Sec. 211. MODIFICATION OF AUTHORITIES FOR ENHANCED-USE LEASES OF REAL PROPERTY
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## SEC. 211 MODIFICATION OF AUTHORITIES FOR ENHANCED-USE LEASES OF REAL PROPERTY ###
(a)Supportive Housing Defined Section 8161 is amended by adding at the end the following new paragraph: > > #### “(3) > > The term ‘supportive housing’ means housing that engages tenants in on-site and community-based support services for veterans or their families that are at risk of homelessness or are homeless. Such term may include the following: > > > ##### “(A) > > Transitional housing. > > > ##### “(B) > > Single-room occupancy. > > > ##### “(C) > > Permanent housing. > > > ##### “(D) > > Congregate living housing. > > > ##### “(E) > > Independent living housing. > > > ##### “(F) > > Assisted living housing. > > > ##### “(G) > > Other modalities of housing.” > . ###
(b)Modification of Limitations on Enhanced Use Leases ####
(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.” > . ####
(2)Effective date **[**[38 U.S.C. 8162 note](/us/usc/t38/s8162)**]** #####
(A)In general Paragraph
(2)of section of title 38, United States Code, as amended by paragraph (1), shall take effect on January 1, 2012, 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. ###
(c)Consideration for and Terms of Enhanced-use Leases ####
(1)In general Section 8162(b) is amended— #####
(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.”; #####
(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.” > ; #####
(C)in paragraph (4), by striking “Secretary to” and all that follows through “use minor” and inserting “Secretary to use minor”; and #####
(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.” > . ####
(2)Effective date **[**[38 U.S.C. 8162 note](/us/usc/t38/s8162)**]** Paragraph
(3)of section 8162(b), as amended by paragraph (1)(B) of this subsection, shall take effect on January 1, 2012, and shall apply with respect to enhanced-use leases entered into on or after such date. ###
(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”. ###
(e)Disposition of Leased Property Subsection
(b)of section 8164 is amended to read as follows: > > ### “(b) > > A disposition under this section may be made in return for cash at fair value as the Secretary determines is in the best interest of the United States and upon such other terms and conditions as the Secretary considers appropriate.” > . ###
(f)Use of Amounts Received for Disposition of Leased Property Section 8165(a)(2) is amended by striking “in the Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title” and inserting “into the Department of Veterans Affairs Construction, Major Projects account or Construction, Minor Projects account, as the Secretary considers appropriate”. ###
(g)Construction Standards Section 8166 is amended to read as follows: > > ## “SEC. 8166 Construction standards > > “The construction, alteration, repair, remodeling, or improvement of a property that is the subject of an enhanced-use lease shall be carried out so as to comply with all applicable provisions of Federal, State, and local law relating to land use, building standards, permits, and inspections.” > . ###
(h)Exemption From State and Local Taxes Section 8167 is amended to read as follows: > > ## “SEC. 8167 Exemption from State and local taxes > > > ### “(a) Improvements and Operations Not Exempted > > The improvements and operations on land leased by a person with an enhanced-use lease from the Secretary shall be subject to all applicable provisions of Federal, State, or local law relating to taxation, fees, and assessments. > > > ### “(b) Underlying Fee Title Interest Exempted > > The underlying fee title interest of the United States in any land subject to an enhanced-use lease shall not be subject, directly or indirectly, to any provision of State or local law relating to taxation, fees, or assessments.” > . ###
(i)Annual Reports ####
(1)In general Subchapter V of chapter 81 is amended by inserting after section 8167 the following new section: > > ## “SEC. 8168 Annual reports > > **[**[38 U.S.C. 8168](/us/usc/t38/s8168)**]** > > > ### “(a) Report on Administration of Leases > > Not later than 120 days after the date of the enactment of the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 and not less frequently than once each year thereafter, the Secretary shall submit to Congress a report identifying the actions taken by the Secretary to implement and administer enhanced-use leases. > > > ### “(b) Report on Lease Consideration > > Each year, as part of the annual budget submission of the President to Congress under section 1105(a) of title 31, the Secretary shall submit to Congress a detailed report of the consideration received by the Secretary for each enhanced-use lease under this subchapter, along with an overview of how the Secretary is utilizing such consideration to support veterans.” > . ####
(2)Elements of initial report **[**[38 U.S.C. 8168 note](/us/usc/t38/s8168)**]** The first report submitted by the Secretary under section of title 38, United States Code, as added by paragraph (1), shall include a summary of those measures the Secretary is taking to address the following recommendations from the February 9, 2012, audit report of the Department of Veterans Affairs Office of Inspector General on enhanced-use leases under subchapter V of chapter 81 of title 38, United States Code: #####
(A)Improve standards to ensure complete lease agreements are negotiated in line with strategic goals of the Department of Veterans Affairs. #####
(B)Institute improved policies and procedures to govern activities such as monitoring enhanced-use lease projects and calculating, classifying, and reporting on enhanced-use lease benefits and expenses. #####
(C)Recalculate and update enhanced-use lease expenses and benefits reported in the most recent Enhanced-Use Lease Consideration Report of the Department. #####
(D)Establish improved oversight mechanisms to ensure major enhanced-use lease project decisions are documented and maintained in accordance with policy. #####
(E)Establish improved criteria to measure timeliness and performance in enhanced-use lease project development and execution. #####
(F)Establish improved criteria and guidelines for assessing projects to determine whether they are or remain viable candidates for enhanced-use leases. ####
(3)Clerical amendment The table of sections at the beginning of chapter 81 is amended by inserting after the item relating to section 8167 the following new item:" “8168. Annual reports.” ". ###
(j)Expiration of Authority Section 8169 is amended by striking “December 31, 2011” and inserting “December 31, 2023”. ###
(k)Effective Date **[**[38 U.S.C. 8161 note](/us/usc/t38/s8161)**]** Except as otherwise provided in this section, the amendments made by this section shall take effect on the date of the enactment of this Act. # TITLE III HOMELESS MATTERS
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Sec. 211
MODIFICATION OF AUTHORITIES FOR ENHANCED-USE LEASES OF REAL PROPERTY
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