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(A) identify the goals of the community 
and veteran partnership; 
(B) provide advice and recommendations 
to the Secretary to improve services and out-
comes for veterans, members 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 deter-
mines appropriate, of which not less than 50 percent 
shall be veterans. The nonveteran members shall be 
family members of veterans, veteran advocates, serv-
ice providers, real estate professionals familiar with 
housing development projects, or stakeholders. 
(3) COMMUNITY INPUT.—In carrying out para-
graph (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 
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(B) focus on local issues regarding the De-
partment that are identified by the community, 
including with respect to health care, implemen-
tation of the draft master plan and any subse-
quent plans, benefits, and memorial services at 
the Campus. 
(j) NOTIFICATION AND REPORTS.— 
(1) CONGRESSIONAL NOTIFICATION.—With re-
spect to each lease or land-sharing agreement in-
tended to be entered into or renewed at the Campus, 
the Secretary shall notify the Committees on Vet-
erans’ Affairs of the Senate and House of Rep-
resentatives, the Committees on Appropriations of 
the Senate and House of Representatives, and each 
Member of the Senate and the House of Representa-
tives 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 Sec-
retary shall submit to the Committees on Veterans’ 
Affairs of the Senate and House of Representatives, 
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the Committees on Appropriations of the Senate and 
House of Representatives, and each Member of the 
Senate and the House of Representatives who rep-
resents 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 nec-
essary by the Inspector General of the Depart-
ment of Veterans Affairs thereafter, the Inspec-
tor General shall submit to the Committees on 
Veterans’ Affairs of the Senate and House of 
Representatives and the Committees on Appro-
priations of the Senate and House of Rep-
resentatives, and each Member of the Senate 
and the House of Representatives who rep-
resents 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 
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use of land at the Campus, including an assess-
ment 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
RE-
PORT.—In preparing each report required by 
subparagraph (A), the Inspector General shall 
take into account the most recent report sub-
mitted to Congress by the Secretary under 
paragraph (2). 
(k) RULE OF CONSTRUCTION.—Nothing in this sec-
tion 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 incon-
sistent with this section. 
(l) PRINCIPALLY BENEFIT VETERANS AND THEIR 
FAMILIES DEFINED.—In this section the term ‘‘prin-
cipally 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 
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to the general public, and any benefit of those 
services to the general public is distinct from 
the intended benefit to veterans and their fami-
lies; 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
PROP-
ERTY.—Section 224(a) of the Military Construction 
and Veterans Affairs and Related Agencies Appro-
priations Act, 2008 (Public Law 110–161; 121 Stat. 
2272) is amended by striking ‘‘The Secretary of 
Veterans Affairs’’ and inserting ‘‘Except as author-
ized under the Los Angeles Homeless Veterans 
Leasing Act of 2016, the Secretary of Veterans Af-
fairs’’. 
(2) ENHANCED-USE LEASES.—Section 8162(c) 
of title 38, United States Code, is amended by in-
serting ‘‘, other than an enhanced-use lease under 
the Los Angeles Homeless Veterans Leasing Act of 
2016,’’ before ‘‘shall be considered’’. 
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SEC. 3. IMPROVEMENTS TO ENHANCED-USE LEASE AU-
THORITY OF DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) PROHIBITION ON WAIVER OF OBLIGATION OF 
LESSEE.—Paragraph (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 GOV-
ERNMENT TO THIRD PARTIES.—Section 8162 of such title 
is amended by adding at the end the following new sub-
section: 
‘‘(d)(1) Nothing in this subchapter authorizes the 
Secretary to enter into an enhanced-use lease that pro-
vides 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 immu-
nity of the United States with respect to any loan, financ-
ing, or other financial agreement entered into by the lessee 
and a third party relating to an enhanced-use lease.’’. 
(c) TRANSPARENCY.— 
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Asset Enterprise Management of the Depart-
ment 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 vet-
erans’ affairs committees, 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’’; 
(B) in subsection (a)— 
(i) by striking ‘‘Not later’’ and insert-
ing ‘‘(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 fol-
lowing new paragraph: 
‘‘(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. 
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‘‘(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 subpara-
graph (B). 
‘‘(D) Documents of the Department supporting 
the contents of the report described in subpara-
graphs (A) through (C).’’; and 
(C) in subsection (b)— 
(i) by striking ‘‘Each year’’ and in-
serting ‘‘(1) Each year’’; 
(ii) by striking ‘‘this subchapter,’’ and 
all that follows through the period at the 
end and inserting ‘‘this subchapter.’’; and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(2) Each report under paragraph (1) shall include 
the following with respect to each enhanced-use lease cov-
ered by the report: 
‘‘(A) An overview of how the Secretary is using 
consideration received by the Secretary under the 
lease to support veterans. 
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‘‘(B) The amount of consideration received by 
the Secretary under the lease. 
‘‘(C) The amount of any revenues collected by 
the Secretary relating to the lease not covered by 
subparagraph (B), including a description of any in- 
kind assistance or services provided by the lessee to 
the Secretary or to veterans under an agreement en-
tered into by the Secretary pursuant to any provi-
sion of law. 
‘‘(D) The costs to the Secretary of carrying out 
the lease. 
‘‘(E) Documents of the Department supporting 
the contents of the report described in subpara-
graphs (A) through (D).’’. 
(d) ADDITIONAL DEFINITIONS.—Section 8161 of 
such title is amended by adding at the end the following 
new paragraphs: 
‘‘(4) The term ‘lessee’ means the party with 
whom the Secretary has entered into an enhanced- 
use lease under this subchapter. 
‘‘(5) The term ‘major enhanced-use lease’ 
means an enhanced-use lease that includes consider-
ation consisting of an average annual rent of more 
than $10,000,000.’’. 
(e) COMPTROLLER GENERAL AUDIT.— 
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(1) REPORT.—Not later than 270 days after 
the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to 
the appropriate congressional committees a report 
containing an audit of the enhanced-use lease pro-
gram of the Department of Veterans Affairs under 
subchapter V of chapter 81 of title 38, United 
States Code. 
(2) MATTERS
INCLUDED.—The report under 
paragraph (1) shall include the following: 
(A) The financial impact of the enhanced- 
use lease authority on the Department of Vet-
erans Affairs and whether the revenue realized 
from such authority and other financial benefits 
would have been realized without such author-
ity. 
(B) The use by the Secretary of such au-
thority and whether the arrangements made 
under such authority would have been made 
without such authority. 
(C) An identification of the controls that 
are in place to ensure accountability and trans-
parency and to protect the Federal Govern-
ment. 
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(D) An overall assessment of the activities 
of the Secretary under such authority to ensure 
procurement cost avoidance, negotiated cost 
avoidance, in-contract cost avoidance, and rate 
reductions. 
(3) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES DEFINED.—In this subsection, the term ‘‘ap-
propriate congressional committees’’ means— 
(A) the Committees on Veterans’ Affairs of 
the House of Representatives and the Senate; 
(B) the Committees on Appropriations of 
the House of Representatives and the Senate; 
and 
(C) the Committees on the Budget of the 
House of Representatives and the Senate. 
Passed the House of Representatives September 12, 
2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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