Federal Office Space:

Obstacles to Purchasing Commercial Properties From RTC, FDIC, and Others

GGD-92-60: Published: Mar 31, 1992. Publicly Released: Mar 31, 1992.

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Pursuant to a congressional request, GAO provided information on: (1) the General Services Administration's (GSA) efforts to consider and purchase buildings and other real property from the Resolution Trust Corporation (RTC) and the Federal Deposit Insurance Corporation (FDIC); and (2) any obstacles that could prevent GSA from purchasing such properties.

GAO found that: (1) in June 1991, GSA proposed that RTC establish a formal working agreement with it to facilitate the identification, consideration, and purchase of available RTC properties; (2) RTC expressed concern regarding its ability to give GSA special concessions because of its fiduciary responsibilities, and proposed that it and GSA try a few sales before adopting a formal agreement; (3) in December 1991, RTC provided GSA with a list of potentially suitable properties; (4) as of January 1992, GSA had not purchased any RTC or FDIC properties and had been slow in identifying and considering potential properties; (5) GSA plans to consider available FDIC properties after it concentrates on available RTC properties; (6) GSA chose to concentrate on RTC properties first because RTC controls more commercial properties than FDIC and Congress directed GSA to coordinate with RTC; and (7) obstacles that could impede GSA ability to purchase properties held by RTC, FDIC, and other sellers include funding and budgetary limitations, a lack of a comprehensive strategic approach for meeting federal space needs, and a lack of GSA discretionary building purchase authority.