Enhanced Use Lease (EUL) Program Frequently Asked Questions (FAQs)
The EUL authority is codified in §§ 8161 — 8169 of the title, 38 U.S.C. This authority allows VA to lease underutilized land or buildings to the public and/or private sector for a period up to 75 years. The leased property may be developed for non-VA uses that are consistent with the mission of the Department. In exchange for the leased property, VA obtains fair value in the form of revenue, facilities, space, services, or other considerations.
Yes, we expect the EUL authority to be extended. This authority has been in existence since 1991; and extended twice in the past. To date, we have awarded 60 EUL projects across the country, 18 of which have produced housing for Veterans.
It is VA’s goal to execute leases before the end of December.
Lists of both EUL Priority Projects and EUL active awarded projects are located on the VA’s Asset Management website and are included in the construction volume of the Department’s annual budget submission.
The Offeror is subject to all applicable state and local taxes, fees, assessments, and special assessments associated with the EUL site and improvements, in accordance with the EUL statute (i.e., 38 U.S.C. § 8167). The Offeror is expected to negotiate these payments or other arrangements with appropriate authorities. However, neither VA’s interest in the EUL nor the United States’ fee interest in the underlying property shall be subject, directly or indirectly, to any state or local laws relative to taxation, fees, assessments or special assessments.
VA is limited to a 75-year lease based on statutory authority. VA does not have authority to enter into an EUL longer than 75 years.
The Offeror is responsible for conducting its own due diligence regarding the site, including whether development of the site, as contemplated by the proposal, can be accomplished in compliance with applicable federal, state, and local requirements (including zoning and other local land use restrictions); and whether the necessary permits, variances, special exceptions and other governmental actions or approvals required for the contemplated development reasonably can be obtained (at no cost or expense to VA).
No. VA is responsible for remediation of environmental issues that predate the EUL. However through negotiation VA may have the developer do any and/or all pre-EUL removal of asbestos and other environmental remediation on behalf of VA.
For additional VA guidance regarding historic preservation, please visit VA’s Office of Construction and Facilities Management Historic Preservation webpage.
The underlying land will remain the property of the U.S. government or VA, but the improvements become the property of the developer. At the end of the 75-year lease, that property or improvement must be returned to the U.S. government or VA.
We have not yet reached the end of a 75-year lease so that is still unclear. We think that there may be some way of renewing or renegotiating the lease after the 75-year term.