Attachment 1 - Sepulveda EUL Development Opportunity Sources Sought.docx

Sepulveda, CA EUL Request for Expressions of Interest

REQUEST FOR EXPRESSIONS OF INTEREST

ENHANCED-USE LEASE DEVELOPMENT OPPORTUNITY

VA Greater Los Angeles Healthcare System (GLAHS) Sepulveda VA Ambulatory Care Center in North Hills, CA

I. Notice This advertisement is a notice of a potential opportunity. This Request for Expressions of Interest (the “advertisement”) is not a solicitation for offers, nor is it a request for proposals. Respondents are advised that the Government assumes no responsibility to award an Enhanced-Use Lease (EUL) based upon responses to this advertisement.

· This Sources Sought Notice is to identify potential sources for information and planning purposes only and is not intended to pre-qualify or disqualify any potential Respondents.

· The purpose of this Sources Sought is to conduct market research to determine if responsible and qualified sources exist to redevelop the assets described in Section III.

· The information gained from this Sources Sought will be used to assist the Government in determining if this development opportunity can be competitive and/or a total Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) Set-Aside. The Government will use this information to determine the best acquisition strategy for this procurement.

· The Government requests that interested parties respond to this Notice with the specific information requested in Section V of this Notice and identify their small business status. VA is particularly interested in SDVOSB/VOSB respondents’ capabilities to perform a minimum of 51% of the development opportunity described in this Notice.

· Developers responding to this market research should be aware that responding to this advertisement may not ensure that they qualify for any underlying future solicitation or contract award.

· Responding to this Sources Sought Notice is NOT a prerequisite to respond to any future subsequent solicitations.

· The Government will not reimburse participants for any expenses associated with their participation in this Sources Sought.

· The Government cannot provide any warranty, expressed or implied, as to the accuracy, reliability or completeness of the information contained in this Notice.

II. Overview and Objectives The United States Department of Veterans Affairs (VA), under its Enhanced-Use Leasing (EUL) authority (38 U.S.C. §§ 8161- 8169, as amended), 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. Typically, these Veterans will be on fixed incomes or be low-wage earners who currently live in units where their incomes cannot keep up with housing inflation or they are living with others without having their name on the lease. While these Veterans may need a modest level of support, service requirements are not expected to be as intensive as those provided for permanent supportive housing (PSH).

It is expected that federal rental supports for Veterans in this housing will typically be drawn from VA’s Supportive Services for Veteran Families (SSVF). SSVF can provide up to 6 to 9 months of rental assistance, then at-risk Veterans housed through this initiative would generally convert to self-pay. Some Veterans may be eligible for SSVF’s shallow subsidy which provides 50% of rent for 2 years. A limited number of Veterans in this housing would be eligible for a HUD-VASH Housing Choice Voucher.

For purposes of this effort, the Developer would be a non-VA entity who has the qualifications outlined in Section V of this Notice. The Developer will be expected to develop housing at the Campus. The opportunity would involve a Developer entering into an EUL with VA and financing, renovating/constructing, operating, and maintaining the above-noted housing.

VA’s EUL authority allows VA to outlease land and improvements to selected developers (i.e., Lessees) to provide housing and/or other uses that directly or indirectly benefit Veterans. Such leases can have a term of up to 99 years. VA’s Office of Asset Enterprise Management (OAEM) administers the EUL Program.

The objectives of this development opportunity include but are not limited to:

· Repurpose assets at the Sepulveda VA Ambulatory Care Center Campus under VA’s EUL Program to the benefit of Veterans.

· Maximize the amount of permanent housing units available on the Campus.

Respondents should consider the following as they formulate responses to this Notice:

· Lease-back by VA or other Federal government entities is not permissible, and financing cannot reflect a lease-back arrangement. The PACT Act does not nullify 38 U.S.C. § 8162(b)(5), which states, "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.”

· VA may only receive cash consideration for ground lease rent in an EUL (per 38 U.S.C. § 8162(b)(3)(B)). This means VA cannot receive any in-kind consideration or free/discounted services as part of a new EUL agreement. However, projects may provide free or discounted services to individual Veterans or Veteran Service Organizations, and the Secretary may enter into an EUL without receiving consideration per U.S.C. § 8162(b)(3)(C).

Additional information on the VA’s EUL program may be obtained at: http://www.va.gov/assetmanagement/.

III. Development Scope The intent of this Notice is to determine if there are experienced developers, including SDVOSB or VOSB developers, that can develop the subject Campus assets into the permanent housing in accordance with VA’s EUL authority.

The Developer would undertake all necessary investigation activities to produce development with the underutilized assets at the Sepulveda Campus. The assets to be developed by the Developer would be three potential undeveloped parcels of 9-acres, 12-acres, and 10-acre solar field for consideration.

Please see Attachment A for a map of the proposed EUL parcel and additional asset information. Please note the parcel outline shown in Attachment A is subject to change.

IV. Sepulveda VA Ambulatory Care Center Background VA Greater Los Angeles Healthcare System (GLAHS) is a Joint Commission accredited, complexity level 1a facility serving Veterans throughout Kern, Los Angeles, San Luis Obispo, Santa Barbara, and Ventura counties. The VA Medical Center is located in West Los Angeles, California and currently supports two Ambulatory Care Centers (ACCs) and 8 Community Based Outpatient Clinics (CBOCs) across the 20,000 square mile catchment area. GLAHS operates on an annual budget of over $1.3 billion dollars, employs approximately 5,600 employees, and operates 1,040 beds. GLAHS has approximately 1.3 million annual outpatient visits, treats over 8,000 inpatients, and cares for almost 89,000 enrolled unique patients. The Sepulveda Ambulatory Care Center (SACC), located in the San Fernando Valley of Los Angeles (16111 Plummer St., North Hills, California 91343). The SACC is a comprehensive outpatient, ambulatory care facility with additional education and research functions. There is also a 120-bed academic nursing home care unit on the campus. The SACC was opened in 1955 and occupies approximately 151 acres. The medical buildings are clustered largely on the western half of the campus, and the support facilities are primarily located on the northeast corner of the property.

V. Sources Sought Response Requirements

VA is seeking qualified developers who have a proven company track record of:

· Developing permanent housing projects.

· Financial wherewithal required to successfully develop this type of housing with associated amenities (if applicable); and,

· Securing public and private financing for comparable housing projects.

For SDVOSB/VOSB developers, VA is seeking to confirm the Respondent’s ability to perform a minimum of 51% of the development opportunity described in this Notice.

Responses should be submitted on official letterhead, must include a point of contact and the signature of at least one organization officer. Responses must address the following elements in sufficient detail to highlight the Respondent’s ability to undertake the development scope as set forth in this Sources Sought Notice. Responses must not exceed 15 pages, single spaced with a minimum 12-point font. Response content should consist of the following:

Part 1: Business Information A. Please provide the following for your company:

· Company Name

· Address

· Point of Contact

· Phone Number

· E-mail Address

· Web Page URL

· SAM Unique Entity Identifier (UEI)

B. Based on the NAICS Code identified in the Sources Sought, please state whether your company is:

· Veteran Owned Small Business (VOSB)* (Yes / No)

· Service-Disabled Veteran Small Business (SDVOSB)* (Yes / No)

· Small Business (Yes / No)

· Woman Owned Small Business (Yes / No)

· Small Disadvantaged Business (Yes / No)

· 8(a) Certified (Yes / No)

· HUBZone Certified (Yes / No) *If your company is SDVOSB and/or VOSB, please attach verification.

Part 2: Qualifications to Undertake this Development Opportunity A. Corporate Overview: Provide overview of Respondent’s organization; indicate type of organization (for-profit, non-profit, etc.) and core business activities; specify age of organization; and, identify leadership.

B. Housing Development and Finance Experience: Summarize the Respondent’s housing development experience and provide brief descriptions of at least three (3) comparable housing projects that the Respondent has developed within the last 10 years. Include information such as: name, location, description of housing type, number of units (specify market rate, affordable, supportive, etc.), associated project infrastructure/services, new construction/renovation, year completed, total development cost, specific funding sources secured, and the role of the Respondent.

Part 3: Responses to Government Questionnaire Please include brief responses to each of the following questions:

A. What interests you about this development opportunity?

B. What concerns, if any, do you have about this development opportunity?

C. In order to maximize the amount of permanent housing in the project, are there other types of housing and/or uses that benefit Veterans that would need to be developed as part of the same project?

D. What specific information about the asset(s) and/or EUL development opportunity would you like to see included in any future Request for Qualifications (RFQ) regarding this opportunity?

E. Is there anything else that you wish to share with the Government with regard to this development opportunity? For example, is there something the Government should include in the RFQ that would make this development opportunity more attractive?

VI. Deadline to Submit Questions regarding Notice All questions regarding this Notice should be submitted via email to Kelli Emery, at Kelli.Emery@va.gov by April 8, 2025 at 5:00pm ET. Questions will be answered as an amendment to the advertisement.

VII. Deadline to Submit Responses to Notice If your organization has the qualifications set forth in this Notice and is interested and capable of executing all aspects of this opportunity, please email your response as an attachment to Kelli Emery at Kelli.Emery@va.gov by April 24, 2025 at 5:00pm ET.

Attachment A: Map of Proposed EUL Parcel and Additional Asset Information

DRAFT – PRE-DECISIONAL – INTERNAL VA USE ONLY 1

image1.png