Enhanced-Use Leases (EUL)

VA’s EUL program was authorized by law in 1991 and codified in 38 U.S.C. § 8161-8169, allowing VA to enter into long-term outleases of real property to private and non-Federal public entities. Pursuant to the 1991 authority, in return for allowing underutilized VA property to be used for non-VA uses compatible with or to the benefit the Department's mission, VA could accept rent in the form of monetary payments and/or "in-kind" consideration, which in the opinion of the Secretary enhanced a particular VA activity's mission.

After VA’s EUL authority expired in December 2011, it was reinstated in August 2012 in modified form via P.L. 112-154, Section 211, and extended through December 31, 2023. 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. Lastly, the PACT Act provides VA with $922 million to enter into EULs (see below for the current proposed allocation).

The West Los Angeles Leasing Act of 2016 (P.L. 114-244, 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 Campus for terms up to 99 years to provide supportive housing benefiting Veterans and their families. Pursuant to 38 U.S.C. § 8168, VA must report annually on EULs to the Congressional Veterans’ Affairs Committees, the Committees on Appropriations and the Committees on the Budget.

From 1991 to September 30, 2022, VA awarded 106 leases to develop a portfolio that features both housing (permanent and traditional supportive housing, assisted living, senior housing and hospice) and non-housing (credit union, mental health facility, parking, energy plants, hotel, medical school, office and child-care) projects. See Appendix D for a summary of these leases. The 106 awarded leases are comprised of:

  • 55 Housing EULs

  • 27 Non-Housing EULs

  • 3 Disposed EULs

  • 14 Expired EULs

  • 7 Terminated EULs

Additional key points related to the housing projects include:

  • In operation: 50 housing projects; totaling 3,400 units and housing approximately 2,800 Veterans

  • Under construction or awaiting construction start: 6 projects (including one additional phase of an already operational project) totaling 283 units.

    In 2022, VA also entered into the West Los Angeles Principal Developer (PD) EUL with the previously competitively selected PD. This EUL is a significant milestone, almost five years in the making. It reflects VA’s deep commitment to ending Veteran homelessness. Under this EUL, upon the PD’s achievement of specific milestones, VA will release certain assets on the West Los Angeles Campus to the PD for the development of at least 900 supportive housing units in multiple phases over the next 11-plus years. Unit counts and EULs will be included in VA’s program statistics upon execution of individual subleases.

    Under the current EUL authority and as part of the Department’s ongoing effort to eliminate Veteran homelessness, VA has identified and is pursuing additional sites nationwide with high potential for repurposing as developments that provide direct and indirect benefits to Veterans, including supportive housing for Veterans and their families who are homeless or at risk of homelessness. VA continues to propose amendments to expand the scope of its EUL authority to include projects that are supportive housing and projects that provide services and/or mixed uses, incorporating other important benefits to Veterans.

    Funding provided in Honoring our PACT Act of 2022:

    The PACT Act (P.L. 117-168) signed on August 10, 2022, provided $922 million for the implementation of EULs. The current anticipated funding allocation is approximately:

    • $18.0 million for staffing support (General Administration);

    • $570.5 million for capital contributions (Minor Construction);

    • $58.3 million for contractor support (Major Construction); and

    • $275.2 million for infrastructure improvements, facility engineering, etc. (Medical Facilities).\\