16 U.S.C. § 460u–5 — Owner’s retention of right of use and occupancy for residential purposes
submitted 60 years ago by Pub. L. 89-761 to r/title-16-CONSERVATION · 940 words · no verdicts yet
Homeowners whose "improved property" the Secretary acquires can usually keep living there — either for life or for a fixed term ending by a set deadline — instead of leaving right away. The Secretary pays the property's value minus the value of the right kept. The Secretary can end that right for misuse or unpaid taxes, and could extend some old shorter-term rights for a fee.
(a) Most owners of "improved property*" — except owners described in paragraph (2) and owners in a specific area near map 626–91014 — may keep a right to live in and use their home after selling it to the Secretary, for noncommercial residential use only. This right lasts either (A) until the owner or their spouse dies, whichever is later, or (B) for a fixed term no longer than September 30, 2010, whichever the owner chooses when the Secretary buys the property. For owners in that specific mapped area near 626–91014, the life-term option (A) is only available to people who were homeowners of record as of October 1, 1980, were already adults then, and made a written offer to sell to the Secretary by October 1, 1985. While this retained right lasts, the owner may lease or transfer it for noncommercial residential use. The Secretary pays the owner the property's fair market value minus the value of the right the owner keeps.
Paragraph (2): For property added to the Park after 1980, an owner may instead keep this right for either (i) a fixed term no later than September 30, 2010, or (ii) until the owner or spouse dies, whichever is later — the owner picks. This option is only open to people who were homeowners of record as of July 1, 1986, were already adults then, and made a written offer to sell by July 1, 1991.
Paragraph (3): For improved property added to the Park after October 1, 1991, an owner may keep this right for either (i) a fixed term no later than October 1, 2020, or (ii) until the owner or spouse dies, whichever is later. The life-term option is only available to someone who was an owner of record as of October 1, 1991, was already an adult then, and made a written offer to sell by October 1, 1997.
(b) The Secretary may end a retained right of use if the property stops being used the way the terms require, or if the owner fails to pay validly assessed property taxes. If the Secretary ends the right this way, the Secretary must pay the owner the fair market value of whatever time was left on that right. Standards that were in effect when a right was originally granted continue to govern that right.
(c) For improved properties acquired before December 28, 1980, where the retained right of use was for no more than twenty years, the Secretary may extend that right by up to nine more years if the holder pays for the extension before September 30, 1983. The payment amount is based on what was discounted from the original purchase price for that period, adjusted using a general value-trend index the Secretary adopts for the Park.
Except for owners described in paragraph (2) and owners of improved property* within the area on the map referred to in section 460u–3 of this title, dated December 1980, and numbered 626–91014, as area II–B, any owner or owners of record of improved property may retain a right of use and occupancy of said improved property for noncommercial residential purposes for a term (A) ending on his or her death or the death of his or her spouse, whichever occurs last, or (B) for a fixed term not to extend beyond September 30, 2010, or such lesser term as the owner or owners may elect at the time of acquisition by the Secretary. In the case of improved property within the boundaries of the map dated December 1980 and numbered 626–91014 the retention of a retained right under clause numbered (A) shall only be available to homeowners of record as of October 1, 1980, who have attained the age of majority as of that date and make a bona fide written offer not later than October 1, 1985, to sell to the Secretary. Where any such owner retains a right of use and occupancy as herein provided, such right during its existence may be conveyed or leased for noncommercial residential purposes. The Secretary shall pay to the owner the fair market value of the property on the date of such acquisition, less the fair market value on such date of the right retained by the owner.
In the case of property included within the boundaries of the Park after 1980, any owner or owners of record of improved property may retain a right of use and occupancy for noncommercial residential purposes for a term ending at either of the following:
A fixed term not to extend beyond September 30, 2010, or such lesser fixed term as the owner or owners may elect at the time of acquisition.
A term ending at the death of any owner or of a spouse of any owner, whichever occurs last.
The owner shall elect the term to be reserved.
The retention of rights under subparagraph (A) shall be available only to individuals who are homeowners of record as of July 1, 1986, who have attained the age of majority as of that date and who make a bona fide written offer not later than July 1, 1991, to sell to the Secretary.
In the case of improved property included within the boundaries of the Park after October 1, 1991, that was not included within such boundaries on or before that date, an individual who is an owner of record of such property may retain a right of use and occupancy of such improved property for noncommercial residential purposes for a term ending, subject to subparagraph (B), at either of the following:
A fixed term not to extend beyond October 1, 2020, or such lesser fixed term as the owner may elect at the time of acquisition.
A term ending at the death of the owner or the owner’s spouse, whichever occurs later. The owner or owners shall elect the term to be reserved.
Subparagraph (A)(ii) shall apply only to improved property owned by an individual who—
was an owner of record of the property as of October 1, 1991;
had attained the age of majority as of that date; and
made a bona fide written offer not later than October 1, 1997, to sell the property to the Secretary.
Upon his determination that the property, or any portion thereof, has ceased to be used in accordance with the applicable terms and conditions, the Secretary may terminate a right of use and occupancy. Nonpayment of property taxes, validly assessed, on any retained right of use and occupancy shall also be grounds for termination of such right by the Secretary. In the event the Secretary terminates a right of use and occupancy under this subsection he shall pay to the owners of the retained right so terminated an amount equal to the fair market value of the portion of said right which remained unexpired on the date of termination. With respect to any right of use and occupancy in existence on the effective date of this sentence, standards for retention of such rights in effect at the time such rights were reserved shall constitute the terms and conditions referred to in section 460u–3 of this title.
With respect to improved properties acquired prior to December 28, 1980, and upon which a valid existing right of use and occupancy has been reserved for a term of not more than twenty years, the Secretary may, in his discretion, extend the term of such retained right for a period of not more than nine years upon receipt of payment prior to September 30, 1983, from the holder of the retained right. The amount of such payment shall be equivalent to the amount discounted from the purchase price paid by the Secretary for the identical period of time under the terms of the original sale adjusted by a general index adopted by the Secretary reflecting overall value trends within Indiana Dunes National Park between the time of the original sale and the time of the retained right of extension offered by this subsection.
Source credit: (Pub. L. 89–761, § 5, formerly § 6, Nov. 5, 1966, 80 Stat. 1311; renumbered § 5 and amended Pub. L. 94–549, § 1(4), (9), Oct. 18, 1976, 90 Stat. 2529, 2533; Pub. L. 96–612, § 1(6), (7), Dec. 28, 1980, 94 Stat. 3576; Pub. L. 99–583, § 1(c), Oct. 29, 1986, 100 Stat. 3319; Pub. L. 102–430, § 4(b), (c), Oct. 23, 1992, 106 Stat. 2208, 2209; Pub. L. 105–277, div. A, § 101(e) [title I, § 141], Oct. 21, 1998, 112 Stat. 2681–231, 2681–266; Pub. L. 116–6, div. E, title I, § 115(a)(1), Feb. 15, 2019, 133 Stat. 232.)
- 1966Enacted · Pub. L. 89-761 · 80 Stat. 1311
- 1976Amended · Pub. L. 94-549 · 90 Stat. 2529, 2533
- 1980Amended · Pub. L. 96-612 · 94 Stat. 3576
- 1986Amended · Pub. L. 99-583 · 100 Stat. 3319
- 1992Amended · Pub. L. 102-430 · 106 Stat. 2208, 2209
- 1998Amended · Pub. L. 105-277 · 112 Stat. 2681
- 2019Amended · Pub. L. 116-6 · 133 Stat. 232
A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-761 on 1966-11-05.
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