
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-400 Section 2]
[Document affected by Public Law 107-95 Section 10(b)]
[Document affected by Public Law 107-95 Section 10(c)]
[CITE: 38USC8162]

 
                      TITLE 38--VETERANS' BENEFITS
 
            PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
 
   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY
 
           SUBCHAPTER V--ENHANCED-USE LEASES OF REAL PROPERTY
 
Sec. 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--
        (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 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 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) 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.

(Added Pub. L. 102-86, title IV, Sec. 401(a), Aug. 14, 1991, 105 Stat. 
417; amended Pub. L. 106-117, title II, Sec. 208(a), (b), Nov. 30, 1999, 
113 Stat. 1567.)

                       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, May 20, 1988, 102 Stat. 553, which is not classified 
to the Code.
    Act of March 3, 1931, referred to in subsec. (a)(3), is act Mar. 3, 
1931, ch. 411, 46 Stat. 1494, as amended, known as the Davis-Bacon Act, 
which is classified generally to sections 276a to 276a-5 of Title 40, 
Public Buildings, Property, and Works. For complete classification of 
this Act to the Code, see Short Title note set out under section 276a of 
Title 40 and Tables.


                               Amendments

    1999--Subsec. (a)(2). Pub. L. 106-117, Sec. 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, Sec. 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, Sec. 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.''
