---
kind: "section"
citation: "16 U.S.C. § 460u–5"
title: "16"
title_heading: "Conservation"
number: "460u–5"
heading: "Owner’s retention of right of use and occupancy for residential purposes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/460u-5"
units:
  - "Chapter 1 — National Parks, Military Parks, Monuments, and Seashores"
  - "Subchapter LXXIX — Indiana Dunes National Park"
---

# §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](/usc/16/429b–3.md?p=4) described in [paragraph (2)](#a-2) and [owners](/usc/16/429b–3.md?p=4) of [improved property](/usc/16/251h.md?p=2) within the [area](/usc/16/539m–1.md?p=1-A) on the [map](/usc/16/430f–7.md?p=1) referred to in [section 460u–3 of this title](/usc/16/460u–3.md), dated December 1980, and numbered 626–91014, as [area](/usc/16/539m–1.md?p=1-A) II–B, any [owner](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) of record of [improved property](/usc/16/251h.md?p=2) may retain a right of use and occupancy of said [improved property](/usc/16/251h.md?p=2) 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](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) may elect at the time of [acquisition](/usc/16/620e.md?p=1) by the [Secretary](/usc/16/410r–5.md?p=c-1). In the case of [improved property](/usc/16/251h.md?p=2) within the boundaries of the [map](/usc/16/430f–7.md?p=1) 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](/usc/16/410r–5.md?p=c-1). Where any such [owner](/usc/16/429b–3.md?p=4) 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](/usc/16/410r–5.md?p=c-1) shall pay to the [owner](/usc/16/429b–3.md?p=4) the fair market value of the property on the date of such [acquisition](/usc/16/620e.md?p=1), less the fair market value on such date of the right retained by the [owner](/usc/16/429b–3.md?p=4).
  - (2)
    - (A) In the case of property included within the boundaries of the [Park](/usc/16/410r–5.md?p=c-3) after 1980, any [owner](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) of record of [improved property](/usc/16/251h.md?p=2) 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](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) may elect at the time of [acquisition](/usc/16/620e.md?p=1).
      - (ii) A term ending at the death of any [owner](/usc/16/429b–3.md?p=4) or of a spouse of any [owner](/usc/16/429b–3.md?p=4), whichever occurs last.

      The [owner](/usc/16/429b–3.md?p=4) shall elect the term to be reserved.

    - (B) The retention of rights under [subparagraph (A)](#a-2-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](/usc/16/410r–5.md?p=c-1).
  - (3)
    - (A) In the case of [improved property](/usc/16/251h.md?p=2) included within the boundaries of the [Park](/usc/16/410r–5.md?p=c-3) after October 1, 1991, that was not included within such boundaries on or before that date, an individual who is an [owner](/usc/16/429b–3.md?p=4) of record of such property may retain a right of use and occupancy of such [improved property](/usc/16/251h.md?p=2) for noncommercial residential purposes for a term ending, subject to [subparagraph (B)](#a-3-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](/usc/16/429b–3.md?p=4) may elect at the time of [acquisition](/usc/16/620e.md?p=1).
      - (ii) A term ending at the death of the [owner](/usc/16/429b–3.md?p=4) or the [owner](/usc/16/429b–3.md?p=4)’s spouse, whichever occurs later. The [owner](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) shall elect the term to be reserved.
    - (B) [Subparagraph (A)(ii)](#a-3-A-ii) shall apply only to [improved property](/usc/16/251h.md?p=2) owned by an individual who—
      - (i) was an [owner](/usc/16/429b–3.md?p=4) 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](/usc/16/410r–5.md?p=c-1).
- (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](/usc/16/410r–5.md?p=c-1) 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](/usc/16/410r–5.md?p=c-1). In the event the [Secretary](/usc/16/410r–5.md?p=c-1) terminates a right of use and occupancy under this subsection he shall pay to the [owners](/usc/16/429b–3.md?p=4) 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](/usc/16/460u–3.md).
- (c) **Extension of use and occupancy rights—** With respect to [improved properties](/usc/16/251h.md?p=2) 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](/usc/16/410r–5.md?p=c-1) 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](/usc/16/410r–5.md?p=c-1) for the identical period of time under the terms of the original sale adjusted by a general index adopted by the [Secretary](/usc/16/410r–5.md?p=c-1) reflecting overall value trends within Indiana Dunes National [Park](/usc/16/410r–5.md?p=c-3) 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.)

## Notes

### Editorial Notes

### References in Text

The effective date of this sentence, referred to in subsec. (b), probably refers to the date of enactment of Pub. L. 94–549, which was approved Oct. 18, 1976.

### Prior Provisions

A prior section 5 of Pub. L. 89–761 was classified to section 460u–4 of this title, prior to repeal by Pub. L. 94–549, § 1(9).

### Amendments

2019—Subsec. (a)(2)(A), (3)(A). Pub. L. 116–6, § 115(a)(1)(B), substituted “Park” for “lakeshore” in introductory provisions.

Subsec. (c). Pub. L. 116–6, § 115(a)(1)(A), substituted “National Park” for “National Lakeshore”.

1998—Subsec. (a)(3)(A). Pub. L. 105–277, § 101(e) [title I, § 141(1)], in introductory provisions, struck out “as of that date” after “record of such property” and inserted “, subject to subparagraph (B),” after “term ending”.

Subsec. (a)(3)(B). Pub. L. 105–277, § 101(e) [title I, § 141(2)], substituted “Subparagraph (A)(ii)” for “Subparagraph (A)” in introductory provisions.

1992—Subsec. (a)(1). Pub. L. 102–430, § 4(c), substituted a comma for a period after first reference to “626–91014”.

Subsec. (a)(3). Pub. L. 102–430, § 4(b), added par. (3).

1986—Subsec. (a). Pub. L. 99–583 designated existing provisions as par. (1), inserted “owners described in paragraph (2) and” and substituted reference to the map referred to in section 460u–3 of this title for reference to the map referred to in section 460u of this title, “(A)” for “(1)” in two places, “(B)” for “(2)”, and “. In the case of improved property within the boundaries of the map dated December 1980 and numbered 626–91014” for “: Provided, That”, and added par. (2).

1980—Subsec. (a). Pub. L. 96–612, § 1(6), substituted provisions authorizing certain owners of improved property, except such owners within area II–B, to retain rights of use and occupancy of such property for noncommercial residential purposes for a term either ending at death or at a specified date no later than September 30, 2010, for provisions authorizing certain owners of similar property to retain such rights for similar purposes for a fixed term of twenty years or less, as elected, authorizing the conveyance or leasing of such rights, and specifying the formula for reimbursing such owners upon acquisition of such property by the Secretary.

Subsec. (c). Pub. L. 96–612, § 1(7), added subsec. (c).

1976—Subsec. (a). Pub. L. 94–549, § 1(4)(a), provided that owners within unit II–B on the map referred to in section 460u of this title be excluded from use and occupancy rights, that owners attain the age of majority to be eligible to retain use and occupancy rights, and that the maximum term that an owner may retain use and occupancy rights be reduced to twenty years from twenty-five years.

Subsec. (b). Pub. L. 94–549, § 1(4)(b), substituted provision requiring failure of property to be used in accordance with the terms and applicable conditions as grounds for termination by the Secretary for provision which required failure of the property to be used in accordance with applicable zoning standards, added nonpayment of property taxes as a ground for termination, and provided that the standards for right of use and occupancy applicable prior to Oct. 18, 1976 remain in effect for such right, including applicable zoning regulations.