Enhanced-Use Lease Consideration Report - Office of Asset Enterprise Management
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Office of Asset Enterprise Management


Enhanced-Use Lease Consideration Report

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The Department of Veterans Affairs (VA) publishes its enhanced-use lease (EUL) consideration report annually.  The report describes VA’s stewardship of its underutilized real property assets, detailing the motivation and terms of each lease.  The consideration report is a living document that provides a transparent view of the measurable outcomes of VA asset utilization through the EUL program.  The report serves as a blueprint for effectively managing EULs to ensure a safe and appropriate environment for the delivery of cost-effective benefits to Veterans.  The report also incorporates some soft, more difficult to quantify benefits — such as improved health-care outcomes and quality of life, customer service and satisfaction for Veterans, socioeconomic stimulus and benefits to local communities, and improved community relations.

Under the EUL authority (sections 8161–8169 of title 38 U.S.C.), VA may lease land and/or buildings to the public or private sector for up to 75 years.  The leased property may be developed for non-VA and/or VA uses that are compatible with the mission of the Department.  In return for the lease, the Department obtains fair value consideration in the form of revenue, facilities, space, and services.  VA continuously explores ways to expand the use of this capital asset management tool, and ways to streamline the process.

EUL projects are divided into three major categories according to the type of benefits provided:

  • Direct service to Veterans.  EULs under this category provide Veterans with services that are not available at VA medical centers.  Examples include housing, hospice and crisis triage facilities.  This type of project provides increased access to health care, improved satisfaction and quality of life for Veterans and their families, improved relations with the community, and other socioeconomic benefits.
  • Improved VA operations.  EULS under this category contribute to improved use of VA’s resources to enhance services to Veterans.  Examples include regional office collocations, parking, consolidation of services, energy generation, visitor centers, and public safety buildings. Benefits include improved services, access, positive impact in the community, and increased Veteran satisfaction.
  • Community benefits.  EULs under this category provide services to the general community.  Examples include golf courses, affiliate partnering, credit unions and asset management facilities.  The main impact of these leases is through revenue generation, cost avoidance, community improvement and employee/Veteran satisfaction.

In this report, we attempt to quantify the consideration VA realizes from its EULs in terms of cash (revenue) and in-kind consideration (cost avoidance, cost savings, and enhanced services) to Veterans or VA employees, net of any new VA expense generated by the lease (excluding overall lease administration costs).