    [House Hearing, 114 Congress]
    [From the U.S. Government Publishing Office]

    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

    =======================================================================

                                    HEARING

                                   before the

                             SUBCOMMITTEE ON HEALTH

                                     of the

                         COMMITTEE ON VETERANS' AFFAIRS
                         U.S. HOUSE OF REPRESENTATIVES

                        ONE HUNDRED FOURTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                           TUESDAY, DECEMBER 8, 2015

                                   __________

                               Serial No. 114-47

                                   __________

           Printed for the use of the Committee on Veterans' Affairs

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

             Available via the World Wide Web: http://www.fdsys.gov

                                       ______

                             U.S. GOVERNMENT PUBLISHING OFFICE

    98-702                         WASHINGTON : 2017
    -----------------------------------------------------------------------
      For sale by the Superintendent of Documents, U.S. Government Publishing
      Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800;
             DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC,
                              Washington, DC 20402-0001

                         COMMITTEE ON VETERANS' AFFAIRS

                         JEFF MILLER, Florida, Chairman

    DOUG LAMBORN, Colorado               CORRINE BROWN, Florida, Ranking
    GUS M. BILIRAKIS, Florida, Vice-         Minority Member
        Chairman                         MARK TAKANO, California
    DAVID P. ROE, Tennessee              JULIA BROWNLEY, California
    DAN BENISHEK, Michigan               DINA TITUS, Nevada
    TIM HUELSKAMP, Kansas                RAUL RUIZ, California
    MIKE COFFMAN, Colorado               ANN M. KUSTER, New Hampshire
    BRAD R. WENSTRUP, Ohio               BETO O'ROURKE, Texas
    JACKIE WALORSKI, Indiana             KATHLEEN RICE, New York
    RALPH ABRAHAM, Louisiana             TIMOTHY J. WALZ, Minnesota
    LEE ZELDIN, New York                 JERRY McNERNEY, California
    RYAN COSTELLO, Pennsylvania
    AMATA COLEMAN RADEWAGEN, American
        Samoa
    MIKE BOST, Illinois
                           Jon Towers, Staff Director
                    Don Phillips, Democratic Staff Director

                             SUBCOMMITTEE ON HEALTH

                        DAN BENISHEK, Michigan, Chairman

    GUS M. BILIRAKIS, Florida            JULIA BROWNLEY, California,
    DAVID P. ROE, Tennessee                  Ranking Member
    TIM HUELSKAMP, Kansas                MARK TAKANO, California
    MIKE COFFMAN, Colorado               RAUL RUIZ, California
    BRAD R. WENSTRUP, Ohio               ANN M. KUSTER, New Hampshire
    RALPH ABRAHAM, Louisiana             BETO O'ROURKE, Texas

    Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
    hearing records of the Committee on Veterans' Affairs are also
    published in electronic form. The printed hearing record remains the
    official version. Because electronic submissions are used to prepare
    both printed and electronic versions of the hearing record, the process
    of converting between various electronic formats may introduce
    unintentional errors or omissions. Such occurrences are inherent in the
    current publication process and should diminish as the process is
    further refined.

                                C O N T E N T S

                                  ----------

                           Tuesday, December 8, 2015

                                                                       Page

    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.......................................................     1

                               OPENING STATEMENTS

    Honorable Dan Benishek, Chairman.................................     1
    Honorable Julia Brownley, Ranking Member.........................     2
    Honorable Jerry McNerney, Member.................................     6

                                   WITNESSES

    Honorable John Shimkus, U.S. House of Representatives, 15th
      Congressional District; Illinois...............................     3
        Prepared Statement...........................................    26
    Honorable Ted Lieu, U.S. House of Representatives, 33rd
      Congressional District; California.............................     4
        Prepared Statement...........................................    26
    Honorable John L. Mica, U.S. House of Representatives, 7th
      Congressional District; Florida................................     5
        Prepared Statement...........................................    28
    Honorable Mike Coffman, U.S. House of Representatives, 6th
      Congressional District; Colorado...............................     7
        Prepared Statement...........................................    30
    Raymond C. Kelley, Director of the National Legislative Service,
      Veterans of Foreign Wars of the United States..................    10
        Prepared Statement...........................................    39
    Howard Trace, Director of the National Library and Museum
      Division, The American Legion..................................    12
        Prepared Statement...........................................    40
            Accompanied by:

        Lou Celli, Director of the National Veterans Affairs and
            Rehabilitation Division, The American Legion
    Stella S. Fiotes, Director of the Office of Construction and
      Facilities Management, Office of Acquisition, Logistics, and
      Construction, U.S. Department of Veterans Affairs..............    17
        Prepared Statement...........................................    43

    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

                                  ----------

                           Tuesday, December 8, 2015

                 U.S. House of Representatives,
                        Committee on Veterans' Affairs,
                                        Subcommittee on Health,
                                                       Washington, D.C.
        The Subcommittee met, pursuant to notice, at 10:03 a.m., in
    Room 334, Cannon House Office Building, Hon. Dan Benishek
    [Chairman of the Subcommittee] presiding.
        Present: Representatives Benishek, Bilirakis, Huelskamp,
    Coffman, Wenstrup, Brownley, Takano, and Kuster.
        Also Present: Representative McNerney.

              OPENING STATEMENT OF DAN BENISHEK, CHAIRMAN

        Mr. Benishek. The Subcommittee will come to order.
        Before we begin, I would like to ask unanimous consent for
    a fellow Committee Member, Congressman Jerry McNerney from
    California, to sit on the dais and participate in today's
    proceedings. Without objection, so ordered.
        Good morning. Thank you all for joining us today. This
    morning we are going to discuss six pieces of legislation all
    of which concern some element of VA's construction and real
    property asset portfolio.
        The last two years have seen a string of high-profile
    failures for VA major construction projects across the country.
    These failures are exemplified, of course, by the replacement
    medical center construction project in Denver, Colorado.
        As we are all too well aware at this point, the Denver
    project began as a discussion in 1999 between the VA and the
    University of Colorado regarding the possibility of a shared
    facility on the former Fitzsimons Army Base in Aurora,
    Colorado.
        Almost 17 years later, after undergoing a laundry list of
    scope changes, cost increases, and schedule delays that
    culminated in a decision one year ago by the Civilian Board of
    Contract Appeals that found the VA in breach of its contract
    with the project's general contractor, VA finally came to
    Congress to admit that the project required an additional $830
    million in funding which was then slightly adjusted to a total
    authorization requirement of $1.675 billion, triple the
    original authorization to continue moving forward.
        Though Congress and this Committee have taken steps to
    address many of the deficiencies that have been identified in
    the management of VA major construction projects, serious
    concerns persist about the department's ability to effectively
    manage a complex and costly construction portfolio.
        Until these concerns are sufficiently addressed, it would
    be remiss for this Committee to authorize VA to carry out any
    more major construction projects or leases without extreme
    scrutiny and due diligence.
        Along those lines, I am extremely disappointed that the
    Subcommittee did not receive the text of the VA's legislative
    proposal concerning fiscal year 2016 construction authorization
    until 8:42 this morning. The department had more than adequate
    notice of this hearing and there is no excuse for not providing
    the text of their own legislative proposal in a more timely
    manner.
        I am grateful to the sponsors of the bills that are being
    considered today and to the witnesses from our veteran service
    organizations and VA for being here to share their views.
        I look forward to hearing their testimony, and now yield to
    Ranking Member Brownley for any opening statement she may have.

          OPENING STATEMENT OF JULIA BROWNLEY, RANKING MEMBER

        Ms. Brownley. Thank you, Mr. Chairman, and thank you for
    calling this legislative hearing.
        I would also like to thank my colleagues who are testifying
    on their legislation to help improve veterans' access to health
    care and VA services.
        Although there are many important bills dealing with
    construction on this morning's agenda, I would like to focus on
    the Los Angeles Homeless Veterans Leasing Act, a bill which I
    have cosponsored and which will help fight veteran homelessness
    in southern California. Ten percent of America's homeless
    veterans live in the Los Angeles region including some from my
    own congressional district in Ventura County.
        This legislation authorizes the settlement agreement
    Secretary McDonald reached with the plaintiffs of a long-
    running lawsuit regarding the misuse of the West Los Angeles VA
    Campus and is supported by the Disabled American Veterans, The
    American Legion, and the Vietnam Veterans of America.
        Unless it is passed, the secretary will not have the
    authority he needs to transform the West LA Campus into a
    first-class community for veterans and their families with
    improved access to VA housing, to VA health care, and to VA
    services.
        I look forward to hearing from my friend, Representative
    Lieu, on his bill and all the witnesses today on their
    legislation.
        Thank you, Mr. Chairman. I yield back.
        Mr. Benishek. Thanks.
        I am honored to be joined this morning by several of my
    colleagues to speak in support of their legislation. With us
    today is the Honorable John Shimkus from Illinois; the
    Honorable Ted Lieu from California; Mr. Mica from Florida
    should be joining us shortly; the Honorable Jerry McNerney from
    California; and Mr. Coffman from Colorado as well should be
    joining us.
        Thank you all for being here today and for sponsoring the
    bills on today's agenda. We will begin with Representative
    Shimkus.
        You have five minutes. Please proceed.

                   OPENING STATEMENT OF JOHN SHIMKUS

        Mr. Shimkus. Thank you, Mr. Chairman and Ranking Member
    Brownley. Thank you for the opportunity to come before this
    Committee to discuss the simple yet important bill and for
    taking the time to consider it today.
        As a five-year active Army officer and a 23-year reservist,
    I always feel home with my fellow veterans and those on this
    Committee that serve them.
        In my district is a town called Danville, Illinois which is
    a small town by most standards, but it is the largest in my
    congressional district. It has a rich history. It was the home
    of Dick Van Dyke who grew up in Danville and Speaker Joe
    Cannon, the namesake of the building we are in today.
        Two institutions Danville prides itself on are the VA
    Illiana Health Care System and Danville Area Community College.
    The relationship between the VA and Danville Area Community
    College is an excellent example of two institutions working
    today to serve our veterans.
        The location of the VA hospital adjacent to the community
    college campus provides our veterans returning home a one-stop
    opportunity for medical treatment and help with benefits while
    at the same time the education and training experiences that
    help them transition into a career in civilian life.
        [The attachment appears in the Appendix]
        Mr. Shimkus. My bill H.R. 3262 is simple. It allows the VA
    to transfer .68 acres of land from its property in Danville in
    exchange for 1.06 acres of land currently owned by Danville
    Area Community College. Swapping the land provides benefits to
    both the VA and the local community.
        The Danville VA has looked into the possibility of building
    a fence along its perimeter, but as the property lines are
    currently drawn, that boundary is not a straight line. Swapping
    these two parcels will fix that problem, cutting construction
    costs should the VA choose that option.
        The VA's current property that would be transferred
    includes a Carnegie library that is more than a century old.
    The building has become so deteriorated and expensive to
    maintain that the VA has stopped using it and it now sits
    vacant.
        Danville Area Community College and the local community on
    the other hand see great potential for the library. With the
    generous help of a private donor, Danville Area Community
    College plans to transform the old building into an art center.
        By swapping these parcels of land, we can relieve the VA of
    the burden of maintaining an old building while providing the
    community with a historically significant location for a
    cultural attraction. While small in terms of acreage, this swap
    is big in terms of benefits for the VA, Danville, and my
    constituents.
        I thank the Committee for this opportunity and their
    consideration. I look forward to working with you to move this
    bill forward. This weekend is the historic Army/Navy game and
    with great trepidation, I will end with a hardy beat Navy. And
    I yield back my time.

        [The prepared statement of John Shimkus appears in the
    Appendix]

        Mr. Benishek. Thank you, Mr. Shimkus.
        Representative Lieu, you may now proceed with your
    testimony.

                     OPENING STATEMENT OF TED LIEU

        Mr. Lieu. Thank you, Chairman Benishek, Ranking Member
    Brownley, and Members of this Committee. Thanks for letting me
    discuss H.R. 3484, the Los Angeles Homeless Veterans Leasing
    Act.
        [The attachment appears in the Appendix]
        Mr. Lieu. As a veteran, it is a privilege to represent the
    West LA Medical Center, the largest VA in the Nation. This
    hospital does a tremendous amount of good every day for our
    veterans.
        However, LA County is also ground zero for homeless
    veterans with thousands sleeping on the streets each night. The
    numbers are daunting and the urgency to provide permanent homes
    to these veterans is a priority.
        This West LA VA has a complicated history, and for many
    years, the campus was mismanaged. However, as Ranking Member
    Brownley stated, there has been a significant shift that
    occurred this year when the VA secretary settled a lawsuit
    brought on behalf of homeless veterans.
        The terms of the settlement call for the development of a
    massive plan for the entire campus. In addition, part of this
    plan is a comprehensive homeless plan that has been developed
    for the region and implementation has already begun.
        A critical part of the massive plan and the homeless plan
    includes the construction of permanent supportive housing. As
    this Subcommittee knows, housing first is an evidence-based
    model for providing stable, permanent housing so veterans can
    both be housed as well as get services following their housing.
        The best vehicle for the development of this housing is a
    public/private partnership known as enhanced-use leases. These
    leases enable leasing terms for up to 75 years. Every other VA
    facility in the Nation can do these leases except this one.
    There was a complicated history for why this was not allowed,
    but now the climate is different and the massive plan and
    homeless plan will not succeed without this important leasing
    tool.
        The public comment period for the draft master plan closed
    yesterday. The VA will now review the nearly 1,000 public
    comments and update the draft plan. And I hope that we can work
    all stakeholders to move forward, but we do need this
    legislation to allow this master plan to go forward so that
    these housing units can be built.
        I also note that nothing in this legislation is meant to
    impede a subway stop to occur at the West LA VA Campus if that
    is what happens in the future. This legislation has nothing to
    do with that.
        I would like to enter my complete statement as well as
    letters and resolutions in support of H.R. 3484 into the
    record. And thank you again for the Committee for letting me
    testify.

        [The prepared statement of Ted Lieu appears in the
    Appendix]

        Mr. Benishek. All right. Thank you, Representative Lieu.
    And without objection, we will add that stuff to the record.
        [The attachment appears in the Appendix]
        Mr. Benishek. Representative Mica, please proceed with your
    testimony.

                   OPENING STATEMENT OF JOHN L. MICA

        Mr. Mica. Well, thank you and good morning, Mr. Chairman
    and Ranking Member.
        [The attachment appears in the Appendix]
        Mr. Mica. The simple proposal H.R. 4056, and that would
    take an existing nursing facility that has been vacated with
    the construction of a new one down in Lake Nona, Florida to the
    south of Orlando and opened about a year ago. Some of that
    space has been used for transition and staffing our new
    hospital, but we have known it is going to be vacant for some
    time, that facility.
        In fact, back in 2012, and I would like this to be made
    part of the record, I wrote then Secretary Shinseki that it is
    going to be vacant, what are we going to do with it. Then in
    2014, I wrote Gibson it is going to be vacant, what are we
    going to do with it. So now it is vacant.
        And with the VA's difficulties sometimes in moving forward,
    I have hundreds of aging veterans in Central Florida and we
    have a vacant nursing home built fairly recently. I was there
    for the dedication, I think in 1998, about 17 years old and in
    very good condition.
        It has been used for some swing space and some other
    intermediate services with a new complex opening to the south.
    The quickest way to get this activated is to transfer it to the
    State of Florida. That is what this bill does. The State VA now
    has seven nursing facilities, excellent, and I visited them.
        They do it cheaper, better, faster. They have a scale that
    you can manage things with. They have agreed to take it on, so
    we have agreement from the State. I think we have agreement
    from the feds, VA, and that is what the bill does. It asks for
    a little waiver because it was built for singles and not
    doubles. And many of the veterans like that accommodation. Some
    can be transitioned to doubles.
        But we want to get it done as soon as possible, and get our
    veterans the care and attention in nursing facilities as the
    population ages and the needs continue.
        So that is basically the proposal, and I would ask your
    support. We want to get it done as soon as possible.

        [The prepared statement of John L. Mica appears in the
    Appendix]

        Mr. Benishek. Thank you for your testimony. We will add
    those documents to the record without objection.
        Mr. Mica. Great. Thank you.
        Mr. Benishek. Thanks for your testimony.
        [The attachment appears in the Appendix]
        Mr. Benishek. Mr. McNerney, you are recognized.

                  OPENING STATEMENT OF JERRY MCNERNEY

        Mr. McNerney. I thank Chairman Benishek and Ranking Member
    Brownley and Members of the Subcommittee.
        [The attachment appears in the Appendix]
        Mr. McNerney. I want to talk a little bit about a proposal,
    H.R. 4129, to allow the Federal Government to partner with non-
    Federal organizations to facilitate construction. We have seen
    how the Federal construction project has been mismanaged in the
    past.
        Members in my community have waited ten years to break
    ground on a project and it is being held up because of
    mismanagement at the VA. So I am going to read my prepared
    statement.
        In my district, I have experienced firsthand how veterans
    have needed to travel long distances to receive care. I
    volunteered to go with a veteran to the nearest VA facility for
    a podiatry appointment, a half an hour podiatry appointment. It
    took all day. It took ten hours of time for us to leave our
    house, go to the facility, return. And it was a very maddening
    situation.
        In 2013, 50 major construction projects were under
    management by the VA at a cost of more than $12 billion. The
    GAO report found that some of the VA's largest medical
    construction project costs had skyrocketed, as Mr. Coffman has
    noted, and significant delays threw these projects off track.
    Projects in Denver, Las Vegas, Orlando, New Orleans have all
    experienced significant setbacks in their construction.
    Veterans and their families are waiting meanwhile and taxpayers
    suffer.
        The GAO found that as of January 2015, delays for these
    projects range from 14 to 86 months and cost increases range
    from 66 percent to 144 percent. This includes the cost of the
    New Orleans project increasing by $40 million and the Orlando
    project being delayed by 57 months.
        The buildings of the VA are on average 60 years old. The VA
    currently manages and maintains more than 5,600 buildings and
    almost 34,000 acres of land. According to the VA, more than
    3,900 infrastructure gaps remain at an estimated cost of
    between $54 billion and $66 billion to close including $10
    billion in activation costs.
        So we can see that the VA is not doing a very good job of
    managing. We need another model so that we can move forward
    expeditiously with these projects.
        My bill, the Jumpstart VA Construction Act, is intended to
    help reduce the construction backlog of VA projects by allowing
    for more partnerships between non-Federal entities such as
    state and local governments.
        My bill would permit these non-Federal entities and
    partners to raise half of the funds for major medical projects
    and facilitate the construction process. Project restrictions
    include major medical facility projects where Congress has
    already approved appropriated funds, the design and development
    phase is complete, and the construction has not begun as of the
    date of the enactment of this act.
        The VA is already moving from managing major construction
    projects and has proposed having the Army Corps of Engineers be
    the project lead, though it is my understanding that this
    process has yet to be resolved, and I hope to get a chance to
    speak to the secretary this week. And I look forward to hearing
    from the VA about this effort and what progress, if any, has
    been made in determining how to best manage major construction
    projects.
        I am open to working with Members of this Committee and
    Subcommittee to enhance my bill, but I am committed to
    reforming the process to make sure that we are providing
    veterans with more opportunities to access quality health care.
        Now, as I conclude, I just want to say that I appreciate
    the VA supporting the inclusion of $450 million for the
    realignment project that would facilitate the building of the
    French Camp facility in my district, and I yield back.
        Mr. Benishek. Thank you, Mr. McNerney.
        I would like to recognize Mr. Coffman. You may begin.

                   OPENING STATEMENT OF MIKE COFFMAN

        Mr. Coffman. Thank you, Mr. Chairman, for holding this
    legislative hearing and including my legislation that would
    authorize the Department of Veterans Affairs to sell Pershing
    Hall, a five-star boutique, 24-room hotel, restaurant, and club
    in the heart of Paris, France.
        [The attachment appears in the Appendix]
        Mr. Coffman. What is today known as Pershing Hall was
    purchased by The American Legion in 1928 to serve as a memorial
    for General John J. Pershing and the soldiers who fought in
    World War I. The United States Government acquired the property
    in the 1930s and after a long period of neglect, VA obtained
    jurisdiction and control over Pershing Hall in 1991.
        Later in 1998, VA signed a 99-year enhanced-used lease to a
    French firm allowing it to invest millions of dollars to
    renovate and redevelop the property as a hotel. Today, Pershing
    Hall is popular in Paris for its open sky restaurant and a
    vertical garden of more than 100 feet.
        My colleagues on the dais have been distributed several
    photos of Pershing Hall as it exists today.
        In short, my bill provides VA the authority to sell
    Pershing Hall and it requires an independent real estate
    assessment of the property prior to any sale to ensure
    taxpayers receive the fair market value.
        Additionally, VA should be required to ensure that any
    personal property originally belonging to The American Legion
    such as historical artifacts and artwork be returned when the
    facility is sold. The proceeds from the sale and the corpus of
    VA's Pershing Hall revolving fund would be deposited into VA's
    major construction account for use on construction and
    renovation projects in the United States.
        My bill is not the first proposal to sell Pershing Hall. In
    1993, Senator Jay Rockefeller, the Chairman of the Senate
    Veterans' Affairs Committee, introduced legislation which would
    have authorized the sale of the property. At that time, VA
    supported the provision and testified that the authority would
    allow the secretary more options to consider in determining the
    best interest of the United States Government.
        One pertinent portion of the 1993 committee report still
    rings true today. Quote, ``Managing property in Europe is a
    very unusual activity for VA. The agency, therefore, is not set
    up to perform this activity in a cost-effective manner. The
    only incentive to lease the property would arise from the need
    to safeguard the building as a memorial, but this objective
    could be accomplished through restrictive covenants if the
    property were sold.''
        Aside from the infusion of capital into VA's construction
    account, authorizing the sale of Pershing Hall also puts two
    broader VA reform initiatives into focus. First, managing
    property leases is not a core competency of the Department of
    Veterans Affairs.
        The Oversight and Investigations Subcommittee held a
    hearing earlier this year examining VA's wasteful land
    management practices after the Government Accountability Office
    identified significant problems with VA's land-use agreements.
    Specifically, GAO found problems with unenforced payments or
    other agreement terms, expired agreements, and instances where
    land-use agreements did not exist.
        As this Committee deliberates how best to refocus VA
    towards its core competencies, oddly helping VA get out of the
    French real estate market is a safe bet.
        Finally, VA consistently asks Congress to grant it
    legislative flexibility to dispose of its excess
    infrastructure, most recently in its November plan, to
    consolidate community care programs. It seems odd that VA
    should consider the sale of domestic VA property while the sale
    of a hotel in Paris is off limits.
        Thank you again, Chairman Benishek and the Ranking Member,
    for allowing me to give this testimony on Pershing Hall. And I
    urge all my colleagues on this Committee today to join me in
    this effort. With that, I yield back.

        [The prepared statement of Mike Coffman appears in the
    Appendix]

        Mr. Benishek. Thank you, Mr. Coffman.
        Well, thank you, gentlemen, for these great common-sense
    proposals here.
        I am going to yield myself five minutes for questions. I
    have just got a couple of questions.
        Mr. Shimkus, are there any drawbacks or challenges in
    completing this transfer? I mean, we are not going to find out
    about some problem in the future here?
        Mr. Shimkus. You know, we have talked with all the
    stakeholders, for really now, I have represented this area
    about three plus years. And the answer is no. No one has come
    up with any objection. It is just efficiency.
        And this Carnegie library which I have been in is, you
    know, a library that is falling in. And there are some local
    community leaders that have pledged a lot of money to help
    rehab that.
        I think that is the most compelling thing. It gets it off
    of the VA books and gets it into the community college books.
    And it will be turned into an art center which is also a great
    thing. So there is no objection that I have heard of.
        Mr. Benishek. All right. Cool.
        Mr. Lieu, the second panel, the VFW is going to testify
    about 3484 but recommend amending the bill to remove a section,
    Section 2B3. That would create carve-out for the existing
    lessees. According to the VFW, there should be no special
    treatment or consideration for any current leases that cannot
    fulfill the requirements of Section 2B2 of the legislation.
        Can you tell me more about this?
        Mr. Lieu. Sure. It is not a carve-out. The VA secretary
    still has to approve all leases at the campus. And this section
    also says the provision of services to veterans still has to
    remain the predominant focus of activities.
        So it is not a carve-out. It simply authorizes the VA
    secretary, if he wants to, to approve this lease. In addition,
    I would note that the local VFW supports this legislation.
        Mr. Benishek. Okay. I think that is all that I am asking.
        Ms. Brownley, do you have any questions for the panel?
        Ms. Brownley. Yes, just quickly to Mr. Mica.
        So with the transfer of the facility, the VA involvement in
    the community living center will be finished is my
    understanding and there will be no further requests for funding
    for the veterans living there; is that correct?
        Mr. Mica. That is right. We are going to transfer the
    property, the nursing facility to State VA and they will
    operate it. And so it is a win-win, less Federal taxpayer
    monies, and they actually run their facilities. They have seven
    in the State of Florida. It is not an amateur hour transfer. So
    we are pretty excited about it and we have the need. And that
    is the most important thing.
        Ms. Brownley. Thank you.
        And to Mr. Lieu, again, thank you for bringing, I think,
    this very, very important bill forward. And I am proud to be a
    coauthor and standing with you on this legislation.
        There is no question previously the facility has been
    mismanaged and I think we are finally taking the right steps
    forward, I think, with almost universal community backing on it
    which would not have been the case a couple of years ago. I can
    attest to that.
        And I think I just wanted to ask you if you could just
    expand a little bit beyond the homelessness issue because we
    know how pervasive that is in Los Angeles and, you know, ten
    percent of the United States population, homeless population is
    in the Los Angeles area.
        But if you could talk a little bit about some of the other
    provisions in the bill that are going to provide services
    particularly as it relates to UCLA, the Brentwood School, and
    talk about some of the services that will be available for
    veterans that are going to help our veterans in the local area.
        Mr. Lieu. Sure. And thank you for that question.
        So as part of this settlement that the VA secretary entered
    into, basically the campus has to be veteran-centric. And so
    the services, the leases all have to have that focus. So this
    bill doesn't say that the VA secretary has to approve anything.
    It is still completely in the discretion of the VA secretary.
        And so the VA still has to go through all these leases and
    decide, for example, with Brentwood School, do they want to
    approve that lease or not. This bill doesn't say anything about
    that. What Brentwood School would need to do is to say what we
    are doing is essentially focused on veterans and providing
    services to veterans. And that is a decision that they will
    work out or not work out with the department. Same with UCLA.
    Same with any other lease on this campus.
        What this bill intends to do is deal with the homeless
    housing part of it, that they need to build these public/
    private partnerships to construct the housing. So that is what
    this bill primarily deals with.
        And then on the homeless, I do want to note that, first
    off, thank you for all your work on this issue as well, but the
    West LA VA Campus can be part of the solution. It can't be the
    only one. And so there is a recommendation that the entire LA
    County as well as other counties are going to be involved to
    help reduce homelessness across the southern California region.
        Ms. Brownley. Thank you.
        I yield back.
        Mr. Benishek. Do you guys have any questions, Mr.
    Huelskamp, Mr. Coffman? No?
        All right. I think you are all excused. Thank you very much
    for your legislation and your testimony.
        We are going to now welcome the second panel to the witness
    table. Joining us on the second panel is Raymond Kelley, the
    Director of the National Legislative Service for the Veterans
    of Foreign Wars of the United States, and Howard Trace, the
    Director of the National Library and Museum Division of The
    American Legion. Mr. Trace is accompanied by Lou Celli, the
    Director of the National Veterans Affairs and Rehabilitation
    Division of The American Legion.
        Thank you all for being here today and your hard work and
    advocacy on behalf of our veterans. I look forward to hearing
    the views of your Members.
        We will begin with Mr. Kelley.

                     STATEMENT OF RAYMOND C. KELLEY

        Mr. Kelley. Mr. Chairman, Ranking Member Brownley, Members
    of the Committee, thank you for the opportunity for the VFW to
    testify before your Subcommittee today.
        H.R. 3262 authorizes the Department of Veterans Affairs to
    convey approximately .6 acres of land included on which is
    building number 48 to the Danville Area Community College. In
    exchange, Danville Community College will convey approximately
    1.06 acres of land back to VA.
        This conveyance will benefit both VA and the community
    college. VA has plans to place a fence around the property and
    it will save the VA money by making the property a straight
    line.
        VA will also save funds that would otherwise be obligated
    for the maintenance of building number 48 which is currently
    unutilized. The community college wants building number 48 so
    it can be refurbished and used as an art center.
        This conveyance makes sense to the VFW. It will relieve the
    VA of a building they no longer use, saving them money, and the
    college gains a building they can use for students. The VFW
    supports this legislation.
        The West LA Campus was deeded through a will to the Federal
    Government in 1888 with the explicit intent for the property to
    be used to assist veterans. This bill will realign the property
    with the original intent of that deed.
        The VFW agrees in principle with this legislation because
    it returns the property to its rightful owners, the veterans of
    West LA. The VFW has concerns, though, with Section 2,
    paragraph B3. This section of the bill appears to provide a
    specific carve-out for one or more of the current leases. There
    should be no special treatment or consideration for any current
    leases that cannot fulfill the requirements of Section 2,
    paragraph B2 of this legislation.
        The VFW supports the intent of H.R. 3484, but would ask
    that paragraph B3 be removed to ensure that all leases meet
    requirements of paragraph B2 of this bill.
        H.R. 4056 will authorize the conveyance of a community
    living center or a CLC at the Lake Baldwin Veterans Affairs
    Community Outpatient Clinic to the Department of Veterans
    Affairs of Florida. The 60-bed CLC described in this
    legislation is currently being used as transitional storage
    while VA moves to its new facility.
        Currently, the VA does not have plans to reopen the CLC.
    But by conveying this building to the Florida Department of
    Veterans Affairs, the facility will be able to reopen quickly
    to serve the veterans of the Lake Baldwin area. The VFW
    supports this legislation.
        The Department of Veterans Affairs has managed Pershing
    Hall which is now owned by VA and is leased as a hotel in
    Paris, France. The current lease is set to expire in 2097. The
    VFW believes that VA should not be in the hotel business, but
    disposal of the hotel should be a business decision and not
    just an effort to no longer own the building.
        The VFW is glad to see that the draft legislation contains
    language stating the property be sold at fair market value
    determined by an independent assessment. The VFW would,
    however, recommend that this Committee consider amending the
    draft legislation to include language that would call for a
    prospectus that will outline the cost, if any, of breaching the
    lease agreement and the loss of annual revenue that the lease
    currently provides.
        With this fiscal data, VA and the Committee can more
    clearly see the fiscal positives and negatives of selling this
    property.
        The VFW supports the legislative proposal that will allow
    VA to plan, design, construct, and lease joint VA/DoD shared
    medical facilities. There are already current sharing
    agreements and 11 joint VA/DoD facilities that have been viewed
    very positively by both communities. The authority makes sense
    and aligns with the Independent Budget's framework that will
    allow VA to better partner with public agencies to better
    provide veterans with timely access to health care. The VFW
    supports this legislative proposal.
        The VFW has not taken a position on H.R. 4129, but we look
    forward to working with Congressman McNerney on this
    legislation. Public/private partnerships are a cornerstone of
    the future of VA and they need to be explored. We just need a
    little more time to take a look at that piece of legislation.
        Mr. Chairman, this concludes my testimony. I will be happy
    to answer any questions you or the Committee Members may have.

        [The prepared statement of Raymond C. Kelley appears in the
    Appendix]

        Mr. Benishek. Thanks, Mr. Kelley.
        Mr. Trace, you may begin your statement.

                       STATEMENT OF HOWARD TRACE

        Mr. Trace. In May of 1935, addressing the spring meeting of
    the National Executive Committee of The American Legion,
    Chairman Paul Herbert of the Paris Memorial Building Committee
    had this to say about the historic landmark Pershing Hall.
        Quote, ``At present time, the building is the center of
    American patriotic and civic activities in France and
    Continental Europe. It has enabled The American Legion to carry
    on a splendid program of rehabilitation among our veterans
    residing in France and has extended help to countless numbers
    of Americans particularly veterans who have become destitute in
    Europe. It has been a refuge for many destitute families and
    has been a haven for American orphan children and has supported
    for years as high as 200 orphan children. It has maintained for
    years a school for American children in France and has afforded
    the only opportunity to instruct these children in the English
    language and the traditions of Americanism,'' unquote.
        Good morning, Chairman Benishek, Ranking Member Brownley,
    and Members of the Committee. On behalf of our national
    commander, Dale Barnett, and over two million members of The
    American Legion nationwide, thank you for inviting us here
    today to discuss the legislation before this Committee.
        You have my written remarks on the slate of legislation. I
    would like to spend some time today focusing on one of the
    bills, Representative Coffman's draft legislation to facilitate
    the sale of Pershing Hall.
        As the opening story relates, Pershing Hall once was a
    touchstone in the middle of Paris, a visible symbol of the
    foothold of the American Expeditionary Force carved into the
    landscape of war-torn Europe in the Great War. Even today, if
    you walk the streets of Paris, you see above the door to this
    building quite distinctly the emblem of The American Legion
    marking what was once a center of remembrance of the American
    sacrifices in the first World War.
        The building was purchased by The American Legion and set
    up following our national convention in 1927. Subsequent
    legislation would turn ownership over to the U.S. Government in
    1935 and fully to the VA in 1991.
        In recent years, the building has operated as a luxury
    hotel and spa far from its initial purpose as a memorial and a
    place of remembrance for those who fought and sacrificed on
    behalf of our allies.
        When The American Legion asked the government to pay off
    and assume control of the building, it was never imagined that
    the building would be used for any purpose other than as a
    memorial and space in Paris for those who had served in the
    first World War and subsequent wars.
        Mr. Coffman's legislation would pave the way for the
    building to be sold. VA has many tasks to serve veterans and
    property management overseas is not at the top of the list of
    those tasks. If there are ways this could help VA's much
    troubled construction fund, then it is a productive use of
    funds and we support Mr. Coffman's bill.
        The American Legion was founded among other reasons to
    preserve the memories and incidents of our associations in the
    Great Wars. In 1991, VA provided a partial inventory of the
    artifacts and items associated with Pershing Hall and the list
    is extensive covering over 14 pages and two continents. We
    believe there are pieces of history in Pershing Hall itself in
    Paris, in Compiegne, France, in VA's central office here in
    Washington, in the VA Medical Center in Mountain Home,
    Tennessee, even in VA's New York regional office. There may be
    even more locations and more items, but they still represent an
    important piece of the history of this country and the men and
    women who fought for America.
        The materials deserve to be kept together for the original
    purpose, to honor and remember General Pershing and those who
    fought in World War I. The American Legion wants to establish
    permanent American Legion custodianship of the Pershing Hall
    art, artifacts, furnishing, memorabilia, and other items so
    that they can be interpreted for public display and protected
    from damage or disappearance.
        All of these historical artifacts would need to be
    collected, inventoried, appraised, and prepared and preserved.
    There is a Pershing Hall revolving fund of investments
    dedicated to providing for the needs of Pershing Hall with VA
    authorized to utilize the funds under certain prescribed
    circumstances.
        The American Legion recognizes that with the sale of
    Pershing Hall, this fund and the monies contained therein will
    transfer to the construction accounts as dictated by the
    legislation.
        However, it is wholly appropriate that some portion of
    these funds is needed to provide for the preservation and
    proper treatment of the artifacts and material be dedicated to
    the transfer of these vital historical artifacts.
        The monies were initially intended to provide for the
    preservation of history. And while they have been utilized for
    many other purposes since that time, that does not remove the
    original intent.
        If there are costs associated with transferring, shipping,
    storing, appraising, and conserving artifacts through the
    transfer process, The American Legion believes these costs
    should be borne by the revolving fund.
        The American Legion is very grateful to Representative
    Coffman for his ongoing work with The American Legion through
    recognition of our role in the history of this landmark.
    Through every step of the process, he and his staff have
    striven to ensure history is protected and preserved in the
    transfer of the property.
        It is disconcerting and troubling that this site could have
    drifted so far from its initial intended disposition as a place
    of remembrance and history. But if it is to have purpose in the
    future, at least there is some merit in finally ensuring that
    the history it represents is put in the hands of those who will
    be careful custodians of the past.
        This legislation has the potential to help VA meet the
    infrastructure challenges of the 21st century. However, it must
    also serve to help preserve the memory of what was fought for
    and sacrificed for at the dawn of the 20th century.
        Thank you for your consideration today. I am happy to
    answer any questions to the best of my ability about The
    American Legion's involvement in Pershing Hall, and Director
    Lou Celli of the Veterans Affairs and Rehabilitation Division
    is here to assist with any questions about other legislation.

        [The prepared statement of Howard Trace appears in the
    Appendix]

        Mr. Benishek. Thank you both for your testimony.
        I am going to yield myself for some questions. Mr. Kelley,
    tell me more about this West LA Campus concern. I tried to
    bring it up when Mr. Lieu was here. Did he address the concerns
    that you have in his answer there? I just want to be sure that
    this all moves forward. I mean, he said it wasn't a carve-out.
    You said it is a carve-out. So can you just elaborate a little
    more about your concern?
        Mr. Kelley. So the VFW is not opposed to any of the leases
    that are there to be maintained there. But we feel there ought
    to be parity in the way that all those leases are looked at.
    And if there is a specific provision for a specific one or two
    of those current leases, then there is not parity between
    those.
        I believe that the UCLA property could very easily fall
    under Section 2B2, Subsection D, the peer activity
    socialization and physical recreation portion of that, and
    wonder why that lease isn't being held to the same scrutiny as
    any of the current or future leases that are being held there.
        So that is what we want. We want to make sure that
    everybody is treated equally. This property has obviously
    gotten to the point of mismanagement. That didn't happen
    overnight. It was over time that little things were overlooked,
    and if we start legislation by overlooking some little things,
    we are heading back down that road in another hundred years
    from now.
        Mr. Benishek. All right. What policies would you like to
    see the VA put in place to make sure this doesn't happen?
        Mr. Kelley. I think Section 2B2 does that. I think that
    very clearly states how those leases have to be involved on
    that campus. And I believe that each one of the leases that are
    there that are going to be maintained, any future leases,
    should be held to that scrutiny.
        Mr. Benishek. All right. Mr. Trace, The American Legion
    testimony forcefully references a need to ensure that revenues
    resulting from leases in the West LA Campus are well-
    documented, tracked, and transparently spent.
        Can you elaborate a bit on the concerns regarding revenues
    on the West LA Campus?
        Mr. Celli. Chairman, I would be happy to answer that for
    you.
        Mr. Benishek. All right.
        Mr. Celli. And The American Legion echoes some of the same
    concerns that the VFW has. And we also understand that the
    intent of the proposed or of the draft agreement does cover
    many of those concerns, but we look to the past so that we can
    try to see what is going to happen in the future.
        We want to make sure that the revenue that was received by
    the West LA VA facility is accounted for in some of those prior
    leases. And we are very concerned that there are millions of
    dollars that have been received that are unaccounted for even
    today. And we have asked for an accounting of that and still
    yet have not received it.
        We are very pleased that through this draft process,
    veteran service organizations were consulted and were involved
    in some of those draft proposals. We are very pleased about
    that.
        And I would be remiss if I didn't point out there is a lot
    to be angry at the VA in recent months and years, but we would
    not be here today had it not been for Secretary McDonald and
    Under Secretary Sloan stepping up as soon as they got into
    position to make sure that this didn't get any more out of hand
    than it needed to and was able to broker this agreement. And we
    applaud them for that.
        And we would like to be able to continue as a community in
    that same vein of working together to make sure that this
    property is returned to the veterans in the way that the
    original deed had intended.
        Mr. Benishek. Are there any specific provisions? I mean, I
    guess I am not familiar enough with the terms to identify how
    the land is going to be used for a veteran purpose.
        Mr. Celli. There is, Chairman, and I think it is 2B that
    specifically says that any use of this property be for the
    specific benefit of our veterans. The language that is in
    there, it is ironclad. It is concrete. And as long as they
    stick to not only the theme but the word of the document, then
    I think we will be going in the right direction.
        Mr. Benishek. All right. Thanks.
        I yield back. Ms. Brownley.
        Ms. Brownley. Thank you, Mr. Chairman.
        I guess I would just ask a general question from all of you
    in terms of what you might see, certainly in the draft plan
    that poses the biggest challenge for VA to implement the
    proposed plan if you have any observations to share.
        Mr. Kelley.
        Mr. Kelley. It is a big plan, so there are a lot of details
    that just need to be made sure that they are followed through
    on. I don't think there are any big road blocks in any of the
    ideas and any of the provisions that are in that. Again, it
    needs parity. It needs a clear focus on each one of those and
    ensure, like Mr. Celli said, that on the back end of that, that
    we don't lose sight of what that money and what those leases
    were meant for.
        Mr. Celli. Ranking Member, the plan clearly represents the
    spirit of the original agreement and the spirit of what the
    veteran service organizations were hoping for. What we are
    concerned about is, there is some discussion about some public
    land use, a dog park or something, and we just want to make
    sure that this land sticks to the exact language of the
    agreement that preserves this space for the sanctity of our
    veterans healing.
        Ms. Brownley. Thank you so much.
        And, Mr. Kelley, I understand your argument about this
    Section 2B3, but I also understand that this is, as Mr. Celli
    expressed, it is ironclad about how this property has to be
    veteran-centric and that is key not only for the homelessness
    issue, but other services provided to veterans in the area.
        And my veterans travel from Ventura County every single day
    to receive services there, so it is not just Los Angeles. It is
    really a regional issue.
        So I guess, you know, with respect to particularly UCLA, I
    don't know whether you have sat down to meet with them yet and
    if you haven't, if you would meet with them to see what they
    are at least proposing, you know, under this potentially new
    proposed plan and agreement.
        Mr. Kelley. I would be happy to sit with them. I have read
    the documents that they have submitted to the secretary. And I
    believe everything that they have said in those documents still
    fits under Section 2B2. So having a separate section for them
    just seems a little out of place.
        So I would be happy to sit down and talk with them, but,
    again, everything that I have read, everything I have looked at
    leads me to believe that they would qualify under the previous
    provision.
        Ms. Brownley. So in terms of looking at what UCLA has
    proposed to this, you don't oppose their proposal?
        Mr. Kelley. No, not at all.
        Ms. Brownley. It is just the language--
        Mr. Kelley. Yes.
        Ms. Brownley [continued]. --within the agreement you
    believe what they proposed would fit in well to another
    section--
        Mr. Kelley. Right.
        Ms. Brownley [continued]. --within the agreement?
        Mr. Kelley. And just to keep that focus on what those are,
    there are nine specific provisions that you have to meet, and
    to keep the focus on that instead of having some softening of
    those provisions for them or any other future contracts because
    it does set a precedent.
        Somebody else comes along and says, hey, we would like to
    do this, but we will make sure that we do a little extra. Okay.
    And then we just go down that road.
        So I believe that they fully fit into the first section of
    that, and that is where they belong and what they are proposing
    is absolutely accurate.
        Ms. Brownley. Thank you very much.
        I yield back.
        Mr. Benishek. Thank you.
        Mr. Coffman, do you have any questions?
        Mr. Coffman. No, Mr. Chairman.
        Mr. Benishek. All right. Thanks.
        Ms. Kuster.
        Ms. Kuster. Thank you for joining us today.
        And I don't mean to rock the boat, but we are all talking
    around something that I want to make sure I understand.
        There is a baseball stadium that UCLA uses on the property.
    Is that what we are talking about and how does that benefit the
    health care or the well-being of veterans?
        Mr. Kelley. So there is a larger agreement with UCLA. Part
    of that agreement is the use of about seven acres for their
    baseball stadium. In their proposal, they are going to have
    activities. They are going to do things for veterans in the
    community on that facility.
        So they are heading in the right direction long term.
    Again, just where it is placed in this language in the bill is
    what is important.
        Ms. Kuster. But you think that the baseball stadium will
    benefit the veterans or you think the promises that are being
    made--
        Mr. Kelley. I don't believe it currently is, but I believe
    under what they are proposing, it will, because they could have
    family days. They could have rec leagues that are used on that
    property. So those types of things would directly benefit
    veterans in that community and that does fit the spirit of what
    this is. And then the larger agreement that VA and UCLA has
    would be protected under that as well.
        Ms. Kuster. And tell me a little bit more about the larger
    agreement. That is where there is--
        Mr. Kelley. It is a learning hospital. The VA pays for the
    training of UCLA docs and there is research that goes on,
    research and development. And under the proposals, that would
    be expanded greatly and I think those are important provisions.
        Ms. Kuster. To benefit veterans?
        Mr. Kelley. Absolutely, yes.
        Ms. Kuster. Okay. All right. Well, I guess I just would say
    for the record on behalf of the taxpayers and the veterans that
    I agree with you that we need to be vigilant that these
    properties are used to benefit veterans.
        And I also just want to say for the record, I want to join
    my colleague and friend, Mike Coffman, in cosponsoring your
    bill. And thank you very much. My father and my father-in-law
    were proud veterans of World War II, but I think running a
    luxury hotel and spa in Paris in their honor is probably not
    the best use of our funds. So thank you very much.
        Thanks, Mr. Chair. I yield back.
        Mr. Benishek. Thanks, Ms. Kuster.
        Anyone have any further questions?
        Well, thank you, gentlemen, for being here this morning. I
    sure appreciate your testimony and your answers to our
    questions. So you are now excused.
        And I would like to welcome our third and final panel to
    the witness table. Joining us from the Department of Veterans
    Affairs is Ms. Stella Fiotes, Director of the Office of
    Construction and Facilities Management for the Office of
    Acquisition, Logistics, and Construction. She is accompanied by
    Mr. Vince Kane, a Special Assistant to the Secretary.
        Thank you both for being here, and, Ms. Fiotes, you are
    recognized for five minutes when you are ready.

                     STATEMENT OF STELLA S. FIOTES

        Ms. Fiotes. Good morning, Chairman Benishek, Ranking Member
    Brownley, and Members of the Subcommittee. Thank you for the
    invitation to present our views on several bills that would
    affect VA benefits, programs, and services.
        Seated with me is Vincent Kane. Mr. Kane is a Special
    Assistant to the Secretary.
        I would like to begin by thanking Representative Ted Lieu
    for introducing H.R. 3484 and for the support from other
    Members. The bill would authorize VA to enter into enhanced-use
    leases and other agreements for housing and services
    benefitting veterans and their families. VA firmly supports
    this bill as it will enhance our current efforts to revitalize
    the campus and help end homelessness in greater Los Angeles.
        This legislation helps us in three ways. First, it would
    allow VA to enter into agreements with housing providers, local
    governments, community partners, or nonprofits to provide
    housing and services for those veterans and their families that
    are homeless or at risk of homelessness.
        Second, it will allow VA to revitalize the campus into a
    rich and vibrant community that puts the needs of veterans
    first in a manner consistent with VA's ongoing efforts to
    complete a new master plan for the campus.
        And, third, it will ensure the campus honors the underlying
    deed that transferred the property to the Federal Government in
    1888 to be a safe, welcoming, and healing environment for
    veterans.
        We appreciate the Committee's support for this legislation
    and look forward to working closely with each of you on its
    passage and implementation.
        [The attachment appears in the Appendix]
        Ms. Fiotes. VA also supports our fiscal year 2016
    construction legislative proposal. This legislation would
    authorize eight major construction projects and 18 major lease
    projects for the VA.
        In addition, authorization of VA's construction bill would
    expand opportunities for VA to work with other Federal agencies
    and expand the capabilities of the department's enhanced-use
    lease program to allow VA to further repurpose vacant and
    underutilized properties reducing the financial burden to
    maintain.
        The department's main priority is to provide high-quality
    care to veterans in facilities that are procured legally,
    constructed soundly, and comply with Federal requirements for
    accessibility, safety, and security.
        If VA's budget request is authorized, points of service for
    VA health care would be created or expanded and specifically if
    authorized, the proposed 18 leases would provide over a million
    and a half square feet of lease space establishing new
    presences where VA wasn't before or upgrading existing leases.
        VA has taken the necessary steps to put in place sound
    construction management processes to ensure success in our
    major construction program and for future projects that VA will
    continue to manage. These improvements have and will ensure
    proper execution of our major construction program and provide
    the much needed access to health care for our Nation's
    veterans.
        We have also engaged with the U.S. Army Corps of Engineers
    to continue our longstanding working relationship and we
    anticipate a joint effort with them and potential other Federal
    entities on our super construction projects over $100 million
    that brings us in line with the Department of Veterans Affairs'
    Expiring Authorities Act of 2015 which was enacted on September
    30th.
        H.R. 3262 would require VA to convey six-tenths of an acre
    of real property and improvements at the VA Illiana Health Care
    System to the Danville Area Community College of Danville,
    Illinois. VA supports this legislation and this, in fact, would
    bring VA in line with reducing our ongoing infrastructure costs
    by decreasing our maintenance costs for this property.
        VA also expresses support for H.R. 4056 which conveys the
    real property known as the community living center located at
    the Lake Baldwin Veterans Affairs Outpatient Clinic in Orlando.
    This action is in alignment with the Lake Baldwin Campus
    repurpose plan and will permit a productive partnership between
    VA and the Florida Department of Veterans Affairs.
        We note in our testimony the need to address some
    operational and technical concerns which arise from the fact
    that the land transfer is in connection with an effort to
    establish a state veterans' home. We are glad to discuss these
    issues with the Committee.
        In 1991, Congress enacted legislation to transfer
    jurisdiction, custody, and control of Pershing Hall to VA.
    After several other pieces of legislation, Congress authorized
    VA the ability to out-lease the building for up to 99 years.
    And in 1998, VA executed a 99-year lease agreement with a
    developer which in turn made several improvements to the
    property.
        This bill would amend the Veterans Benefit Programs Act of
    1991 to authorize the Secretary of Veterans Affairs to sell
    Pershing Hall. VA has no objection to selling or disposing of
    Pershing Hall with accommodations for our veteran service
    organizations.
        We would also like to be able to transfer the sale proceeds
    for the fair market value of Pershing Hall in VA's capital
    accounts without further appropriation. This is a technical and
    implementation issue that we would be happy to work with this
    Committee to address.
        Lastly, VA was recently provided with H.R. 4129, the
    Jumpstart VA Construction Act. At this time, VA is unable to
    provide official views or estimates, but we appreciate the
    concept of exploring strategic public/private partnerships to
    allow VA to efficiently expand access to care and services.
        Mr. Chairman, thank you for the opportunity to provide VA's
    view on several important bills before this Committee today. My
    colleague and I would be pleased to answer any questions that
    you or other Members of the Committee may have.

        [The prepared statement of Stella S. Fiotes appears in the
    Appendix]

        Mr. Benishek. Thank you very much for your testimony.
        I am going to yield myself five minutes for questions. I am
    going to start with the issues that the service organization
    brought up, mainly the VFW thinks that the UCLA agreement meets
    the spirit of veteran support.
        Does the Brentwood School agreement meet that same spirit?
        Mr. Kane. So with respect to the leases on the campus, the
    legislation is very clear about what is veteran focused. We
    have been meeting with the existing lessees to clarify that
    definition and to give them opportunity to look at their
    practices and to submit comments into the master plan.
        What we plan to do at the end of the comment period is to
    review their remarks to see if it is consistent with the
    overall theme and focus of the master plan and to evaluate
    whether or not it meets that definition. If it does not meet
    the definition, we will be moving forward with exiting those
    lessees from the campus.
        Mr. Benishek. All right. I guess the other issue apparently
    is, is Brentwood Village parking as part of the--I mean, to me,
    that seems less veteran-centric.
        Mr. Kane. That is correct. That has been there for some
    time. However, the community has approached VA and have been
    working with the local, state and congressional authorities to
    talk about ways that they could be partnering with VA for
    employment opportunities in the Brentwood Village.
        Again, similar to what we did with every one, we instructed
    them to put their ideas and comments into the master plan. It
    will be looked at in the master plan as well as through
    separate processes where we are looking at all the leases to,
    one, make sure it is consistent with the master plan--
        Mr. Benishek. You are saying a lot of words, but it doesn't
    address the parking thing.
        Mr. Kane. So the parking, the proposal the community has
    sent into the master plan that we have looked at, one of
    thousand comments is to convert that to employment
    opportunities for veterans. We have not had time to study that
    in detail. We will be looking at that as part of our update to
    the master plan. But, again, if it is simply parking, it will
    not meet the criteria for veteran focus.
        Mr. Benishek. That is kind of what I wanted to hear.
        Why did it take so long to get the legislative proposal to
    us?
        Ms. Fiotes. I apologize for that. There is no excuse.
        Mr. Benishek. I am glad to hear that.
        Please elaborate on the provision in the legislative
    proposal that will expand the definition of medical facilities.
    How many more facilities would count as VA medical facilities
    under this proposal and tell me why the VA is constrained by
    the current definition?
        Ms. Fiotes. The expansion of the definition would allow us
    to enter into agreements with the Department of Defense for
    common use of joint facilities. And currently, there are
    limitations with that $10 million threshold on major
    construction that put us in the position where the current
    definition does not include shared facilities in that
    definition. We have run into issues where we cannot commingle
    funds with the Department of Defense, for example, in a shared
    facility because of that limitation.
        Mr. Benishek. All right. It seems like the enhanced-use
    lease authority that is outlined in the VA's legislative
    proposal is significantly broader than the enhanced lease
    authority that the VA is supporting for the West LA Campus.
        What is the difference? What is that about?
        Ms. Fiotes. I don't believe that is the case, Mr. Chairman.
    The intent is to actually mirror what is proposed in the West
    LA enhanced-use lease expanded authority.
        Mr. Benishek. All right. Well, we definitely have to
    follow-up on that because we didn't really have much
    opportunity to review the legislative proposal before the
    hearing.
        What measures will the VA use to make the determination
    that a proposed enhanced-use lease is not inconsistent with or
    will not adversely affect the mission of the department and
    what will be the parameters of the Office of Management and
    Budget's review of proposed use leases be?
        Ms. Fiotes. I am not sure that I can answer all that in
    quite enough detail at this point, but I will tell you that
    there will be specific criteria that will be worked out
    together to ensure that we follow them consistently across the
    entire portfolio of the leases. And I would be glad to follow-
    up later with you.
        Mr. Benishek. I am just going to have one more quick
    question. The major construction project failures have received
    a lot of attention because of the Denver issue, but minor
    construction projects could be just as vulnerable to cost
    overruns.
        What are you changing at the VA to make sure that minor
    construction projects, and some of them are not so minor in my
    view, how are you changing things so those will be on time and
    on budget?
        Ms. Fiotes. That is an excellent point, Mr. Chairman. And,
    in fact, while my office is responsible for major construction,
    we have been asked by the deputy secretary to look at the
    overall construction program across the VA and ensure that best
    practices are, in fact, being applied not only to the major,
    but also to the minor program.
        We have learned a lot from our mistakes and our challenges
    in the major program. We want the opportunity to share those
    and implement those across the construction program.
        Mr. Benishek. Will you forward to the Committee then the
    actual proposal for change within the VA, how this is going to
    change the way you have been doing things to the way you are
    going to do things in the future?
        Ms. Fiotes. I will be glad to share with you the memo that
    Deputy Secretary Gibson put out regarding primarily the major
    construction program and then in oral discussions, we have been
    talking about expanding that to the minor. But we have not put
    that in a written policy.
        Mr. Benishek. I see. All right.
        Ms. Brownley.
        Ms. Brownley. Thank you, Mr. Chairman.
        Last week or two weeks ago, I had the VA come out to my
    district in Ventura County and make a presentation on the draft
    plan of the West LA facility to our veteran community in
    Ventura County. It was very, very helpful. I appreciate the VA
    coming out to do that.
        And I just sort of want to put a plug in, in some sense,
    because there were issues raised at that meeting for veterans
    like my veterans who travel to the West LA facility for
    services, you know, every single day. It is the only place
    where they are going to receive services or many of the
    services that they need. And things like parking was an issue,
    you know, not enough parking.
        And so I just want to put in a plug to say I think that we
    really need to, when we are talking about the facility being
    veteran-centric, and I believe that it should be, that we also
    need to be thinking about the veterans who have to travel to
    that facility and some of the accommodations they may need to
    receive similar services that our veterans in the immediate LA
    area, you know, have there. So I just want to put, you know,
    that plug in.
        And also as it relates to the UCLA that has been talked
    about, it is my understanding that in addition to the services
    that UCLA is providing now to veterans and there are many,
    there are a lot of new concepts that they have, I think,
    proposed that include things like trauma and addiction work,
    adaptive recreational activities, new medical fellowships, a
    legal clinic for veterans, and the list kind of goes on from
    there.
        But in my mind, there is a tremendous benefit and
    partnership particularly between UCLA and the VA. And there has
    been a long history and a long partnership there. And my son is
    currently a medical student at UCLA and has done work, you
    know, at the VA that has benefitted him and his education.
        And so, you know, I think that we have got to take and
    respect to the sort of holistic proposal, not just the baseball
    field, although veterans tell me all the time they love going
    to the baseball games there. And I think that facility can also
    be used for adaptive, you know, recreational activities for our
    veterans and so forth.
        So I just wanted to, you know, make that statement and be
    clear that I think the proposal, and if you would verify that
    at least, that that proposal is a more extensive one.
        Mr. Kane. Yes. And as the congressman indicated, it is not
    a carve-out to UCLA. It is a recognition that we have had a 70-
    year academic affiliation with them. We share the same mission
    for community service, for teaching and education, training the
    next generation of medical professionals.
        But we have been clear and UCLA has been responsive in
    noting that to be veteran-centric, to be veteran focused, they
    need to do more not only at the stadium, but in the service
    area. And we have been in discussions with UCLA addressing
    issues related to women's health, addiction, mental health,
    trauma, traumatic brain injury, legal clinics, all of those
    things that you have mentioned.
        There has been ongoing and open dialogue with them about
    doing more for veterans from a direct service perspective to
    demonstrate their commitment to the veterans in the community.
        Ms. Brownley. Thank you so much.
        And then going back to my veterans in Ventura County, I see
    that Oxnard is a proposed lease for this year, and I am happy
    to see that. I cannot underscore more how desperately it is
    needed in Oxnard. The demand there is quite significant and,
    you know, I feel as though our veterans have been under-served
    now for years.
        We have an interim solution, but this is, you know, the
    long-term goal and particularly to have a facility that is VA
    run because, quite frankly, the contracts that we have had have
    just not worked very well.
        And there has just been a disconnect between the contractor
    working there and being able to answer and respond to veterans.
    So far, it has sort of been, well, you just need to call the
    VA. I can't answer your questions. I am a contractor. And it
    hasn't worked very well.
        But I am just curious to get a rough idea of if, you know,
    there is the passage of this bill, how long would you think it
    would be before a facility would open in Oxnard for veterans
    there?
        Ms. Fiotes. Congresswoman, typically we anticipate about a
    four-year delivery time if we are going to build a facility,
    have a built-to-suit facility leased for us. We have been
    working since the Choice Act leases to reduce that timeframe as
    much as possible. It takes us about a year to get the official
    competition out and sometimes a year to award and then two
    years to design and build the facility.
        We are working on the front end which is what we still
    control to reduce that to hopefully under two years before we
    can award the lease. So I would hope that we would be able to
    deliver it no later than four years, but my goal would be to
    deliver it much earlier than that.
        Mr. Kane. I would like to also just acknowledge your
    comments about parking and better accommodations on the campus
    for veterans and veterans' families traveling in. It is very
    much a part of the master plan. There is a recognition, that is
    signage, roads, parking, and accommodations for family members.
        Ms. Brownley. Yeah.
        Mr. Kane. A safe, warm, welcoming place for them to meet
    and relax while their loved one is getting care is something
    desperately needed and it is very much a part of the master
    plan.
        Ms. Brownley. Thank you, sir. I appreciate it.
        And I yield back.
        Mr. Benishek. Ms. Kuster.
        Ms. Kuster. Thank you, Mr. Chairman, and thank you for
    being with us.
        I want to follow-up on a couple of projects in my district
    in New Hampshire, the rural northern part of the district. So
    we opened a wonderful new CBOC in a town called Littleton, New
    Hampshire, very much appreciated.
        There was much fanfare announcing that two more CBOCs were
    going to be built. One was in Colebrook, New Hampshire and one
    is in Berlin, New Hampshire. And what has happened in the past
    year is that we seem to run into some lengthy delays. There is
    difficulty. I just heard on the news that they are using a van
    that is coming with a doctor but only a handful of veterans
    have even used it.
        I wanted to just, if you could take that back to your folks
    and maybe respond to my office directly as to what the status
    is of those two in Colebrook and Berlin, New Hampshire. And
    just generally, these are smaller projects, so I am very
    curious about your minor project leasing or building process.
        Are you trying to speed that up and what causes these types
    of lengthy delays that hinder the capacity to just provide care
    for veterans in a timely way within their community?
        Ms. Fiotes. Absolutely, Congresswoman. I will take that
    back and we will get a response to you. I don't have specific
    information about the two leases. As you mentioned, minor
    leases under the million dollar threshold have been
    historically managed and handled out of the regional
    contracting offices within the Veterans Health Administration.
        We are in the process of changing that and, in fact,
    consolidating the entire leasing program under my organization
    so that we have consistent policies, consistent standards, and
    hopefully more streamlined processes.
        Part of the delays I have to say start with the fact that
    as a Federal agency, we are bound by the competition
    requirements and preparing the competition, advertising,
    getting bid proposals, and evaluating those and sometimes
    dealing with protests takes up a fairly large amount of time.
        Historically, we have been not very good at establishing
    our requirements up front which would help the process. We have
    now moved to standardized clinics that we are using ever since
    the Choice Act leases so that we can have again more standard
    designs, quicker ability to hit the market with our
    advertisement, and then less design time to get from the award
    to the actual construction start.
        So we will be applying those not only to the majors, but
    hopefully in the very near future to some of the minor leases.
    But we will get back to you with information about the specific
    two leases.
        Ms. Kuster. Thank you very much.
        And then my other question is around construction, and this
    may be for a separate hearing, but I have been hearing about
    lengthy delays in payment for construction. And I don't know if
    you are aware of that or if that is something that I should
    take up with someone else.
        Ms. Fiotes. We would have to know more specifics about the
    types of projects and which projects. Traditionally, there are
    some complaints from contractors where claims are involved and
    where we are not able to resolve change orders, but I would
    have to know the specifics of the project to tell you. But feel
    free to share the information with us, and I will find out who
    the appropriate office is and we will get you an answer.
        Ms. Kuster. Great. Thank you very much.
        Thank you. I yield back.
        Mr. Benishek. Thanks, Ms. Kuster.
        I just want to follow-up now that my colleagues have had a
    chance to ask their questions on your answer about the minor
    construction projects there.
        You know, it is called a minor construction project, but it
    is my understanding it is like a hundred million dollar level.
    So as I said before, it is pretty major.
        It seems to me, that you would have some written plan to be
    sure that that all works more efficiently than it has in the
    past, you know, other than what you mentioned, you have had
    discussions. And it seems to me that there should be a, you
    know, uniform plan for this construction that is being
    monitored closely and stays within budget.
        Are you in the process of developing that or is there just
    going to be continued oral discussions, or can you go on a
    little bit more about that?
        Ms. Fiotes. Absolutely, Mr. Chairman. The minor
    construction threshold is $10 million by law. So when we talk
    about minor construction, we are talking about projects under
    $10 million that are executed locally by the medical centers,
    you know, with contracting staff and engineering staff at the
    local facilities.
        The hundred million dollar threshold that you mention was
    recently applied to the projects that we will be required to
    engage other Federal entities to help us with the construction
    such as the Corps of Engineers. But $10 million is actually the
    threshold for minor construction. So my office does every
    construction project over $10 million, not over a hundred
    million.
        Mr. Benishek. The minor projects are you saying are managed
    locally by the local medical center or the--
        Ms. Fiotes. They are managed totally by the local medical
    center and contracting staff, yes.
        Mr. Benishek. All right. All right. Thank you.
        Any other questions?
        Well, you are excused then.
        Ms. Fiotes. Thank you.
        Mr. Benishek. Thank you very much to all of our witnesses
    for being here today.
        I ask unanimous consent that all Members have five
    legislative days to revise and extend their remarks and include
    extraneous material. And without objection, that is ordered.
        The hearing is now adjourned. Thanks.

        [Whereupon at 11:20 a.m., the Subcommittee was adjourned.]

                                A P P E N D I X

                                  ----------

                       Prepared Statement of John Shimkus
        Chairman Miller and Chairman Benishek, Ranking Member Brown and
    Ranking Member Brownley, thank you for the opportunity to come before
    the Committee to discuss this simple, yet important bill and for taking
    the time today to consider it.
        In my district, Danville, Illinois is a small town by most
    standards, with a rich history. It was the home of Dick Van Dyke, who
    grew up in Danville, and Speaker Joe Cannon, the namesake of the
    building we're in today. Two institutions Danville prides itself on
    today are the VA Illiana Health Care System and Danville Area Community
    College (DACC).
        The relationship between the VA and DACC is an excellent example of
    two institutions working together to serve our veterans. The location
    of a VA hospital adjacent to the community college campus provides our
    veterans returning home a one-stop opportunity for medical treatment
    and help with benefits, while as well as the educational and training
    experiences that help them transition into a career in civilian life.
        My bill, H.R. 3262, is simple. It allows the VA to transfer 0.6
    acres of land from its property in Danville, in exchange for 1.06 acres
    of land currently owned by Danville Area Community College (DACC).
        Swapping the land provides benefits to both the VA and the local
    community. The Danville VA has looked into the possibility of building
    a fence along its perimeter, but as the property lines are currently
    drawn, that boundary is not a straight line. Swapping these two small
    parcels will fix that problem, cutting construction costs should the VA
    choose that option.
        The VA's current property that would be transferred includes a
    Carnegie Library that is more than a century old. The building has
    become so deteriorated and expensive to maintain that the VA has
    stopped using it, and it now sits vacant. DACC and the local community,
    on the other hand, see great potential for the library. With the
    generous help of private donors, DACC plans to transform the old
    building into an arts center. By swapping these parcels of land, we can
    relieve the VA of the burden of maintaining an old building, while
    providing the community with a historically significant location for a
    cultural attraction.
        While small in terms of acreage, this swap is big in terms of
    benefits for the VA, Danville, and my constituents. I thank the
    committee for this opportunity and their consideration and look forward
    to working with you to move this bill forward.

                         Prepared Statement of Ted Lieu
        Chairman Benishek, Ranking Member Brownley, and members of the
    Committee on Veterans' Affairs, I want to thank you for inviting me to
    testify at today's legislative hearing.
        I am pleased to join you to discuss H.R. 3484, the Los Angeles
    Homeless Veterans Leasing Act of 2015 that I authored. This legislation
    authorizes the Department of Veterans Affairs (VA) to enter into
    Enhanced Use Leases at the West Los Angeles Campus.
        As a Veteran myself, it is a privilege to represent the West Los
    Angeles VA Medical Center (West LA VA), the largest VA Medical Center
    in the nation. Our VA hospital does a tremendous amount of good every
    day for our Veterans. However, Los Angeles County is also ground zero
    for homeless Veterans, with thousands sleeping on the streets each
    night. The numbers are daunting and the urgency to provide permanent
    homes to these Veterans must be a priority.
        The West LA VA has a complicated history. It has not always served
    our Veterans to the standard that they deserve and the American people
    expect. For many years the campus was mismanaged and inappropriate uses
    were permitted to operate on the property.
        I am pleased to report, however, that a significant shift has
    occurred this year among all stakeholders, including the VA, Veteran
    Service Organizations, elected officials, the community, and our
    Veterans. We have come together on the heels of a landmark legal
    settlement of a lingering lawsuit brought by the ACLU on behalf of
    homeless Veterans. The terms of the settlement call for the development
    of a Master Plan for the West LA VA to guide its future service to our
    Veterans. In addition, a comprehensive Homeless Plan has been developed
    for the region and implementation has already begun.
        A critical part of the Master Plan and Homeless Plan includes the
    construction of Permanent Supportive Housing. As the Subcommittee
    knows, ``Housing First'' is the evidence-based model for providing
    stable permanent housing to Veterans followed by intense services.
    Unfortunately, the West LA VA does not currently offer any of these
    desperately-needed Permanent Supportive Housing units.
        The best vehicle for the development of Permanent Supportive
    Housing is a public-private partnership using an Enhanced Use Lease.
    These leases allows for leasing terms of up to 75 years, enabling
    affordable housing developers to gain financing and accrue tax credits
    while constructing housing for our Veterans.
        Every other VA facility across the nation has the authority to
    enter into Enhanced Use Leases except for West LA. The prohibition on
    Enhanced Use Leases dates back to 2008 when the West LA VA was not
    being managed responsibly. United States Senator Dianne Feinstein and
    Congressman Henry Waxman drafted language that was signed into law
    which prohibits Enhanced Use Leases. Their concern at the time was that
    the property would be commercialized through the use of these leases.
    But today the climate is different and the Master Plan and Homeless
    Plan will not succeed without this important leasing tool.
        The public comment period for the Draft Master Plan closed
    yesterday. Secretary McDonald will now review the comments and update
    the Draft. The current Plan calls for 150 units of Permanent Supportive
    Housing followed by 700 to 900 units depending upon need.
        My bill, H.R. 3484, restores the authority to the VA to enter into
    Enhanced Use Leases solely for the purpose of developing supportive
    housing for homeless and at-risk Veterans. I am pleased to report
    Senator Feinstein has introduced S. 2013 in the Senate, the companion
    bill to H.R. 3484. It is my hope the bills will pass through committee
    and go to the floors of our respective chambers very soon. Without
    Enhanced Use Leases, our ability to serve vulnerable veterans on this
    property will be stalled.
        An additional point I would like to share with the Committee
    involves a subway that is being built in Los Angeles County known as
    the Purple Line. Its alignment will pass directly next to the West LA
    VA. Over the last few years, the VA and our local transit authority,
    Metro, have been in discussions about locating a stop on the West LA
    VA. Veterans, their families, VA staff and the public would
    significantly benefit by gaining access to public transit on the VA
    grounds. This legislation is not intended in any way to impede a Metro
    stop on the West LA VA campus. If necessary, I am open to amending the
    bill to clarify that a subway stop is consistent with the Draft Master
    Plan and permissible under the bill.
        Finally, I am delighted to let the Subcommittee know that this
    legislation has gained support on the ground from cities to homeowners'
    groups to Veterans Service Organizations. I believe their formal
    support is recognition that our homeless Veterans deserve Permanent
    Supportive Housing and the West LA VA is a proper and appropriate
    campus on which to build it.
        I would like to enter letters and resolutions in support of H.R.
    3484 into the record from the following institutions:

          Brentwood Glen Association
          City of Agoura Hills
          City of Los Angeles
          County of Los Angeles
          Holmby Westwood Property Owners Association
          Jewish War Veterans Post 118
          Los Angeles Neighborhood Council Coalition
          Pacific Palisades Democratic Club
          Pacific Palisades Task Force on Homelessness
          South Brentwood Residents Association
          University Synagogue
          Westwood Homeowners Association
          Westwood Neighborhood Council

        I would like to thank the Subcommittee again for allowing me to
    advocate for this pending legislation.

                       Prepared Statement of John L. Mica
        H.R. 4056, to authorize VA to convey to the Florida Department of
    Veterans Affairs all right, title, and interest of the United States to
    the property known as ``The Community Living Center'' at the Lake
    Baldwin VA Clinic, Orlando, Florida.

        Thank you Mr. Chairman and allow me to commend you for your
    leadership and tireless support of our nation's veterans.
        Chairman Benishek, Ranking Member Brownley and distinguished
    Members of the Subcommittee, I come before you today in support of HR
    4056, to authorize VA to convey to the Florida Department of Veterans
    Affairs all right, title, and interest of the United States to the
    property known as ``The Community Living Center'' at the Lake Baldwin
    VA Clinic, Orlando, Florida. Mr. Chairman, this Bill will transfer the
    nursing home facility on the campus of the Lake Baldwin VA Clinic to
    the State of Florida Department of Veterans' Affairs.
        Since its opening in 1998, the Lake Baldwin VA Clinic has provided
    vital medical resources for Central Florida's Veterans population. With
    the opening of the Lake Nona VA Hospital complex, a new 120 bed
    Community Living Center (CLC) has been opened on that campus. In 2012,
    in anticipation of the vacating of the Lake Baldwin CLC, I wrote then
    VA Secretary Eric Shinsecki requesting that the re-use of that facility
    be considered and that we maintain the nursing home (CLC), which
    currently is being vacated. I would like to include for the record my
    correspondence with the VA regarding this matter. It is important to
    note that both Federal VA representatives and Florida VA officials have
    met and agreed to the re-use of the facility as a CLC and hope to do so
    in an expedited manner. We have reached an agreement with the Florida
    Department of Veterans Affairs to have them operate the facility, and
    both federal and state agencies support this arrangement.
        Besides vastly expediting the restart operations of this facility
    with this transfer, a significant cost savings will be realized to the
    federal taxpayer. The State of Florida Department of Veterans Affairs
    has a proven track record of efficiency and service and will provide
    our region's veterans with the care they so richly deserve. To make
    this a reality and to make the project viable, included in the Bill is
    a waiver of the ``small home'' design requirement outlined by the VA.
    This waiver will allow for the current 120-bed unit to remain a double-
    occupancy unit as currently constructed.
        Again, let me thank Chairman Benishek, Ranking Member Brownley and
    the distinguished Subcommittee Members for your support of this
    legislation. H.R. 4056 will help fulfill the promises we have all made
    to our men and women in uniform as we continue to provide the health
    care and services owed to them now and in the future.

        July 7, 2014

        The Honorable Sloan Gibson
        Acting Secretary
        U.S. Department of Veterans Affairs
        810 Vermont Ave., N.W.
        Washington, DC 20420

        Dear Secretary Gibson:

        I wanted to follow up on our recent conversation relating to the
    Lake Baldwin VA Clinic and medical complex at Baldwin Park, in my
    District.
        Most importantly, I appreciate your commitment to making a decision
    regarding the currently vacant 120-bed nursing facility and 60-bed
    domiciliary and the future operation of the clinic at that site. Again,
    it is my understanding that you have committed to me to making a
    decision on the fate of the Lake Baldwin VA medical clinic and the
    currently vacant beds' future within 60 days. Furthermore, I have
    followed up with VISN 8 Director, Joleen Clark, who is your designated
    contact for me regarding this matter. In a conversation with her, she
    has confirmed to me that she will be convening appropriate meetings to
    resolve this issue.
        I was most encouraged by our conversation, as I have had a request
    into the VA for two years to resolve this matter. I am particularly
    impressed by your statement, ``the last thing I want to do right now is
    exit a major facility''; as well as your commitment to provide me with
    a plan for the future use of the Lake Baldwin VA clinic within 60 days.
    Please know that I will work with you to ensure that our veterans
    receive the best possible care.
        Once again, I would like to strongly encourage that the Lake
    Baldwin VA facility's resources remain available to provide medical
    care to our veterans. I know that VA's recent assessment confirms that
    Florida's veteran population is growing faster than any other state.
    Currently, the new domiciliary and nursing beds at Lake Nona are
    already at capacity. Also, the VA itself has publicly stated the need
    for double the amount of space to properly care for the region's
    veterans than is being provided at the new Lake Nona VA medical
    complex.
        I appreciate your commitment to resolve this important matter and
    am confident that by working together we can keep this facility open to
    meet the current and future medical requirements of our veterans.
        With my regards and best wishes, I remain

        Sincerely,

        John L. Mica
        Member of Congress

          cc: VISN 8 Network Director, Joleen Clark
          7th Congressional District Veterans Advisory Task Force
          7th Congressional District Community Leaders

        April 9, 2014

        The Honorable Eric Shinseki
        Secretary
        U.S. Department of Veterans Affairs
        810 Vermont Ave. N.W.
        Washington, DC 20420

        Dear Secretary Shinseki:

        This year, as we approach the completion of construction of the new
    veterans' hospital and medical complex at Lake Nona, we would like to
    request that you consider keeping the existing clinic and medical
    facilities at Baldwin Park in service to our veterans. This complex is
    a valuable federal asset that must not sit idle once the new medical
    center opens.
        With an increasing veteran population that is already the second
    largest in the nation, including those service men and women now
    returning from overseas conflicts, it is important that we plan now for
    their future medical care.
        In the past, we have encouraged you to consider keeping this
    medical care facility open. We are now asking that you act soon to
    ensure that the VA will preserve and utilize this much needed VA
    property as Florida's veteran population continues to expand.
        The recently opened Lake Nona veterans' 120-bed nursing facility
    and 60 bed domiciliary care unit are already at capacity and the demand
    for VA services will continue to grow in the Sunshine State.
        These men and women who have faithfully served our nation deserve
    the very best medical care and the taxpayers valuable assets must not
    sit idle.
        We thank you for your consideration of this request.

        Sincerely,

        ------------------------/s/------------------------------
        Member of Congress

        ------------------------/s/------------------------------
        Member of Congress

        ------------------------/s/------------------------------
        Member of Congress

        ------------------------/s/------------------------------
        Member of Congress

        November 20, 2015

        The Honorable Robert A. MacDonald
        Secretary
        U.S. Department of Veterans Affairs
        810 Vermont Ave., NW
        Washington, D.C. 20420

        Secretary MacDonald,

        Thank you for your assistance in helping to keep the clinic and
    pharmacy at the Lake Baldwin Clinic operational. While this will
    provide a significant service to Central Florida veterans, I would like
    to request your aid in expediting the reuse of the additional three
    floors of the former Naval Hospital building at the Lake Baldwin
    complex. It is my understanding that the current plan for the 2nd floor
    are tentatively designated to facilitate outpatient surgical services.
    I have also been informed that the top two floors may be made available
    to provide mental health and Post Traumatic Stress Syndrome (PTSD)
    counseling and treatment as well as other special medical services that
    may be needed. It is important that the Veterans Administration
    finalize plans for reuse of that facility as soon as possible.
        I solicit your cooperation in helping determine the final use of
    the remaining space in that facility. Moving forward with a firm plan
    that can be supported by Congress as soon as possible will expedite
    reuse of valuable VA asset that otherwise would remain vacant.
        Thank you again for your assistance in making the Lake Nona
    Hospital a reality and for your continuing commitment to our nation's
    veterans. Again, I request your attention to helping us finalize the
    reuse of the Lake Baldwin VA Complex. Please do not hesitate to contact
    me or my Veterans Affairs Legislative Assistant, Kevan Stone at (202)
    225-4035.

        Respectfully,

        John L. Mica
        Member of Congress

                       Prepared Statement of Mike Coffman
        Thank you Chairman Benishek for holding this legislative hearing
    and including my legislation that would authorize the Department of
    Veterans Affairs to sell Pershing Hall, a five-star boutique 24 room
    hotel, restaurant, and club in the heart of Paris, France.
        What is today known as Pershing Hall was purchased by the American
    Legion in 1928 to serve as a memorial for Gen. John Pershing and the
    soldiers who fought in World War I. The United States Government
    acquired the property in the 1930's, and after a long period of
    neglect, VA obtained jurisdiction and control over Pershing Hall in
    1991. Later in 1998, VA signed a 99-year enhanced use lease to a French
    firm allowing it to invest millions of dollars to renovate and
    redevelop the property as a hotel.
        Today, Pershing Hall is popular in Paris for its open-sky
    restaurant and a vertical garden more than 100 feet high. My colleagues
    on the dais have been distributed several photos of Pershing Hall as it
    exists today.
        In short, my bill provides VA the authority to sell Pershing Hall,
    and it requires an independent real estate assessment of the property
    prior to any sale to ensure taxpayers receive fair market value.
    Additionally, VA would be required to ensure that any personal property
    belonging to American Legion, such as historical artifacts and art
    work, be returned when the facility is sold. The proceeds from the
    sale, and the corpus of VA's Pershing Hall Revolving Fund, would be
    deposited into VA's Major Construction account for use on construction
    and renovation projects in the United States.
        My bill is not the first proposal to sell Pershing Hall. In 1993,
    Senator Jay Rockefeller, then Chairman of the Senate Veterans' Affairs
    Committee, introduced legislation which would have authorized the sale
    of the property. At that time, VA supported the provision and testified
    that the authority would allow the Secretary more options to consider
    in determining the best interests of the United States Government.
        One pertinent portion of the 1993 committee report still rings true
    today: ``Managing property in Europe is a very unusual activity for VA.
    The agency, therefore, is not set up to perform this activity in a
    cost-effective manner.The only incentive to lease the property would
    arise from the need to safeguard the building as a memorial, but this
    objective could be accomplished through restrictive covenants if the
    property were sold.''
        Aside from the infusion of capital into VA's construction account,
    authorizing the sale of Pershing Hall also puts two broader VA reform
    initiatives into focus.
        First, managing property leases is not a core-competency of the
    Department of Veterans Affairs. The Oversight and Investigations
    Subcommittee held a hearing earlier this year examining VA's wasteful
    land-management practices after the Government Accountability Office
    identified significant problems with VA land-use agreements.
    Specifically, GAO found problems with unenforced payment or other
    agreement terms, expired agreements, and instances where land-use
    agreements did not exist. As this Committee deliberates how best to
    refocus VA towards its core-competencies, I believe helping VA get out
    of the French real-estate market is a safe bet.
        Finally, VA has consistently asked Congress to grant it legislative
    flexibility to dispose of its excess infrastructure, most recently in
    its November Plan to Consolidate Community Care Programs. It seems odd
    that VA should consider the sale of domestic VA property while the sale
    of a hotel in Paris is off-limits.
        Thank you again to Chairman Benishek for allowing testimony and
    discussion on Pershing Hall, and I urge all of my colleagues on the
    Committee today to join me in this effort.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                    Prepared Statement of Raymond C. Kelley

        WITH RESPECT TO: H.R. 3262, H.R. 3484, H.R. 4056 and DRAFT
    LEGISLATION

        Chairman Benishek, Ranking Member Brownley and members of the
    Subcommittee, on behalf of the men and women of the Veterans of Foreign
    Wars of the United States (VFW) and our Auxiliaries, I want to thank
    you for the opportunity to present the VFW's views on legislation
    pending before this Subcommittee.

        H.R. 3262, a bill to provide for the conveyance of land of the
    Illiana Health Care System

        H.R. 3262 authorizes the Department of Veterans Affairs (VA) to
    convey approximately .6 acres of land, included on which is building
    number 48, to the Danville Area Community College. In exchange,
    Danville Community College will convey approximately 1.06 acres of
    land. Included on this property stands a gazebo. These properties are
    adjacent to each other and authorizing the conveyance will allow the
    new property line to run in a straight line.
        This conveyance will benefit both the VA and the Community College.
    VA has plans to place a fence around its property and it will save the
    VA money by making the property line straight. Building number 48 is
    currently unutilized, and by conveying this property, VA will save
    funds that would otherwise be obligated for maintenance of the
    building. The Community College wants building number 48 so it can be
    refurbished and used as an art studio.
        This conveyance makes sense to the VFW. It will relieve the VA of a
    building they no longer use, saving them money, and the college gains a
    building they can use for its students. The VFW supports H.R. 3262.

        H.R. 3484, the ``Los Angeles Homeless Veterans Leasing Act of
    2015''

        The West LA campus was deeded through a will to the federal
    government with the explicit intent for the property to be used to
    assist veterans. Over time, VA lost sight of that intent and leased out
    parts of this property - which is over 300 acres - to private entities
    and has made little to no repairs or improvements for the veterans it
    was intended for. This bill will realign the property with the original
    intent of the family who deeded the property in 1888.
        The VFW agrees in principal with this legislation because it
    returns the property to its rightful owners, the veterans of West LA.
    The VFW has concerns, though, with Section 2(b)3. This section of the
    bill appears to provide a specific carve-out for one or more of the
    current leases VA has entered into that do not conform to existing laws
    that govern Enhanced Use-Leases, nor follow the future leasing process
    laid out in this legislation. There should be no special treatment or
    consideration for any current leases that cannot fulfill the
    requirements of Section 2(b)2 of this legislation.
        The VFW supports the intent of H.R. 3484, but would ask that
    Section 2(b)3 be removed so all leases meet the requirement of Section
    2(b)2 of this bill.

        H.R. 4056, a bill to provide for the conveyance of land at the Lake
    Baldwin Veterans Affairs Outpatient Clinic, Orlando, Florida

        H.R. 4056 will authorize the conveyance of the Community Living
    Center (CLC) at the Lake Baldwin Veterans Affairs Outpatient Clinic to
    the Florida Department of Veterans Affairs. The 60 bed CLC described in
    this legislation is currently being used as transitional storage while
    VA moves to its new facility. Currently, the VA does not have plans to
    reopen the CLC, but by conveying this building to the Florida
    Department of Veterans Affairs the facility will be able to reopen
    quickly to serve the veterans in the Lake Baldwin area by the Florida
    Department of VA.
        The VFW supports this legislation.

        Draft Legislation to amend the Veterans' Benefit Program
    Improvement Act of 1991 to authorize the Secretary of Veterans Affairs
    to sell Pershing Hall

        The Department of Veterans Affairs has managed Pershing Hall, which
    is now owned by VA and is leased as a hotel in Paris, France. The
    current lease is set to expire in 2097. The VFW believes the VA should
    not be in the hotel business, but disposal of the hotel should be a
    business decision, not just an effort to no longer own the building.
    The VFW is glad to see that the draft legislation contains language
    stating the property be sold at the fair market value determined by an
    independent assessment. The VFW would, however, recommend this
    Committee consider amending this draft legislation to include language
    that would call for a prospectus that will outline the costs, if any,
    of breaching the lease agreement and the loss of annual revenue that
    the current lease provides. With this financial data, VA and this
    Committee can more clearly see the financial positives and negatives of
    selling the property.

        VA's legislative proposal regarding fiscal year 2016 construction
    projects

        The VFW supports VA's legislative proposal that will allow VA to
    plan, design, construct, or lease joint VA/DoD shared medical
    facilities. There are already current sharing agreements between VA and
    DoD that have allowed medical services to be provided closer to where
    veterans and military personnel are located. There are also 11 joint
    ventures that have been viewed very positively by both communities.
    This authority makes sense and is aligned with the Independent Budget's
    framework that will allow VA to better partner with other public
    agencies to better provide veterans with timely access to health care.
        The VFW supports this legislative proposal.
        Mr. Chairman, this concludes my testimony. I will be happy to
    answer any questions you or the Subcommittee members may have.

     Information Required by Rule XI2(g)(4) of the House of Representatives

        Pursuant to Rule XI2(g)(4) of the House of Representatives, the VFW
    has not received any federal grants in Fiscal Year 2015, nor has it
    received any federal grants in the two previous Fiscal Years.
        The VFW has not received payments or contracts from any foreign
    governments in the current year or preceding two calendar years.

                       Prepared Statement of Howard Trace
        Chairman Benishek, Ranking Member Brownley, and distinguished
    Members of the Subcommittee, on behalf of our National Commander, Dale
    Barnett, and the over 2 million members of The American Legion, we
    thank you for this opportunity to testify regarding The American
    Legion's positions on the following pending legislation.

          H.R. 3484: Los Angeles Homeless Veterans Leasing Act of 2015

        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.

        This bill would allow veterans who are currently living on the
    streets to relocate to a more secure space on the campus of the West
    Los Angeles Healthcare System for the purpose of receiving housing,
    health care, education, family support, vocational training, and other
    needed services.
        For nearly 80 years, the VA West Los Angeles Campus has been
    providing disabled veterans a place to live and receive needed
    services. For over 35 years, The American Legion has been actively
    protesting the Department of Veterans Affairs misuse of the property.
    Since that time the VA has been leasing the land to private businesses
    in the area directly contrary to the explicitly stated original intent
    when the land was donated by Senator John P. Jones and a prominent Los
    Angeles family intending to serve the homeless veteran community in Los
    Angeles. \1\
    ---------------------------------------------------------------------------
        \1\ HVAC O&I Hearing: An Examination of Waste and Abuse Associated
    with VA's Management of Land-Use Agreements: Feb 2015
    ---------------------------------------------------------------------------
        While The American Legion supports H.R. 3484, we want to ensure
    that the revenues generated by these leases are benefitting the veteran
    community, as well as enhancing the West Los Angeles VA facility
    itself. We also want those revenues well documented and tracked and
    continue to urge VA to report what had happened to the original funds
    as The American Legion asked earlier this year. VA has continued to
    fail to provide answers regarding accounting of funds collected from
    commercial tenants of the West Los Angeles VA facility when the
    organization violated land-use agreements. To date, the money collected
    in exchange for use of campus assets has not been accounted for.
        The American Legion opposes any Enhanced-Used-Lease that does not
    specifically provide any obvious and permanent benefits, resources or
    services to the veterans' community. \2\ This legislation can provide
    tangible benefits to the veterans in the West Los Angeles area, but
    there must be a complete and transparent accounting of the activities
    on the property, past and present, to restore trust in the veterans'
    community.
    ---------------------------------------------------------------------------
        \2\ Resolution No. 154: Department of Veterans Affairs Enhanced-
    Used-Leasing: Aug 2014

    ---------------------------------------------------------------------------
        The American Legion supports H.R. 3484

                   H. R. 4129: Jumpstart VA Construction Act

        To direct the Secretary of Veterans Affairs to carry out a program
    under which the Secretary enters into partnership agreements with non-
    Federal entities for the construction of major construction projects
    authorized by law, and for other purposes.

        This legislation aims to help manage the task of addressing VA's
    building infrastructure problems. Despite voiced concerns from The
    American Legion over many years, construction budgets have often been
    unable to keep up with the demands of modernizing VA's buildings. As
    the legislation notes, VA buildings have an average age of 60 years,
    and some estimates place the costs to modernizing all of these
    facilities at over $55-65 billion. Furthermore, VA has struggled with
    the management of major construction projects, including major projects
    over budget and overdue in recent years in Florida, Nevada, Colorado
    and Louisiana.
        This legislation would enable VA to enter into partnerships for
    major construction projects with non-Federal entities to share the
    management and financial burdens and, it is hoped, improve the
    construction process by leveraging the partnerships to ensure better
    management.
        The American Legion believes strongly in improving VA's
    construction programs and specifically encourages VA ``to consider all
    available options, both within the agency and externally.to ensure
    major construction programs are completed on time and within budget.''
    \3\
    ---------------------------------------------------------------------------
        \3\ Resolution No. 24: Department of Veterans Affairs Construction
    Programs
    ---------------------------------------------------------------------------
        Updating VA's major medical centers will require better management
    and better results than what has been seen in recent years. This
    legislation hopefully represents a step in that direction.

        The American Legion supports H.R. 4129

                                  Draft Bill:
        To amend the Veterans' Benefits Programs Improvement Act of 1991 to
    authorize the sale of Pershing Hall, and for other purposes

        Nearly 100 years ago, members of the Allied Expeditionary Force in
    World War I came together to, among reason reasons ``preserve the
    memories and incidents of our associations [in] the Great War[s];'' and
    in 2015 approaching the 2019 anniversary of our founding, The American
    Legion is still dedicated to that mission. Part and parcel of the
    service the members of The American Legion devote to this country is to
    ensure the service and sacrifice of America's military is not
    forgotten.
        The American Legion fought for the dedication of a memorial
    building in Paris, France to recognize the service and sacrifices of
    the members of the Allied Expeditionary Forces and General of the
    Armies John J. Pershing in 1927. The memorial building was a townhouse
    in the heart of Paris that would become known as Pershing Hall. This
    memorial was authorized by resolution passed in the 1927 national
    convention. Eight years later, in 1935, Congress authorized funds to
    perpetuate the memorial and transfer the building to the United States
    Government. \4\ In 1991, the building was transferred to the Department
    of Veterans Affairs (VA). \5\
    ---------------------------------------------------------------------------
        \4\ 38 USC Sec.  2400 (a) - (e)
        \5\ Pub. L. 102-86, title IV, Sec.  403, Aug. 14, 1991, 105 Stat.
    422 , as amended by Pub. L. 103-79, Sec.  4, Aug. 13, 1993, 107 Stat.
    772 ; Pub. L. 103-446, title XII, Sec.  1202(c), Nov. 2, 1994, 108
    Stat. 4689 ; Pub. L. 107-217, Sec.  3(o), Aug. 21, 2002, 116 Stat. 1303
    ; Pub. L. 107-330, title III, Sec.  308(i), Dec. 6, 2002, 116 Stat.
    2829
    ---------------------------------------------------------------------------
        Through all these actions it was the hope and wish of The American
    Legion that Pershing Hall retain its original purpose, as a memorial
    and focal point to honor the memories and sacrifices of the men who had
    fought in World War I.
        Currently, the Pershing Hall building, in the prime Paris
    neighborhood of the Champs Elysees, contains a luxury hotel and spa,
    where guests can stay for upwards of $450-900 a night. The focus and
    purpose as a place of remembrance seems gone by the wayside. When The
    American Legion asked the government to pay off and assume control of
    the building it was never imagined that the building would be used for
    any purpose other than as a memorial and space in Paris for those who
    had served in the first world war and subsequent wars.
        This legislation, proposed by Representative Coffman, would
    authorize VA to divest themselves of the property and transfer the
    monies resulting from the sale into their construction funds, badly
    needed to help VA deal with their aging infrastructure. The legislation
    would also provide for the transfer of the artifacts and items
    associated with the building to be transferred to the original owners
    for preservation.
        The preservation of these artifacts and the history they represent
    is a major concern of The American Legion. The building and material
    deserve to be kept together for their original purpose, to honor and
    remember General Pershing and those who fought in World War I. The
    American Legion wants to work with VA to ``establish permanent American
    Legion custodianship of the Pershing Hall art, artifacts, furnishings,
    memorabilia and other items so that they can be interpreted for public
    display, and protected from damage or disappearance.'' \6\
    ---------------------------------------------------------------------------
        \6\ Resolution No. 24: Pershing Hall Artifacts and Memorabilia -
    OCT 2013
    ---------------------------------------------------------------------------
        This would require several steps. To begin with, all of the
    materials would need to be reassembled. The VA provided The American
    Legion with a 1991 inventory \7\ however it is unclear whether this
    even represents the complete collection. At the very least, this
    includes artifacts and items scattered over several continents
    including material on display or being stored in:
    ---------------------------------------------------------------------------
        \7\ Appendix A

          Pershing Hall, Paris, France
          Compeigne, France
          VA Central Office, Washington DC
          James H. Quillen VA Medical Center, Mountain Home, TN
          VA New York Regional Office

        These represent the collections we are sure of at this time, but
    there may be more. All of these historical artifacts would need to be
    collected, collated, appraised and prepared and preserved. There is a
    Pershing Hall Revolving Fund of investments dedicated to providing for
    the needs of Pershing Hall with VA authorized to utilize the funds
    under certain prescribed circumstances. \8\ The American Legion
    recognizes that with the sale of Pershing Hall this fund and the monies
    contained therein will transfer to the construction accounts as
    dictated in the legislation, however it is wholly appropriate that some
    portion of such funds as needed to provide for the preservation and
    proper treatment of the artifacts and materials should be allotted to
    the transfer process. These monies were initially intended to provide
    for this preservation of history, and while they have been doled out
    for many other purposes since that time, that does not remove the
    original intent. If there are costs associated with transferring,
    shipping, storing, appraising and conserving the artifacts through the
    transfer process, these costs should be borne by the Revolving Fund.
    ---------------------------------------------------------------------------
        \8\ 36 USC Ch. 22 Sec.  493 (d)
    ---------------------------------------------------------------------------
        The extensive list of artifacts and materials associated with
    Pershing Hall represent critical insight into American struggle and
    sacrifice in the first world war. It is a sacred duty to preserve and
    protect this history.
        The American Legion has been very grateful to Representative
    Coffman for his continued communication with The American Legion and
    recognition of our role in the history of this landmark. Through every
    step of the process he and his staff have striven to ensure history is
    protected and preserved in the transfer of this property. It is
    disconcerting and troubling that this site could have drifted so far
    from its initial intended disposition as a place of remembrance and
    history, but if it is to have productive purpose in the future, at
    least there is some merit in finally ensuring that the history it
    represents is put in the hands of those who will be careful custodians
    of the past.
        As stated previously, our own preamble to the Constitution of The
    American Legion avers to ``preserve the memories and incidents of our
    associations in the Great War[s]'', but also commits our organization
    to the importance of ``safeguard[ing] and transmit[ing] to posterity
    the principles of justice, freedom and democracy.'' \9\
    ---------------------------------------------------------------------------
        \9\ Preamble to the Constitution - The American Legion
    ---------------------------------------------------------------------------
        This legislation has the potential to help VA meet the
    infrastructure challenges of the 21st century, however it must also
    serve to help preserve the memory of what was fought for and sacrificed
    for at the dawn of the 20th century.

        The American Legion supports this draft legislation.

                                   Conclusion
        As always, The American Legion thanks this subcommittee for the
    opportunity to explain the position of the over 2 million veteran
    members of this organization. For additional information regarding this
    testimony, please contact Mr. Warren J. Goldstein at The American
    Legion's Legislative Division at (202) 861-2700 or
    wgoldstein@legion.org.
                           APPENDIX A: 1991 INVENTORY

                     Prepared Statement of Stella S. Fiotes
        Good afternoon Chairman Benishek, Ranking Member Brownley, and
    Members of the Committee. Thank you for inviting us here today to
    present our views on several bills that would affect VA benefits
    programs and services. Joining me today is Vince Kane, Special
    Assistant to the Secretary. On December 3, H.R. 4129, the ``Jumpstart
    VA Construction Act'' was added to the hearing agenda. VA will provide
    views on that bill to the Committee at a later time.

        H.R. 3484 - The Los Angeles Homeless Veterans Leasing Act of 2015.

        H.R. 3484 would authorize the Secretary of Veterans Affairs to
    enter into Enhanced-Use Leases and other agreements for housing and
    services at VA's West Los Angeles Campus in Los Angeles, California.
    The leases would principally benefit Veterans and their families,
    including severely disabled, aging, women, and homeless Veterans.
        VA strongly supports this legislation. It would enable VA to enter
    into agreements with housing providers, local governments, community
    partners, and non-profits to provide additional housing and services
    for homeless and disadvantaged Veterans. Such leases would be squarely
    Veteran focused, as the benefits resulting from them would be designed
    to principally benefit Veterans and their families. The legislation
    would also enable VA to work with state entities such as the University
    of California, Los Angeles, to obtain improved services for Veterans,
    over and above the range of benefits generated from the current VA-UCLA
    medical affiliation arrangement. This effort is in line with VA's goal
    to foster and improve its medical affiliations nationwide, to help
    ensure that sufficient quality and quantity of doctors, nurses, and
    research are available, to help ensure that Veterans will receive
    improved care and services well into the 21st Century and beyond.
        The legislation is important to VA's goal of revitalizing the
    campus into a rich and vibrant community, which Veterans will be proud
    to call home. It would dovetail with existing law contained in Section
    224, Division I, of Public Law 110-161, the Consolidated Appropriations
    Act of 2008, to prohibit VA from selling or disposing of any land
    interests in the West Los Angeles Campus to third parties.
    Additionally, the legislation contains several significant protections,
    to ensure fulfillment of the bill's objectives. The protections include
    the following:

          All leases must be consistent with the new Master Plan
    under development, with community input, that will detail how the
    campus will be used to benefit all Veterans;
          Office of Inspector General (OIG) audit reports on lease
    and land-use management of the West Los Angeles Campus will be required
    to be issued two years following enactment of this legislation, five
    years following enactment, and then as necessary;
          VA will be prohibited from entering into new leases
    during any periods where it is found by the OIG that VA is out of
    compliance with Federal policy or law pertaining to leases and land-use
    on the campus, until the Department certifies it has implemented all
    recommendations of the OIG; and
          VA will be required to notify the Senate and House
    Veterans' Affairs Committees and the congressional delegation for the
    area encompassing the campus 45 days before entering into or renewing
    any lease, and submit an annual report evaluating all leases and land-
    sharing agreements on the campus.

        These restrictions will help to ensure the campus is Veteran
    focused going forward, in a manner consistent with the underlying 1888
    deed of the property to the United States.
        Along with supporting this legislation, VA is working intensely to
    positively revitalize the West Los Angeles Campus, to make it more
    Veteran focused. Such efforts include pursuing a new master plan for
    the campus; providing additional funding to VA's homeless-related
    programs; and working with several entities in the Greater Los Angeles
    area, to help end Veteran homelessness in Greater Los Angeles. Such
    entities include the California congressional delegation; the former
    plaintiffs in the West Los Angeles litigation (Valentini v. McDonald)
    that was settled in January 2015; Veterans Service Organizations;
    Veterans; State and local authorities; non-profit entities; VA
    contractors; the local community; and charitable organizations. Through
    such efforts and hopeful enactment of this proposed legislation, VA is
    confident that all homeless Veterans of Greater Los Angeles will be
    able to obtain housing and wrap-around supportive services, so that
    they can have restored dignity and improve their lives and well-being.
        The ongoing Master Planning process takes into account VA's clear
    priority to prospectively operate the campus as a vibrant, welcoming,
    and sustainable community where all Veterans - including homeless,
    severely disabled, women, and elderly Veterans will feel comfortable
    accessing care, living, and interacting with one another, their
    families, VA personnel, and visitors.
        Since March of this year, almost 1,400 Los Angeles area Veterans
    have been placed into permanent housing through the implementation of
    housing first principles. Housing first is the proven method where
    homeless Veterans are placed into housing with the needed supportive
    services to keep them in housing and more effectively help them
    reintegrate into their community. On average, almost 275 Veterans per
    month are being placed into housing, largely through VA outreach,
    coordination efforts, and funding commitments. VA has also increased
    resources to expand capacity to care for homeless and at-risk of
    homelessness Veterans. Specifically, in 2015 an additional $30 million
    was provided for Supportive Services for Veteran Families homeless
    prevention, and rapid rehousing programs. Approximately 800 HUD-VASH
    vouchers were awarded for Greater Los Angeles. This increased the total
    vouchers in Greater Los Angeles to nearly 6,000. An additional 325 new
    beds have also been added at the West Los Angeles Campus for bridge or
    emergency housing for Veterans in need.
        Despite these enhancements, there is more to do to care for our
    Veterans. The legislation will address gaps in services and facilitate
    the revitalization of the 388 acre campus to better serve Veterans. It
    will also ensure we care for disadvantaged Veteran populations to
    ensure they have needed healthcare and housing.
        VA estimates that HR 3484 will be cost-neutral because it provides
    for outlease of certain properties on the VA West Los Angeles Campus,
    without additional cost to VA. The bill does not create an obligation
    by VA to fund the housing or services contemplated by Section 2. There
    is also no obligation for VA to use future appropriations to fund
    capital or other costs related to the outleases authorized by this
    section.

        H.R. 3262 - To Provide for the Conveyance of Land of the Illiana
    Health Care System of the Department of Veteran Affairs in Danville,
    Illinois.

        VA supports H.R. 3262, which would require VA to convey 0.6 acres
    of real property and improvements, known as Building Number 48, at the
    VA Illiana Health Care System, to the Danville Area Community College
    of Danville, Illinois.
        Although Building Number 48 has been vacant for a number of years,
    VA incurs maintenance costs, and is expending sums to heat the
    building, provide fire monitoring/protection and structural
    maintenance, and assure a safe surrounding area for a building.
    Further, VA does not have any future plans for this building. Failure
    to convey this property will require VA to expend upwards of $98,000 in
    continued maintenance costs over a ten (10) year period. In return for
    the conveyance of Building Number 48, Danville Area Community College
    will convey 1.06 acres of land to the United States. This acquisition
    of property will allow VA to straighten the property line of the
    campus, subsequently shortening the amount of fencing that would be
    required to create a secure campus.

        VA's FY 2016 Construction Legislative Proposal.

        This bill will authorize eight major construction projects and
    eighteen major lease projects for the Veterans Health Administration.
    In addition, authorization of VA's construction bill would expand
    opportunities for VA to work with other Federal agencies and expand the
    capabilities of the Department's Enhanced Use Leasing (EUL) program to
    allow VA to further repurpose vacant and underutilized properties
    reducing the financial burden to maintain these properties. These
    programs are critical to increasing Veterans' access to safe, secure,
    and state-of-the art care nationwide, when and where it is needed.
        The Department's main priority is to provide high-quality care to
    Veterans in facilities that are procured legally, constructed soundly,
    and comply with Federal requirements for accessibility, safety, and
    security. If VA's budget request is authorized, points of service for
    VA health care would be created or expanded, through both construction
    and leasing activities. The eight major construction projects would
    allow VA to address seismic building deficiencies in Long Beach, San
    Francisco, and West Los Angeles, California, and American Lake,
    Washington. The projects would also allow VA to construct and/or
    renovate clinical and community living center facilities to expand and
    upgrade VA's owned-property portfolio. The eighteen major leases
    proposed would serve Veterans in twelve states and would provide over
    1.5 million square feet of leased space, establishing new presences or
    replacing and upgrading existing leases.
        In addition to its construction and leasing activities, VA's
    authorization bill includes a request to expand the definition of
    ``Medical Facilities'' in VA's authorizing statutes to allow VA to more
    easily plan, design, construct, or lease medical facilities jointly
    with other Federal agencies. VA and the Department of Defense (DoD)
    have a unique relationship with regard to Veterans health care. VA is
    currently constrained in its ability to partner with DoD or any other
    agency and cannot easily act on partnership opportunities without
    expanding the definition of ``Medical Facilities.''
        The EUL Program is another means to provide services as well as
    properly utilize VA's owned property portfolio. If authorized, the
    proposed bill would expand VA's current EUL authority, which is now
    restricted to housing purposes, to allow a full range of uses. This
    would give VA more opportunities to engage the private sector and local
    governments to truly enhance the Department's use of currently
    underutilized property.
        VA has also put in place sound construction management processes to
    ensure success in the major construction program for projects currently
    underway and future projects that VA will continue to manage, including
    medical projects under $100 million in cost. These process improvements
    allow VA to ensure proper execution of our major construction projects
    and continue to provide access to care for Veterans and their families
    around the country.
        Earlier this year, VA engaged the United States Army Corp of
    Engineers (USACE) to evaluate the Department's major construction
    program. The goal of this evaluation was to identify program
    deficiencies and opportunities for improvement in the management and
    execution of our major construction program. USACE noted numerous
    strengths in VA's program and highlighted the quality and commitment of
    the project staff.
        VA agrees with this assessment and has issued policy that
    identifies roles and responsibilities within VA for the development of
    needs, requirements, and control of design and construction to assure
    alignment of the project delivery team.
        We also anticipate a productive joint effort with a non-VA federal
    partner on our future major medical projects over $100 million, as well
    as with USACE on VA's Denver major medical construction effort. Section
    502 of the Department of Veterans Affairs Expiring Authorities Act of
    2015 (Public Law 114-58), enacted on September 30, 2015, amended
    section 8103 of Title 38 United States Code to add the requirement that
    the Department of Veterans Affairs enter into an agreement with an
    appropriate non-Department Federal entity to provide full project
    management services for each medical facility project involving a total
    expenditure of more than $100,000,000 (``super construction project'').
    VA is committed to using these partnerships to best deliver facilities
    for our Veteran population.
        We will be glad to work with the Committee on all of the items in
    the bill and appreciate the committee's interest in this bill.

        H.R. 4056 - To Authorize the Secretary of Veterans Affairs to
    Convey to the Florida Department of Veteran Affairs All Right, Title,
    and Interest of the United States to the Property Known as ``The
    Community Living Center'' at the Lake Baldwin Veterans Affairs
    Outpatient Clinic, Orlando, Florida.

        H.R. 4056 would authorize the Secretary of Veterans Affairs to
    convey all right, title, and interest in real property known as ``The
    Community Living Center'' located at the Lake Baldwin Veterans Affairs
    Outpatient Clinic in Orlando, Florida to the State of Florida, Florida
    Department of Veteran Affairs.
        VHA supports H.R. 4056. This action is in alignment with the Lake
    Baldwin Campus Re-Purpose plan and will permit a productive partnership
    between VA and the Florida Department of Veterans Affairs, which will
    accept the property in an ``as is'' condition.
        Currently, VA is maintaining the Community Living Center property;
    however, VA has no plans for future use of this building after the full
    activation of the Lake Nona Campus. While maintenance, utility
    expenses, and due diligence costs are minimal in regard to maintaining
    the property, current Facilities Condition Assessment (FCA) correction
    costs, regarding future use of the property, exceed $1.6 million for
    infrastructure system upgrades, architectural corrections, and IT room
    upgrades. Further, this conveyance to the State of Florida will provide
    a needed long-term health care option to Central Florida Veterans as
    well as fill a State-identified gap in long term care needs. Although
    the draft bill raises technical and implementation concerns, VA would
    be pleased to work with the Committee to address these concerns.

        Draft Bill - To Amend the Veterans' Benefits Programs Improvement
    Act of 1991 to authorize the Secretary of Veteran Affairs to sell
    Pershing Hall, and for other purposes.

        In 1991, Congress enacted Section 403 of Public Law 102-86 to
    transfer the jurisdiction, custody, and control of Pershing Hall to VA.
    Due to the costs of maintaining the historic landmark and the
    deteriorating condition of the building, Congress authorized VA to
    outlease the building for up to 35 years. In 1993, Congress increased
    the allowable lease term to 99 years (Public Law 103-79). In 1998, VA
    executed a 99-year lease agreement with a private developer. The
    developer made significant improvements to the property, converting the
    building into a hotel and memorial.
        This Draft Bill would amend the Veterans' Benefits Programs
    Improvement Act of 1991 to authorize the Secretary of Veterans Affairs
    to sell Pershing Hall. VA has no objection to selling or disposing of
    Pershing Hall, with accommodations for our Veterans Service
    Organizations. VA would also like to be able to transfer the sale
    proceeds for the fair market value of Pershing Hall into VA's capital
    accounts without further appropriation. While VA has technical and
    implementation concerns about the bill as drafted, VA would be pleased
    to work with the Committee to address these concerns.
        VA cannot estimate the cost or savings of this Draft Bill because
    of uncertainty regarding fair market value.
        Mr. Chairman, this concludes my statement. Thank you for the
    opportunity to appear before you today. I would be pleased to respond
    to questions you or the other Members of the Subcommittee may have
    regarding the bills on the agenda today.

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