U.S. Code > Title 38 Veterans' Benefits > PART VI—ACQUISITION AND DISPOSITION OF PROPERTY (§§ 8101—8528) > CHAPTER 81—ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY (§§ 8101—8169) > SUBCHAPTER V—ENHANCED-USE LEASES OF REAL PROPERTY (§§ 8161—8169) > § 8162. Enhanced-use leases

§ 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, 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).
(2) 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.
(3) 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.
(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 McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411).
(b)
(1)
(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).
(2) The term of an enhanced-use lease may not exceed 75 years.
(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) 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.
(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) or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008 shall be considered to be prohibited by such sections 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.