16 USC 460u-5 – Owner’s retention of right of use and occupancy for residential purposes
(a) Election; conveyance or lease of right; adjustment of compensation; retained rights
(1) 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.
Terms Used In 16 USC 460u-5
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- improved property: means a detached, one-family dwelling which meets each of the following criteria:
(1) The construction of the dwelling began before the date (shown in the table contained in this section) corresponding to the appropriate map. See 16 USC 460u-3
- individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See 1 USC 8
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(2)(A) 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:
(i) 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.
(ii) 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.
(B) 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.
(3)(A) 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:
(i) 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.
(ii) 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.
(B) Subparagraph (A)(ii) shall apply only to improved property owned by an individual who—
(i) was an owner of record of the property as of October 1, 1991;
(ii) had attained the age of majority as of that date; and
(iii) made a bona fide written offer not later than October 1, 1997, to sell the property to the Secretary.
(b) Termination of use and occupancy; pre-October 18, 1976, standards of use and occupancy to remain in effect
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.
(c) Extension of use and occupancy rights
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.