[Code of Federal Regulations]
[Title 32, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR643.53]

[Page 96-97]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 643--REAL ESTATE--Table of Contents
 
                            Subpart C--Leases
 
Sec. 643.53  Consideration.

    (a) Unless otherwise authorized by this regulation or directed by 
the SA, the consideration for a lease of real estate will be the 
appraised fair market rental value. However, the value of the 
maintenance, protection, repair, or restoration by the lessee of the 
property leased, or of the entire unit or installation where a 
substantial part of it is leased, may be accepted as all or part of the 
consideration. The value of the maintenance, protection, repair or 
restoration, when added to the amount of the monetary payment to be made 
by the lessee, must equal the appraised fair market rental value of the 
property leased.
    (b) Buildings and space may be leased to a State or political 
subdivision thereof for public school purposes, limited to use for 
classrooms and closely related academic instructions, through high 
school level, at no monetary consideration. Where bare land is leased 
for construction of a school through high school level, the acreage will 
not exceed criteria established by the appropriate State authority or 
the Department of Health, Education, and Welfare (HEW), the rental will 
be $1 for the term of the lease and any renewal thereof. Leases of bare 
land will be for a term of 25 years, with an option on tenant's part to 
renew for another term of 25 years. Real estate may also be leased for 
educational purposes to public educational institutions at a reduced 
rental, after consultation with the HEW, and taking into account any 
benefits accruing to the United States through the use of such property. 
In any event, the lessee will be required to assume the cost of 
maintenance, protection, repair, or restoration of the property leased 
and the administrative costs incident thereto.
    (c) Lease granted for agricultural, grazing, or haying purposes will 
have attached thereto the land-use regulations furnished by the 
installation commander specifying the items required to be performed by 
the lessee as part of the lease obligations. It is the policy of the DA 
that land leased for agricultural, grazing or haying purposes be 
returned to the Government in as good or better condition than when 
initially leased. The land-use regulations will include those activities 
of maintenance, protection, repair, or restoration of the property 
leased which the lessee will be required to perform as part or all of 
the consideration for

[[Page 97]]

the lease. Generally, an activity will qualify as an offset from rental 
if it is:
    (1) Performed on the leased premises, or when it constitutes a 
substantial part of the entire rental unit or installation,
    (2) Of direct benefit to the installation in its authorized current 
or mobilization mission, as distinguished from desired programs, or in 
furtherance of the Army's leasing program,
    (3) Generally related to the lessee's use of the leased property. 
Where all of the above criteria are met, the following activities may be 
authorized: Control of erosion, conservation of natural resources, and 
maintenance of the viability of the land for continuing leasing, such as 
mowing, weed control, seeding, fertilizing, mulching, crop rotation, 
selected cutting, and soil conservation measures such as terraces, check 
dams, wells, springs, ponds, title, or open channels or culverts for 
drainage, firebreaks, inside fencing and cattle guards. Maintenance, 
protection, repair or restoration of buildings, roads, perimeter 
fencing, and similar improvements are not authorized as offsets from 
rental unless the property is leased to and beneficially used by the 
lessee, or on a rental unit or installation in which the leased premises 
constitutes a substantial part or as otherwise approved by HQDA (DAEN-
REM), Washington, DC 20314. Also, lessee may be required to perform 
activities in support of recreation and welfare, fish and wildlife, 
beautification, and esthetic programs and the cost of establishing and 
maintaining recreation, swimming and fishing areas, wildlife habitats, 
food plots, and similar activities when the following conditions have 
been met:
    (1) The activities to be offset are in furtherance of the 
installation natural resources plan as approved by the MACOM.
    (2) The overall plan for the term of the lease, has been approved by 
ASA (IL & FM).
    (3) MACOM approval has been obtained for each lease when any 
activity to be offset exceeds $1,000.

Total of the offsets in any year will never exceed the annual rental.