H. R. 1627—16 
‘‘(3) The term ‘supportive housing’ means housing that 
engages tenants in on-site and community-based support serv-
ices for veterans or their families that are at risk of homeless-
ness or are homeless. Such term may include the following: 
‘‘(A) Transitional housing. 
‘‘(B) Single-room occupancy. 
‘‘(C) Permanent housing. 
‘‘(D) Congregate living housing. 
‘‘(E) Independent living housing. 
‘‘(F) Assisted living housing. 
‘‘(G) Other modalities of housing.’’. 
(b) MODIFICATION OF LIMITATIONS ON ENHANCED USE LEASES.— 
(1) IN
GENERAL.—Paragraph (2) of section 8162(a) is 
amended to read as follows: 
‘‘(2) The Secretary may enter into an enhanced-use lease only 
for the provision of supportive housing and the lease is not incon-
sistent with and will not adversely affect the mission of the Depart-
ment.’’. 
(2) EFFECTIVE DATE.— 
(A) IN GENERAL.—Paragraph (2) of section 8162(a) of 
title 38, United States Code, as amended by paragraph 
(1), shall take effect on January 1, 2012, and shall apply 
with respect to enhanced-use leases entered into on or 
after such date. 
(B) PREVIOUS LEASES.—Any enhanced-use lease that 
the Secretary has entered into prior to the date described 
in subparagraph (A) shall be subject to the provisions of 
subchapter V of chapter 81 of such title, as in effect on 
the day before the date of the enactment of this Act. 
(c) CONSIDERATION
FOR
AND
TERMS
OF
ENHANCED-USE 
LEASES.— 
(1) IN GENERAL.—Section 8162(b) is amended— 
(A) in paragraph (1), by striking ‘‘(A) If the Secretary’’ 
and all that follows through ‘‘under subparagraph (A).’’ 
and inserting the following: ‘‘If the Secretary has deter-
mined 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.’’; 
(B) by amending paragraph (3) to read as follows: 
‘‘(3)(A) For any enhanced-use lease entered into by the Sec-
retary, the lease consideration provided to the Secretary shall con-
sist 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 with-
out receiving consideration.’’; 
(C) in paragraph (4), by striking ‘‘Secretary to’’ and 
all that follows through ‘‘use minor’’ and inserting ‘‘Sec-
retary to use minor’’; and 
(D) by adding at the end the following new paragraphs: 
‘‘(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.
H. R. 1627—17 
‘‘(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.’’. 
(2) EFFECTIVE DATE.—Paragraph (3) of section 8162(b), as 
amended by paragraph (1)(B) of this subsection, shall take 
effect on January 1, 2012, and shall apply with respect to 
enhanced-use leases entered into on or after such date. 
(d) PROHIBITED ENHANCED-USE LEASES.—Section 8162(c) is 
amended— 
(1) by striking paragraph (2); and 
(2) in paragraph (1), by striking ‘‘(1) Subject to paragraph 
(2), the’’ and inserting ‘‘The’’. 
(e) DISPOSITION OF LEASED PROPERTY.—Subsection (b) of section 
8164 is amended to read as follows: 
‘‘(b) A disposition under this section may be made in return 
for cash at fair value as the Secretary determines is in the best 
interest of the United States and upon such other terms and condi-
tions as the Secretary considers appropriate.’’. 
(f) USE OF AMOUNTS RECEIVED FOR DISPOSITION OF LEASED 
PROPERTY.—Section 8165(a)(2) is amended by striking ‘‘in the 
Department of Veterans Affairs Capital Asset Fund established 
under section 8118 of this title’’ and inserting ‘‘into the Department 
of Veterans Affairs Construction, Major Projects account or 
Construction, Minor Projects account, as the Secretary considers 
appropriate’’. 
(g) CONSTRUCTION STANDARDS.—Section 8166 is amended to 
read as follows: 
‘‘§ 8166. Construction standards 
‘‘The construction, alteration, repair, remodeling, or improve-
ment of a property that is the subject of an enhanced-use lease 
shall be carried out so as to comply with all applicable provisions 
of Federal, State, and local law relating to land use, building 
standards, permits, and inspections.’’. 
(h) EXEMPTION FROM STATE AND LOCAL TAXES.—Section 8167 
is amended to read as follows: 
‘‘§ 8167. Exemption from State and local taxes 
‘‘(a) IMPROVEMENTS
AND OPERATIONS NOT EXEMPTED.—The 
improvements and operations on land leased by a person with 
an enhanced-use lease from the Secretary shall be subject to all 
applicable provisions of Federal, State, or local law relating to 
taxation, fees, and assessments. 
‘‘(b) UNDERLYING FEE TITLE INTEREST EXEMPTED.—The under-
lying fee title interest of the United States in any land subject 
to an enhanced-use lease shall not be subject, directly or indirectly, 
to any provision of State or local law relating to taxation, fees, 
or assessments.’’. 
(i) ANNUAL REPORTS.— 
(1) IN GENERAL.—Subchapter V of chapter 81 is amended 
by inserting after section 8167 the following new section: 
‘‘§ 8168. Annual reports 
‘‘(a) REPORT ON ADMINISTRATION OF LEASES.—Not later than 
120 days after the date of the enactment of the Honoring America’s 
Veterans and Caring for Camp Lejeune Families Act of 2012 and
H. R. 1627—18 
not less frequently than once each year thereafter, the Secretary 
shall submit to Congress a report identifying the actions taken 
by the Secretary to implement and administer enhanced-use leases. 
‘‘(b) REPORT ON LEASE CONSIDERATION.—Each year, as part 
of the annual budget submission of the President to Congress 
under section 1105(a) of title 31, the Secretary shall submit to 
Congress a detailed report of the consideration received by the 
Secretary for each enhanced-use lease under this subchapter, along 
with an overview of how the Secretary is utilizing such consideration 
to support veterans.’’. 
(2) ELEMENTS OF INITIAL REPORT.—The first report sub-
mitted by the Secretary under section 8168(a) of title 38, United 
States Code, as added by paragraph (1), shall include a sum-
mary of those measures the Secretary is taking to address 
the following recommendations from the February 9, 2012, 
audit report of the Department of Veterans Affairs Office of 
Inspector General on enhanced-use leases under subchapter 
V of chapter 81 of title 38, United States Code: 
(A) Improve standards to ensure complete lease agree-
ments are negotiated in line with strategic goals of the 
Department of Veterans Affairs. 
(B) Institute improved policies and procedures to 
govern activities such as monitoring enhanced-use lease 
projects and calculating, classifying, and reporting on 
enhanced-use lease benefits and expenses. 
(C) 
Recalculate 
and 
update 
enhanced-use 
lease 
expenses and benefits reported in the most recent 
Enhanced-Use Lease Consideration Report of the Depart-
ment. 
(D) Establish improved oversight mechanisms to 
ensure major enhanced-use lease project decisions are docu-
mented and maintained in accordance with policy. 
(E) Establish improved criteria to measure timeliness 
and performance in enhanced-use lease project development 
and execution. 
(F) Establish improved criteria and guidelines for 
assessing projects to determine whether they are or remain 
viable candidates for enhanced-use leases. 
(3) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 81 is amended by inserting after the 
item relating to section 8167 the following new item: 
‘‘8168. Annual reports.’’. 
(j) EXPIRATION OF AUTHORITY.—Section 8169 is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2023’’. 
(k) EFFECTIVE DATE.—Except as otherwise provided in this 
section, the amendments made by this section shall take effect 
on the date of the enactment of this Act. 
TITLE III—HOMELESS MATTERS 
SEC. 301. ENHANCEMENT OF COMPREHENSIVE SERVICE PROGRAMS. 
(a) ENHANCEMENT OF GRANTS.—Section 2011 is amended— 
(1) in subsection (b)(1)(A), by striking ‘‘expansion, remod-
eling, or alteration of existing buildings, or acquisition of facili-
ties,’’ and inserting ‘‘new construction of facilities, expansion,
H. R. 1627—19 
remodeling, or alteration of existing facilities, or acquisition 
of facilities,’’; and 
(2) in subsection (c)— 
(A) in the first sentence, by striking ‘‘A grant’’ and 
inserting ‘‘(1) A grant’’; 
(B) in the second sentence of paragraph (1), as des-
ignated by subparagraph (A), by striking ‘‘The amount’’ 
and inserting the following: 
‘‘(2) The amount’’; and 
(C) by adding at the end the following new paragraph: 
‘‘(3)(A) The Secretary may not deny an application from an 
entity that seeks a grant under this section to carry out a project 
described in subsection (b)(1)(A) solely on the basis that the entity 
proposes to use funding from other private or public sources, if 
the entity demonstrates that a private nonprofit organization will 
provide oversight and site control for the project. 
‘‘(B) In this paragraph, the term ‘private nonprofit organization’ 
means the following: 
‘‘(i) An incorporated private institution, organization, or 
foundation— 
‘‘(I) that has received, or has temporary clearance to 
receive, tax-exempt status under paragraph (2), (3), or (19) 
of section 501(c) of the Internal Revenue Code of 1986; 
‘‘(II) for which no part of the net earnings of the institu-
tion, organization, or foundation inures to the benefit of 
any member, founder, or contributor of the institution, 
organization, or foundation; and 
‘‘(III) that the Secretary determines is financially 
responsible. 
‘‘(ii) A for-profit limited partnership or limited liability 
company, the sole general partner or manager of which is 
an organization that is described by subclauses (I) through 
(III) of clause (i). 
‘‘(iii) A corporation wholly owned and controlled by an 
organization that is described by subclauses (I) through (III) 
of clause (i).’’. 
(b) GRANT AND PER DIEM PAYMENTS.— 
(1) STUDY
AND
DEVELOPMENT
OF
FISCAL
CONTROLS
AND 
PAYMENT
METHOD.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Veterans Affairs 
shall— 
(A) complete a study of all matters relating to the 
method used by the Secretary to make per diem payments 
under section 2012(a) of title 38, United States Code, 
including changes anticipated by the Secretary in the cost 
of furnishing services to homeless veterans and accounting 
for costs of providing such services in various geographic 
areas; 
(B) develop more effective and efficient procedures for 
fiscal control and fund accounting by recipients of grants 
under sections 2011, 2012, and 2061 of such title; and 
(C) develop a more effective and efficient method for 
adequately reimbursing recipients of grants under section 
2011 of such title for services furnished to homeless vet-
erans. 
(2) CONSIDERATION.—In developing the method required 
by paragraph (1)(C), the Secretary may consider payments and