15 FAM 340
LEASE Management
(CT:OBO-80; 01-22-2019)
(Office of Origin: OBO)
15 FAM 341 DRAFTING A LEASE
(CT:OBO-80; 01-22-2019)
All posts must use the model lease in 15 FAM 351 and follow the instructions given in 15 FAM 360.
15 FAM 342 LEASE AMENDMENTS
(CT:OBO-80; 01-22-2019)
Approvals for lease amendments are handled in the same
manner as approvals for the original leases; 15 FAM 352 provides a sample lease amendment.
15 FAM 343 RENEGOTIATION
(CT:OBO-29; 03-29-2012)
a. Renegotiation of a lease requires the execution of a
new lease document. U.S. Government contracting principles prohibit the
renegotiation of a valid lease unless mandated by local law or unless
additional benefit accrues to the U.S. Government. One example of such benefit
is additional or improved space.
b. Renegotiated leases are assigned new lease contract
numbers but carry the same property identification numbers. The new lease must
identify the former lease by number, and must state that it is replacing or
superseding that lease.
15 FAM 344 NOTICE OF TERMINATION
(CT:OBO-80; 01-22-2019)
Termination of all leases must be executed in accordance
with the specific terms of the lease and local laws. Early termination may
have to be negotiated with the landlord if termination incurs a financial
penalty and there may also be a requirement for restoration of the premises
regardless of termination rights. In cases of a proposed early termination of
nonresidential properties with rent above $50,000 per year, posts must advise
the Bureau of Overseas Buildings Operations (OBO) or, for U.S. Agency for
International Development (USAID) leases,
the Overseas Management Division, Office of Management Services, Bureau for
Management, USAID/Washington (USAID/W - M/MS/OMD) prior to issuing a
termination notice and seek confirmation of the termination plans. Funding may
be required for the termination and the funding agency must also provide
approval. All lease termination agreements must follow the sample in 15 FAM 353.
15 FAM 345 LOCAL RENT CONTROLS
(CT:OBO-29; 03-29-2012)
It is U.S. Government policy to invoke the protection of
local rent control laws, since to do otherwise would raise the question of
expending public funds in excess of the amount required. If local laws require
paying rent increases, the post must investigate and retain copies of the
appropriate laws or pertinent extracts and an original or certified copy of any
pertinent ruling of a local rent control board or authority.
15 FAM 346 LOCAL REGISTRATION OF LEASES
(CT:OBO-29; 03-29-2012)
In many countries, lease terms are not enforceable by law
unless the lease has been officially registered. The failure to register a
lease can lead to the loss of valuable contract rights and/or potential
embarrassment to the U.S. Government. Despite the fact that the model lease
requires the landlord to register the lease, some landlords fail to do so. In
those cases, a post must take it upon itself to register all leases unless the
local jurisdiction does not provide a registration system or the system does
not result in added protection to the rights of the U.S. Government.
Registration is of utmost importance if the lease contains an option to
purchase or a renewal option extending several years into the future. The
lessor normally pays the registration fees; however, if this is not feasible,
these costs should be split or, as a last resort, should be charged to the
lease fund.
15 FAM 347 Required Lease Documentation
15 FAM
347.1 General
(CT:OBO-80; 01-22-2019)
a. Post must upload
required documents to the property record in the real property application
(RPA). For U.S. Agency for International Development (USAID) leases, USAID missions must send documents to
the General Services Officer (GSO), who must then update the Real Property
Application (RPA).
b. If any documentation
is prepared in a foreign language, an English translation must accompany the
copies uploaded to RPA/forwarded to USAID/W - M/MS/OMD. The translation should
be signed by the certified translator, with the translators name typed below
the signature.
15 FAM
347.2 State Lease Documents
(CT:OBO-80; 01-22-2019)
Posts are responsible for
handling the lease documents noted in this section that are executed in the
name of the United States of America, acting by (name), (title), and (post):
(1) Capital leases (CLs): Posts must maintain all applicable and related
documents, such as original signed capital leases (CLs), CL renewals, amendments,
addenda, schedules, and exhibits. Post must upload document copies to the
property record in RPA and must include an English translation. Related
records include blueprints; floor plans; photographs; surveys; documentation of
major equipment repair; replacement, overhaul, and cost documentation for
construction increasing the property value; scope of work (SOW) for make-ready
improvements requested of the landlord; and other contracts and agreements,
e.g., protocols, memoranda of understanding (MOUs), and property agreements.
Posts must maintain copies of these documents through the entire life of the
lease and all renewals and extensions, plus five years. However, if a given
property is the subject of litigation, retain the records until litigation has
been settled or terminated;
(2) Recording capital leases in financial management
system: Posts must consult with OBO, and
then submit capital lease documentation to the Office of Accounting Operations
Domestic, Directorate of Global Financial Operations, Bureau of the Comptroller
and Global Financial Services (CGFS/F/AOD) within 30 days of submission to OBO;
(3) Operating leases (OLs): Regardless of occupying agency, posts must retain
original contracts, leases, renewals, amendments, and related records
(including notes, letters, property descriptions, and site plans) for all OLs.
Posts must upload copies of signed OLs for all OL properties to RPA. The
signed OL documents include new leases, renewed and renegotiated leases, and
all related amendments, to include notices of rent increases. An English
translation, (signed by the certified translator, with the translators name
typed below the signature) must accompany any documentation prepared in a
foreign language. Post must annually ensure that RPA data reflects the current
lease terms and rates;
(4) Termination and quittance agreement: Posts must submit one original signed Termination
and Quittance Agreement for CLs and OLs to OBO;
(5) Other documentation: Posts must retain all other lease documentation for a
period of five years, including, but not limited to, the Post Occupational
Safety and Health Officer (POSHO) certification. The POSHO certification must
be completed and documented in the POSHO Certification Application. (See 15 FAM 252.5.) However, if a given property is the subject of
litigation, retain the records until litigation has been settled or terminated;
and
(6) Employee associations: See 6 FAM 524. For temporary duty (TDY) quarters, see 6 FAM 526 for additional required documentation.
15 FAM
347.3 USAID Lease Documents
(CT:OBO-80; 01-22-2019)
The USAID contracting
officer will forward the following to USAID/W - M/MS/OMD: (a) one copy of the
signed original (except for residential property OLs) and (b) one copy of each
lease amendment. USAID missions must send the original signed documents to the
GSO, who must then update RPA.
15 FAM
347.4 Documents for Leases Funded by
Other Agencies
(CT:OBO-80; 01-22-2019)
Each agency is responsible
for providing required documents to its parent agency. The responsible leasing
office must provide one copy of all leases, any related amendments, and the
Termination and Quittance Agreements to the respective agencys representative
for forwarding to parent agencies. (Consult 15 FAM 145.1 for forwarding addresses.)
15 fam 348 through 349 unassigned