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Enhanced-Use Lease (EUL)

About the EUL Process

Overview

To improve Veteran access to a continuum of services, VA proposes to use its EUL authority to encourage private sector development on VA property.  VA has identified underutilized land and buildings that can be leased to a selected developer(s) on a long-term basis for up to 75 years.  The primary mission of VA is to improve the health care of Veterans by providing primary care, specialty care, extended care, and related social support services in an integrated health care delivery system. The goal of the EUL concept is to leverage these underutilized assets to support VA’s mission.

What is the EUL Program?

EUL program refers to legislative authority (38 U.S.C. Section 8161 — 8169) that allows VA to lease underutilized land and improvements to a selected developer for a term of up to 75 years.  In exchange for the EUL, the developer would be required to provide VA with “fair consideration” (i.e., cash and/or “in-kind” consideration) as determined by the Secretary.  Under the terms of the EUL, the developer would assume all business, legal, and financial risks related to developing and operating the proposed EUL site, and would be required to comply with applicable Federal, State, and local requirements.  The leased land and all related improvements would revert back to VA at the end of the EUL.

Selection Process

A development team is selected based on the overall value of the proposal to VA based on a number of criteria, including but not limited to the items listed below.  Please refer to the individual Request for Proposal (RFP) to determine the specific selection criteria for any given project.

  • VA’s stated goals for the project
  • Benefits to Veterans
  • Developer’s Financial and Organizational Capabilities
  • Qualifications and Experience
  • Proposed Development Plan
  • Technical merit
  • Financing strategy and proposed consideration

EUL Process

The EUL Process entails the following steps to take a transaction from solicitation to execution:

  • Request for Proposal Release
  • Industry Forum
  • Proposals Due
  • Selection
  • Business and Lease Plan
  • Lease Execution