Attachment 1 Answers to Questions - Sepulveda SS.docx

Attachment 1 – Answers to Questions – Sepulveda Sources Sought Project Scope & Vision

1. What is the VA’s long-term vision for the Sepulveda Campus, and how should this project align with it?

As noted in the Sources Sought, VA is seeking expressions of interest from qualified developers, including SDVOSBs and VOSBs, to serve as a “Developer” for purposes of developing affordable, permanent housing with priority placement for low-income Veterans who may be currently housed, but at-risk of homelessness.

Additional background on the Sepulveda VA Ambulatory Care Center can be found in Section IV of the Sources Sought

2. Are there specific design guidelines or architectural standards required for the development?

Pursuant to VA's Enhanced-Use Lease (EUL) statute (38 U.S.C. 8166), "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."

3. Is there flexibility in how the acreage (9, 12, and 10-acre parcels) can be allocated or combined? Can you clarify the definition of “permanent housing” in this context (e.g., minimum tenancy duration, construction standards)?

Yes, there is flexibility for the developer to propose how they would like to allocate or combine the acreage. Permanent housing (PH) as defined by HUD is a community-based housing model. The purpose of which is typically to provide housing without a designated length of stay. PH program participants must be the tenant on a lease (or sublease), which must:

a. Have an initial term of at least one year

b. Be renewable for a minimum term of one month Be terminable only for cause

4. Is there an opportunity to incorporate market-rate components to support the viability of the veteran-focused housing?

There may be an opportunity to incorporate market-rate components to support the viability of the project subject to VA Office of General Counsel review. VA must also approve all financing and unit mix.

Site Conditions & Utilities

5. Are there existing site surveys, environmental assessments, or geotechnical studies available?

All available surveys, studies, and reports (including information on site conditions and utilities) will be included at the solicitation stage. At this Sources Sought stage, please note any major assumptions that would accompany your response and identify any documents / studies that would be beneficial for VA to include in the solicitation stage.

6. What infrastructure (utilities, roads, stormwater, sewer) is currently available on or near the development parcels?

See response to question 5 above.

7. Is there any known contamination or environmental remediation needed on the proposed parcels?

See response to question 5 above.

8. Are there easements or rights-of-way that would affect site access or layout?

See response to question 5 above.

EUL Terms & Regulatory Constraints

9. What is the anticipated ground lease term and rent structure under the Enhanced-Use Lease?

The lease term will be negotiated with the selected developer. VA's EUL statute 38 U.S.C. §§ 8161-8169 allows for a term of up to 99 years. The rent structure will also be negotiated with the selected developer. VA’s EUL statute prohibits lease consideration from being anything other than cash (i.e., no in-kind consideration is allowable). However, the statute also states that the Secretary of VA may enter into an EUL without receiving consideration.

10. Is there a defined process or timeline for EUL negotiation and execution post-award?

The EUL timeline is dependent on many factors including financing timelines. The average estimated time to complete due diligence, regulatory requirements and negotiation is 24 months, but this time can vary depending on site specific variables.

11. Will the project be subject to Davis-Bacon or other prevailing wage requirements?

Yes, this project is subject to Davis-Bacon requirements.

12. What compliance or reporting obligations will be required during development and operations under the EUL?

The lessee/developer will be responsible for providing necessary project-specific information to fulfill VA’s oversight and compliance responsibilities outlined in VA Directive 7415.