Title 38 — Veterans’ Benefits
Part VI · Chapter 81 — Acquisition and Operation of Hospital and Domiciliary Facilities; Procurement and Supply; Enhanced-Use Leases of Real Property
§ 8162. Enhanced-use leases
Statutory text
The Secretary may in accordance with this subchapter enter into leases with respect to real property that is under the jurisdiction or control of the Secretary. Any such lease under this subchapter may be referred to as an “enhanced-use lease”. The Secretary may dispose of any such property that is leased to another party under this subchapter in accordance with section 8164 of this title. The Secretary may exercise the authority provided by this subchapter notwithstanding section 8122 of this title, subchapter II of chapter 5 of title 40, sections 541–555 and 1302 of title 40, or any other provision of law (other than Federal laws relating to environmental and historic preservation) inconsistent with this section. The applicability of this subchapter to section 421(b) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) is covered by subsection (c).
The Secretary may enter into an enhanced-use lease on or after the date of the enactment of this paragraph only if the Secretary determines—
that the lease will not be inconsistent with, and will not adversely affect—
the mission of the Department; or
the operation of facilities, programs, and services of the Department in the area of the leased property; and
that—
the lease will enhance the use of the leased property by directly or indirectly benefitting veterans; or
the leased property will provide supportive housing.
The Secretary shall give priority to enhanced-use leases that, on the leased property—
provide supportive housing for veterans;
provide direct services or benefits targeted to veterans; or
provide services or benefits that indirectly support veterans.
The provisions of sections 3141–3144, 3146, and 3147 of title 40 shall not, by reason of this section, become inapplicable to property that is leased to another party under an enhanced-use lease.
A property that is leased to another party under an enhanced-use lease may not be considered to be unutilized or underutilized for purposes of section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411).
If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall, at the Secretary’s discretion, select the party with whom the lease will be entered into using such selection procedures as the Secretary considers appropriate.
The term of an enhanced-use lease may not exceed 99 years.
For any enhanced-use lease entered into by the Secretary, the lease consideration provided to the Secretary shall consist solely of cash at fair value as determined by the Secretary.
The Secretary shall receive no other type of consideration for an enhanced-use lease besides cash.
The Secretary may enter into an enhanced-use lease without receiving consideration.
The Secretary may not waive or postpone the obligation of a lessee to pay any consideration under an enhanced-use lease, including monthly rent.
The terms of an enhanced-use lease may provide for the Secretary to use minor construction funds for capital contribution payments.
The terms of an enhanced-use lease may not provide for any acquisition, contract, demonstration, exchange, grant, incentive, procurement, sale, other transaction authority, service agreement, use agreement, lease, or lease-back by the Secretary or Federal Government.
The Office of Management and Budget shall review each enhanced-use lease before the lease goes into effect to determine whether the lease is in compliance with paragraph (5).
The entering into an enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016, shall be considered to be prohibited by such sections unless specifically authorized by law.
Nothing in this subchapter authorizes the Secretary to enter into an enhanced-use lease that provides for, is contingent upon, or otherwise authorizes the Federal Government to guarantee a loan made by a third party to a lessee for purposes of the enhanced-use lease.
Nothing in this subchapter shall be construed to abrogate or constitute a waiver of the sovereign immunity of the United States with respect to any loan, financing, or other financial agreement entered into by the lessee and a third party relating to an enhanced-use lease.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 102–86 title IV § 401(a) · 105 Stat. 414
Enacted · 38 U.S.C. § 8162
Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 417
Source evidence
Code source credit
Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 417Enacted provision · exact public law section
(a) Amendment to Chapter 81.— Chapter 81 is amended by adding at the end the following new subchapter: “SUBCHAPTER V— ENHANCED-USE LEASES OF REAL PROPERTY “§ 8161. Definitions “For the purposes of this subchapter: “(1) The term ‘enhanced-use lease’ means a written lease entered into by the Secretary under this subchapter. “(2) The term ‘congressional veterans’ affairs committees’ means the Committees on Veterans’ Affairs of the Senate and the House of Representatives. “§ 8162. Enhanced-use leases “(a) (1) The Secretary may in accordance with this subchapter enter into leases with respect to real property that is under the jurisdiction or control of the Secretary. Any such lease under this subchapter may be referred to as an ‘enhanced-use lease’. The Secretary may dispose of any such property that is leased to another party under this subchapter in accordance with section 8164 of this title. The Secretary may exercise the authority provided by this subchapter notwithstanding section 8122 of this title, section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484), or any other provision of law (other than Federal laws relating to environmental and historic preservation) inconsistent with this section. The applicability of this subchapter to section 421(b) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) is covered by subsection (c). “(2) The Secretary may enter into an enhanced-use lease only if the Secretary determines that— “(A) at least part of the use of the property under the lease will be to provide appropriate space for an activity contributing to the mission of the Department; “(B) the lease will not be inconsistent with and will not adversely affect the mission of the Department; and “(C) the lease will enhance the use of the property. “(3) The provisions of the Act of March 3, 1931 (40 U.S.C. 276a et seq.), shall not, by reason of this section, become inapplicable to property that is leased to another party under an enhanced-use lease. “(4) A property that is leased to another party under an enhanced-use lease may not be considered to be unutilized or underutilized for purposes of section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411). “(b) (1) If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall select the party with whom the lease will be entered into using selection procedures determined by the Secretary that ensure the integrity of the selection process. “(2) The term of an enhanced-use lease may not exceed— “(A) 35 years, in the case of a lease involving the construction of a new building or the substantial rehabilitation of an existing building, as determined by the Secretary; or “(B) 20 years, in the case of a lease not described in subparagraph (A). “(3) (A) Each enhanced-use lease shall be for fair consideration, as determined by the Secretary. Consideration under such a lease may be provided in whole or in part through consideration in-kind. “(B) Consideration in-kind may include provision of goods or services of benefit to the Department, including construction, repair, remodeling, or other physical improvements of Department facilities, maintenance of Department facilities, or the provision of office, storage, or other usable space. “(4) Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act. “(c) (1) Subject to paragraph (2), the entering into an enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) shall be considered to be prohibited by that section unless specifically authorized by law. “(2) The entering into an enhanced-use lease by the Secretary covering any land or improvement described in such section 421(b)(2) shall not be considered to be prohibited under that section if under the lease— “(A) the designated property is to be used only for child-care services; “(B) those services are to be provided only for the benefit of— “(i) employees of the Department; “(ii) individuals employed on the premises of such property; and (iii) employees of a health-personnel educational institution that is affiliated with a Department facility; “(C) over one-half of the employees benefited by the child-care services provided are required to be employees of the Department; and “(D) over one-half of the children to whom child-care services are provided are required to be children of employees of the Department. “§ 8163. Designation of property to be leased “(a) If the Secretary proposes to designate a property to be leased under an enhanced-use lease, the Secretary shall conduct a public hearing before making the designation. The hearing shall be conducted in the community in which the property is located. At the hearing, the Secretary shall receive the views of veterans service organizations and other interested parties regarding the proposed lease of the property and the possible effects of the uses to be made of the property under a lease of the general character then contemplated. The possible effects to be addressed at the hearing shall include effects on— “(1) local commerce and other aspects of the local community; “(2) programs administered by the Department; and “(3) services to veterans in the community. “(b) Before conducting such a hearing, the Secretary shall provide reasonable notice of the proposed designation and of the hearing. The notice shall include— “(1) the time and place of the hearing; “(2) identification of the property proposed to be leased; “(3) a description of the proposed uses of the property under the lease; “(4) a description of how the uses to be made of the property under a lease of the general character then contemplated— “(A) would contribute in a cost-effective manner to the mission of the Department; “(B) would not be inconsistent with the mission of the Department; and “(C) would not adversely affect the mission of the Department; and “(5) a description of how those uses would affect services to veterans. “(c) (1) If after a hearing under subsection (a) the Secretary intends Federal Register publication. to designate the property involved, the Secretary shall notify the veterans’ affairs committees of the Secretary s intention to so designate the property and shall publish a notice of such intention in the Federal Register. “(2) The Secretary may not enter into an enhanced-use lease until the end of a 60-day period of continuous session of Congress following the date of the submission of notice under paragraph (1). For purposes of the preceding sentence, continuity of a session of Congress is broken only by an adjournment sine die, and there shall be excluded from the computation of such 60-day period any day during which either House of Congress is not in session during an adjournment of more than three days to a day certain. “(3) Each notice under paragraph (1) shall include the following: “(A) An identification of the property involved. “(B) An explanation of the background of, rationale for, and economic factors in support of, the proposed lease. “(C) A summary of the views expressed by interested parties at the public hearing conducted in connection with the proposed designation, together with a summary of the Secretary’s evaluation of those views. “(D) A general description of the proposed lease. “(E) A description of how the proposed lease— “(i) would contribute in a cost-effective manner to the mission of the Department; “(ii) would not be inconsistent with the mission of the Department; and “(iii) would not adversely affect the mission of the Department. “(F) A description of how the proposed lease would affect services to veterans. “(4) Not less than 30 days before entering into an enhanced-use Reports. lease, the Secretary shall submit to the congressional veterans’ affairs committees a report on the proposed lease. The report shall include— “(A) updated information with respect to the matters described in paragraph (3); “(B) a summary of a cost-benefit analysis of the proposed lease; “(C) a description of the provisions of the proposed lease; and “(D) a notice of designation with respect to the property. “§ 8164. Authority for disposition of leased property “(a) If, during the term of an enhanced-use lease or within 30 days after the end of the term of the lease, the Secretary determines that the leased property is no longer needed by the Department, the Secretary may initiate action for the transfer to the lessee of all right, title, and interest of the United States in the property by requesting the Administrator of General Services to dispose of the property pursuant to subsection (b). A disposition of property may not be made under this section unless the Secretary determines that the disposition under this section rather than under section 8122 of this title is in the best interests of the Department. The Administrator, upon request of the Secretary, shall take appropriate action under this section to dispose of property of the Department that is or has been subject to an enhanced-use lease. “(b) A disposition under this section may be made for such consideration as the Secretary and the Administrator of General Services jointly determine is in the best interest of the United States and upon such other terms and conditions as the Secretary and the Administrator consider appropriate. “(c) Not less than 90 days before a disposition of property is made Federal Register publication. under this section, the Secretary shall notify the congressional veterans’ affairs committees of the Secretary’s intent to dispose of the property and shall publish notice of the proposed disposition in the Federal Register, The notice shall describe the background of, rationale for, and economic factors in support of, the proposed disposition (including a cost-benefit analysis summary) and the method, terms, and conditions of the proposed disposition. “§ 8165. Use of proceeds “(a) (1) Of the funds received by the Department under an enhanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund established under section 8116 of this title and 25 percent shall be credited to the Medical Care Account of the Department for the use of the Department facility at which the property is located. “(2) Funds received by the Department from a disposal of leased property under section 8164 of this title and remaining after any deduction from such funds under the laws referred to in subsection (c) shall be deposited in the nursing home revolving fund. “(b) An amount sufficient to pay for any expenses incurred by the Secretary in any fiscal year in connection with an enhanced-use lease shall be deducted from the proceeds of the lease for that fiscal year and may be used by the Secretary to reimburse the account from which the funds were used to pay such expenses. “(c) Subsection (a) does not affect the applicability of section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485) or the Act of June 8, 1896 (40 U.S.C. 485a), with respect to reimbursement of the Administrator of General Services for expenses arising from any disposal of property under section 8164 of this title. “§ 8166. Construction standards “(a) Unless the Secretary provides otherwise, the construction, alteration, repair, remodeling, or improvement of the property that is the subject of the lease shall be carried out so as to comply with all standards applicable to construction of Federal buildings. Any such construction, alteration, repair, remodeling, or improvement shall not be subject to any State or local law relating to building codes, permits, or inspections unless the Secretary provides otherwise. “(b) Unless the Secretary has provided that Federal construction standards are not applicable to a property, the Secretary shall conduct periodic inspections of any such construction, alteration, repair, remodeling, or improvement for the purpose of ensuring that the standards are met. “§ 8167. Exemption from State and local taxes “The interest of the United States in any property subject to an enhanced-use lease and any use by the United States of such property during such lease shall not be subject, directly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any construction, alteration, repair, remodeling, or improvement project carried out under the lease. “§ 8168. Limitation on number of agreements “(a) Not more than 20 enhanced-use leases may be entered into under this subchapter, and not more than 10 such leases may be entered into during any fiscal year. “(b) An enhanced-use lease under which the primary use made of the leased premises is the provision of child-care services for employ-ees of the Department shall not be counted for the purposes of subsection (a). “§ 8169. Expiration “The authority of the Secretary to enter into enhanced-use leases under this subchapter expires on December 31, 1994.”.Veterans Millennium Health Care and Benefits Act
Pub. L. 106–117 § 208(a) · 113 Stat. 1545
Inserted · 38 U.S.C. § 8162(a)(2)
Pub. L. 106–117, § 208(a), inserted subpar. (A) designation before “the Secretary”
Redesignated · 38 U.S.C. § 8162(a)(2)
Pub. L. 106–117, § 208(a), redesignated subpars. (A) to (C) as cls. (i) to (iii), respectively, and realigned the margins
Substituted · 38 U.S.C. § 8162(a)(2)
Pub. L. 106–117, § 208(a), substituted “; or” for period at end of cl. (iii)
Added · 38 U.S.C. § 8162(a)(2)
Pub. L. 106–117, § 208(a), added subpar. (B)
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 106–117, § 208(a), inserted subpar. (A) designation before “the Secretary”, redesignated subpars. (A) to (C) as cls. (i) to (iii), respectively, and realigned the margins, substituted “; or” for period at end of cl. (iii), and added subpar. (B).Enacted provision · exact public law section
(a) Authority.— Section 8162(a)(2) is amended— (1) by striking “only if the Secretary” and inserting “only if— “(A) the Secretary”; (2) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and realigning those clauses so as to be four ems from the left margin; (3) by striking the period at the end of clause (iii), as so redesignated, and inserting ““; or”; and (4) by adding at the end the following: “(B) the Secretary determines that the implementation of a business plan proposed by the Under Secretary for Health for applying the consideration under such a lease to the provision of medical care and services would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.”.Veterans Millennium Health Care and Benefits Act
Pub. L. 106–117 § 208(b)(1) · 113 Stat. 1545
Substituted · 38 U.S.C. § 8162(b)(2)
Pub. L. 106–117, § 208(b)(1), substituted “may not exceed 75 years.” for “may not exceed—”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 106–117, § 208(b)(1), substituted “may not exceed 75 years.” for “may not exceed—”“(A) 35 years, in the case of a lease involving the construction of a new building or the substantial rehabilitation of an existing building, as determined by the Secretary; or “(B) 20 years, in the case of a lease not described in subparagraph (A).”
Enacted provision · exact public law section
(1) in paragraph (2), by striking “may not exceed—” and all that follows and inserting “may not exceed 75 years.”; andVeterans Millennium Health Care and Benefits Act
Pub. L. 106–117 § 208(b)(2) · 113 Stat. 1545
Added · 38 U.S.C. § 8162(b)(4)
Pub. L. 106–117, § 208(b)(2), added par. (4)
Struck · 38 U.S.C. § 8162(b)(4)
Pub. L. 106–117, § 208(b)(2), struck out former par. (4) which read as follows: “Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act.”
Source evidence
Code amendment note
Subsec. (b)(4). Pub. L. 106–117, § 208(b)(2), added par. (4) and struck out former par. (4) which read as follows: “Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act.”Enacted provision · exact public law section
(2) by striking paragraph (4) and inserting the following: “(4) The terms of an enhanced-use lease may provide for the Secretary to— “(A) obtain facilities, space, or services on the leased property; and “(B) use minor construction funds for capital contribution payments.”.Pub. L. 106–400 § 2 · 114 Stat. 1675
Substituted · 38 U.S.C. § 8162(a)(4)
Pub. L. 106–400 substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 106–400 substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”.Enacted provision · exact public law section
SEC. 2. REFERENCES. Any reference in any law, regulation, document, paper, or other record of the United States to the Stewart B. McKinney Homeless Assistance Act shall be deemed to be a reference to the “McKinney-Vento Homeless Assistance Act”.Pub. L. 107–95 § 10(b) · 115 Stat. 903
Amended · 38 U.S.C. § 8162(b)(1)
Pub. L. 107–95 designated existing provisions as subpar. (A)
Added · 38 U.S.C. § 8162(b)(1)
Pub. L. 107–95 added subpar. (B)
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 107–95 designated existing provisions as subpar. (A) and added subpar. (B).Enacted provision · exact public law section
(b) Waiver of Competitive Selection Process for Enhanced-Use Leases for Properties Used to Serve Homeless Veterans.— Section 8162(b)(1) is amended— (1) by inserting “(A)” after “(b)(1)” and (2) by adding at the end the following: “(B) In the case of a property that the Secretary determines is appropriate for use as a facility to furnish services to homeless veterans under chapter 20 of this title, the Secretary may enter into an enhanced-use lease with a provider of homeless services without regard to the selection procedures required under subparagraph (A).”.Pub. L. 107–217 § 3(j)(5)(A) · 116 Stat. 1062
Substituted · 38 U.S.C. § 8162(a)(1)
Pub. L. 107–217, § 3(j)(5)(A), substituted “subchapter II of chapter 5 of title 40, sections 541–555 and 1302 of title 40” for “section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 107–217, § 3(j)(5)(A), substituted “subchapter II of chapter 5 of title 40, sections 541–555 and 1302 of title 40” for “section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)”.Enacted provision · exact public law section
(A) in paragraph (1), strike “section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)” and substitute “subchapter II of chapter 5 of title 40, sections 541-555 and 1302 of title 40”; andPub. L. 107–217 § 3(j)(5)(B) · 116 Stat. 1062
Substituted · 38 U.S.C. § 8162(a)(3)
Pub. L. 107–217, § 3(j)(5)(B), substituted “sections 3141–3144, 3146, and 3147 of title 40” for “the Act of March 3, 1931 (40 U.S.C. 276a et seq.)”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 107–217, § 3(j)(5)(B), substituted “sections 3141–3144, 3146, and 3147 of title 40” for “the Act of March 3, 1931 (40 U.S.C. 276a et seq.)”.Enacted provision · exact public law section
(B) in paragraph (3), strike “the Act of March 3, 1931 (40 U.S.C. 276a et seq.)” and substitute “sections 3141-3144, 3146, and 3147 of title 40”.Pub. L. 108–178 § 4(i)(1) · 117 Stat. 2637
Struck · 38 U.S.C. § 8162(a)(3)
Pub. L. 108–178 struck out comma after “of title 40”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 108–178 struck out comma after “of title 40”.Enacted provision · exact public law section
(1) In section 8162(a)(3), as amended by section 3(j)(5)(B) of Public Law 107–217 (116 Stat. 1301), strike the comma appearing after “of title 40”.Department of Health and Human Services Appropriations Act, 2008
Pub. L. 110–161 div. I title II § 224(c) · 121 Stat. 1844
Inserted · 38 U.S.C. § 8162(c)(1)
Pub. L. 110–161 inserted “or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008” after “section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553)”
Substituted · 38 U.S.C. § 8162(c)(1)
Pub. L. 110–161 substituted “such sections” for “that section”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 110–161 inserted “or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008” after “section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553)” and substituted “such sections” for “that section”.Enacted provision · exact public law section
Sec. 224. (rescission of funds) Of the funds available within the Health Professions Student Loan program authorized in subpart II, Federally-Supported Student Loan Funds, of title VII of the Public Health Service Act, $15,000,000 are rescinded.Andrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(b)(1) · 126 Stat. 1165
Amended · 38 U.S.C. § 8162(a)(2)
Pub. L. 112–154, § 211(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only if—
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 112–154, § 211(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only if—“(A) the Secretary determines that— “(i) at least part of the use of the property under the lease will be to provide appropriate space for an activity contributing to the mission of the Department; “(ii) the lease will not be inconsistent with and will not adversely affect the mission of the Department; and “(iii) the lease will enhance the use of the property; or “(B) the Secretary determines that the implementation of a business plan proposed by the Under Secretary for Health for applying the consideration under such a lease to the provision of medical care and services would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.”
Enacted provision · exact public law section
(1) In general.— Paragraph (2) of section 8162(a) is amended to read as follows: “(2) The Secretary may enter into an enhanced-use lease only for the provision of supportive housing and the lease is not inconsistent with and will not adversely affect the mission of the Department.” .Andrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(c)(1)(A) · 126 Stat. 1165
Substituted · 38 U.S.C. § 8162(b)(1)
Pub. L. 112–154, § 211(c)(1)(A), substituted “If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall, at the Secretary’s discretion, select the party with whom the lease will be entered into using such selection procedures as the Secretary considers appropriate.” for subpars. (A) and (B) which read as follows:
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 112–154, § 211(c)(1)(A), substituted “If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall, at the Secretary’s discretion, select the party with whom the lease will be entered into using such selection procedures as the Secretary considers appropriate.” for subpars. (A) and (B) which read as follows:“(A) If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall select the party with whom the lease will be entered into using selection procedures determined by the Secretary that ensure the integrity of the selection process. “(B) In the case of a property that the Secretary determines is appropriate for use as a facility to furnish services to homeless veterans under chapter 20 of this title, the Secretary may enter into an enhanced-use lease with a provider of homeless services without regard to the selection procedures required under subparagraph (A).”
Enacted provision · exact public law section
(A) in paragraph (1), by striking “(A) If the Secretary” and all that follows through “under subparagraph (A).” and inserting the following: “If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall, at the Secretary’s discretion, select the party with whom the lease will be entered into using such selection procedures as the Secretary considers appropriate.”;Andrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(c)(1)(B) · 126 Stat. 1165
Amended · 38 U.S.C. § 8162(b)(3)
Pub. L. 112–154, § 211(c)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows:
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 112–154, § 211(c)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows:“(3)(A) Each enhanced-use lease shall be for fair consideration, as determined by the Secretary. Consideration under such a lease may be provided in whole or in part through consideration in-kind. “(B) Consideration in-kind may include provision of goods or services of benefit to the Department, including construction, repair, remodeling, or other physical improvements of Department facilities, maintenance of Department facilities, or the provision of office, storage, or other usable space.”
Enacted provision · exact public law section
(B) by amending paragraph (3) to read as follows: “(3) (A) For any enhanced-use lease entered into by the Secretary, the lease consideration provided to the Secretary shall consist solely of cash at fair value as determined by the Secretary. “(B) The Secretary shall receive no other type of consideration for an enhanced-use lease besides cash. “(C) The Secretary may enter into an enhanced-use lease without receiving consideration.” ;Andrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(c)(1)(C) · 126 Stat. 1165
Substituted · 38 U.S.C. § 8162(b)(4)
Pub. L. 112–154, § 211(c)(1)(C), substituted “Secretary to use minor” for “Secretary to—
Source evidence
Code amendment note
Subsec. (b)(4). Pub. L. 112–154, § 211(c)(1)(C), substituted “Secretary to use minor” for “Secretary to—“(A) obtain facilities, space, or services on the leased property; and “(B) use minor”.
Enacted provision · exact public law section
(C) in paragraph (4), by striking “Secretary to” and all that follows through “use minor” and inserting “Secretary to use minor”; andAndrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(c)(1)(D) · 126 Stat. 1165
Added · 38 U.S.C. § 8162(b)(5); 38 U.S.C. § 8162(b)(6)
Pub. L. 112–154, § 211(c)(1)(D), added pars. (5) and (6)
Source evidence
Code amendment note
Subsec. (b)(5), (6). Pub. L. 112–154, § 211(c)(1)(D), added pars. (5) and (6).Enacted provision · exact public law section
(D) by adding at the end the following new paragraphs: “(5) The terms of an enhanced-use lease may not provide for any acquisition, contract, demonstration, exchange, grant, incentive, procurement, sale, other transaction authority, service agreement, use agreement, lease, or lease-back by the Secretary or Federal Government. “(6) The Secretary may not enter into an enhanced-use lease without certification in advance in writing by the Director of the Office of Management and Budget that such lease complies with the requirements of this subchapter.” .Andrew Connolly Veterans Housing Act
Pub. L. 112–154 § 211(d) · 126 Stat. 1165
Struck · 38 U.S.C. § 8162(c)
Pub. L. 112–154, § 211(d), struck out par. (1) designation
Substituted · 38 U.S.C. § 8162(c)
Pub. L. 112–154, § 211(d), substituted “The” for “Subject to paragraph (2), the”
Struck · 38 U.S.C. § 8162(c)
Pub. L. 112–154, § 211(d), struck out par. (2) which provided conditions under which entering into enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Pub. L. 100–322) would not be considered prohibited under such section
Source evidence
Code amendment note
Subsec. (c). Pub. L. 112–154, § 211(d), struck out par. (1) designation, substituted “The” for “Subject to paragraph (2), the” and struck out par. (2) which provided conditions under which entering into enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Pub. L. 100–322) would not be considered prohibited under such section.Enacted provision · exact public law section
(d) Prohibited Enhanced-use Leases.— Section 8162(c) is amended— (1) by striking paragraph (2); and (2) in paragraph (1), by striking “(1) Subject to paragraph (2), the” and inserting “The”.Department of Veterans Affairs Expiring Authorities Act of 2015
Pub. L. 114–58 title VI § 601(25) · 129 Stat. 530
Inserted · 38 U.S.C. § 8162(a)(2)
Pub. L. 114–58 inserted “if” after “housing and”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 114–58 inserted “if” after “housing and”.Enacted provision · exact public law section
(25) in section 8162(a)(2), by inserting “if” after “housing and”.West Los Angeles Leasing Act of 2016
Pub. L. 114–226 § 3(a) · 130 Stat. 926
Added · 38 U.S.C. § 8162(b)(3)(D)
Pub. L. 114–226, § 3(a), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(3)(D). Pub. L. 114–226, § 3(a), added subpar. (D).Enacted provision · exact public law section
(a) Prohibition on Waiver of Obligation of Lessee.— Paragraph (3) of section 8162(b) of title 38, United States Code, is amended by adding at the following new subparagraph: “(D) The Secretary may not waive or postpone the obligation of a lessee to pay any consideration under an enhanced-use lease, including monthly rent.” .West Los Angeles Leasing Act of 2016
Pub. L. 114–226 § 2(m)(2) · 130 Stat. 926
Inserted · 38 U.S.C. § 8162(c)
Pub. L. 114–226, § 2(m)(2), inserted “, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016,” before “shall be considered”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 114–226, § 2(m)(2), inserted “, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016,” before “shall be considered”.Enacted provision · exact public law section
(2) Enhanced-use leases.— Section 8162(c) of title 38, United States Code, is amended by inserting “, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016,” before “shall be considered”.West Los Angeles Leasing Act of 2016
Pub. L. 114–226 § 3(b) · 130 Stat. 926
Added · 38 U.S.C. § 8162(d)
Pub. L. 114–226, § 3(b), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 114–226, § 3(b), added subsec. (d).Enacted provision · exact public law section
(b) Clarification of Liability of Federal Government to Third Parties.— Section 8162 of such title is amended by adding at the end the following new subsection: “(d) (1) Nothing in this subchapter authorizes the Secretary to enter into an enhanced-use lease that provides for, is contingent upon, or otherwise authorizes the Federal Government to guarantee a loan made by a third party to a lessee for purposes of the enhanced-use lease. “(2) Nothing in this subchapter shall be construed to abrogate or constitute a waiver of the sovereign immunity of the United States with respect to any loan, financing, or other financial agreement entered into by the lessee and a third party relating to an enhanced-use lease.” .John S. McCain III, Daniel K. Akaka, and Samuel R. Johnson VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018
Pub. L. 115–182 title II § 212 · 132 Stat. 1393
Amended · 38 U.S.C. § 8162(b)(6)
Pub. L. 115–182, which directed the general amendment of “section 8162(b)(6)” without specifying the Code title to be amended, was executed by generally amending par. (6) of subsec. (b) of this section, to reflect the probable intent of Congress. Prior to amendment, par. (6) read as follows: “The Secretary may not enter into an enhanced-use lease without certification in advance in writing by the Director of the Office of Management and Budget that such lease complies with the requirements of this subchapter.”
Source evidence
Code amendment note
Subsec. (b)(6). Pub. L. 115–182, which directed the general amendment of “section 8162(b)(6)” without specifying the Code title to be amended, was executed by generally amending par. (6) of subsec. (b) of this section, to reflect the probable intent of Congress. Prior to amendment, par. (6) read as follows: “The Secretary may not enter into an enhanced-use lease without certification in advance in writing by the Director of the Office of Management and Budget that such lease complies with the requirements of this subchapter.”Enacted provision · exact public law section
SEC. 212. REVIEW OF ENHANCED USE LEASES. Section 8162(b)(6) is amended to read as follows: “(6) The Office of Management and Budget shall review each enhanced-use lease before the lease goes into effect to determine whether the lease is in compliance with paragraph (5).” .Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022
Pub. L. 117–168 § 705(a) · 136 Stat. 1759
Amended · 38 U.S.C. § 8162(a)(2)
Pub. L. 117–168, § 705(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only for the provision of supportive housing and if the lease is not inconsistent with and will not adversely affect the mission of the Department.”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 117–168, § 705(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only for the provision of supportive housing and if the lease is not inconsistent with and will not adversely affect the mission of the Department.”Enacted provision · exact public law section
(a) Modifications to Authority.— Paragraph (2) of section 8162(a) of title 38, United States Code, is amended to read as follows: “(2) (A) The Secretary may enter into an enhanced-use lease on or after the date of the enactment of this paragraph only if the Secretary determines— “(i) that the lease will not be inconsistent with, and will not adversely affect— “(I) the mission of the Department; or “(II) the operation of facilities, programs, and services of the Department in the area of the leased property; and “(ii) that— “(I) the lease will enhance the use of the leased property by directly or indirectly benefitting veterans; or “(II) the leased property will provide supportive housing. “(B) The Secretary shall give priority to enhanced-use leases that, on the leased property— “(i) provide supportive housing for veterans; “(ii) provide direct services or benefits targeted to veterans; or “(iii) provide services or benefits that indirectly support veterans.” .Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022
Pub. L. 117–168 § 705(b) · 136 Stat. 1759
Substituted · 38 U.S.C. § 8162(b)(2)
Pub. L. 117–168, § 705(b), substituted “99 years” for “75 years”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 117–168, § 705(b), substituted “99 years” for “75 years”.Enacted provision · exact public law section
(b) Extension of Maximum Term of Enhanced-use Lease.— Section 8162(b)(2) of such title 38 USC 8162. is amended by striking “75 years” and inserting “99 years”.
31 of 31 references resolved to an enrolled provision
Editorial Notes
References in Text
Section 421(b) of the Veterans’ Benefits and Services Act of 1988, referred to in subsecs. (a)(1) and (c), is section 421(b) of Pub. L. 100–322, title IV, , 102 Stat. 553, which is not classified to the Code.
The date of the enactment of this paragraph, referred to in subsec. (a)(2)(A), is the date of enactment of Pub. L. 117–168, which was approved .
Section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008, referred to in subsec. (c), is section 224(a) of title II of div. I of Pub. L. 110–161, , 121 Stat. 2272, which is not classified to the Code.
No act with the title “Los Angeles Homeless Veterans Leasing Act of 2016”, referred to in subsec. (c), has been enacted. However, a bill, H.R. 3484, entitled “Los Angeles Homeless Veterans Leasing Act of 2016”, was introduced in the House of Representatives on , during the 114th Congress. That bill contained provisions similar to section 2 of Pub. L. 114–226, , 130 Stat. 926, known as the “West Los Angeles Leasing Act of 2016”. Section 2(m)(2) of Pub. L. 114–226 amended this section; the remainder of section 2 of Pub. L. 114–226 is not classified to the Code.
Amendments1999–2022 · 11 rounds
2022
Subsec. (a)(2). Pub. L. 117–168, § 705(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only for the provision of supportive housing and if the lease is not inconsistent with and will not adversely affect the mission of the Department.”
Subsec. (b)(2). Pub. L. 117–168, § 705(b), substituted “99 years” for “75 years”.
2018
Subsec. (b)(6). Pub. L. 115–182, which directed the general amendment of “section 8162(b)(6)” without specifying the Code title to be amended, was executed by generally amending par. (6) of subsec. (b) of this section, to reflect the probable intent of Congress. Prior to amendment, par. (6) read as follows: “The Secretary may not enter into an enhanced-use lease without certification in advance in writing by the Director of the Office of Management and Budget that such lease complies with the requirements of this subchapter.”
2016
Subsec. (b)(3)(D). Pub. L. 114–226, § 3(a), added subpar. (D).
Subsec. (c). Pub. L. 114–226, § 2(m)(2), inserted “, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016,” before “shall be considered”.
Subsec. (d). Pub. L. 114–226, § 3(b), added subsec. (d).
2015
Subsec. (a)(2). Pub. L. 114–58 inserted “if” after “housing and”.
2012
Subsec. (a)(2). Pub. L. 112–154, § 211(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary may enter into an enhanced-use lease only if—
“(A) the Secretary determines that—
“(i) at least part of the use of the property under the lease will be to provide appropriate space for an activity contributing to the mission of the Department;
“(ii) the lease will not be inconsistent with and will not adversely affect the mission of the Department; and
“(iii) the lease will enhance the use of the property; or
“(B) the Secretary determines that the implementation of a business plan proposed by the Under Secretary for Health for applying the consideration under such a lease to the provision of medical care and services would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.”
Subsec. (b)(1). Pub. L. 112–154, § 211(c)(1)(A), substituted “If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall, at the Secretary’s discretion, select the party with whom the lease will be entered into using such selection procedures as the Secretary considers appropriate.” for subpars. (A) and (B) which read as follows:
“(A) If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall select the party with whom the lease will be entered into using selection procedures determined by the Secretary that ensure the integrity of the selection process.
“(B) In the case of a property that the Secretary determines is appropriate for use as a facility to furnish services to homeless veterans under chapter 20 of this title, the Secretary may enter into an enhanced-use lease with a provider of homeless services without regard to the selection procedures required under subparagraph (A).”
Subsec. (b)(3). Pub. L. 112–154, § 211(c)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows:
“(3)(A) Each enhanced-use lease shall be for fair consideration, as determined by the Secretary. Consideration under such a lease may be provided in whole or in part through consideration in-kind.
“(B) Consideration in-kind may include provision of goods or services of benefit to the Department, including construction, repair, remodeling, or other physical improvements of Department facilities, maintenance of Department facilities, or the provision of office, storage, or other usable space.”
Subsec. (b)(4). Pub. L. 112–154, § 211(c)(1)(C), substituted “Secretary to use minor” for “Secretary to—
“(A) obtain facilities, space, or services on the leased property; and
“(B) use minor”.
Subsec. (b)(5), (6). Pub. L. 112–154, § 211(c)(1)(D), added pars. (5) and (6).
Subsec. (c). Pub. L. 112–154, § 211(d), struck out par. (1) designation, substituted “The” for “Subject to paragraph (2), the” and struck out par. (2) which provided conditions under which entering into enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Pub. L. 100–322) would not be considered prohibited under such section.
2007
Subsec. (c)(1). Pub. L. 110–161 inserted “or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008” after “section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553)” and substituted “such sections” for “that section”.
2003
Subsec. (a)(3). Pub. L. 108–178 struck out comma after “of title 40”.
2002
Subsec. (a)(1). Pub. L. 107–217, § 3(j)(5)(A), substituted “subchapter II of chapter 5 of title 40, sections 541–555 and 1302 of title 40” for “section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)”.
Subsec. (a)(3). Pub. L. 107–217, § 3(j)(5)(B), substituted “sections 3141–3144, 3146, and 3147 of title 40” for “the Act of (40 U.S.C. 276a et seq.)”.
2001
Subsec. (b)(1). Pub. L. 107–95 designated existing provisions as subpar. (A) and added subpar. (B).
2000
Subsec. (a)(4). Pub. L. 106–400 substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”.
1999
Subsec. (a)(2). Pub. L. 106–117, § 208(a), inserted subpar. (A) designation before “the Secretary”, redesignated subpars. (A) to (C) as cls. (i) to (iii), respectively, and realigned the margins, substituted “; or” for period at end of cl. (iii), and added subpar. (B).
Subsec. (b)(2). Pub. L. 106–117, § 208(b)(1), substituted “may not exceed 75 years.” for “may not exceed—”
“(A) 35 years, in the case of a lease involving the construction of a new building or the substantial rehabilitation of an existing building, as determined by the Secretary; or
“(B) 20 years, in the case of a lease not described in subparagraph (A).”
Subsec. (b)(4). Pub. L. 106–117, § 208(b)(2), added par. (4) and struck out former par. (4) which read as follows: “Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act.”
Statutory Notes and Related Subsidiaries
Effective Date of 2012 Amendment
Pub. L. 112—154, title II, § 211(b)(2), , 126 Stat. 1180, provided that:
“(A) In general.—
Paragraph (2) of section 8162(a) of title 38, United States Code, as amended by paragraph (1), shall take effect on , and shall apply with respect to enhanced-use leases entered into on or after such date.
“(B) Previous leases.—
Any enhanced-use lease that the Secretary has entered into prior to the date described in subparagraph (A) shall be subject to the provisions of subchapter V of chapter 81 of such title, as in effect on the day before the date of the enactment of this Act [].”
Pub. L. 112—154, title II, § 211(c)(2), , 126 Stat. 1181, provided that: “Paragraph (3) of section 8162(b), as amended by paragraph (1)(B) of this subsection, shall take effect on , and shall apply with respect to enhanced-use leases entered into on or after such date.”
Effective Date of 2007 Amendment
Pub. L. 110–161, div. I, title II, § 224(d), , 121 Stat. 2272, provided that: “This section [amending this section], including the amendment made by this section, shall apply with respect to fiscal year 2008 and each fiscal year thereafter.”
Effective Date of 2003 Amendment
Amendment by Pub. L. 108–178 effective , see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees.
Effective Date of 2001 Amendment
Pub. L. 107–95, § 10(c), , 115 Stat. 920, provided that: “The amendments made by subsection (b) [amending this section] shall apply to leases entered into on or after the date of the enactment of this Act [].”
Credits
1991–2022 · 12 acts
- 1991Added Pub. L. 102–86, title IV, § 401(a), , 105 Stat. 417
- 1999amended Pub. L. 106–117, title II, § 208(a), (b), , 113 Stat. 1567
- 2000Pub. L. 106–400, § 2, , 114 Stat. 1675
- 2001Pub. L. 107–95, § 10(b), , 115 Stat. 920
- 2002Pub. L. 107–217, § 3(j)(5), , 116 Stat. 1300
- 2003Pub. L. 108–178, § 4(i)(1), , 117 Stat. 2642
- 2007Pub. L. 110–161, div. I, title II, § 224(c), , 121 Stat. 2272
- 2012Pub. L. 112—154, title II, § 211(b)(1), (c)(1), (d), , 126 Stat. 1180, 1181
- 2015Pub. L. 114–58, title VI, § 601(25), , 129 Stat. 539
- 2016Pub. L. 114–226, §§ 2(m)(2)—3(b), , 130 Stat. 930
- 2018Pub. L. 115–182, title II, § 212, , 132 Stat. 1461
- 2022Pub. L. 117–168, title VII, § 705(a), (b), , 136 Stat. 1799, 1800.
Show as published
(Added Pub. L. 102–86, title IV, § 401(a), , 105 Stat. 417; amended Pub. L. 106–117, title II, § 208(a), (b), , 113 Stat. 1567; Pub. L. 106–400, § 2, , 114 Stat. 1675; Pub. L. 107–95, § 10(b), , 115 Stat. 920; Pub. L. 107–217, § 3(j)(5), , 116 Stat. 1300; Pub. L. 108–178, § 4(i)(1), , 117 Stat. 2642; Pub. L. 110–161, div. I, title II, § 224(c), , 121 Stat. 2272; Pub. L. 112—154, title II, § 211(b)(1), (c)(1), (d), , 126 Stat. 1180, 1181; Pub. L. 114–58, title VI, § 601(25), , 129 Stat. 539; Pub. L. 114–226, §§ 2(m)(2)—3(b), , 130 Stat. 930; Pub. L. 115–182, title II, § 212, , 132 Stat. 1461; Pub. L. 117–168, title VII, § 705(a), (b), , 136 Stat. 1799, 1800.)