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<classification authority="sudocs">GA 1.13:GGD-00-87</classification>
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 <subject>Real estate leases</subject>
 <subject>Leasing policies</subject>
 <subject>Drug treatment</subject>
 <subject>Homelessness</subject>
 <subject>Municipal governments</subject>
 <subject>State and local procurement</subject>
 <subject>Government facilities</subject>
 <subject>Real property acquisition</subject>
 <subject>Property and supply management</subject>
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 <title>District of Columbia: Management Issues Concerning Two</title>
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<abstract>Pursuant to a congressional request, GAO reviewed issues relating to the
District of Columbia government&apos;s mismanagement of two building leases,
focusing on: (1) whether the person or persons who approved the leases
were authorized to do so; (2) the status of properties, leases, costs,
and utilization; and (3) the steps the District has taken or is taking
to ensure that leased properties, in general, are effectively managed
and utilized.&lt;p/&gt;GAO noted that: (1) authorized individuals approved both leases; (2) the
then Mayor of the District signed the lease for the homeless shelters;
(3) although District officials were unable to provide GAO with a signed
copy of the lease for the multiple use facility, GAO concluded that it
was also a properly authorized lease; (4) in that case, the Director of
the Department of Administrative Services, also an authorized leasing
official, signed an acknowledgement form, which is an integral part of
the lease; (5) the homeless shelter buildings have been vacant since
January 1992 and are boarded up; (6) the District has spent over +$2
million in rent while the space has been vacant and is liable for over
$1 million to restore the two buildings; (7) the Department of Human
Services decided to cease using the buildings as homeless shelters
because neglect of maintenance of the buildings had rendered them unfit
as shelters; (8) the District had spent $3.4 million in rent from
December 19, 1986, through fiscal year (FY) 1999, including about $2.3
million since the buildings have been vacant; (9) the lease calls for at
least another $1.9 million, in current dollars, in rent over the 6 years
remaining on the lease; (10) the terms of the lease require the District
at the termination of the lease to restore the buildings to the
condition they were in at the beginning of the lease term; (11) since it
has been estimated that the costs to restore the buildings would exceed
+$1 million, District property management officials have concluded that
it is advantageous to purchase the properties; (12) the multiuse
facility is utilized by three District agencies, although half of the
rented space remained vacant for more than 3 years; (13) from August
1990 through FY 1999, about $11.9 million was paid in rent for the
space; (14) for the remaining 10 years of the lease, at least another
$13 million is to be spent in additional rent for this space; (15) the
District has taken some steps, and plans to take additional ones, to
help it to more effectively manage and monitor its real property
holdings; (16) Congress has passed legislation that requires the
District to take additional steps, such as developing a comprehensive
plan for the management of real property assets, to further strengthen
its real property operations; and (17) on April 5, 2000, the District of
Columbia Council passed an emergency and permanent version of the
Omnibus Government Real Property Asset Management Reform Act of 2000 to
improve management of real property assets, including fully centralizing
asset management authority.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Real estate leases</topic>
 <topic>Leasing policies</topic>
 <topic>Drug treatment</topic>
 <topic>Homelessness</topic>
 <topic>Municipal governments</topic>
 <topic>State and local procurement</topic>
 <topic>Government facilities</topic>
 <topic>Real property acquisition</topic>
 <topic>Property and supply management</topic>
 <topic>Internal controls</topic>
 <topic>District of Columbia</topic>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 113 Page 1524-1526</partNumber>
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 <identifier type="Statute citation">113 Stat. 1524-1526</identifier>
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  <title>United States Public Law 113 (106th Congress)</title>
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