42 USC 3374 - Acquisition of property at or near military bases which have been ordered to be closed and certain property owned by members of the Armed Forces, Department of Defense and United States Coast Guard civilian employees, and surviving spouses

U.S Code last checked for updates: Apr 15, 2025

§ 3374.

Acquisition of property at or near military bases which have been ordered to be closed and certain property owned by members of the Armed Forces, Department of Defense and United States Coast Guard civilian employees, and surviving spouses

(a)

Authorization; conditions precedent

(1)

Acquisition of property at or near military installations that have been ordered to be closed

Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which is situated at or near a military base or installation which the Department of Defense has, subsequent to November 1, 1964, ordered to be closed in whole or in part, if—

(A)

the Secretary determines— — 1

 So in original. The second dash probably should not appear.

(i)

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), a nonappropriated fund instrumentality employee employed at a nonappropriated fund instrumentality operated in connection with such base or installation, or a member of the Armed Forces of the United States assigned thereto;

(ii)

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 or, in the case of a member of the Armed Forces not assigned to that base or installation at the time of public announcement of such closing, will prevent any reassignment of such member to the base or installation; and

(iii)

that as the result of the actual or pending closing of such base or installation in whole or in part, or if as the result of such action and other similar action in the same area, there is no present market for the sale of such property upon reasonable terms and conditions; or

(B)

the Secretary determines—

(i)

that the conditions in clauses (i) and (ii) of subparagraph (A) have been met;

(ii)

that the closing or realignment of the base or installation resulted from a realignment or closure carried out under the 2005 round of defense base closure and realignment under the Defense Base Closure and Realignment Act of 1990 (part XXIX 2

 See References in Text note below.

of Public Law 101–510; 10 U.S.C. 2687 note);

(iii)

that the property was purchased by the owner before July 1, 2006;

(iv)

that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;

(v)

that the property is the primary residence of the owner; and

(vi)

that the owner has not previously received benefit payments authorized under this subsection.

(2)

Homeowner assistance for wounded members of the Armed Forces, Department of Defense and United States Coast Guard civilian employees, and their spouses

Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which was at the time of the relevant wound, injury, or illness, the primary residence of—

(A)

any member of the Armed Forces in medical transition who—

(i)

incurred a wound, injury, or illness in the line of duty during a deployment in support of the Armed Forces;

(ii)

is disabled to a degree of 30 percent or more as a result of such wound, injury, or illness, as determined by the Secretary of Defense; and

(iii)

is reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability;

(B)

any civilian employee of the Department of Defense or the United States Coast Guard who—

(i)

was wounded, injured, or became ill in the performance of his or her duties during a forward deployment occurring on or after September 11, 2001, in support of the Armed Forces; and

(ii)

is reassigned in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the sustained disability; or

(C)

the spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if—

(i)

the member or employee was killed in the line of duty or in the performance of his or her duties during a deployment on or after September 11, 2001, in support of the Armed Forces or died from a wound, injury, or illness incurred in the line of duty during such a deployment; and

(ii)

the spouse relocates from such residence within 2 years after the death of such member or employee.

(3)

Temporary homeowner assistance for members of the Armed Forces permanently reassigned during specified mortgage crisis

Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling situated at or near a military base or installation, if the Secretary determines—

(A)

that the owner is a member of the Armed Forces serving on permanent assignment;

(B)

that the owner is permanently reassigned by order of the United States Government to a duty station or home port outside a 50-mile radius of the base or installation;

(C)

that the reassignment was ordered between February 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;

(D)

that the property was purchased by the owner before July 1, 2006;

(E)

that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;

(F)

that the property is the primary residence of the owner; and

(G)

that the owner has not previously received benefit payments authorized under this subsection.

(b)

Eligibility for benefits; criteria

(1)

In order to be eligible for the benefits of subsection (a)(1), a civilian employee or a member of the Armed Forces—

(A)

must be assigned to or employed at or in connection with the installation or activity at the time of public announcement of the closure action, or employed by a nonappropriated fund instrumentality operated in connection with such base or installation;

(B)

must have been transferred from such installation or activity, or terminated as an employee as a result of a reduction in force, within six months prior to public announcement of the closure action; or

(C)

must have been transferred from the installation or activity on an overseas tour within three years prior to public announcement of the closure action.

(2)

A member of the Armed Forces shall also be eligible for the benefits of subsection (a)(1) if the member—

(A)

was transferred from the installation or activity within three years prior to public announcement of the closure action; and

(B)

in connection with the transfer, was informed of a future, programmed reassignment to the installation.

(3)

The eligibility of a civilian employee and member of the Armed Forces under paragraph (1) and a member of the Armed Forces under paragraph (2) for benefits under subsection (a)(1) in connection with the closure of an installation or activity is subject to the additional conditions set out in paragraphs (4) and (5).

(4)

At the time of public announcement of the closure action, or at the time of transfer or termination as set forth above, such personnel or employees must—

(A)

have been the owner-occupant of the dwelling, or

(B)

have vacated the owned dwelling as a result of being ordered into on-post housing during a six-month period prior to the closure announcement.

(5)

As a consequence of such closure such employees or personnel must—

(A)

be required to relocate because of military transfer or acceptance of employment beyond a normal commuting distance from the dwelling for which compensation is sought, or

(B)

be unemployed, not 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.

(c)

Election of benefits; mortgage loan encumbrance; foreclosure expenses

(1)

Homeowner assistance related to closed military installations

(A)

In general

Such persons as the Secretary of Defense may determine to be eligible under the criteria set forth in subsection (a)(1) shall elect either—

(i)

to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—

(I)

95 per centum of the fair market value of their property (as such value is determined by the Secretary of Defense) prior to public announcement of intention to close all or part of the military base or installation; and

(II)

the fair market value of such property (as such value is so determined) at the time of the sale; or

(ii)

to receive, as purchase price for their property, an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.

(B)

Reimbursement of expenses

(2)

Homeowner assistance for wounded individuals and their spouses

(A)

In general

Persons eligible under the criteria set forth in subsection (a)(2) may elect either—

(i)

to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—

(I)

95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and

(II)

the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or

(ii)

to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.

(B)

Determination of benefits

(3)

Homeowner assistance for permanently reassigned individuals

(A)

In general

Persons eligible under the criteria set forth in subsection (a)(3) may elect either—

(i)

to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—

(I)

95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and

(II)

the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or

(ii)

(B)

Determination of benefits

(4)

Compensation and limitations related to foreclosures and encumbrances

(d)

Fund for extension of financial assistance; capital and receipts; availability of monies; covering into Treasury as miscellaneous receipts; Federal title to and control of property; other laws unaffected; foreign properties, exclusion

(e)

Fund as source of payments to States in lieu of taxes; limitation on amount; allowance for public service expenditures

(f)

Title requirements; terms and conditions of payment; finality of decisions

(g)

Repealed. Pub. L. 111–5, div. A, title X, § 1001(a)(4), Feb. 17, 2009, 123 Stat. 197

(h)

Omitted

(i)

Specific authorization for funds; expenditure of monies in Fund

(j)

Omitted

(k)

Reduction of operations at military base or installation

(l)

Foreign property losses

(m)

Eligibility for benefits as to closure actions announced after April 1, 1973; criteria

(n)

Relocation assistance for Coast Guard personnel

(1)

Assistance under subsection (a)(1) shall be provided by the Secretary of Defense with respect to Coast Guard bases and installations ordered to be closed, in whole or in part, after January 1, 1987. Such assistance shall be provided under terms equivalent to those under which assistance is provided under subsection (a)(1) for closings of military bases and installations which are under the jurisdiction of the Secretary of Defense.

(2)

The Secretary of the department in which the Coast Guard is operating, if other than the Department of Defense, shall reimburse the Secretary of Defense for expenditures under subsection (a)(1) made by the Secretary of Defense with respect to closings of Coast Guard bases and installations ordered when the Coast Guard is not operating as a service in the Navy. The Secretary of Defense and the Secretary of the department in which the Coast Guard is operating shall enter into an agreement under which the Secretary of the department in which the Coast Guard is operating shall carry out such reimbursement.

(o)

Relocation assistance for nonappropriated fund instrumentality and other civilian employees

(1)

Assistance under subsection (a)(1) shall be provided by the Secretary of Defense with respect to nonappropriated fund instrumentality employees adversely affected by the closure of a base or installation ordered to be closed, in whole or in part, after December 31, 1988.

(2)

Notwithstanding subsection (b), a civilian employee who is serving overseas and is entitled to reemployment by the Federal Government (including a nonappropriated fund instrumentality of the United States) at or in connection with a base or installation ordered to be closed, in whole or in part, shall be entitled to the benefits of subsection (a)(1) to the same extent as an employee employed at or in connection with that base or installation.

(3)

All payments to a nonappropriated fund instrumentality employee under this section shall be made from the funds available to the Secretary of Defense under subsection (d).

(p)

Definitions

In this section:

(1)

the term “Armed Forces” has the meaning given the term “armed forces” in section 101(a) of title 10;

(2)

the term “civilian employee” has the meaning given the term “employee” in section 2105(a) of title 5;

(3)

the term “medical transition”, in the case of a member of the Armed Forces, means a member who—

(A)

is in Medical Holdover status;

(B)

is in Active Duty Medical Extension status;

(C)

is in Medical Hold status;

(D)

is in a status pending an evaluation by a medical evaluation board;

(E)

has a complex medical need requiring six or more months of medical treatment; or

(F)

is assigned or attached to an Army Warrior Transition Unit, an Air Force Patient Squadron, a Navy Patient Multidisciplinary Care Team, or a Marine Patient Affairs Team/Wounded Warrior Regiment; and

(4)

the term “nonappropriated fund instrumentality employee” means a civilian employee who—

(A)

is a citizen of the United States; and

(B)

is paid from nonappropriated funds of Army and Air Force Exchange Service, Navy Resale and Services Support Office, Marine Corps exchanges, or any other instrumentality of the United States under the jurisdiction of the Armed Forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces.

(Pub. L. 89–754, title X, § 1013, Nov. 3, 1966, 80 Stat. 1290; Pub. L. 91–142, title VI, § 602, Dec. 5, 1969, 83 Stat. 313; Pub. L. 91–511, title VI, § 612, Oct. 26, 1970, 84 Stat. 1225; Pub. L. 92–545, title VI, § 601, Oct. 25, 1972, 86 Stat. 1150; Pub. L. 93–166, title V, § 513(b), Nov. 29, 1973, 87 Stat. 679; Pub. L. 100–448, § 11, Sept. 28, 1988, 102 Stat. 1842; Pub. L. 101–510, div. A, title III, § 331, Nov. 5, 1990, 104 Stat. 1535; Pub. L. 102–190, div. B, title XXVIII, § 2823, Dec. 5, 1991, 105 Stat. 1547; Pub. L. 102–484, div. A, title X, § 1054(i), Oct. 23, 1992, 106 Stat. 2503; Pub. L. 103–337, div. B, title XXVIII, § 2805, Oct. 5, 1994, 108 Stat. 3053; Pub. L. 111–5, div. A, title X, § 1001(a), (b), Feb. 17, 2009, 123 Stat. 194, 198.)

cite as: 42 USC 3374

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