59–006 

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 


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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 


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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.— 


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(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. 


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1 VA Greater Los Angeles Campus Draft Master Plan, January 28, 2016, http:// 

www.losangeles.va.gov/masterplan/. 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/. 4https://www.aclusocal.org/cases/valentini-v-shinseki/first-amended-complaint/. 

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. 

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. 


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5 VA Greater Los Angeles Campus Draft Master Plan, January 28, 2016, http:// 

www.losangeles.va.gov/masterplan/. 

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 thirdparty 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. 

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 agreeVerDate Sep 11 2014 05:03 May 20, 2016 Jkt 059006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR570.XXX HR570

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ments 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. 


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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 


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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. 


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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). 


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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. 


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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 


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1For 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. 

is, they are funds raised by a nonfederal entity for a federal activity).1

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 


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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. 


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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 


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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 


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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) 


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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 


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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 landsharing 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.—øThe 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. 


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(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 

* * * * * * * 

§ 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. 


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(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. 

* * * * * * * 

Æ 


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