H. R. 5936—3 
thereof, or any public utility company (including any com-
pany providing electricity, gas, water, sewage, or tele-
communication 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 Sec-
retary considers appropriate. 
(3) TERMINATION.—Any easement or right-of-way author-
ized under paragraph (1) shall be terminated upon the abandon-
ment 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 sec-
tion 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 deter-
mines, 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 Committees on Veterans’ Affairs of the Senate 
and House of Representatives, the Committees on Appropria-
tions of the Senate and 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 other-
wise 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) VETERANS AND COMMUNITY OVERSIGHT AND ENGAGEMENT 
BOARD.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall establish 
a Veterans and Community Oversight and 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 veteran 
partnership;
H. R. 5936—4 
(B) provide advice and recommendations to the Sec-
retary to improve services and outcomes for veterans, mem-
bers of the Armed Forces, and the families of such veterans 
and members; and 
(C) provide advice and recommendations on the 
implementation of the draft master plan approved by the 
Secretary on January 28, 2016, and on the creation and 
implementation of any successor master plans. 
(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 advo-
cates, service providers, real estate professionals familiar with 
housing development projects, or stakeholders. 
(3) COMMUNITY INPUT.—In carrying out 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, implementation of the draft master 
plan and any subsequent plans, 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 
Committees on Veterans’ Affairs of the Senate and House of 
Representatives, the Committees on Appropriations of the 
Senate and 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 
Committees on Veterans’ Affairs of the Senate and House of 
Representatives, the Committees on Appropriations of the 
Senate and 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 Committees on Vet-
erans’ Affairs of the Senate and House of Representatives 
and the Committees on Appropriations of the Senate and
H. R. 5936—5 
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 imple-
ment 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 author-
ized 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 vet-
erans and their families, as opposed to the general public, 
and any benefit of those services to the general public 
is distinct from 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 Depart-
ment 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 Vet-
erans Leasing Act of 2016,’’ before ‘‘shall be considered’’. 
SEC. 3. IMPROVEMENTS TO ENHANCED-USE LEASE AUTHORITY OF 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) PROHIBITION ON WAIVER OF OBLIGATION OF LESSEE.—Para-
graph (3) of section 8162(b) of title 38, United States Code, is 
amended by adding at the following new subparagraph: 
‘‘(D) The Secretary may not waive or postpone the obligation 
of a lessee to pay any consideration under an enhanced-use lease, 
including monthly rent.’’. 
(b) CLARIFICATION OF LIABILITY OF FEDERAL GOVERNMENT TO 
THIRD PARTIES.—Section 8162 of such title is amended by adding 
at the end the following new subsection:
H. R. 5936—6 
‘‘(d)(1) Nothing in this subchapter authorizes the Secretary 
to enter into an enhanced-use lease that provides for, is contingent 
upon, or otherwise authorizes the Federal Government to guarantee 
a loan made by a third party to a lessee for purposes of the 
enhanced-use lease. 
‘‘(2) Nothing in this subchapter shall be construed to abrogate 
or constitute a waiver of the sovereign immunity of the United 
States with respect to any loan, financing, or other financial agree-
ment entered into by the lessee and a third party relating to 
an enhanced-use lease.’’. 
(c) TRANSPARENCY.— 
(1) NOTICE.—Section 8163(c)(1) of such title is amended— 
(A) by inserting ‘‘, the Committees on Appropriations 
of the House of Representatives and the Senate, and the 
Committees on the Budget of the House of Representatives 
and the Senate’’ after ‘‘congressional veterans’ affairs 
committees’’; 
(B) by striking ‘‘and shall publish’’ and inserting ‘‘, 
shall publish’’; 
(C) by inserting before the period at the end the fol-
lowing: ‘‘, and shall submit to the congressional veterans’ 
affairs committees a copy of the proposed lease’’; and 
(D) by adding at the end the following new sentence: 
‘‘With respect to a major enhanced-use lease, upon the 
request of the congressional veterans’ affairs committees, 
not later than 30 days after the date of such notice, the 
Secretary shall testify before the committees on the major 
enhanced-use lease, including with respect to the status 
of the lease, the cost, and the plans to carry out the 
activities under the lease. The Secretary may not delegate 
such testifying below the level of the head of the Office 
of Asset Enterprise Management of the Department or 
any successor to such office.’’. 
(2) ANNUAL
REPORTS.—Section 8168 of such title is 
amended— 
(A) by striking ‘‘to Congress’’ each place it appears 
and inserting ‘‘to the congressional veterans’ affairs 
committees, the Committees on Appropriations of the 
House of Representatives and the Senate, and the Commit-
tees on the Budget of the House of Representatives and 
the Senate’’; 
(B) in subsection (a)— 
(i) by striking ‘‘Not later’’ and inserting ‘‘(1) Not 
later’’; 
(ii) by striking ‘‘a report’’ and all that follows 
through the period at the end and inserting ‘‘a report 
on enhanced-use leases.’’; and 
(iii) by adding at the end the following new para-
graph: 
‘‘(2) Each report under paragraph (1) shall include the following: 
‘‘(A) Identification of the actions taken by the Secretary 
to implement and administer enhanced-use leases. 
‘‘(B) For the most recent fiscal year covered by the report, 
the amounts deposited into the Medical Care Collection Fund 
account that were derived from enhanced-use leases. 
‘‘(C) Identification of the actions taken by the Secretary 
using the amounts described in subparagraph (B).