President Bush issued EO 13287 to reaffirm the federal government's commitment to providing leadership in preserving America's heritage by improving the stewardship of federal real property. EO 13287 includes a number of actions that are intended to encourage better accounting, use, management, and recognition of historic properties under the ownership of the agency. By preparing the Section 3 reports, agencies will increase their knowledge of their historic properties and determine how to best protect and manage such properties as assets. In addition, the information contained in the reports will enable the ACHP and the Department of Interior to better advise Congress and the President regarding issues related to federal property stewardship.

Section 3 of the EO 13287 "Improving Federal Agency Planning and Accountability," is not intended to replace the requirements of Section 110 of the NHPA. Rather, Section 3 is intended to assess how federal agencies are meeting their Section 110 responsibilities and determine whether they have developed sound management and operating policies to protect, preserve, and use federally owned historic properties.

The EO applies to all Executive Branch departments and agencies. However, Section 3 of the EO applies specifically to such departments and agencies that have real property management responsibilities.

As set forth in Section 7 of the EO, the applicable definition of “historic properties” is the one found in the NHPA. Under that definition a “historic property” is “any prehistoric or historic district, site, building, structure, or object included in or eligible for inclusion in the National Register, including artifacts, records, and material remains related to such a property or resource (54 U.S.C. 300308).”

Section 110(a)(2)(A) requires each federal agency to develop a preservation program for historic properties under the jurisdiction or control of the agency. The agency that leases or manages a historic property under an arrangement with another agency should contact the agency owning the property to clarify that the property will be reported as an out leased or co-managed property in its inventory of historic properties. However, it is acceptable for each agency to include such property in its Section 3 Progress Report as long as the agency specifies whether it is the lessor and lessee.

Section 3 Progress Reports should include information on the general condition of properties in the federal agency's historic inventory. Since each agency has its own protocols for assessing the condition of its real property, in the initial report the ACHP would like to know the methodology for evaluating the conditions of properties, the qualifications of the staff making these assessments, and the schedule for evaluating current conditions of properties. A particularly important issue that should be addressed in the report is whether buildings are in poor condition due to neglect, sustained vacancies, or a pattern of deferred maintenance.

Some of the information required for the Section 3 Progress Report may be the same as that used in compiling the Federal Accounting Standards Advisory Board reports. Presently, agencies are required to report descriptive, non-financial information on stewardship land and heritage assets in accordance with the Statement of Federal Financial Accounting Standards (SFFAS) No. 29. While in the past this information was not auditable, changes have been made to require auditors to provide examination level assurance regarding these reports. Therefore, agencies may be able to use some of the information collected for its heritage assets report (SFFAS No. 29) when it is consistent with the requirements of Section 3.

Section 3 Progress Reports should be submitted to the ACHP by the head of the agency, or his/her designee, to ensure that the reports are reviewed and endorsed by the agency's senior policy officials.

Federal agencies are not required to structure their Section 3 progress report in response to the advisory guideline’s questions. These advisory guidelines are for a federal agency’s consideration only and allow agencies to use these advisory guidelines in conjunction with established agency reporting formats. Should an agency choose to format its report in response to these questions, that agency may choose to answer questions singularly or through a combined response to multiple questions as it sees fit.

Agencies are encouraged to include with their report data, case studies, best practices, and Web sites that explain their responses. When submitting these examples please clarify the role of state and local governments, tribes, civic or community organizations, and the private sector as appropriate. If various funding sources were used to establish a partnership, agencies are encouraged to identify the sources of public and private funding.

Please submit two hard copies, including an electronic copy as a PDF file or a Microsoft Word document with graphics meeting a 500 DPI minimum (ultra high resolution is preferred), no later than September 30, 2005, and every three years there after, to the following address:

Chairman 
Advisory Council on Historic Preservation 
ATTN: Section 3 Progress Report 
401 F Street NW, Suite 308 
Washington, DC 20001-2637

The ACHP will make Section 3 reports available on its Web site. Departments and agencies with security concerns may submit an executive summary to post on the ACHP Web site in lieu of the entire progress report. In this situation a full report must still be submitted to the ACHP for review.