Overview
State agencies owning real property may declare it surplus to their needs and report to the Department of Administrative Services (DAS) intent to sell the property. DAS issues a 30-day notice of sale of surplus property as required in ORS 270.100 to other state agencies, nonprofit organizations, Indian Tribes and local government units. DAS will also post the notice on a
web page. Interested buyers will respond to the notice telling DAS they want to buy the property for fair market value. Potential buyers enter into a Pre-purchase Agreement with the selling agency within 60-days.
Selling agency considers the interested buyers in this order of priority:
- Other state agencies have priority status to buy surplus real property.
- Nonprofit organizations (as defined in OAR 124-045-0205) and Indian Tribes (as defined in ORS 97.740) may buy surplus real property on the condition that they develop low-income housing on the property. Low- income means families and Individuals with incomes no greater than 80 percent of the median family income for the county where the property is located. Selling agency will include a deed restriction in the sale contract.
- Political Subdivisions (local government units as defined in ORS 271.005 (3)) may buy the property for other public purpose in addition to low-income housing. The local government may not resell the property to a private purchaser. ORS 271.330 requires that property be used for a public purpose for not less than 20 years before re-sold.
- The Public may buy surplus real property only if not purchased by a state agency, nonprofit organization, Indian Tribe or political subdivision. Interested buyers work with the selling agency to buy the property. Agencies may sell smaller assets with limited value “as-is” by public bid. If the property has an appraised value exceeding $5,000, the property may not be sold to any private person except after notice described in ORS 270.130. If the property is valued at $100,000 or more, ORS 270.105 (2) and 270.120 (6) require review by the Public Lands Advisory Committee (PLAC). DAS will work with the selling agency to place the property on a meeting agenda of the PLAC, inviting public comment. The PLAC will review the sale and consider all the values of the property to the people of Oregon.
Selling agency sells the property ar fair market value with a DAS-approved appraisal.
Certain agencies and types of real property are exempt from this process. However, prior approval by DAS is required for the sale of real property for less than the fair market value of the public property.
Payment for these services is covered through an existing assessment.
Laws and Rules: