Sec. 5. Pilot program on authority of Secretary of Veterans Affairs to enter into enhanced-use leases for noncash consideration
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The Secretary of Veterans Affairs shall carry out a pilot program to assess the feasibility and advisability of entering into enhanced-use leases for noncash consideration. Under the pilot program required by subsection (a), the Secretary shall enter into at least one enhanced-use lease, but not more than three enhanced-use leases, under section 8162 of title 38, United States Code. The enhanced-use leases entered into under the pilot program required by subsection
(a)shall be in such locations as the Secretary considers appropriate for purposes of the pilot program. Notwithstanding paragraphs (3)(A), (3)(B), and
(5)of section 8162(b) of such title and subject to the availability of appropriations and the provisions of this subsection, for an enhanced-use lease entered into by the Secretary under the pilot program required by subsection (a), the lease consideration provided to the Secretary may consist of noncash consideration at fair value as determined by the Secretary. Noncash consideration received for an enhanced-use lease under the pilot program required by subsection
(a)may consist of only the following: Title transfer of real property. Infrastructure improvements. Design services. Construction services. The authority to accept consideration described in paragraph
(1)shall be subject to the following: Any facility accepted as noncash consideration for an enhanced-use lease is substantially complete within 10 years of entering into the enhanced-use lease, excluding commissioning and warranty services. The partner entity assumes full responsibility for all maintenance, operations, and service costs associated with noncash consideration for the duration of the enhanced-use lease and any subsequent use by the Department, unless explicitly funded through appropriations. Notwithstanding section 8118(b)(3) of title 38, United States Code, amounts in the Department of Veterans Affairs Capital Asset Fund may be used for enhanced-use leases under the pilot program required by subsection
(a)for the purposes of subparagraph
(C)of such section, without reference to the amount limitation in section 8104(a)(3)(A) of such title, if such use is subject to the availability of appropriations. For each fiscal year, not later than 90 days after the last day of the fiscal year, the Secretary shall submit to Congress a report on the enhanced-use leases entered into under the pilot program required by subsection
(a)that were in effect in that fiscal year. Each report submitted pursuant to paragraph
(1)shall include, for the fiscal year covered by the report, the following: Details of the fiscal impact of each enhanced-use lease entered into under the pilot program required by subsection
(a)that was in effect, including the following: Comprehensive budget justification for all obligations incurred. The funding sources for such obligations. Confirmation that all associated costs are within appropriated budgets. An assessment of any potential future costs and mitigation strategies to ensure compliance with discretionary funding. No enhanced-use lease under the pilot program required by subsection
(a)shall impose a financial or operational obligation on the Department beyond the availability of appropriations, and any agreement regarding an enhanced-use lease shall include a provision ensuring that maintenance, operations, or service costs associated with noncash consideration is borne by the partner entity or explicitly funded through appropriations for the entire lifecycle of the enhanced-use lease or facility use. The authorities provided under this section shall terminate on the date that is seven years after the date of the enactment of this Act. Such termination shall not affect the validity or terms of an enhanced-use lease entered into under this section, consideration accepted under this section, or the availability of amounts for an enhanced-use lease, provided that all obligations remain subject to the availability of appropriations. In this section, the term enhanced-use lease has the meaning given such term in section 8162(a)(1) of title 38, United States Code.