VA’s Enhanced-Use Lease (EUL) program allows VA to manage underutilized property through leasing arrangements with state or local governments or private sector organizations. Title 38, U.S.C. Sections 8161-8169, EULs of Real Property, as amended, authorizes VA to lease real property under VA’s control or jurisdiction to other public and private entities on a long-term basis (up to 99 years). The statute permits Enhanced-Use Leases (EULs) for supportive housing or for the direct or indirect benefit of Veterans.

The majority of VA EUL projects provide safe, affordable housing for Veterans and their families. The properties are leased to lessee entities that finance, design, develop, construct or rehabilitate, operate and maintain the property. The lessee assumes all financial obligations and risks associated with the development. These lessees utilize various sources of financing, including but not limited to low-income housing tax credits, state and local government funding, grants, commercial loans and public issue bonds.

Moving forward, the VA EUL program will continue to serve as a vehicle for VA to achieve its goal of eliminating Veteran homelessness across the nation. VA will also examine additional potential project types and identify new EUL opportunities that provide direct or indirect benefits to Veterans.

EULs provide long-term benefits to VA, Veterans and the community, as described below.

Benefits to Veterans

  • Access to an expanded range of services, including housing, job training, and mental health counseling
  • Increased access to health care
  • Improved satisfaction and quality of life for Veterans and their families

Visit the Homeless Program website for more information about Veterans homeless program and housing.

Benefits to VA

  • Reduced VA facility operations and maintenance costs
  • Redevelopment of underutilized real property

Benefits to community

  • Revitalization, redevelopment, and construction of property for the benefit of Veterans
  • Creation of local jobs


VA Enhanced-Use Lease Homeless Veterans

July 1, 2016 – EUL is an important component of both VA’s mission to end Veteran homelessness and the departments overall asset management program.

Returning the Soldiers Home to the Service of Veterans

October 7, 2021 – The Alexander Company in partnership with OAEM constructed and is operating 101 permanent supportive housing units. This EUL consists of 7 buildings (built 1869-1922) — including Old Main (2), the most prominent and recognizable building on the campus, the Administration Building (1), the Catholic Chaplain’s Quarters (14) and 4 duplexes (18, 19, 62 and 64). This $40+ million dollar project was awarded several affordable housing and historic preservation accolades.

Enhanced-Use Lease Statute

VA’s EUL authority, which allows VA to out-lease real property to non-Federal public entities and private parties, was enacted in August 1991 and codified in 38 U.S.C. § 8161-8169. VA’s EUL authority expired on December 31, 2011, but was reauthorized on August 6, 2012, by P.L. 112-154. The West Los Angeles Leasing Act of 2016 (P.L. 114-226, enacted on September 29, 2016) and the West Los Angeles VA Campus Improvement Act of 2021 (P.L. 117-18, enacted on June 23, 2021) further amended VA’s EUL authority, allowing VA to enter into EULs at its West Los Angeles, CA Campus for terms of up to 99 years, to provide supportive housing benefiting Veterans and their families.

Most recently, VA’s EUL authority was amended by P.L. 117-168, the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022 (”PACT Act“), which became law on August 10, 2022. The PACT Act broadened VA’s existing EUL authority in several ways: VA is now permitted to enter into EULs that provide supportive housing or enhance the use of the leased property by directly or indirectly benefitting Veterans; VA EULs are now permitted to be up to 99 years in duration; and there is no longer an expiration date on VA’s EUL authority. The PACT Act also provides VA with $922M to enter into EULs.