The Investment Enterprise and Development Service (IEDS) is responsible for administering the concept (formulation) through construction (execution) phases of VA’s Enhanced-Use Lease (EUL) program - an exciting and unique tool in VA’s capital asset management portfolio. Through this program, VA out-leases underutilized real estate under its jurisdiction or control to the private sector for up to 75 years. In return, EULs provide Veterans with an expanded range of services that would not otherwise be available on medical center campuses.
First authorized in 1991 in 38 U.S.C. Sections 8161 et seq., “Enhanced-Use Leases of Real Property,” the program authority ended with a sunset provision on December 31, 2011. The following year, on August 6, 2012, a modified version of the former authority was enacted.
Currently, the statute authorizes the Secretary of Veterans Affairs to enter into an EUL for a term of up to 75 years for the purpose of providing supportive housing. In return for allowing Department-controlled land to be leased, VA may receive rent in the form of fair value cash payments as consideration. The Secretary may also choose to forego monetary consideration, if - in the opinion of the Secretary - the total consideration for the lease constitutes fair consideration. Program results may include significant cost savings compared to construction and leasing; substantial private investment in the Department’s capital facilities and infrastructure; new long-term sources of revenue; and the creation of local jobs and tax revenues.
Eliminating Veteran homelessness is one of VA’s top priorities. Through EUL partnerships and housing projects, the Department’s underutilized real estate is being reused as part of the solution. Read more…