Questions and Answers on Land Acquisition in Indiana Dunes National Lakeshore - August 2009

1. Is the National Park Service (NPS) still buying land and/or houses as part of the park?

Yes. The National Park Service will purchase private property within the national lakeshore subject to available funds.

2. Does the NPS use condemnation to acquire property?

Not at present. The NPS has acquired property by condemnation in the past, but no property has been acquired by condemnation in more than 12 years. At present, the NPS is acquiring land only from willing sellers.

3. My house is outside the park boundaries. Will you buy it if I want to sell it?

No. The NPS cannot purchase property outside the established park boundaries. Park boundaries are established by Congress.

4. My property is outside the boundary, but abuts the boundary. Can I give it to you?

Yes. The NPS can accept property outside the boundary by donation if the property directly abuts the park. We cannot buy it.

5. Is there a tax benefit to donating my property?

There is often a tax benefit to donating land to the National Park Service. Tax conditions related to your situation would be something you would want to explore with your lawyer or accountant.

6. If my property is in the boundary and I want to sell it who do I contact?

Real estate management is handled by the National Park Service’s regional office in Omaha, Nebraska. If you are interested in selling your property you should first contact the national lakeshore directly by calling 219-395-1699. We can then direct you to the appropriate office in Omaha.

7. What is a Reservation of Use and Occupancy (RUO)?

An RUO is a property that the NPS has purchased with provisions that allow the former landowners to remain on the property for a period of time specified in their Warranty Deed. The United States pays a reduced purchase price to account for the value of the retained use. This acquisition tool saves taxpayer dollars and allows the former owner to continue to enjoy the property for a set period of time, usually 20 years or more.

8. Will you be evicting people from their RUO homes?

These properties belong to the United States. The NPS paid for these properties and the previous owners retained the use for whatever time was specified in their Warranty Deed. Many of these contracted residencies expire in the next year. A significant number will expire on the same date: September 30, 2010. Occupants must vacate properties by that date. The NPS does not have the legal authority to extend or modify contracts.

9. Do you own these houses or does the occupant.

As noted above, these houses belong to the United States. The owners were paid for the property many years ago and retained the right to live in them until as specified in their Warranty Deed. At that time, they must vacate the house. This is no different from you buying a house and expecting the current occupants to turn it over to you.

10. Do you pay for the occupants to move or find another place to live?

Original owners who sold their property to the National Park Service and retained the right to live on the property to the end of their contract period are entitled to moving expenses. The Midwest Region Land Management Office will work with the landowner on this process.

11. What do you do with the houses once they are empty?

Most of the houses are removed and the land is restored to its natural condition. Much of Indiana Dunes National Lakeshore was once private property and returning land to its natural conditions is how the park came to be. Sometimes the NPS will convert the property to administrative use such as offices or storage.

12. Can I remove certain items from a vacant structure?

The houses that become vacant are federal property. We do not grant permission to individuals to remove items from vacant structures due to safety and liability issues. Removing items from federal property is a federal offense.

13. Will you use any of the RUO properties for government employees to live in?

No. None of the properties will be used for employee housing.

14. What if the buildings are historic?

If a building is determined to be historic, the NPS will not tear it down unless it is unsafe. If the historic structures are sound, the NPS will seek to find a use for the buildings. This might include use by visitors, by park partners, or for administrative use.

15. Can you rent the houses for others to live in?

No. We cannot and do not rent park buildings to others as residences.

16. How come people live in the Century of Progress Homes (World’s Fair Houses) in Beverly Shores?

These are historic buildings (the houses are listed on the National Register of Historic Places).

The NPS did not want to remove these buildings because they are historic. On the other hand, the NPS did not have funds to restore them and they were deteriorating. The NPS entered into an agreement with the Historic Landmarks Foundation of Indiana (HLFI) to lease these buildings to private citizens who agreed to repair and renovate the homes.

The homes must be renovated to standards set by the NPS and they do not acquire any ownership in the buildings or properties. However, in exchange for the cost of restoring the homes, the individuals are allowed to live in them for a specified period of time. This is usually a time commensurate with the expense or restoration. Most of these leases are for 30-60 years.

17. Can I see inside these homes, they belong to the United States?

Yes. The leases require that the homes be open to the public one day a year. We usually hold these open houses in the late summer or early fall

18. How can I find out about these open houses for the Century of Progress Homes?

The National Park Service will announce these open houses in the local media and there will be a specific time period to sign up for the tours.

Questions and Answers about Reservations of Use and Occupancy
At Indiana Dunes National Lakeshore

November 2009

Many people have had questions about properties purchased by the National Park Service for inclusion into Indiana Dunes National Lakeshore. Unlike parks created from existing federal lands, Indiana Dunes National Lakeshore was established by Congress as a park to be created by purchasing land or accepting donated land. Since the park was authorized in 1966, the federal government has purchased hundreds of properties either by condemnation or willing seller. In some cases, people were allowed to live on the property after it was purchased by the NPS.

This Q&A is intended to answer the most common questions regarding properties the NPS has already acquired. For information regarding land not yet acquired, please see the separate Q&A on Land Acquisition.

1. What is a Reservation of Use and Occupancy?

A Reservation of Use and Occupancy (also referred to as a RUO or sometimes ROU) is a property that has been purchased by the National Park Service but with a provision in which the owner is allowed to remain on the property for a specified length of time.

2. Who owns the property?
An RUO is owned by the United States (the federal government).

3. Why can someone live in a house owned by the NPS?
When the property was purchased the owner had a choice of selling the property outright for full market value, or retaining the right to live in the house for a specified length of time (the RUO). If the owner chose the RUO option, then the owner was paid a reduced amount for the property based upon the value of the years of retained occupancy.

4. How long is an RUO?
The length of RUO is governed by the laws for Indiana Dunes National Lakeshore. Depending upon when the property was purchased, the RUO option was controlled by the law in place at that time. Some RUOs are for 20 or 25 years, some for the life of the seller, and some for other specified lengths of time.

5. Can the NPS extend the RUO when it expires?
No. The sale of the property was a sales contract between the United States and the owner. The NPS cannot alter, amend, or change the sales contract.

6. Why are you planning to put people out of their houses when their RUOs are ended?
The NPS is sympathetic to the emotions and personal needs of people who are in these properties. But, it should be understood that these properties do not belong to the occupants. The properties were sold to the federal government. The occupants have been living in federal property since they sold their houses. As part of their ability to occupy federal property the occupant is required to maintain the house and pay property taxes and utilities. At the end of the contracted time the occupants must vacate the houses. This is the same as when any private individual buys a house – the previous owners are contracted to vacate the premises.

7. What is a “leaseback.”
Leaseback is an inaccurate term that some people use to refer to property that is within its reservation of use period. In fact, the residents are not paying the federal government for use of the property and are not leasing them back from anyone. The retained right of occupancy is as specified in the sales contract. The residents pay no fees to the NPS. They pay a reduced property tax for services, but do not pay property tax for the full valuation of the property.

8. I know someone who lives in a house that does pay a rent to the NPS. Isn’t that a leaseback?
Some people who had expired RUOs were allowed to retain residence after the expiration of the RUO through the use of a Special Use Permit. These houses are limited in number. There are certain conditions that must be met to allow a home to be under a Special Use Permit:
A. It is demonstrably to the advantage of the United States to allow the extended occupancy.
B. The extended occupancy of the ROU will not interfere with any current development plans for the national lakeshore or with resources management in the area.
C. The structure and the premises are free of major safety hazards and are in reasonably good repair. There is no evidence, as determined by an inspection, of the presence of hazardous materials or contaminants; in the event that inspection determines the presence of contaminants, removal is accomplished prior to issuance of a SUP for extension of occupancy.
E. The expiration date of any SUP extending ROU occupancy will not exceed the termination date of neighboring ROUs in the same general area.
F. Occupancy will not be extended beyond September 30, 2010.

No Special Use Permits have been issued, or will be issued, for expired RUOs past September 30, 2010.

9. What will the NPS do with these properties?
Most structures will be demolished and the sites restored to their natural condition. This is the purpose for which the NPS buys properties and the means by which Congress intended the National Park Service to create Indiana Dunes National Lakeshore. 

10. Will all buildings be demolished?
The law allows the NPS to retain buildings for two reasons: to carry out the management functions of the park, or because the structures are historic. In these two cases buildings are not torn down.

11. If a building is declared historic, can the current occupants continue to live in it after the RUO expires?
No. No houses will be used for private residences even if the house is determined to be eligible as a historic property. There is no provision in the law that allows the NPS to rent government property for use as a private residence.

12. Aren’t the Century of Progress Homes (World’s Fair Houses) in Beverly Shores being used as private homes?
Yes. This is a special circumstance. These buildings are considered historic and the NPS wished to return them to the external appearance they had at the World’s Fair. Because federal funds were not available to pay for the restoration work, the NPS leased these buildings in exchange for private individuals contributing all costs of restoration. This was the best option available to save these buildings from complete deterioration. Individuals have put hundreds of thousands of dollars into the restoration of these buildings in exchange for the opportunity to live in them for a specified period of time. They do not own any of the buildings or property and must abide by NPS regulations. There are no expiring RUOs that are in a similar category of being historic and in needing this level of extensive repair.

13. What will the NPS do with other historic RUOs?
Of the RUOs in the park, there are approximately seven houses that may be considered historic structures as defined by the National Historic Preservation Act and retained by the NPS when the RUOs expire. The NPS is investigating options for maintaining these buildings. Possible ideas include allowing non-profit organizations to use them, allowing a park-related commercial use in them, or using them for some park needs. Persons and organizations who are interested in using any of these properties should contact the park with their ideas. Any use would have to meet NPS management goals, be compatible with the purposes of the park, and compatible with the area in which the buildings are located. Organizations using these buildings would assume all costs of repair, maintenance, and operation. No RUOs can be used as private residences.

14. Will the NPS use any of the RUOs for government employee housing.
No.

15. How many RUOs, SUPs and Life Estates are there?
There are 23 RUOs that expire on September 30, 2010. There are 10 additional RUOs that expire at varying dates after that. There are 19 Special Use Permits that will also expire on 9/30/10. There are 4 life estates.

16. What happens if someone refuses to vacate their RUO?
As noted, the house belongs to the National Park Service. The resident has no legal right to be in the house after the RUO expiration. Persons who do not vacate the houses would be illegally occupying federal property and subject to legal action.

17. Can someone move their house off the property and keep it?
Yes. This can be done. Persons interested in doing this should contact the park for more information.

18. Can someone else buy the house and move it?
No. However, the prior owner of the RUO can request to move a house.

19. Can I salvage a house after it has been vacated?
Permission to salvage property from vacant houses is only granted to the salvage company under federal contract with the park. Removal of property without the permission or approval of the National Park Service is a crime.