15 FAM 400
real PROPERTY ACQUISITION abroad
15 FAM 410
general policy and scope
(CT:OBO-36; 10-31-2013)
(Office of Origin: OBO)
15 FAM 411 AUTHORITY AND SCOPE
15 FAM 411.1 Authority
(CT:OBO-1; 04-29-2005)
The Foreign Service Buildings Act of 1926, as amended (22
U.S.C. 292 - 302), and the Foreign Assistance Act of 1961, as amended (22
U.S.C. 2396).
15 FAM 411.2 Scope
(CT:OBO-36; 10-31-2013)
This subchapter applies to the acquisition of real
property abroad in the name of the U.S. Government.
It encompasses purchases, exchanges, gifts, and capital
leases (CLs) for use as nonresidential or residential space by the
Department of State and other U.S. Government agencies represented at post and
their employees. CLs are treated as
acquisitions for purposes of programming, authorization, and funding; however,
the leasing regulations of 15 FAM 300 govern the documentation required for CL proposals and lease contracts. See 15 FAM 432
through 15 FAM
460 for procedures to implement these regulations. Direct any questions or
comments on these regulations or procedures to the Directorate for Planning and Real Estate, in the Bureau of Overseas Buildings Operations
(OBO/PRE), for Department of State properties, or, in the case of U.S. Agency for International Development (USAID) properties, the Overseas Management
Division, Office of Management Services, Bureau for Management,
USAID/Washington (USAID/W-M/MS/OMD).
15 FAM 412 POLICY
15 FAM 412.1 General
(CT:OBO-36; 10-31-2013)
a. U.S. Government-owned property allows the post
stability, flexibility, and cost control. However, purchasing property
requires large initial outlays of funds and ongoing maintenance costs, so the
Department must weigh carefully the benefits of leasing versus purchasing.
b. Only the Department of State and the U.S. Agency for
International Development (USAID) are authorized to buy real property abroad
for diplomatic use. Posts must not take independent action on real property
acquisition matters. The Bureau of Overseas Buildings Operations (OBO) for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, must oversee all real property
acquisition negotiations.
c. Throughout 15 FAM 400, references to OBO are deemed
to apply to State properties and references to USAID/W-M/MS/OMD are deemed to
apply to USAID properties.
15 FAM 412.2 Residences with
Swimming Pools
15 FAM 412.2-1 Justification and
Conditions
(CT:OBO-36; 10-31-2013)
a. Except as noted herein, the Department of State
neither constructs nor acquires residences with swimming pools:
(1) The Department may purchase or construct
residences with swimming pools at Chief of
Mission Residences (CMR), Deputy Chief of Mission Residences (DCR), Principal
Officer Residences (POR), and Marine Security Guard Residences (MSGR).
(2) Posts may recommend purchase of a residential
property with a swimming pool if appropriate residential properties come
equipped with swimming pools as a result of the countrys climate, culture, or
other factors.
b. Posts recommending purchase of a residential
property with a swimming pool must provide
justification (see 15 FAM 432.2).
The decision to purchase must be based on a financial analysis that takes into
consideration the appraised value, comparable prices for similar properties
(with and without swimming pools), and the
present value of the property versus rental cost.
c. Posts will not require owners to install swimming
pools as a condition of or prerequisite to purchase. Installation of a
swimming pool is considered a minor improvement subject to the policy and
procedures of 15 FAM 600.
15 FAM 412.2-2 Required Swimming
Pool Barrier
(CT:OBO-36; 10-31-2013)
Swimming pools located at U.S.
Government-owned or leased housing must have at least a 4-foot fence or
other barrier surrounding the entire swimming pool
and separating pools from residences. The gate must be self-closing,
self-latching, and lockable; the latch must be at least 4.5 feet off the ground
(an extension of the gate or a gate that is higher than the surrounding barrier
may be required). Refer to 15 FAM 957.4 and 15 FAM 252.5 a (3) for additional guidance concerning this
requirement.
15 FAM 412.3 USAID Acquisition of
Property
(CT:OBO-36; 10-31-2013)
(USAID only)
Section 636(c) of the Foreign Assistance Act of 1961
authorizes USAID to purchase, construct, or execute
a capital lease for residential or
nonresidential facilities when a USAID mission cannot meet its basic
requirements by leasing or by use of U.S. Government
or cooperating-country government property available to USAID. (See 15 FAM 460 for
conditions and limitations on USAID authority.)
15 FAM 412.4 Purchase Agreements
(CT:OBO-36; 10-31-2013)
When OBO authorizes the purchase of real property for the
Department of State, or, in the case of
USAID properties, USAID/W-M/MS/OMD authorizes the purchase of real property,
post must prepare a written agreement that may consist of a sales contract or,
subject to local law, a purchase option. OBO and the Office of the Assistant
Legal Adviser for Buildings and Acquisitions (L/BA) for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, must review and approve all such agreements prior
to execution.
15 FAM 412.4-1 Required
Provisions for Purchase Agreements
(CT:OBO-10; 08-24-2006)
15 FAM 442
covers the requirements and guidelines for purchase agreements. Whether
arising out of a formal sales contract or out of an option and exercise of the
option, the purchase agreement must conform to these requirements.
15 FAM 412.4-2 Special Rights
(CT:OBO-24; 01-26-2012)
a. If a stream of water runs through a property, post
(with guidance from OBO or USAID/W) must investigate the water rights and
obtain the legal right to the permanent flow of water.
b. If necessary and useful under local law, post should
obtain the local authorities written confirmation that the property will not
be subject to the extension of any streets through easements or encroachments
upon the property after its purchase.
c. The deed or other instrument should convey any
other special rights simultaneously with the transfer of title.
d. Post must confirm the full bundle of rights that is
inherent in the acquisition (e.g., mineral rights, air rights, access, etc.).
15 FAM 412.4-3 Payment
(CT:OBO-36; 10-31-2013)
a. Unless OBO for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, authorizes otherwise, post should pay the
purchase price and the fees for any other incidental expenses, such as water
rights, when the title transfer is complete.
b. Offshore payments for the acquisition of real
property require an OBO waiver.
15 FAM 412.4-4 Acquisitions by
Gift
(CT:OBO-36; 10-31-2013)
Any offers or gifts to post must be reported to OBO/PRE
for Department of State properties, or, in
the case of USAID properties, USAID/W-M/MS/OMD. Post may not accept any gifts
without prior approval (see 15 FAM 443).
Gifts include real property, improvements to real property, furniture,
furnishings, equipment, stocks, bonds, or other valuables offered to the U.S.
Government for the purpose of supporting the U.S. Governments foreign
buildings and properties program.
15 FAM 412.5 Documents and Records
(CT:OBO-24; 01-26-2012)
Posts must maintain and submit to OBO, documents and records
relating to real property acquisitions (see 15 FAM 450).
Posts must enter all pertinent Real Property Application (RPA) data in the RPA
data base as soon as the purchase is completed. In the case of USAID
acquisitions, these documents and records must be submitted to both
USAID/W-M/MS/OMD and OBO.
15 FAM 413 POLICY TO VALUE REAL
PROPERTY FOR ACQUISITIONS
(CT:OBO-36; 10-31-2013)
Real estate (nonresidential and
residential): In order to protect the financial interests of the
Department when purchasing real property, the Department will obtain two
independent professional appraisals. The appraisers will be selected and the
appraisal reports reviewed by a member of the Office of Master Planning and
Evaluations (OBO/PRE/MPE) staff. When it is not possible or cost effective to
hire credible appraisers, OBO/PRE/MPE may prepare an in-house appraisal report:
(1) Appraisals should be ordered with enough time for
the Department to make credible business decisions regarding the acquisition of
the property. A minimum of 90 days is recommended. Appraisals will be funded
by OBO;
(2) Questions regarding this requirement or the scope of work to procure appraisals may be
directed to the Office of Master Planning and Evaluations in the Directorate for Planning and Real Estate in the Bureau of Overseas Buildings Operations
(OBO/PRE/MPE) or, if USAID is operating independently, to USAID/W- M/MS/OMD;
and
(3) This appraisal requirement may be waived by
OBO/PRE/MPE if the cost of the appraisal appears high relative to the amount at
stake; if only a single credible appraisal can be obtained; if local conditions
and experience indicate no credible appraisals can be obtained; or if it is in
the best interests of the U.S. Government based
on the facts and circumstances.
NOTE: In the case of USAID
properties operating independently, the same process as outlined herein will
apply for funding, oversight, and approval of appraisals by USAID/W-M/MS/OMD.
15 fam 414 through 419 unassigned