[House Report 114-570]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-570
======================================================================
LOS ANGELES HOMELESS VETERANS LEASING ACT OF 2016
_______
May 17, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 3484]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 3484) to authorize the Secretary of Veterans
Affairs to enter into certain leases at the Department of
Veterans Affairs West Los Angeles Campus in Los Angeles,
California, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 5
Hearings......................................................... 7
Subcommittee Consideration....................................... 8
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Committee Oversight Findings..................................... 8
Statement of General Performance Goals and Objectives............ 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Earmarks and Tax and Tariff Benefits............................. 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Estimate............................. 9
Federal Mandates Statement....................................... 15
Advisory Committee Statement..................................... 15
Constitutional Authority Statement............................... 15
Applicability to Legislative Branch.............................. 15
Statement on Duplication of Federal Programs..................... 15
Disclosure of Directed Rulemaking................................ 16
Section-by-Section Analysis of the Legislation................... 16
Changes in Existing Law Made by the Bill as Report............... 19
Amendment in the Nature of a Substitute
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Los Angeles Homeless Veterans Leasing
Act of 2016''.
SEC. 2. AUTHORITY TO ENTER INTO CERTAIN LEASES AT THE DEPARTMENT OF
VETERANS AFFAIRS WEST LOS ANGELES CAMPUS.
(a) In General.--The Secretary of Veterans Affairs may carry out
leases described in subsection (b) at the Department of Veterans
Affairs West Los Angeles Campus in Los Angeles, California (hereinafter
in this section referred to as the ``Campus'').
(b) Leases Described.--Leases described in this subsection are the
following:
(1) Any enhanced-use lease of real property under subchapter
V of chapter 81 of title 38, United States Code, for purposes
of providing supportive housing, as that term is defined in
section 8161(3) of such title, that principally benefit
veterans and their families.
(2) Any lease of real property for a term not to exceed 50
years to a third party to provide services that principally
benefit veterans and their families and that are limited to one
or more of the following purposes:
(A) The promotion of health and wellness, including
nutrition and spiritual wellness.
(B) Education.
(C) Vocational training, skills building, or other
training related to employment.
(D) Peer activities, socialization, or physical
recreation.
(E) Assistance with legal issues and Federal
benefits.
(F) Volunteerism.
(G) Family support services, including child care.
(H) Transportation.
(I) Services in support of one or more of the
purposes specified in subparagraphs (A) through (H).
(3) A lease of real property for a term not to exceed 10
years to The Regents of the University of California, a
corporation organized under the laws of the State of
California, on behalf of its University of California, Los
Angeles (UCLA) campus (hereinafter in this section referred to
as ``The Regents''), if--
(A) the lease is consistent with the master plan
described in subsection (g);
(B) the provision of services to veterans is the
predominant focus of the activities of The Regents at
the Campus during the term of the lease;
(C) The Regents expressly agrees to provide, during
the term of the lease and to an extent and in a manner
that the Secretary considers appropriate, additional
services and support (for which The Regents is either
not compensated by the Secretary or is compensated
through an existing medical affiliation agreement)
that--
(i) principally benefit veterans and their
families, including veterans that are severely
disabled, women, aging, or homeless; and
(ii) may consist of activities relating to
the medical, clinical, therapeutic, dietary,
rehabilitative, legal, mental, spiritual,
physical, recreational, research, and
counseling needs of veterans and their families
or any of the purposes specified in any of
subparagraphs (A) through (I) of paragraph (1);
and
(D) The Regents maintains records documenting the
value of the additional services and support that The
Regents provides pursuant to subparagraph (C) for the
duration of the lease and makes such records available
to the Secretary.
(c) Limitation on Land-Sharing Agreements.--The Secretary may not
carry out any land-sharing agreement pursuant to section 8153 of title
38, United States Code, at the Campus unless such agreement--
(1) provides additional health-care resources to the Campus;
and
(2) benefits veterans and their families other than from the
generation of revenue for the Department of Veterans Affairs.
(d) Revenues From Leases at the Campus.--Any funds received by the
Secretary under a lease described in subsection (b) shall be credited
to the applicable Department medical facilities account and shall be
available, without fiscal year limitation and without further
appropriation, exclusively for the renovation and maintenance of the
land and facilities at the Campus.
(e) Easements.--
(1) In general.--Notwithstanding any other provision of law
(other than Federal laws relating to environmental and historic
preservation), pursuant to section 8124 of title 38, United
States Code, the Secretary may grant easements or rights-of-way
on, above, or under lands at the Campus to--
(A) any local or regional public transportation
authority to access, construct, use, operate, maintain,
repair, or reconstruct public mass transit facilities,
including, fixed guideway facilities and transportation
centers; and
(B) the State of California, County of Los Angeles,
City of Los Angeles, or any agency or political
subdivision thereof, or any public utility company
(including any company providing electricity, gas,
water, sewage, or telecommunication services to the
public) for the purpose of providing such public
utilities.
(2) Improvements.--Any improvements proposed pursuant to an
easement or right-of-way authorized under paragraph (1) shall
be subject to such terms and conditions as the Secretary
considers appropriate.
(3) Termination.--Any easement or right-of-way authorized
under paragraph (1) shall be terminated upon the abandonment or
nonuse of the easement or right-of-way and all right, title,
and interest in the land covered by the easement or right-of-
way shall revert to the United States.
(f) Prohibition on Sale of Property.--Notwithstanding section 8164 of
title 38, United States Code, the Secretary may not sell or otherwise
convey to a third party fee simple title to any real property or
improvements to real property made at the Campus.
(g) Consistency With Master Plan.--The Secretary shall ensure that
each lease carried out under this section is consistent with the draft
master plan approved by the Secretary on January 28, 2016, or successor
master plans.
(h) Compliance With Certain Laws.--
(1) Laws relating to leases and land use.--If the Inspector
General of the Department of Veterans Affairs determines, as
part of an audit report or evaluation conducted by the
Inspector General, that the Department is not in compliance
with all Federal laws relating to leases and land use at the
Campus, or that significant mismanagement has occurred with
respect to leases or land use at the Campus, the Secretary may
not enter into any lease or land-sharing agreement at the
Campus, or renew any such lease or land-sharing agreement that
is not in compliance with such laws, until the Secretary
certifies to the Committee on Veterans' Affairs of the Senate,
the Committee on Veterans' Affairs of the House of
Representatives, and each Member of the Senate and the House of
Representatives who represents the area in which the Campus is
located that all recommendations included in the audit report
or evaluation have been implemented.
(2) Compliance of particular leases.--Except as otherwise
expressly provided by this section, no lease may be entered
into or renewed under this section unless the lease complies
with chapter 33 of title 41, United States Code, and all
Federal laws relating to environmental and historic
preservation.
(i) Community Veterans Engagement Board.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall establish a
Community Veterans Engagement Board (in this subsection
referred to as the ``Board'') for the Campus to coordinate
locally with the Department of Veterans Affairs to--
(A) identify the goals of the community; and
(B) provide advice and recommendations to the
Secretary to improve services and outcomes for
veterans, members of the Armed Forces, and the families
of such veterans and members.
(2) Members.--The Board shall be comprised of a number of
members that the Secretary determines appropriate, of which not
less than 50 percent shall be veterans. The nonveteran members
shall be family members of veterans, veteran advocates, service
providers, or stakeholders.
(3) Community input.-- In carrying out subparagraphs (A) and
(B) of paragraph (1), the Board shall--
(A) provide the community opportunities to
collaborate and communicate with the Board, including
by conducting public forums on the Campus; and
(B) focus on local issues regarding the Department
that are identified by the community, including with
respect to health care, benefits, and memorial services
at the Campus.
(j) Notification and Reports.--
(1) Congressional notification.--With respect to each lease
or land-sharing agreement intended to be entered into or
renewed at the Campus, the Secretary shall notify the Committee
on Veterans' Affairs of the Senate, the Committee on Veterans'
Affairs of the House of Representatives, and each Member of the
Senate and the House of Representatives who represents the area
in which the Campus is located of the intent of the Secretary
to enter into or renew the lease or land-sharing agreement not
later than 45 days before entering into or renewing the lease
or land-sharing agreement.
(2) Annual report.--Not later than one year after the date of
the enactment of this Act, and not less frequently than
annually thereafter, the Secretary shall submit to the
Committee on Veterans' Affairs of the Senate, the Committee on
Veterans' Affairs of the House of Representatives, and each
Member of the Senate and the House of Representatives who
represents the area in which the Campus is located an annual
report evaluating all leases and land-sharing agreements
carried out at the Campus, including--
(A) an evaluation of the management of the revenue
generated by the leases; and
(B) the records described in subsection (b)(3)(D).
(3) Inspector general report.--
(A) In general.--Not later than each of two years and
five years after the date of the enactment of this Act,
and as determined necessary by the Inspector General of
the Department of Veterans Affairs thereafter, the
Inspector General shall submit to the Committee on
Veterans' Affairs of the Senate, the Committee on
Veterans' Affairs of the House of Representatives, and
each Member of the Senate and the House of
Representatives who represents the area in which the
Campus is located a report on all leases carried out at
the Campus and the management by the Department of the
use of land at the Campus, including an assessment of
the efforts of the Department to implement the master
plan described in subsection (g) with respect to the
Campus.
(B) Consideration of annual report.--In preparing
each report required by subparagraph (A), the Inspector
General shall take into account the most recent report
submitted to Congress by the Secretary under paragraph
(2).
(k) Rule of Construction.--Nothing in this section shall be construed
as a limitation on the authority of the Secretary to enter into other
agreements regarding the Campus that are authorized by law and not
inconsistent with this section.
(l) Principally Benefit Veterans and Their Families Defined.--In this
section the term ``principally benefit veterans and their families'',
with respect to services provided by a person or entity under a lease
of property or land-sharing agreement--
(1) means services--
(A) provided exclusively to veterans and their
families; or
(B) that are designed for the particular needs of
veterans and their families, as opposed to the general
public, and any benefit of those services to the
general public is ancillary to the intended benefit to
veterans and their families; and
(2) excludes services in which the only benefit to veterans
and their families is the generation of revenue for the
Department of Veterans Affairs.
(m) Conforming Amendments.--
(1) Prohibition on disposal of property.--Section 224(a) of
the Military Construction and Veterans Affairs and Related
Agencies Appropriations Act, 2008 (Public Law 110-161; 121
Stat. 2272) is amended by striking ``The Secretary of Veterans
Affairs'' and inserting ``Except as authorized under the Los
Angeles Homeless Veterans Leasing Act of 2016, the Secretary of
Veterans Affairs''.
(2) Enhanced-use leases.--Section 8162(c) of title 38, United
States Code, is amended by inserting ``, other than an
enhanced-use lease under the Los Angeles Homeless Veterans
Leasing Act of 2016,'' before ``shall be considered''.
Purpose and Summary
H.R. 3484, the ``Los Angeles Homeless Veterans Leasing Act
of 2016,'' was introduced by Representative Ted Lieu of
California on September 10, 2015. H.R. 3484, as amended, was
ordered to be favorably reported to the full House on February
25, 2016, by voice vote.
H.R. 3484, as amended, would authorize the Department of
Veterans Affairs (VA) to carry out certain leases on the VA
Greater Los Angeles Healthcare System West LA Medical Center
(VAMC) campus in Los Angeles, California. It would also
prohibit VA from entering into any land-sharing agreements
unless the agreements provide additional healthcare resources
and benefit veterans and their families in ways other than
generating additional revenue.
Background and Need for Legislation
Section 2--Authority to Enter into Certain Leases at the Department of
Veterans Affairs West Los Angeles Campus
In 1888, the United States was deeded approximately 387
acres of land in Los Angeles, California, to serve as the
Pacific Branch of the National Home for Disabled Volunteer
Soldiers.\1\ The property was maintained in accordance with
this purpose until the 1970s. However, after the VA Greater Los
Angeles Healthcare System, West LA Medical Center campus (the
West LA campus) was located on the property, it transitioned
from a home for disabled veterans to one of the VA health care
system's busiest and largest medical and research campuses.
According to VA, this left, ``land, housing, and amenities
unused and in disrepair,'' throughout the campus.
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\1\VA Greater Los Angeles Campus Draft Master Plan, January 28,
2016, http://www.losangeles.va.gov/masterplan/.
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The Homeless Veterans Comprehensive Service Programs Act of
1992 (Public Law 102-590, 106 Stat. 5136) authorized VA to
lease property on the West LA campus. Subsequent to this
authority, VA provided leased space on the West LA campus to a
number of entities, including the University of California, Los
Angeles (UCLA); the Brentwood School; Sodexho Marriot Laundry
Services; Twentieth Century Fox Television; the Veterans Park
Conservancy; the Westside Breakers Soccer Club; Westside
Services, LLC; and TCM, LLC. These entities provided services
primarily to the general public or others and any use or
benefit of the leased space by veterans or their families was
ancillary.
In 2011, the American Civil Liberties Union (ACLU) of
Southern California filed a class action lawsuit\2\ on behalf
of homeless veterans with severe disabilities. The lawsuit
alleged that VA was misusing the West LA campus and
discriminating against homeless veterans ``because they cannot
access the medical, mental health and other services to which
they are entitled,'' in part due to VA's use of the
Department's leasing authority on the West LA campus.\3\
According to the complaint filed by the ACLU, ``[a]s a result
of these land deals, veterans have limited access to, or are
altogether prohibited from accessing, approximately 110 acres
of the 387 acre West LA campus (nearly 30 percent of the
grounds).''\4\ In August 2013, the United States District Court
for the Central District of California ruled in the plaintiff's
favor by finding that VA had violated federal law when it
leased portions of the West LA campus to businesses and
organizations for purposes unrelated to providing care or
services to veterans.
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\2\Valentini v. McDonald, 2013 U.S. Dist. LEXIS 189202 (C.D. Cal.
Aug. 29, 2013).
\3\Valentini v. Shinseki. https://www.aclusocal.org/valentini/.
\4\https://www.aclusocal.org/cases/valentini-v-shinseki/first-
amended-complaint/.
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In January 2015, VA and attorneys for the plaintiffs
announced that they had reached an agreement. Under the terms
of the agreement, the plaintiffs agreed to pursue dismissal of
the lawsuit and VA agreed to develop a written plan to end
veteran homelessness in West LA, accelerate the development of
a long-term master plan for the West LA campus that would
prioritize bridge and permanent supportive housing, and
delineate an exit strategy for third-party land use agreements
that do not comply with applicable laws.
In accordance with this agreement, VA published a notice of
a preliminary draft master plan for the West LA campus in the
Federal Register on October 22, 2015. During the 45-day comment
period that followed, VA received 1,002 comments in the
following categories: arts, recreation, and entertainment;
campus circulation; clinical; connectivity; housing and campus
restoration; land use agreements; parking; transparency and
accountability; and veteran access. In January 2016, VA
released the draft master plan to revitalize the West LA
campus. According to VA, the purpose of the draft master plan
is to ``transform the [Greater Los Angeles] campus into a
vibrant community where all Veterans can receive healthcare,
benefits, employment, and other supportive services . . . to
which they are entitled.''\5\ The draft master plan calls for
the following to be added to the West LA campus: 1,200
permanent supportive housing units over a ten-year period; a
town center and amphitheater; a resource center for veterans
and veteran families; a metro line station; and additional
parking. The draft master plan also calls for the
rehabilitation of historic structures through community
philanthropy, enhanced campus navigation, and continued
collaboration with academic affiliates, community partners, and
government stakeholders.
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\5\VA Greater Los Angeles Campus Draft Master Plan, January 28,
2016, http://www.losangeles.va.gov/masterplan/.
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The Committee believes that, if fully implemented, the
draft master plan would revitalize and preserve the West LA
campus, correct the years of neglect, misuse, and mismanagement
that have plagued this historic site, and refocus VA's efforts
in West LA on veterans in need of services--particularly those
who are homeless or at risk of homelessness. To assist VA in
carrying out the tenets of the draft master plan, Section 2 of
the bill would authorize VA to carry out the certain leases on
the West LA campus. Such leases would be: an enhanced use lease
for the purpose of providing supportive housing; any lease
lasting less than fifty years to a third party to provide
services that benefit veterans and their families by promoting
health and wellness, education, activities on the West LA
campus that are principally focused on providing services and
training related to employment, peer activities, assistance
with legal services and Federal benefits, volunteerism, family
support services, or transportation; or a lease lasting less
than ten years to UCLA if the lease is consistent with the West
LA master plan and UCLA's commitment to veteran support. Each
of the above leases would be required to be consistent with the
draft master plan and funds generated from them would be
credited to the West LA VAMC to be used exclusively for the
renovation and maintenance of the West LA campus. The Committee
recognizes that ``transportation'' includes the authority to
enter into parking lease agreements with local community
organizations with the continuation of such leases depending on
how the community groups manage the leases to both generate
funds and provide services to veterans and their families. The
Committee further recognizes that the envisioned future lease
arrangement between VA and the Brentwood School meets the
criteria laid out in this legislation. The Brentwood School is
uniquely positioned to offer veterans and their families on the
West LA campus substantial opportunities for physical
recreation, health and wellness, education, and vocational
training as well as direct community service and increased
revenue. As such, the Committee is supportive of VA continuing
the Department's long-standing community partnership with the
Brentwood School under the tenets of this bill.
To facilitate transportation in, around, and through the
West LA campus, section 2 of the bill would also provide VA the
authority to grant easements or rights-of-way on, above, or
under lands of the West LA campus to local or regional public
transportation authority, the state of California, the County
of Los Angeles, or any public utility company. Section 2 of the
bill would further prohibit VA from carrying out any land-
sharing agreements unless the agreements provide additional
health-care resources and benefit the veterans and their
families in ways other than generating additional revenue.
Additionally, section 2 would prohibit VA from selling any
property on the West LA campus.
Hearings
There were no full Committee hearings held on H.R. 3484, as
amended. On December 8, 2015, the Subcommittee on Health
conducted a legislative hearing on H.R. 3262; H.R. 3484; H.R.
4056; H.R. 4129; a draft bill to amend the Veterans' Benefits
Programs Improvement Act of 1991 to authorize VA to sell
Pershing Hall; and VA's legislative proposal regarding fiscal
year 2016 construction projects.''
The following witnesses testified:
The Honorable John Shimkus of Illinois; The Honorable
Ted Lieu of California; the Honorable John L. Mica of
Florida; the Honorable Jerry McNerney of California;
the Honorable Mike Coffman of Colorado; Raymond C.
Kelley, the Director of the National Legislative
Service for the Veterans of Foreign Wars of the United
States; Howard Trace, the Director of the National
Library and Museum Division, for the American Legion,
accompanied by Lou Celli, the Director of the National
Veterans Affairs and Rehabilitation Division of the
American Legion; and Stella S. Fiotes, the Director of
the Office of Construction and Facilities Management
for the Office of Acquisition, Logistics, and
Construction for the U.S. Department of Veterans
Affairs, accompanied by Vince Kane, the Special
Assistant to the Secretary for the U.S. Department of
Veterans Affairs.
Statements for the record were submitted by:
The Brentwood Village Business Improvement District
and the Brentwood Village Chamber of Commerce.
Subcommittee Consideration
There were no Subcommittee markups involving H.R. 3484, as
amended.
Committee Consideration
On February 25, 2016, the Full Committee met in open markup
session, a quorum being present, and ordered H.R. 3484, as
amended, to be reported favorably to the House of
Representatives by voice vote.
During consideration of H.R. 3484, the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by
Representative Jeff Miller of Florida.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, there were no recorded votes
taken on amendments or in connection with ordering H.R. 3484,
as amended, reported to the House. A motion by Ranking Member
Corrine Brown of Florida to report H.R. 3484, as amended,
favorably to the House of Representatives was agreed to by
voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are to authorize VA to carry out certain
leases on the West LA campus.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 3484, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
3484, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 3484, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 17, 2016.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3484, the Los
Angeles Homeless Veterans Leasing Act of 2016.
If you wish further details on this estimate, we would be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Keith Hall.
Enclosure.
H.R. 3484--Los Angeles Homeless Veterans Leasing Act of 2016
Summary: H.R. 3484 would authorize the Department of
Veterans Affairs (VA) to lease property at the department's
medical campus in Los Angeles to developers who would construct
supportive housing and rehabilitation facilities for homeless
veterans. Once occupied, the housing would receive operating
subsidies from the Department of Housing and Urban Development
(HUD). VA personnel would provide a variety of services on an
ongoing basis to resident veterans. CBO believes that
constructing housing in that manner is a governmental activity
that should be recorded in the federal budget. Funding for the
construction and operation of that housing would come from a
combination of nonfederal contributions, mandatory federal
funding, and discretionary appropriations.
CBO estimates that enacting H.R. 3484 would increase net
direct spending by $18 million over the 2017-2026 period. In
addition, implementing the bill would cost $29 million over the
2017-2021 period and $118 million over the 2017-2026 period,
subject to appropriation of the necessary amounts.
Pay-as-you-go procedures apply because enacting the
legislation would affect direct spending. Enacting the bill
would not affect revenues. CBO estimates that enacting the
legislation would not increase net direct spending or on-budget
deficits by more than $5 billion in any of the four consecutive
10-year periods beginning in 2027.
H.R. 3484 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 3484 is shown in the following table.
The costs of this legislation fall within budget functions 450
(community and regional development), 600 (income security),
and 700 (veterans benefits and services).
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By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Equity Contributions and Grants
Receipts
Estimated Budget Authority........... 0 -14 -38 -73 -38 -38 -31 -32 -32 -34 -163 -330
Estimates Outlays.................... 0 -11 -32 -64 -47 -38 -33 -32 -32 -34 -154 -323
Spending
Estimated Budget Authority........... 0 14 38 73 38 38 31 32 32 34 163 330
Estimated Outlays.................... 0 5 20 46 54 42 37 32 32 33 125 301
Total
Estimated Budget Authority....... 0 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays................ 0 -6 -12 -18 7 4 4 * * -1 -29 -22
Loans, Bonds, and Advances
Estimated Budget Authority............... 0 2 5 10 5 5 4 4 4 5 22 44
Estimated Outlays........................ 0 1 3 6 7 6 5 4 4 4 17 40
Total Changes
Estimated Budget Authority........... 0 2 5 10 5 5 4 4 4 5 22 44
Estimated Outlays.................... 0 -5 -9 -12 14 10 9 4 4 3 -12 18
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Construction Grants
Estimated Authorization Level............ 0 3 8 15 8 8 6 6 6 7 34 67
Estimated Outlays........................ 0 1 4 10 11 9 8 6 6 6 26 61
Operating Subsidies
Estimated Authorization Level............ 0 0 0 * 3 7 8 11 13 15 3 57
Estimated Outlays........................ 0 0 0 * 3 7 8 11 13 15 3 57
Total Increases
Estimated Authorization Level........ 0 3 8 15 11 15 14 17 19 22 37 124
Estimated Outlays.................... 0 1 4 10 14 16 16 17 19 21 29 118
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Note: * = between $0 and $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
3484 will be enacted at the start of fiscal year 2017, that the
estimated amounts will be appropriated each year, and that
outlays will follow historical spending patterns for affected
programs.
H.R. 3484 would authorize VA to lease underused federal
property (via an arrangement called an enhanced-use lease or
EUL) at the department's Greater Los Angeles medical campus to
private entities. The nonfederal lessees would design,
construct, and operate supportive housing for homeless
veterans. Although VA has used its general authority for such
leases at about 25 other locations, the Military Construction
and Veterans Affairs and Related Agencies Appropriations Act,
2008 (Public Law 100-161) prohibits such leases at the Los
Angeles facility.
CBO believes that the cost of designing and operating those
facilities should be recorded in the federal budget for the
following reasons:
The facilities would be built on VA property;
The department would approve construction plans
and operating budgets for the facilities;
VA is prohibited from selling or otherwise
divesting the property;
The housing would be reserved primarily for
veterans;
Ownership of the facilities would revert to the
government at the end of the lease term;
VA personnel would work in the facilities to
provide rehabilitation services to resident veterans; and
The housing would receive ongoing operating
subsidies from federal housing programs.
For those reasons, this estimate shows the construction
costs financed with private funds as if the government were
financing them directly.
According to its master plan for the medical campus, after
enactment of H.R. 3484 VA would enter into one or more leases
with developers who would construct the housing facilities in
phases over the next 10 years. VA's plans call for construction
of 60 units initially, about 600 units by 2021, and a total of
1,200 units in phases by 2026. CBO expects that the first lease
would be awarded near the end of fiscal year 2017, that
construction of housing units would begin in 2018, and that
units would be ready for occupancy two years after construction
began.
On the basis of information from California's housing
agencies, CBO estimates that construction would initially cost
$325,000 per unit and an average of $370,000 per unit over the
10-year period after accounting for inflation. In total, the
facilities would cost $440 million to design and build, CBO
estimates. However, some of those expenditures would occur
after 2026. Funding for development of the projects would be
derived from federal and nonfederal sources. The projects also
would receive federal operating subsidies. Development and
operation costs would be covered by both mandatory and
discretionary funds.
Direct spending
Some of the funding for construction would come from equity
contributions, grants, and private borrowing from nonfederal
entities. CBO considers such funding to be third-party
financing (that is, they are funds raised by a nonfederal
entity for a federal activity).\1\
---------------------------------------------------------------------------
\1\For more information on the budgetary treatment of third-party
financing, see Congressional Budget Office, Third-Party Financing of
Federal Projects (June 2005), www.cbo.gov/publication/16554.
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Equity Contributions and Grants. On the basis of
information regarding the financing for similar VA housing
projects, CBO estimates that about 65 percent of the
development funding for the projects ($285 million) would come
from equity investments that are made in exchange for federal
tax credits for low-income housing projects. Investors in
projects that receive such credits recover their principal
through tax reductions over a 10-year period. The aggregate
amount of credits that are available each year is fixed and
applications for the credits exceed the amount available. Thus,
CBO does not expect any change in federal revenues if housing
projects at the Los Angeles campus are partially financed
through such tax credits.
California also allocates state-funded tax credits to
attract equity contributions. Public housing agencies and local
governments, as well as private entities, provide grants that
do not require repayment for low-income housing projects. On
the basis of similar contributions for other VA projects, CBO
estimates that roughly 10 percent of the development costs ($45
million) would be financed through such nonfederal sources.
In total, those sources would account for $330 million of
the estimated development costs. CBO believes that those
contributions should be recorded in the budget as offsetting
receipts (an offset to direct spending) when they are received
on behalf of VA by the project developer and as outlays when
the funds are spent on construction. Over time those amounts
would have no net effect on the federal budget. However,
because the funds would be received before they could be spent
and because VA plans to develop housing at the Los Angeles
campus over more than 10 years, the net effect of receiving
those contributions would be to reduce direct spending by $22
million over the 2017-2026 period, CBO estimates.
Loans, Bonds, and Advances. About 10 percent of the
development funding would come from commercial loans, bonds, or
advances from the project developer that would be paid back
over time from cash flow for the projects that would primarily
be derived from federal operating subsidies. CBO treats such
third-party financing of a federal activity as mandatory
borrowing authority because the project would incur the
obligation to repay the borrowing before discretionary
appropriations would be available for repayment.
That borrowing would account for $44 million of the
development costs and would increase direct spending by $40
million over the 2017-2026 period, CBO estimates. The budgetary
effects shown are the projected construction costs that would
be financed in this way.
Spending subject to appropriation
VA and the Department of Housing and Urban Development
would provide construction grants and operating subsidies for
the housing projects from annual discretionary appropriations.
In total, CBO estimates that implementing those provisions
would cost $29 million over the 2017-2021 period and $118
million over the 2017-2026 period, assuming appropriation of
the necessary amounts.
Construction Grants. Some additional financing for
designing and constructing the housing projects would be
derived from appropriations for construction and community
development grants. VA would provide amounts to the project
developer from its appropriation for minor construction.
Additionally, the project would receive funds from Community
Development Block Grants and other federal grant programs for
housing development. On the basis of information about VA's
other EULs for supportive housing, CBO estimates that those
sources would account for approximately 15 percent of the
development funding for the housing projects (or $67 million).
Spending for those contribution and payments would amount to
$26 million over the 2017-2020 period and $61 million over the
2017-2026 period.
Operating Subsidies. The supportive housing units would be
reserved for veterans with little or no income, and thus the
managers of that housing would be eligible for operating
subsidies from federally funded sources such as HUD's rental
assistance programs. VA also uses its appropriated funds to
provide a variety of rehabilitative services to veterans living
in supportive housing. Project managers typically get a
guarantee from VA and HUD to provide the operating subsidies
when the EUL is awarded. Projects begin receiving monthly
subsidy payments when construction is completed, usually about
two years after the lease is awarded. Those subsidies from HUD
and VA would increase spending subject to appropriation by a
total of $3 million over the 2017-2021 period and $57 million
over the 2017-2026 period, CBO estimates.
HUD would subsidize the cost of operating the housing units
by providing project-based housing vouchers, which are
administered by the local public housing authority. Those
vouchers would average about $11,000 per unit annually. In
total, housing subsidies would increase discretionary spending
by $2 million over the 2017-2020 period and by $35 million over
the 2017-2026 period.
Additionally, VA would provide case management,
rehabilitation, and other supportive services to residents
through the VA Supportive Housing Program. Those services cost
about $7,000 per veteran annually. CBO estimates that providing
those services to resident veterans at the new housing on the
Los Angeles campus would increase costs by $1 million over the
2017-2020 period and by $22 million over the 2017-2026 period.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3484 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON FEBRUARY 25, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE [ON-BUDGET] DEFICIT
Statutory Pay-As-You-Go Impact.................... 0 0 -5 -9 -12 14 10 9 4 4 3 -12 18
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term direct spending and deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2027.
Intergovernmental and private-sector impact: H.R. 3484
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: David Newman; Impact
on State, Local, and Tribal Governments: Jon Sperl; Impact on
the Private Sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 3484, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
3484, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 3484, as amended, is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that H.R. 3484, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 3484, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 3484, as amended, contains no
directed rulemaking that would require the Secretary to
prescribe regulations.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 of the bill would provide the short title of H.R.
3484, as amended, as the ``Los Angeles Homeless Veterans
Leasing Act of 2016.''
Section 2. Authority to Enter Into Certain Leases at the Department of
Veterans Affairs West Los Angeles Campus
Section 2(a) of the bill would authorize the Secretary of
Veterans Affairs to carry out the leases described in section
2(b) of the bill at the VA West Los Angeles Campus in Los
Angeles, California (the West LA campus).
Section 2(b) of the bill would state that the leases
described in this subsection are as follows: (1) any enhanced
use lease of real property under subchapter V of chapter 81 of
title 38 U.S.C., for purposes of providing supportive housing
as that term is defined in section 8161(3) of title 38 U.S.C.,
that principally benefits veterans and their families; (2) any
lease of real property for a term not to exceed 50 years to a
third party to provide services that principally benefit
veterans and their families and that are limited to: the
promotion of health and wellness including nutrition and
spiritual wellness; education; vocational training, skills
building, or other training related to employment; peer
activities, socialization, or physical recreation; assistance
with legal issues and Federal benefits; volunteerism; family
support services, including child care; transportation; or
services in support of one or more of the purposes specified
above; (3) a lease of real property for a term not to exceed 10
years to The Regents of the University of California, a
corporation organized under the laws of the State of
California, on behalf of its University of California, Los
Angeles (UCLA) campus, (The Regents) if the lease is:
consistent with the master plan described in Section 2(g); the
provision of services to veterans is the predominant focus of
the activities of The Regents at the West LA campus during the
terms of the lease; The Regents expressly agrees to provide--
during the terms of the lease and to an extent and in a manner
that the Secretary considers appropriate--additional services
and supports for which The Regents is either not compensated by
the Secretary or are compensated through an existing medical
affiliation agreement that principally benefits veterans and
their families (including veterans that are severely disabled,
women, aging, or homeless) and may consist of activities
relating to the medical, clinical, therapeutic, dietary,
rehabilitative, legal, mental, spiritual, physical,
recreational, research, and counseling needs of veterans and
their families or any of the purposes specified above; and The
Regents maintains records documenting the value of additional
services and support that The Regents provides pursuant to the
above for the duration of the lease and make such records
available to the Secretary.
Section 2(c) of the bill would prohibit the Secretary of
Veterans Affairs from carrying out any land-sharing agreement
pursuant to section 8153 of title 38, U.S.C., at the West LA
campus unless such agreement provides additional healthcare
resources to the West LA campus and benefits veterans and their
families other than from the generation of revenue for VA.
Section 2(d) of the bill would require that any funds
received by the Secretary of Veterans Affairs under a lease
described in section 2(b) be credited to the applicable VA
medical facilities account and be available, without fiscal
year limitation and without further appropriation, exclusively
for the renovation and maintenance of the land and facilities
at the West LA campus.
Section 2(e) of the bill would authorize the Secretary of
Veterans Affairs, notwithstanding any other provision of law
(other than Federal laws relating to environmental and historic
preservation), to grant easements or rights-of-way on, above,
or under West LA campus lands to any local or regional public
transportation authority to access, construct, use, operate,
maintain, repair, or reconstruct public mass transit
facilities, including fixed guideway facilities and
transportation centers and the State of California, County of
Los Angeles, City of Los Angeles, or any agency or political
subdivision thereof or any public utility company (including
electricity, gas, water, sewage, or telecommunications services
to the public) for the purpose of providing such public
utilities. Section 2(e) of the bill would also require that any
improvements proposed pursuant to an easement or right-of-way
are subject to such terms and conditions as the Secretary
considers appropriate and would require any easement or right-
of-way to be terminated upon the abandonment or non-use of the
easement or right-of-way and all right, title, and interest in
the land covered by the easement or right-of-way shall revert
to the United States.
Section 2(f) of the bill would prohibit the Secretary of
Veterans Affairs from selling or otherwise conveying to a third
party fee simple title to any real property or improvements to
real property made at the West LA campus, notwithstanding
section 8164 of title 38 U.S.C.
Section 2(g) of the bill would require that each lease
carried out under this section be consistent with the draft
master plan approved by the Secretary of Veterans Affairs on
January 28, 2016, or its successor master plans.
Section 2(h) of the bill would, if the VA Inspector General
determines as part of an audit report or evaluation that VA is
not in compliance with all Federal laws relating to leases and
land use at the West LA campus, prohibit the Secretary of
Veterans Affairs from entering into any lease or land-sharing
agreement at the West LA campus or renewing any such lease or
land-sharing agreement that is not in compliance with such laws
until the Secretary certifies to the Committees on Veterans'
Affairs of the Senate and the House of Representatives, and
each Member of the Senate and the House of Representatives who
represents the area in which the West LA campus is located,
that all recommendations included in the audit report or
evaluation have been implemented. Section 2(h) of the bill
would also prohibit the Secretary from entering into or
renewing any lease unless the lease complies with chapter 33 of
title 41, U.S.C., and all Federal laws relating to
environmental and historic preservation, except as otherwise
expressly provided in this section.
Section 2(i) of the bill would require the Secretary of
Veterans Affairs, no later than 180 days after the date of
enactment of this Act, to establish a Veterans and Community
Oversight and Engagement Board (the Board) to coordinate
locally with VA to identify the goals of the community and
veteran partnership, provide advice and recommendations to the
Secretary to improve services and outcomes for veterans,
members of the Armed Forces, and the families of such veterans
and members, and to provide advice and recommendations on the
implementation of the draft master plan and on the creation and
implementation of any successor master plans. Section 2(i) of
the bill would also require that the Board be comprised of a
number of members that the Secretary determines appropriate, of
which no less than 50 percent would be required to be veterans
and of which nonveteran members would be required to be family
members of veterans, veteran advocates, service providers, real
estate professionals familiar with housing development
projects, or other stakeholders. Section 2(i) of the bill would
further require the Board to provide the community
opportunities to collaborate and communicate with the Board,
including by conducting public forums on the West LA campus and
focusing on local VA issues that are identified by the
community including with respect to health care, benefits, and
memorial services at the West LA campus and implementation of
the draft master plan and any subsequent plans.
Section 2(j) of the bill would require the Secretary of
Veterans Affairs to notify the Committees on Veterans' Affairs
of the Senate and the House of Representatives and each Member
of the Senate and the House of Representatives who represent
the area in which the West LA campus is located of the intent
of the Secretary to enter into or renew the lease or land-
sharing agreement not later than 45 days before entering into
or renewing the lease or land sharing agreement. Section 2(j)
of the bill would also require, not later than one year after
the date of enactment of this Act, the Secretary to submit to
the Committees on Veterans' Affairs of the Senate and the House
of Representatives and each Member of the Senate and the House
of Representatives who represent the area in which the West LA
campus is located an annual report evaluating all leases and
land-sharing agreements carried out on the West LA campus
including an evaluation of the management of the revenue
generated by the leases and the records described in section
2(b). Section 2(j) would also require the VA Inspector General
to submit, not later than two and five years after the date of
enactment of this Act and as determined necessary by the VA
Inspector General, to submit to the Committees on Veterans'
Affairs of the Senate and the House of Representatives and each
Member of the Senate and the House of Representatives who
represent the area in which the West LA campus is located a
report on all leases carried out at the West LA campus and VA's
management of the use of the land at the West LA campus ,
including an assessment of VA's efforts to implement the master
plan described in section 2(g) with respect to the West LA
campus. Section 2(j) of the bill would further require that the
VA Inspector General take into account the most recent report
submitted to Congress by the Secretary.
Section 2(k) of the bill would require that nothing in
Section 2 be construed as a limitation on the authority of the
Secretary of Veterans Affairs to enter into other agreements
regarding the West LA campus that are authorized by law and not
inconsistent with section 2.
Section 2(l) of the bill would define the term
``principally benefit veterans and their families'' in section
2 with respect to services provided by a person or entity under
a lease of property or land-sharing agreement as services
provided exclusively to veterans and their families or services
that are designed for the particular needs of veterans and
their families as opposed to the general public and where any
benefit of those services to the general public is ancillary to
the intended benefit to veterans and their families. Section
2(l) of the bill would exclude services in which the only
benefit to veterans and their families is the generation of
revenue for VA from the definition of ``principally benefit
veterans and their families'' in section 2.
Section 2(m) of the bill would amend section 224(a) of the
Military Construction and Veterans Affairs and Related Agencies
Appropriations Act, 2008 (P.L. 110-161; 121 Stat. 2272) by
striking ``The Secretary of Veterans Affairs'' and inserting
``Except as authorized under the Los Angeles Homeless Veterans
Leasing Act of 2016, the Secretary of Veterans Affairs''.
Section 2(m) of the bill would also amend section 8162(c) of
title 38, U.S.C., by inserting ``, other than an enhanced-use
lease under the Los Angles Homeless Veterans Leasing Act of
2016,'' before ``shall be considered''.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
SECTION 224 OF THE MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND
RELATED AGENCIES APPROPRIATIONS ACT, 2008
Sec. 224. PROHIBITION ON DISPOSAL OF DEPARTMENT OF VETERANS
AFFAIRS LANDS AND IMPROVEMENTS AT WEST LOS ANGELES MEDICAL
CENTER, CALIFORNIA. (a) In General.--[The Secretary of Veterans
Affairs] Except as authorized under the Los Angeles Homeless
Veterans Leasing Act of 2016, the Secretary of Veterans Affairs
may not declare as excess to the needs of the Department of
Veterans Affairs, or otherwise take any action to exchange,
trade, auction, transfer, or otherwise dispose of, or reduce
the acreage of, Federal land and improvements at the Department
of Veterans Affairs West Los Angeles Medical Center,
California, encompassing approximately 388 acres on the north
and south sides of Wilshire Boulevard and west of the 405
Freeway.
(b) Special Provision Regarding Lease With Representative of
the Homeless.--Notwithstanding any provision of this Act,
section 7 of the Homeless Veterans Comprehensive Services Act
of 1992 (Public Law 102-590) shall remain in effect.
(c) Conforming Amendment.--Section 8162(c)(1) of title 38,
United States Code, is amended--
(1) by inserting ``or section 224(a) of the Military
Construction and Veterans Affairs and Related Agencies
Appropriations Act, 2008'' after ``section 421(b)(2) of
the Veterans' Benefits and Services Act of 1988 (Public
Law 100-322; 102 Stat. 553)''; and
(2) by striking ``that section'' and inserting ``such
sections''.
(d) Effective Date.--This section, including the amendment
made by this section, shall apply with respect to fiscal year
2008 and each fiscal year thereafter.
----------
TITLE 38, UNITED STATES CODE
* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
* * * * * * *
CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY
* * * * * * *
SUBCHAPTER V--ENHANCED-USE LEASES OF REAL PROPERTY
* * * * * * *
Sec. 8162. Enhanced-use leases
(a)(1) The Secretary may in accordance with this subchapter
enter into leases with respect to real property that is under
the jurisdiction or control of the Secretary. Any such lease
under this subchapter may be referred to as an ``enhanced-use
lease''. The Secretary may dispose of any such property that is
leased to another party under this subchapter in accordance
with section 8164 of this title. The Secretary may exercise the
authority provided by this subchapter notwithstanding section
8122 of this title, subchapter II of chapter 5 of title 40,
sections 541-555 and 1302 of title 40, or any other provision
of law (other than Federal laws relating to environmental and
historic preservation) inconsistent with this section. The
applicability of this subchapter to section 421(b) of the
Veterans' Benefits and Services Act of 1988 (Public Law 100-
322; 102 Stat. 553) is covered by subsection (c).
(2) The Secretary may enter into an enhanced-use lease only
for the provision of supportive housing and if the lease is not
inconsistent with and will not adversely affect the mission of
the Department.
(3) The provisions of sections 3141-3144, 3146, and 3147 of
title 40 shall not, by reason of this section, become
inapplicable to property that is leased to another party under
an enhanced-use lease.
(4) A property that is leased to another party under an
enhanced-use lease may not be considered to be unutilized or
underutilized for purposes of section 501 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11411).
(b)(1) If the Secretary has determined that a property should
be leased to another party through an enhanced-use lease, the
Secretary shall, at the Secretary's discretion, select the
party with whom the lease will be entered into using such
selection procedures as the Secretary considers appropriate.
(2) The term of an enhanced-use lease may not exceed 75
years.
(3)(A) For any enhanced-use lease entered into by the
Secretary, the lease consideration provided to the Secretary
shall consist solely of cash at fair value as determined by the
Secretary.
(B) The Secretary shall receive no other type of
consideration for an enhanced-use lease besides cash.
(C) The Secretary may enter into an enhanced-use lease
without receiving consideration.
(4) The terms of an enhanced-use lease may provide for the
Secretary to use minor construction funds for capital
contribution payments.
(5) The terms of an enhanced-use lease may not provide for
any acquisition, contract, demonstration, exchange, grant,
incentive, procurement, sale, other transaction authority,
service agreement, use agreement, lease, or lease-back by the
Secretary or Federal Government.
(6) The Secretary may not enter into an enhanced-use lease
without certification in advance in writing by the Director of
the Office of Management and Budget that such lease complies
with the requirements of this subchapter.
(c) The entering into an enhanced-use lease covering any land
or improvement described in section 421(b)(2) of the Veterans'
Benefits and Services Act of 1988 (Public Law 100-322; 102
Stat. 553) or section 224(a) of the Military Construction and
Veterans Affairs and Related Agencies Appropriations Act, 2008,
other than an enhanced-use lease under the Los Angeles Homeless
Veterans Leasing Act of 2016, shall be considered to be
prohibited by such sections unless specifically authorized by
law.
* * * * * * *
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