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[House Report 114-570]
[From the U.S. Government Publishing Office]

114th Congress }                                         { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                         { 114-570

======================================================================
 
           LOS ANGELES HOMELESS VETERANS LEASING ACT OF 2016

                                _______
                                

  May 17, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Miller of Florida, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3484]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3484) to authorize the Secretary of Veterans 
Affairs to enter into certain leases at the Department of 
Veterans Affairs West Los Angeles Campus in Los Angeles, 
California, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     5
Hearings.........................................................     7
Subcommittee Consideration.......................................     8
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Statement of General Performance Goals and Objectives............     8
New Budget Authority, Entitlement Authority, and Tax Expenditures     8
Earmarks and Tax and Tariff Benefits.............................     8
Committee Cost Estimate..........................................     8
Congressional Budget Office Estimate.............................     9
Federal Mandates Statement.......................................    15
Advisory Committee Statement.....................................    15
Constitutional Authority Statement...............................    15
Applicability to Legislative Branch..............................    15
Statement on Duplication of Federal Programs.....................    15
Disclosure of Directed Rulemaking................................    16
Section-by-Section Analysis of the Legislation...................    16
Changes in Existing Law Made by the Bill as Report...............    19

                Amendment in the Nature of a Substitute

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Los Angeles Homeless Veterans Leasing 
Act of 2016''.

SEC. 2. AUTHORITY TO ENTER INTO CERTAIN LEASES AT THE DEPARTMENT OF 
                    VETERANS AFFAIRS WEST LOS ANGELES CAMPUS.

  (a) In General.--The Secretary of Veterans Affairs may carry out 
leases described in subsection (b) at the Department of Veterans 
Affairs West Los Angeles Campus in Los Angeles, California (hereinafter 
in this section referred to as the ``Campus'').
  (b) Leases Described.--Leases described in this subsection are the 
following:
          (1) Any enhanced-use lease of real property under subchapter 
        V of chapter 81 of title 38, United States Code, for purposes 
        of providing supportive housing, as that term is defined in 
        section 8161(3) of such title, that principally benefit 
        veterans and their families.
          (2) Any lease of real property for a term not to exceed 50 
        years to a third party to provide services that principally 
        benefit veterans and their families and that are limited to one 
        or more of the following purposes:
                  (A) The promotion of health and wellness, including 
                nutrition and spiritual wellness.
                  (B) Education.
                  (C) Vocational training, skills building, or other 
                training related to employment.
                  (D) Peer activities, socialization, or physical 
                recreation.
                  (E) Assistance with legal issues and Federal 
                benefits.
                  (F) Volunteerism.
                  (G) Family support services, including child care.
                  (H) Transportation.
                  (I) Services in support of one or more of the 
                purposes specified in subparagraphs (A) through (H).
          (3) A lease of real property for a term not to exceed 10 
        years to The Regents of the University of California, a 
        corporation organized under the laws of the State of 
        California, on behalf of its University of California, Los 
        Angeles (UCLA) campus (hereinafter in this section referred to 
        as ``The Regents''), if--
                  (A) the lease is consistent with the master plan 
                described in subsection (g);
                  (B) the provision of services to veterans is the 
                predominant focus of the activities of The Regents at 
                the Campus during the term of the lease;
                  (C) The Regents expressly agrees to provide, during 
                the term of the lease and to an extent and in a manner 
                that the Secretary considers appropriate, additional 
                services and support (for which The Regents is either 
                not compensated by the Secretary or is compensated 
                through an existing medical affiliation agreement) 
                that--
                          (i) principally benefit veterans and their 
                        families, including veterans that are severely 
                        disabled, women, aging, or homeless; and
                          (ii) may consist of activities relating to 
                        the medical, clinical, therapeutic, dietary, 
                        rehabilitative, legal, mental, spiritual, 
                        physical, recreational, research, and 
                        counseling needs of veterans and their families 
                        or any of the purposes specified in any of 
                        subparagraphs (A) through (I) of paragraph (1); 
                        and
                  (D) The Regents maintains records documenting the 
                value of the additional services and support that The 
                Regents provides pursuant to subparagraph (C) for the 
                duration of the lease and makes such records available 
                to the Secretary.
  (c) Limitation on Land-Sharing Agreements.--The Secretary may not 
carry out any land-sharing agreement pursuant to section 8153 of title 
38, United States Code, at the Campus unless such agreement--
          (1) provides additional health-care resources to the Campus; 
        and
          (2) benefits veterans and their families other than from the 
        generation of revenue for the Department of Veterans Affairs.
  (d) Revenues From Leases at the Campus.--Any funds received by the 
Secretary under a lease described in subsection (b) shall be credited 
to the applicable Department medical facilities account and shall be 
available, without fiscal year limitation and without further 
appropriation, exclusively for the renovation and maintenance of the 
land and facilities at the Campus.
  (e) Easements.--
          (1) In general.--Notwithstanding any other provision of law 
        (other than Federal laws relating to environmental and historic 
        preservation), pursuant to section 8124 of title 38, United 
        States Code, the Secretary may grant easements or rights-of-way 
        on, above, or under lands at the Campus to--
                  (A) any local or regional public transportation 
                authority to access, construct, use, operate, maintain, 
                repair, or reconstruct public mass transit facilities, 
                including, fixed guideway facilities and transportation 
                centers; and
                  (B) the State of California, County of Los Angeles, 
                City of Los Angeles, or any agency or political 
                subdivision thereof, or any public utility company 
                (including any company providing electricity, gas, 
                water, sewage, or telecommunication services to the 
                public) for the purpose of providing such public 
                utilities.
          (2) Improvements.--Any improvements proposed pursuant to an 
        easement or right-of-way authorized under paragraph (1) shall 
        be subject to such terms and conditions as the Secretary 
        considers appropriate.
          (3) Termination.--Any easement or right-of-way authorized 
        under paragraph (1) shall be terminated upon the abandonment or 
        nonuse of the easement or right-of-way and all right, title, 
        and interest in the land covered by the easement or right-of-
        way shall revert to the United States.
  (f) Prohibition on Sale of Property.--Notwithstanding section 8164 of 
title 38, United States Code, the Secretary may not sell or otherwise 
convey to a third party fee simple title to any real property or 
improvements to real property made at the Campus.
  (g) Consistency With Master Plan.--The Secretary shall ensure that 
each lease carried out under this section is consistent with the draft 
master plan approved by the Secretary on January 28, 2016, or successor 
master plans.
  (h) Compliance With Certain Laws.--
          (1) Laws relating to leases and land use.--If the Inspector 
        General of the Department of Veterans Affairs determines, as 
        part of an audit report or evaluation conducted by the 
        Inspector General, that the Department is not in compliance 
        with all Federal laws relating to leases and land use at the 
        Campus, or that significant mismanagement has occurred with 
        respect to leases or land use at the Campus, the Secretary may 
        not enter into any lease or land-sharing agreement at the 
        Campus, or renew any such lease or land-sharing agreement that 
        is not in compliance with such laws, until the Secretary 
        certifies to the Committee on Veterans' Affairs of the Senate, 
        the Committee on Veterans' Affairs of the House of 
        Representatives, and each Member of the Senate and the House of 
        Representatives who represents the area in which the Campus is 
        located that all recommendations included in the audit report 
        or evaluation have been implemented.
          (2) Compliance of particular leases.--Except as otherwise 
        expressly provided by this section, no lease may be entered 
        into or renewed under this section unless the lease complies 
        with chapter 33 of title 41, United States Code, and all 
        Federal laws relating to environmental and historic 
        preservation.
  (i) Community Veterans Engagement Board.--
          (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall establish a 
        Community Veterans Engagement Board (in this subsection 
        referred to as the ``Board'') for the Campus to coordinate 
        locally with the Department of Veterans Affairs to--
                  (A) identify the goals of the community; and
                  (B) provide advice and recommendations to the 
                Secretary to improve services and outcomes for 
                veterans, members of the Armed Forces, and the families 
                of such veterans and members.
          (2) Members.--The Board shall be comprised of a number of 
        members that the Secretary determines appropriate, of which not 
        less than 50 percent shall be veterans. The nonveteran members 
        shall be family members of veterans, veteran advocates, service 
        providers, or stakeholders.
          (3) Community input.-- In carrying out subparagraphs (A) and 
        (B) of paragraph (1), the Board shall--
                  (A) provide the community opportunities to 
                collaborate and communicate with the Board, including 
                by conducting public forums on the Campus; and
                  (B) focus on local issues regarding the Department 
                that are identified by the community, including with 
                respect to health care, benefits, and memorial services 
                at the Campus.
  (j) Notification and Reports.--
          (1) Congressional notification.--With respect to each lease 
        or land-sharing agreement intended to be entered into or 
        renewed at the Campus, the Secretary shall notify the Committee 
        on Veterans' Affairs of the Senate, the Committee on Veterans' 
        Affairs of the House of Representatives, and each Member of the 
        Senate and the House of Representatives who represents the area 
        in which the Campus is located of the intent of the Secretary 
        to enter into or renew the lease or land-sharing agreement not 
        later than 45 days before entering into or renewing the lease 
        or land-sharing agreement.
          (2) Annual report.--Not later than one year after the date of 
        the enactment of this Act, and not less frequently than 
        annually thereafter, the Secretary shall submit to the 
        Committee on Veterans' Affairs of the Senate, the Committee on 
        Veterans' Affairs of the House of Representatives, and each 
        Member of the Senate and the House of Representatives who 
        represents the area in which the Campus is located an annual 
        report evaluating all leases and land-sharing agreements 
        carried out at the Campus, including--
                  (A) an evaluation of the management of the revenue 
                generated by the leases; and
                  (B) the records described in subsection (b)(3)(D).
          (3) Inspector general report.--
                  (A) In general.--Not later than each of two years and 
                five years after the date of the enactment of this Act, 
                and as determined necessary by the Inspector General of 
                the Department of Veterans Affairs thereafter, the 
                Inspector General shall submit to the Committee on 
                Veterans' Affairs of the Senate, the Committee on 
                Veterans' Affairs of the House of Representatives, and 
                each Member of the Senate and the House of 
                Representatives who represents the area in which the 
                Campus is located a report on all leases carried out at 
                the Campus and the management by the Department of the 
                use of land at the Campus, including an assessment of 
                the efforts of the Department to implement the master 
                plan described in subsection (g) with respect to the 
                Campus.
                  (B) Consideration of annual report.--In preparing 
                each report required by subparagraph (A), the Inspector 
                General shall take into account the most recent report 
                submitted to Congress by the Secretary under paragraph 
                (2).
  (k) Rule of Construction.--Nothing in this section shall be construed 
as a limitation on the authority of the Secretary to enter into other 
agreements regarding the Campus that are authorized by law and not 
inconsistent with this section.
  (l) Principally Benefit Veterans and Their Families Defined.--In this 
section the term ``principally benefit veterans and their families'', 
with respect to services provided by a person or entity under a lease 
of property or land-sharing agreement--
          (1) means services--
                  (A) provided exclusively to veterans and their 
                families; or
                  (B) that are designed for the particular needs of 
                veterans and their families, as opposed to the general 
                public, and any benefit of those services to the 
                general public is ancillary to the intended benefit to 
                veterans and their families; and
          (2) excludes services in which the only benefit to veterans 
        and their families is the generation of revenue for the 
        Department of Veterans Affairs.
  (m) Conforming Amendments.--
          (1) Prohibition on disposal of property.--Section 224(a) of 
        the Military Construction and Veterans Affairs and Related 
        Agencies Appropriations Act, 2008 (Public Law 110-161; 121 
        Stat. 2272) is amended by striking ``The Secretary of Veterans 
        Affairs'' and inserting ``Except as authorized under the Los 
        Angeles Homeless Veterans Leasing Act of 2016, the Secretary of 
        Veterans Affairs''.
          (2) Enhanced-use leases.--Section 8162(c) of title 38, United 
        States Code, is amended by inserting ``, other than an 
        enhanced-use lease under the Los Angeles Homeless Veterans 
        Leasing Act of 2016,'' before ``shall be considered''.

                          Purpose and Summary

    H.R. 3484, the ``Los Angeles Homeless Veterans Leasing Act 
of 2016,'' was introduced by Representative Ted Lieu of 
California on September 10, 2015. H.R. 3484, as amended, was 
ordered to be favorably reported to the full House on February 
25, 2016, by voice vote.
    H.R. 3484, as amended, would authorize the Department of 
Veterans Affairs (VA) to carry out certain leases on the VA 
Greater Los Angeles Healthcare System West LA Medical Center 
(VAMC) campus in Los Angeles, California. It would also 
prohibit VA from entering into any land-sharing agreements 
unless the agreements provide additional healthcare resources 
and benefit veterans and their families in ways other than 
generating additional revenue.

                  Background and Need for Legislation

Section 2--Authority to Enter into Certain Leases at the Department of 
        Veterans Affairs West Los Angeles Campus

    In 1888, the United States was deeded approximately 387 
acres of land in Los Angeles, California, to serve as the 
Pacific Branch of the National Home for Disabled Volunteer 
Soldiers.\1\ The property was maintained in accordance with 
this purpose until the 1970s. However, after the VA Greater Los 
Angeles Healthcare System, West LA Medical Center campus (the 
West LA campus) was located on the property, it transitioned 
from a home for disabled veterans to one of the VA health care 
system's busiest and largest medical and research campuses. 
According to VA, this left, ``land, housing, and amenities 
unused and in disrepair,'' throughout the campus.
---------------------------------------------------------------------------
    \1\VA Greater Los Angeles Campus Draft Master Plan, January 28, 
2016, http://www.losangeles.va.gov/masterplan/. 
---------------------------------------------------------------------------
    The Homeless Veterans Comprehensive Service Programs Act of 
1992 (Public Law 102-590, 106 Stat. 5136) authorized VA to 
lease property on the West LA campus. Subsequent to this 
authority, VA provided leased space on the West LA campus to a 
number of entities, including the University of California, Los 
Angeles (UCLA); the Brentwood School; Sodexho Marriot Laundry 
Services; Twentieth Century Fox Television; the Veterans Park 
Conservancy; the Westside Breakers Soccer Club; Westside 
Services, LLC; and TCM, LLC. These entities provided services 
primarily to the general public or others and any use or 
benefit of the leased space by veterans or their families was 
ancillary.
    In 2011, the American Civil Liberties Union (ACLU) of 
Southern California filed a class action lawsuit\2\ on behalf 
of homeless veterans with severe disabilities. The lawsuit 
alleged that VA was misusing the West LA campus and 
discriminating against homeless veterans ``because they cannot 
access the medical, mental health and other services to which 
they are entitled,'' in part due to VA's use of the 
Department's leasing authority on the West LA campus.\3\ 
According to the complaint filed by the ACLU, ``[a]s a result 
of these land deals, veterans have limited access to, or are 
altogether prohibited from accessing, approximately 110 acres 
of the 387 acre West LA campus (nearly 30 percent of the 
grounds).''\4\ In August 2013, the United States District Court 
for the Central District of California ruled in the plaintiff's 
favor by finding that VA had violated federal law when it 
leased portions of the West LA campus to businesses and 
organizations for purposes unrelated to providing care or 
services to veterans.
---------------------------------------------------------------------------
    \2\Valentini v. McDonald, 2013 U.S. Dist. LEXIS 189202 (C.D. Cal. 
Aug. 29, 2013).
    \3\Valentini v. Shinseki. https://www.aclusocal.org/valentini/.
    \4\https://www.aclusocal.org/cases/valentini-v-shinseki/first-
amended-complaint/. 
---------------------------------------------------------------------------
    In January 2015, VA and attorneys for the plaintiffs 
announced that they had reached an agreement. Under the terms 
of the agreement, the plaintiffs agreed to pursue dismissal of 
the lawsuit and VA agreed to develop a written plan to end 
veteran homelessness in West LA, accelerate the development of 
a long-term master plan for the West LA campus that would 
prioritize bridge and permanent supportive housing, and 
delineate an exit strategy for third-party land use agreements 
that do not comply with applicable laws.
    In accordance with this agreement, VA published a notice of 
a preliminary draft master plan for the West LA campus in the 
Federal Register on October 22, 2015. During the 45-day comment 
period that followed, VA received 1,002 comments in the 
following categories: arts, recreation, and entertainment; 
campus circulation; clinical; connectivity; housing and campus 
restoration; land use agreements; parking; transparency and 
accountability; and veteran access. In January 2016, VA 
released the draft master plan to revitalize the West LA 
campus. According to VA, the purpose of the draft master plan 
is to ``transform the [Greater Los Angeles] campus into a 
vibrant community where all Veterans can receive healthcare, 
benefits, employment, and other supportive services . . . to 
which they are entitled.''\5\ The draft master plan calls for 
the following to be added to the West LA campus: 1,200 
permanent supportive housing units over a ten-year period; a 
town center and amphitheater; a resource center for veterans 
and veteran families; a metro line station; and additional 
parking. The draft master plan also calls for the 
rehabilitation of historic structures through community 
philanthropy, enhanced campus navigation, and continued 
collaboration with academic affiliates, community partners, and 
government stakeholders.
---------------------------------------------------------------------------
    \5\VA Greater Los Angeles Campus Draft Master Plan, January 28, 
2016, http://www.losangeles.va.gov/masterplan/.
---------------------------------------------------------------------------
    The Committee believes that, if fully implemented, the 
draft master plan would revitalize and preserve the West LA 
campus, correct the years of neglect, misuse, and mismanagement 
that have plagued this historic site, and refocus VA's efforts 
in West LA on veterans in need of services--particularly those 
who are homeless or at risk of homelessness. To assist VA in 
carrying out the tenets of the draft master plan, Section 2 of 
the bill would authorize VA to carry out the certain leases on 
the West LA campus. Such leases would be: an enhanced use lease 
for the purpose of providing supportive housing; any lease 
lasting less than fifty years to a third party to provide 
services that benefit veterans and their families by promoting 
health and wellness, education, activities on the West LA 
campus that are principally focused on providing services and 
training related to employment, peer activities, assistance 
with legal services and Federal benefits, volunteerism, family 
support services, or transportation; or a lease lasting less 
than ten years to UCLA if the lease is consistent with the West 
LA master plan and UCLA's commitment to veteran support. Each 
of the above leases would be required to be consistent with the 
draft master plan and funds generated from them would be 
credited to the West LA VAMC to be used exclusively for the 
renovation and maintenance of the West LA campus. The Committee 
recognizes that ``transportation'' includes the authority to 
enter into parking lease agreements with local community 
organizations with the continuation of such leases depending on 
how the community groups manage the leases to both generate 
funds and provide services to veterans and their families. The 
Committee further recognizes that the envisioned future lease 
arrangement between VA and the Brentwood School meets the 
criteria laid out in this legislation. The Brentwood School is 
uniquely positioned to offer veterans and their families on the 
West LA campus substantial opportunities for physical 
recreation, health and wellness, education, and vocational 
training as well as direct community service and increased 
revenue. As such, the Committee is supportive of VA continuing 
the Department's long-standing community partnership with the 
Brentwood School under the tenets of this bill.
    To facilitate transportation in, around, and through the 
West LA campus, section 2 of the bill would also provide VA the 
authority to grant easements or rights-of-way on, above, or 
under lands of the West LA campus to local or regional public 
transportation authority, the state of California, the County 
of Los Angeles, or any public utility company. Section 2 of the 
bill would further prohibit VA from carrying out any land-
sharing agreements unless the agreements provide additional 
health-care resources and benefit the veterans and their 
families in ways other than generating additional revenue. 
Additionally, section 2 would prohibit VA from selling any 
property on the West LA campus.

                                Hearings

    There were no full Committee hearings held on H.R. 3484, as 
amended. On December 8, 2015, the Subcommittee on Health 
conducted a legislative hearing on H.R. 3262; H.R. 3484; H.R. 
4056; H.R. 4129; a draft bill to amend the Veterans' Benefits 
Programs Improvement Act of 1991 to authorize VA to sell 
Pershing Hall; and VA's legislative proposal regarding fiscal 
year 2016 construction projects.''
    The following witnesses testified:
          The Honorable John Shimkus of Illinois; The Honorable 
        Ted Lieu of California; the Honorable John L. Mica of 
        Florida; the Honorable Jerry McNerney of California; 
        the Honorable Mike Coffman of Colorado; Raymond C. 
        Kelley, the Director of the National Legislative 
        Service for the Veterans of Foreign Wars of the United 
        States; Howard Trace, the Director of the National 
        Library and Museum Division, for the American Legion, 
        accompanied by Lou Celli, the Director of the National 
        Veterans Affairs and Rehabilitation Division of the 
        American Legion; and Stella S. Fiotes, the Director of 
        the Office of Construction and Facilities Management 
        for the Office of Acquisition, Logistics, and 
        Construction for the U.S. Department of Veterans 
        Affairs, accompanied by Vince Kane, the Special 
        Assistant to the Secretary for the U.S. Department of 
        Veterans Affairs.
    Statements for the record were submitted by:
          The Brentwood Village Business Improvement District 
        and the Brentwood Village Chamber of Commerce.

                       Subcommittee Consideration

    There were no Subcommittee markups involving H.R. 3484, as 
amended.

                        Committee Consideration

    On February 25, 2016, the Full Committee met in open markup 
session, a quorum being present, and ordered H.R. 3484, as 
amended, to be reported favorably to the House of 
Representatives by voice vote.
    During consideration of H.R. 3484, the following amendment 
was considered and agreed to by voice vote:
          An amendment in the nature of a substitute offered by 
        Representative Jeff Miller of Florida.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, there were no recorded votes 
taken on amendments or in connection with ordering H.R. 3484, 
as amended, reported to the House. A motion by Ranking Member 
Corrine Brown of Florida to report H.R. 3484, as amended, 
favorably to the House of Representatives was agreed to by 
voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are to authorize VA to carry out certain 
leases on the West LA campus.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3484, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
3484, as amended, prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 3484, as amended, provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 17, 2016.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3484, the Los 
Angeles Homeless Veterans Leasing Act of 2016.
    If you wish further details on this estimate, we would be 
pleased to provide them. The CBO staff contact is David Newman.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 3484--Los Angeles Homeless Veterans Leasing Act of 2016

    Summary: H.R. 3484 would authorize the Department of 
Veterans Affairs (VA) to lease property at the department's 
medical campus in Los Angeles to developers who would construct 
supportive housing and rehabilitation facilities for homeless 
veterans. Once occupied, the housing would receive operating 
subsidies from the Department of Housing and Urban Development 
(HUD). VA personnel would provide a variety of services on an 
ongoing basis to resident veterans. CBO believes that 
constructing housing in that manner is a governmental activity 
that should be recorded in the federal budget. Funding for the 
construction and operation of that housing would come from a 
combination of nonfederal contributions, mandatory federal 
funding, and discretionary appropriations.
    CBO estimates that enacting H.R. 3484 would increase net 
direct spending by $18 million over the 2017-2026 period. In 
addition, implementing the bill would cost $29 million over the 
2017-2021 period and $118 million over the 2017-2026 period, 
subject to appropriation of the necessary amounts.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending. Enacting the bill 
would not affect revenues. CBO estimates that enacting the 
legislation would not increase net direct spending or on-budget 
deficits by more than $5 billion in any of the four consecutive 
10-year periods beginning in 2027.
    H.R. 3484 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 3484 is shown in the following table. 
The costs of this legislation fall within budget functions 450 
(community and regional development), 600 (income security), 
and 700 (veterans benefits and services).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars--
                                              ----------------------------------------------------------------------------------------------------------
                                                   2017      2018    2019    2020    2021    2022    2023    2024    2025    2026   2017-2021  2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Equity Contributions and Grants
    Receipts
        Estimated Budget Authority...........            0     -14     -38     -73     -38     -38     -31     -32     -32     -34      -163       -330
        Estimates Outlays....................            0     -11     -32     -64     -47     -38     -33     -32     -32     -34      -154       -323
    Spending
        Estimated Budget Authority...........            0      14      38      73      38      38      31      32      32      34       163        330
        Estimated Outlays....................            0       5      20      46      54      42      37      32      32      33       125        301
        Total
            Estimated Budget Authority.......            0       0       0       0       0       0       0       0       0       0         0          0
            Estimated Outlays................            0      -6     -12     -18       7       4       4       *       *      -1       -29        -22
Loans, Bonds, and Advances
    Estimated Budget Authority...............            0       2       5      10       5       5       4       4       4       5        22         44
    Estimated Outlays........................            0       1       3       6       7       6       5       4       4       4        17         40
    Total Changes
        Estimated Budget Authority...........            0       2       5      10       5       5       4       4       4       5        22         44
        Estimated Outlays....................            0      -5      -9     -12      14      10       9       4       4       3       -12         18
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Construction Grants
    Estimated Authorization Level............            0       3       8      15       8       8       6       6       6       7        34         67
    Estimated Outlays........................            0       1       4      10      11       9       8       6       6       6        26         61
Operating Subsidies
    Estimated Authorization Level............            0       0       0       *       3       7       8      11      13      15         3         57
    Estimated Outlays........................            0       0       0       *       3       7       8      11      13      15         3         57
    Total Increases
        Estimated Authorization Level........            0       3       8      15      11      15      14      17      19      22        37        124
        Estimated Outlays....................            0       1       4      10      14      16      16      17      19      21        29        118
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = between $0 and $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3484 will be enacted at the start of fiscal year 2017, that the 
estimated amounts will be appropriated each year, and that 
outlays will follow historical spending patterns for affected 
programs.
    H.R. 3484 would authorize VA to lease underused federal 
property (via an arrangement called an enhanced-use lease or 
EUL) at the department's Greater Los Angeles medical campus to 
private entities. The nonfederal lessees would design, 
construct, and operate supportive housing for homeless 
veterans. Although VA has used its general authority for such 
leases at about 25 other locations, the Military Construction 
and Veterans Affairs and Related Agencies Appropriations Act, 
2008 (Public Law 100-161) prohibits such leases at the Los 
Angeles facility.
    CBO believes that the cost of designing and operating those 
facilities should be recorded in the federal budget for the 
following reasons:
     The facilities would be built on VA property;
     The department would approve construction plans 
and operating budgets for the facilities;
     VA is prohibited from selling or otherwise 
divesting the property;
     The housing would be reserved primarily for 
veterans;
     Ownership of the facilities would revert to the 
government at the end of the lease term;
     VA personnel would work in the facilities to 
provide rehabilitation services to resident veterans; and
     The housing would receive ongoing operating 
subsidies from federal housing programs.
    For those reasons, this estimate shows the construction 
costs financed with private funds as if the government were 
financing them directly.
    According to its master plan for the medical campus, after 
enactment of H.R. 3484 VA would enter into one or more leases 
with developers who would construct the housing facilities in 
phases over the next 10 years. VA's plans call for construction 
of 60 units initially, about 600 units by 2021, and a total of 
1,200 units in phases by 2026. CBO expects that the first lease 
would be awarded near the end of fiscal year 2017, that 
construction of housing units would begin in 2018, and that 
units would be ready for occupancy two years after construction 
began.
    On the basis of information from California's housing 
agencies, CBO estimates that construction would initially cost 
$325,000 per unit and an average of $370,000 per unit over the 
10-year period after accounting for inflation. In total, the 
facilities would cost $440 million to design and build, CBO 
estimates. However, some of those expenditures would occur 
after 2026. Funding for development of the projects would be 
derived from federal and nonfederal sources. The projects also 
would receive federal operating subsidies. Development and 
operation costs would be covered by both mandatory and 
discretionary funds.

Direct spending

    Some of the funding for construction would come from equity 
contributions, grants, and private borrowing from nonfederal 
entities. CBO considers such funding to be third-party 
financing (that is, they are funds raised by a nonfederal 
entity for a federal activity).\1\
---------------------------------------------------------------------------
    \1\For more information on the budgetary treatment of third-party 
financing, see Congressional Budget Office, Third-Party Financing of 
Federal Projects (June 2005), www.cbo.gov/publication/16554.
---------------------------------------------------------------------------
    Equity Contributions and Grants. On the basis of 
information regarding the financing for similar VA housing 
projects, CBO estimates that about 65 percent of the 
development funding for the projects ($285 million) would come 
from equity investments that are made in exchange for federal 
tax credits for low-income housing projects. Investors in 
projects that receive such credits recover their principal 
through tax reductions over a 10-year period. The aggregate 
amount of credits that are available each year is fixed and 
applications for the credits exceed the amount available. Thus, 
CBO does not expect any change in federal revenues if housing 
projects at the Los Angeles campus are partially financed 
through such tax credits.
    California also allocates state-funded tax credits to 
attract equity contributions. Public housing agencies and local 
governments, as well as private entities, provide grants that 
do not require repayment for low-income housing projects. On 
the basis of similar contributions for other VA projects, CBO 
estimates that roughly 10 percent of the development costs ($45 
million) would be financed through such nonfederal sources.
    In total, those sources would account for $330 million of 
the estimated development costs. CBO believes that those 
contributions should be recorded in the budget as offsetting 
receipts (an offset to direct spending) when they are received 
on behalf of VA by the project developer and as outlays when 
the funds are spent on construction. Over time those amounts 
would have no net effect on the federal budget. However, 
because the funds would be received before they could be spent 
and because VA plans to develop housing at the Los Angeles 
campus over more than 10 years, the net effect of receiving 
those contributions would be to reduce direct spending by $22 
million over the 2017-2026 period, CBO estimates.
    Loans, Bonds, and Advances. About 10 percent of the 
development funding would come from commercial loans, bonds, or 
advances from the project developer that would be paid back 
over time from cash flow for the projects that would primarily 
be derived from federal operating subsidies. CBO treats such 
third-party financing of a federal activity as mandatory 
borrowing authority because the project would incur the 
obligation to repay the borrowing before discretionary 
appropriations would be available for repayment.
    That borrowing would account for $44 million of the 
development costs and would increase direct spending by $40 
million over the 2017-2026 period, CBO estimates. The budgetary 
effects shown are the projected construction costs that would 
be financed in this way.

Spending subject to appropriation

    VA and the Department of Housing and Urban Development 
would provide construction grants and operating subsidies for 
the housing projects from annual discretionary appropriations. 
In total, CBO estimates that implementing those provisions 
would cost $29 million over the 2017-2021 period and $118 
million over the 2017-2026 period, assuming appropriation of 
the necessary amounts.
    Construction Grants. Some additional financing for 
designing and constructing the housing projects would be 
derived from appropriations for construction and community 
development grants. VA would provide amounts to the project 
developer from its appropriation for minor construction. 
Additionally, the project would receive funds from Community 
Development Block Grants and other federal grant programs for 
housing development. On the basis of information about VA's 
other EULs for supportive housing, CBO estimates that those 
sources would account for approximately 15 percent of the 
development funding for the housing projects (or $67 million). 
Spending for those contribution and payments would amount to 
$26 million over the 2017-2020 period and $61 million over the 
2017-2026 period.
    Operating Subsidies. The supportive housing units would be 
reserved for veterans with little or no income, and thus the 
managers of that housing would be eligible for operating 
subsidies from federally funded sources such as HUD's rental 
assistance programs. VA also uses its appropriated funds to 
provide a variety of rehabilitative services to veterans living 
in supportive housing. Project managers typically get a 
guarantee from VA and HUD to provide the operating subsidies 
when the EUL is awarded. Projects begin receiving monthly 
subsidy payments when construction is completed, usually about 
two years after the lease is awarded. Those subsidies from HUD 
and VA would increase spending subject to appropriation by a 
total of $3 million over the 2017-2021 period and $57 million 
over the 2017-2026 period, CBO estimates.
    HUD would subsidize the cost of operating the housing units 
by providing project-based housing vouchers, which are 
administered by the local public housing authority. Those 
vouchers would average about $11,000 per unit annually. In 
total, housing subsidies would increase discretionary spending 
by $2 million over the 2017-2020 period and by $35 million over 
the 2017-2026 period.
    Additionally, VA would provide case management, 
rehabilitation, and other supportive services to residents 
through the VA Supportive Housing Program. Those services cost 
about $7,000 per veteran annually. CBO estimates that providing 
those services to resident veterans at the new housing on the 
Los Angeles campus would increase costs by $1 million over the 
2017-2020 period and by $22 million over the 2017-2026 period.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3484 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON FEBRUARY 25, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2016   2017   2018    2019    2020    2021   2022   2023   2024   2025   2026  2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 NET INCREASE OR DECREASE (-) IN THE [ON-BUDGET] DEFICIT
 
Statutory Pay-As-You-Go Impact....................      0      0      -5      -9     -12     14     10      9      4      4      3       -12         18
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2027.
    Intergovernmental and private-sector impact: H.R. 3484 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: David Newman; Impact 
on State, Local, and Tribal Governments: Jon Sperl; Impact on 
the Private Sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 3484, as amended, prepared by the 
Director of the Congressional Budget Office pursuant to section 
423 of the Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3484, as amended.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 3484, as amended, is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3484, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 3484, as amended, 
establishes or reauthorizes a program of the Federal Government 
known to be duplicative of another Federal program, a program 
that was included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee estimates that H.R. 3484, as amended, contains no 
directed rulemaking that would require the Secretary to 
prescribe regulations.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 of the bill would provide the short title of H.R. 
3484, as amended, as the ``Los Angeles Homeless Veterans 
Leasing Act of 2016.''

Section 2. Authority to Enter Into Certain Leases at the Department of 
        Veterans Affairs West Los Angeles Campus

    Section 2(a) of the bill would authorize the Secretary of 
Veterans Affairs to carry out the leases described in section 
2(b) of the bill at the VA West Los Angeles Campus in Los 
Angeles, California (the West LA campus).
    Section 2(b) of the bill would state that the leases 
described in this subsection are as follows: (1) any enhanced 
use lease of real property under subchapter V of chapter 81 of 
title 38 U.S.C., for purposes of providing supportive housing 
as that term is defined in section 8161(3) of title 38 U.S.C., 
that principally benefits veterans and their families; (2) any 
lease of real property for a term not to exceed 50 years to a 
third party to provide services that principally benefit 
veterans and their families and that are limited to: the 
promotion of health and wellness including nutrition and 
spiritual wellness; education; vocational training, skills 
building, or other training related to employment; peer 
activities, socialization, or physical recreation; assistance 
with legal issues and Federal benefits; volunteerism; family 
support services, including child care; transportation; or 
services in support of one or more of the purposes specified 
above; (3) a lease of real property for a term not to exceed 10 
years to The Regents of the University of California, a 
corporation organized under the laws of the State of 
California, on behalf of its University of California, Los 
Angeles (UCLA) campus, (The Regents) if the lease is: 
consistent with the master plan described in Section 2(g); the 
provision of services to veterans is the predominant focus of 
the activities of The Regents at the West LA campus during the 
terms of the lease; The Regents expressly agrees to provide--
during the terms of the lease and to an extent and in a manner 
that the Secretary considers appropriate--additional services 
and supports for which The Regents is either not compensated by 
the Secretary or are compensated through an existing medical 
affiliation agreement that principally benefits veterans and 
their families (including veterans that are severely disabled, 
women, aging, or homeless) and may consist of activities 
relating to the medical, clinical, therapeutic, dietary, 
rehabilitative, legal, mental, spiritual, physical, 
recreational, research, and counseling needs of veterans and 
their families or any of the purposes specified above; and The 
Regents maintains records documenting the value of additional 
services and support that The Regents provides pursuant to the 
above for the duration of the lease and make such records 
available to the Secretary.
    Section 2(c) of the bill would prohibit the Secretary of 
Veterans Affairs from carrying out any land-sharing agreement 
pursuant to section 8153 of title 38, U.S.C., at the West LA 
campus unless such agreement provides additional healthcare 
resources to the West LA campus and benefits veterans and their 
families other than from the generation of revenue for VA.
    Section 2(d) of the bill would require that any funds 
received by the Secretary of Veterans Affairs under a lease 
described in section 2(b) be credited to the applicable VA 
medical facilities account and be available, without fiscal 
year limitation and without further appropriation, exclusively 
for the renovation and maintenance of the land and facilities 
at the West LA campus.
    Section 2(e) of the bill would authorize the Secretary of 
Veterans Affairs, notwithstanding any other provision of law 
(other than Federal laws relating to environmental and historic 
preservation), to grant easements or rights-of-way on, above, 
or under West LA campus lands to any local or regional public 
transportation authority to access, construct, use, operate, 
maintain, repair, or reconstruct public mass transit 
facilities, including fixed guideway facilities and 
transportation centers and the State of California, County of 
Los Angeles, City of Los Angeles, or any agency or political 
subdivision thereof or any public utility company (including 
electricity, gas, water, sewage, or telecommunications services 
to the public) for the purpose of providing such public 
utilities. Section 2(e) of the bill would also require that any 
improvements proposed pursuant to an easement or right-of-way 
are subject to such terms and conditions as the Secretary 
considers appropriate and would require any easement or right-
of-way to be terminated upon the abandonment or non-use of the 
easement or right-of-way and all right, title, and interest in 
the land covered by the easement or right-of-way shall revert 
to the United States.
    Section 2(f) of the bill would prohibit the Secretary of 
Veterans Affairs from selling or otherwise conveying to a third 
party fee simple title to any real property or improvements to 
real property made at the West LA campus, notwithstanding 
section 8164 of title 38 U.S.C.
    Section 2(g) of the bill would require that each lease 
carried out under this section be consistent with the draft 
master plan approved by the Secretary of Veterans Affairs on 
January 28, 2016, or its successor master plans.
    Section 2(h) of the bill would, if the VA Inspector General 
determines as part of an audit report or evaluation that VA is 
not in compliance with all Federal laws relating to leases and 
land use at the West LA campus, prohibit the Secretary of 
Veterans Affairs from entering into any lease or land-sharing 
agreement at the West LA campus or renewing any such lease or 
land-sharing agreement that is not in compliance with such laws 
until the Secretary certifies to the Committees on Veterans' 
Affairs of the Senate and the House of Representatives, and 
each Member of the Senate and the House of Representatives who 
represents the area in which the West LA campus is located, 
that all recommendations included in the audit report or 
evaluation have been implemented. Section 2(h) of the bill 
would also prohibit the Secretary from entering into or 
renewing any lease unless the lease complies with chapter 33 of 
title 41, U.S.C., and all Federal laws relating to 
environmental and historic preservation, except as otherwise 
expressly provided in this section.
    Section 2(i) of the bill would require the Secretary of 
Veterans Affairs, no later than 180 days after the date of 
enactment of this Act, to establish a Veterans and Community 
Oversight and Engagement Board (the Board) to coordinate 
locally with VA to identify the goals of the community and 
veteran partnership, provide advice and recommendations to the 
Secretary to improve services and outcomes for veterans, 
members of the Armed Forces, and the families of such veterans 
and members, and to provide advice and recommendations on the 
implementation of the draft master plan and on the creation and 
implementation of any successor master plans. Section 2(i) of 
the bill would also require that the Board be comprised of a 
number of members that the Secretary determines appropriate, of 
which no less than 50 percent would be required to be veterans 
and of which nonveteran members would be required to be family 
members of veterans, veteran advocates, service providers, real 
estate professionals familiar with housing development 
projects, or other stakeholders. Section 2(i) of the bill would 
further require the Board to provide the community 
opportunities to collaborate and communicate with the Board, 
including by conducting public forums on the West LA campus and 
focusing on local VA issues that are identified by the 
community including with respect to health care, benefits, and 
memorial services at the West LA campus and implementation of 
the draft master plan and any subsequent plans.
    Section 2(j) of the bill would require the Secretary of 
Veterans Affairs to notify the Committees on Veterans' Affairs 
of the Senate and the House of Representatives and each Member 
of the Senate and the House of Representatives who represent 
the area in which the West LA campus is located of the intent 
of the Secretary to enter into or renew the lease or land-
sharing agreement not later than 45 days before entering into 
or renewing the lease or land sharing agreement. Section 2(j) 
of the bill would also require, not later than one year after 
the date of enactment of this Act, the Secretary to submit to 
the Committees on Veterans' Affairs of the Senate and the House 
of Representatives and each Member of the Senate and the House 
of Representatives who represent the area in which the West LA 
campus is located an annual report evaluating all leases and 
land-sharing agreements carried out on the West LA campus 
including an evaluation of the management of the revenue 
generated by the leases and the records described in section 
2(b). Section 2(j) would also require the VA Inspector General 
to submit, not later than two and five years after the date of 
enactment of this Act and as determined necessary by the VA 
Inspector General, to submit to the Committees on Veterans' 
Affairs of the Senate and the House of Representatives and each 
Member of the Senate and the House of Representatives who 
represent the area in which the West LA campus is located a 
report on all leases carried out at the West LA campus and VA's 
management of the use of the land at the West LA campus , 
including an assessment of VA's efforts to implement the master 
plan described in section 2(g) with respect to the West LA 
campus. Section 2(j) of the bill would further require that the 
VA Inspector General take into account the most recent report 
submitted to Congress by the Secretary.
    Section 2(k) of the bill would require that nothing in 
Section 2 be construed as a limitation on the authority of the 
Secretary of Veterans Affairs to enter into other agreements 
regarding the West LA campus that are authorized by law and not 
inconsistent with section 2.
    Section 2(l) of the bill would define the term 
``principally benefit veterans and their families'' in section 
2 with respect to services provided by a person or entity under 
a lease of property or land-sharing agreement as services 
provided exclusively to veterans and their families or services 
that are designed for the particular needs of veterans and 
their families as opposed to the general public and where any 
benefit of those services to the general public is ancillary to 
the intended benefit to veterans and their families. Section 
2(l) of the bill would exclude services in which the only 
benefit to veterans and their families is the generation of 
revenue for VA from the definition of ``principally benefit 
veterans and their families'' in section 2.
    Section 2(m) of the bill would amend section 224(a) of the 
Military Construction and Veterans Affairs and Related Agencies 
Appropriations Act, 2008 (P.L. 110-161; 121 Stat. 2272) by 
striking ``The Secretary of Veterans Affairs'' and inserting 
``Except as authorized under the Los Angeles Homeless Veterans 
Leasing Act of 2016, the Secretary of Veterans Affairs''. 
Section 2(m) of the bill would also amend section 8162(c) of 
title 38, U.S.C., by inserting ``, other than an enhanced-use 
lease under the Los Angles Homeless Veterans Leasing Act of 
2016,'' before ``shall be considered''.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

   SECTION 224 OF THE MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 2008

  Sec. 224. PROHIBITION ON DISPOSAL OF DEPARTMENT OF VETERANS 
AFFAIRS LANDS AND IMPROVEMENTS AT WEST LOS ANGELES MEDICAL 
CENTER, CALIFORNIA. (a) In General.--[The Secretary of Veterans 
Affairs] Except as authorized under the Los Angeles Homeless 
Veterans Leasing Act of 2016, the Secretary of Veterans Affairs 
may not declare as excess to the needs of the Department of 
Veterans Affairs, or otherwise take any action to exchange, 
trade, auction, transfer, or otherwise dispose of, or reduce 
the acreage of, Federal land and improvements at the Department 
of Veterans Affairs West Los Angeles Medical Center, 
California, encompassing approximately 388 acres on the north 
and south sides of Wilshire Boulevard and west of the 405 
Freeway.
  (b) Special Provision Regarding Lease With Representative of 
the Homeless.--Notwithstanding any provision of this Act, 
section 7 of the Homeless Veterans Comprehensive Services Act 
of 1992 (Public Law 102-590) shall remain in effect.
  (c) Conforming Amendment.--Section 8162(c)(1) of title 38, 
United States Code, is amended--
          (1) by inserting ``or section 224(a) of the Military 
        Construction and Veterans Affairs and Related Agencies 
        Appropriations Act, 2008'' after ``section 421(b)(2) of 
        the Veterans' Benefits and Services Act of 1988 (Public 
        Law 100-322; 102 Stat. 553)''; and
          (2) by striking ``that section'' and inserting ``such 
        sections''.
  (d) Effective Date.--This section, including the amendment 
made by this section, shall apply with respect to fiscal year 
2008 and each fiscal year thereafter.
                              ----------                              

                      TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

           *       *       *       *       *       *       *

   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
    FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL 
PROPERTY

           *       *       *       *       *       *       *

SUBCHAPTER V--ENHANCED-USE LEASES OF REAL PROPERTY

           *       *       *       *       *       *       *

Sec. 8162. Enhanced-use leases

  (a)(1) The Secretary may in accordance with this subchapter 
enter into leases with respect to real property that is under 
the jurisdiction or control of the Secretary. Any such lease 
under this subchapter may be referred to as an ``enhanced-use 
lease''. The Secretary may dispose of any such property that is 
leased to another party under this subchapter in accordance 
with section 8164 of this title. The Secretary may exercise the 
authority provided by this subchapter notwithstanding section 
8122 of this title, subchapter II of chapter 5 of title 40, 
sections 541-555 and 1302 of title 40, or any other provision 
of law (other than Federal laws relating to environmental and 
historic preservation) inconsistent with this section. The 
applicability of this subchapter to section 421(b) of the 
Veterans' Benefits and Services Act of 1988 (Public Law 100-
322; 102 Stat. 553) is covered by subsection (c).
  (2) The Secretary may enter into an enhanced-use lease only 
for the provision of supportive housing and if the lease is not 
inconsistent with and will not adversely affect the mission of 
the Department.
  (3) The provisions of sections 3141-3144, 3146, and 3147 of 
title 40 shall not, by reason of this section, become 
inapplicable to property that is leased to another party under 
an enhanced-use lease.
  (4) A property that is leased to another party under an 
enhanced-use lease may not be considered to be unutilized or 
underutilized for purposes of section 501 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11411).
  (b)(1) If the Secretary has determined that a property should 
be leased to another party through an enhanced-use lease, the 
Secretary shall, at the Secretary's discretion, select the 
party with whom the lease will be entered into using such 
selection procedures as the Secretary considers appropriate.
  (2) The term of an enhanced-use lease may not exceed 75 
years.
  (3)(A) For any enhanced-use lease entered into by the 
Secretary, the lease consideration provided to the Secretary 
shall consist solely of cash at fair value as determined by the 
Secretary.
  (B) The Secretary shall receive no other type of 
consideration for an enhanced-use lease besides cash.
  (C) The Secretary may enter into an enhanced-use lease 
without receiving consideration.
  (4) The terms of an enhanced-use lease may provide for the 
Secretary to use minor construction funds for capital 
contribution payments.
  (5) The terms of an enhanced-use lease may not provide for 
any acquisition, contract, demonstration, exchange, grant, 
incentive, procurement, sale, other transaction authority, 
service agreement, use agreement, lease, or lease-back by the 
Secretary or Federal Government.
  (6) The Secretary may not enter into an enhanced-use lease 
without certification in advance in writing by the Director of 
the Office of Management and Budget that such lease complies 
with the requirements of this subchapter.
  (c) The entering into an enhanced-use lease covering any land 
or improvement described in section 421(b)(2) of the Veterans' 
Benefits and Services Act of 1988 (Public Law 100-322; 102 
Stat. 553) or section 224(a) of the Military Construction and 
Veterans Affairs and Related Agencies Appropriations Act, 2008, 
other than an enhanced-use lease under the Los Angeles Homeless 
Veterans Leasing Act of 2016, shall be considered to be 
prohibited by such sections unless specifically authorized by 
law.

           *       *       *       *       *       *       *

                                  [all]
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