**Summary of H.R. 1642**

**Homeless Veterans Housing at Sepulveda\
Ambulatory Care Center Promotion Act**

**Title:** To direct the Secretary of Veterans Affairs to ensure that,
to the extent possible, an enhanced-use lease for a homeless housing
project at the Department of Veterans Affairs facility known as the
Sepulveda Ambulatory Care Center, located in North Hills, California,
shall provide that such housing project shall be maintained as a sober
living facility for veterans only, and for other purposes.

**Mr. Sherman** introduced H.R. 1642 on March 22, 2007.

**H.R. 1642 would:**

1.  Direct the Secretary of Veterans Affairs to ensure that, [to the
    extent possible]{.underline}, an enhanced use lease for a homeless
    housing project at VA Sepulveda shall be maintained as a sober
    living facility for veterans only with adequate staffing and
    security.

2.  Allow the Secretary of Veterans Affairs to enter into an
    enhanced-use lease under section 8162 of title 38, United States
    Code at VA Sepulveda for a homeless housing project, only to the
    extent that any such lease contains legally enforceable provisions
    that the tenant under the lease shall comply with the following
    terms and conditions: 

> \(1\) That the housing project located at VA Sepulveda shall provide
> housing exclusively for veterans, as defined in section 101 of title
> 38, United States Code.
>
> \(2\) That such housing project shall be maintained, for the duration
> of the lease, as a sober living facility.
>
> \(3\) That the housing project shall be adequately staffed with health
> care, counseling, and security personnel, taking into account the
> ratio of such staff to residents, in order to protect residents of the
> housing project and of the community, and that the minimum staffing
> ratios shall be specified in an enforceable provision of the lease.
>
> \(4\) That the housing project shall provide housing to not fewer than
> 150 and not more than 225 residents.

3.  Require the VA to determine whether there are other qualified
    organizations with the experience, efficiency and funding sources to
    deliver a veterans-only, sober living facility and to enter into an
    enhanced use lease with the organization best suited to deliver the
    project. 

> In the event that more than one qualified organization submits a
> proposal, the Secretary shall enter into the enhanced use lease with
> the organization that the Secretary determines offers the best
> treatment services, security staffing, and supervision with respect to
> residents of the housing project.  The Secretary shall give preference
> to entering into such a lease with a qualified organization which has
> the most experience nationwide in providing housing and treatment for
> homeless veterans. 
>
> The bill contains two exceptions:

(1) If the Secretary, after a diligent search, is unable to enter into
    an enhanced use lease with a qualified organization containing all
    of the terms and conditions described above within 12 months after
    the date of the enactment of H.R. 1642, the Secretary may enter into
    a lease with a qualified organization providing that the housing
    project shall be exclusively for veterans during the duration of the
    lease, with preference given to an organization which housing
    project shall provide housing to the highest number of residents not
    exceeding 225; and,

(2) If, after a diligent search, the Secretary is unable to enter into
    such a lease with a qualified organization that provides that the
    housing project shall be exclusively for veterans during the
    duration of the lease, may enter into such a lease with an
    organization providing that not less than 80 percent of the
    residents of the housing project shall be veterans throughout the
    duration of the lease.

    *Background*

Homelessness among veterans is a pervasive problem.  Estimates are that
there are 20,000-30,000 homeless veterans in the Los Angeles area
alone.  Many of these homeless veterans also have substance abuse
problems.  Congressman Sherman worked with veterans and the San Fernando
Valley community to mobilize community support for a veterans-only
housing project that would use two buildings at VA Sepulveda to provide
housing and supportive services for homeless veterans with substance
abuse problems.

Two non-profit organizations, New Directions, Inc., (New Directions),
and their partner A Community of Friends (ACOF) made a proposal to local
VA administrators, local elected officials, and community
representatives to enter into an enhanced use lease with the VA for a
veterans-only housing project for recovering substance abusers that
would be alcohol-free and would have adequate staffing and security. All
parties agreed to the commitments which were memorialized in a February
10, 2006 letter from Congressman Sherman to the local VA administrator
and New Directions/ACOF.  An enhanced use lease is a way for land
developers to acquire land on veterans' property, in exchange for
in-kind services to veterans.

The original proposal presented by New Directions/ACOF was for a
veterans-only, sober living facility, with adequate staffing and
security. In the summer of 2006, New Directions/ACOF abandoned the
proposal and now seek an enhanced-use lease with the VA to deliver a
project at VA Sepulveda that is substantially different than what was
initially agreed to.

The new project now proposed by New Directions/ACOF

> 1\) would not be a veterans-only housing project (non-veterans would
> be permitted to reside in these veterans facilities);
>
> 2\) allows New Directions/ACOF to permit alcohol use by residents; and
>
> 3\) does not include legally enforceable lease provisions to require
> adequate staffing and security. 

New Directions/ACOF took these steps after discovering additional
funding sources through HUD that it believes might be available for this
project if its lease with the VA opens these facilities to residency by
non-veterans and allows the use of alcohol.

New Directions/ACOF's and the VA proposes to enter into a 75 year
enhanced use lease. VA is not holding another hearing to provide notice
to the community and the elected officials.  VA has refused to issue a
request for proposals from any other qualified organizations for a VA
Sepulveda homeless veterans' housing project, including those
organizations currently providing veterans only housing (such as the
Salvation Army or US Vets). Instead, the VA is proceeding on a sole
source basis with New Directions/ACOF and disregards important
commitments made to the local VA administrators, local elected
officials, and the community.

**Effective Date:** Date of Enactment

**Cost:** Under current law, the Veterans Health Administration (VHA)
has authority to use enhanced-use leases to enter into an array of
long-term agreements with property developers who establish a
limited-liability company, partnership, or other special-purpose entity,
specifically for the purpose of renovating, constructing, operating, and
maintaining the facilities for each project. Those agreements establish
government control over the project, protect the government\'s
interests, and ensure that VHA will receive guaranteed access to
whatever facility is being developed. The resulting lease payments to
VHA are deposited into the Health Services Improvement Fund and are
considered offsets to direct spending, but VHA may spend amounts in the
fund without appropriation action. Thus, any such collections are spent,
resulting in no net impact on direct spending.

**Legislative History:**

Apr. 18, 2007: Ordered reported by the Committee on Veterans' Affairs.

May 7, 2007: Passed the House by unanimous voice vote.