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Enhanced-Use Lease (EUL)

 

Brief History of the VA EUL Statutory Authority

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VA’s EUL authority, which allows VA to out-lease real property to non-Federal public entities and private parties, was enacted in August 1991 and codified in 38 U.S.C. § 8161-8169. VA’s EUL authority expired on December 31, 2011, but was reauthorized on August 6, 2012, by P.L. 112-154. The West Los Angeles Leasing Act of 2016 (P.L. 114-226, enacted on September 29, 2016) and the West Los Angeles VA Campus Improvement Act of 2021 (P.L. 117-18, enacted on June 23, 2021) further amended VA’s EUL authority, allowing VA to enter into EULs at its West Los Angeles, CA Campus for terms of up to 99 years, to provide supportive housing benefiting Veterans and their families.

Most recently, VA’s EUL authority was amended by P.L. 117-168, the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022 (”PACT Act“), which became law on August 10, 2022. The PACT Act broadened VA’s existing EUL authority in several ways: VA is now permitted to enter into EULs that provide supportive housing or enhance the use of the leased property by directly or indirectly benefitting Veterans; VA EULs are now permitted to be up to 99 years in duration; and there is no longer an expiration date on VA’s EUL authority. The PACT Act also provides VA with $922M to enter into EULs.

References