the power to deal with, rent, renovate, and dispose of, 9 whether by sales for cash or credit or otherwise, any prop10 erties so acquired: Provided, however, That no contract for 11 acquisition, or acquisition, shall be deemed to constitute a 12 contract for or acquisition of family housing units in support 13 of military installations or activities within the meaning of 14 section 1594i of title 42, United States Code, nor shall it be 15 deemed a transaction within the contemplation of section 16 2662 of title 10, United States Code.

17 SEC. 5. Payments from the fund created by this Act 18 may be made in lieu of taxes to any State and/or political 19 subdivision thereof, with respect to real property, including 20 improvements thereon, acquired and held under this Act. 21 The amount so paid for any year upon such property shall 22 not exceed the taxes which would be paid to the State and/or 23 subdivision, as the case may be, upon such property if it 24 were not exempt from taxation, and shall reflect such allow25 ance as may be considered appropriate for expenditures, if