Attachment 2 - Attachments A-E.docx

ATTACHMENT A – EUL STATUTE

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

§ 8161. Definitions

For the purposes of this subchapter:

(1) The term “enhanced-use lease” means a written lease entered into by the Secretary under this subchapter.

(2) The term “congressional veterans’ affairs committees” means the Committees on Veterans’ Affairs of the Senate and the House of Representatives.

(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.

(4) The term “lessee” means the party with whom the Secretary has entered into an enhanced-use lease under this subchapter.

(5) The term “major enhanced-use lease” means an enhanced-use lease that includes consideration consisting of an average annual rent of more than $10,000,000.

§ 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, subchapter II of chapter 5 of title 40, sections 541–555 and 1302 of title 40, 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)

(A) The Secretary may enter into an enhanced-use lease on or after the date of the enactment of this paragraph only if the Secretary determines—

(i) that the lease will not be inconsistent with, and will not adversely affect—

(I) the mission of the Department; or (II) the operation of facilities, programs, and services of the Department in the area of the leased property; and

(ii) that—

(I) the lease will enhance the use of the leased property by directly or indirectly benefitting veterans; or (II) the leased property will provide supportive housing.

(B) The Secretary shall give priority to enhanced-use leases that, on the leased property—

(i) provide supportive housing for veterans;

(ii) provide direct services or benefits targeted to veterans; or

(iii) provide services or benefits that indirectly support veterans.

(3) The provisions of sections 3141–3144, 3146, and 3147 of title 40 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 McKinney-Vento 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, 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.

(2) The term of an enhanced-use lease may not exceed 99 years.

(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.

(D)The Secretary may not waive or postpone the obligation of a lessee to pay any consideration under an enhanced-use lease, including monthly rent.

(4) The terms of an enhanced-use lease may provide for the Secretary to use minor construction funds for capital contribution payments.

(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 Office of Management and Budget shall review each enhanced-use lease before the lease goes into effect to determine whether the lease is in compliance with paragraph (5).

(c) 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) or section 224(a) of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2008, other than an enhanced-use lease under the Los Angeles Homeless Veterans Leasing Act of 2016, shall be considered to be prohibited by such sections unless specifically authorized by law.

(d)

(1) Nothing in this subchapter authorizes the Secretary to enter into an enhanced-use lease that provides for, is contingent upon, or otherwise authorizes the Federal Government to guarantee a loan made by a third party to a lessee for purposes of the enhanced-use lease.

(2) Nothing in this subchapter shall be construed to abrogate or constitute a waiver of the sovereign immunity of the United States with respect to any loan, financing, or other financial agreement entered into by the lessee and a third party relating to an enhanced-use lease.

§ 8163. Hearing and notice requirements regarding proposed leases

(a) If the Secretary proposes to enter into an enhanced-use lease with respect to certain property, the Secretary shall conduct a public hearing before entering into the lease. The hearing shall be conducted in the community in which the property is located. At the hearing, the Secretary shall receive the views of veterans service organizations and other interested parties regarding the proposed lease of the property and the possible effects of the uses to be made of the property under a lease of the general character then contemplated. The possible effects to be addressed at the hearing shall include effects on—

(1) local commerce and other aspects of the local community;

(2) programs administered by the Department; and

(3) services to veterans in the community.

(b) Before conducting such a hearing, the Secretary shall provide reasonable notice to the congressional veterans’ affairs committees and to the public of the proposed lease and of the hearing. The notice shall include the following:

(1) The time and place of the hearing.

(2) Identification of the property proposed to be leased.

(3) A description of the proposed uses of the property under the lease.

(4) A description of how the uses to be made of the property under a lease of the general character then contemplated—

(A) would—

(i) contribute in a cost-effective manner to the mission of the Department;

(ii) not be inconsistent with the mission of the Department;

(iii) not adversely affect the mission of the Department; and

(iv) affect services to veterans; or

(B) would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.

(5) A description of how those uses would affect services to veterans.

(c)

(1) If after a hearing under subsection (a) the Secretary intends to enter into an enhanced-use lease of the property involved, the Secretary shall notify the congressional veterans’ affairs committees, the Committees on Appropriations of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate of the Secretary’s intention to enter into such lease, shall publish a notice of such intention in the Federal Register, and shall submit to the congressional veterans’ affairs committees a copy of the proposed lease. With respect to a major enhanced-use lease, upon the request of the congressional veterans’ affairs committees, not later than 30 days after the date of such notice, the Secretary shall testify before the committees on the major enhanced-use lease, including with respect to the status of the lease, the cost, and the plans to carry out the activities under the lease. The Secretary may not delegate such testifying below the level of the head of the Office of Asset Enterprise Management of the Department or any successor to such office.

(2) The Secretary may not enter into an enhanced use lease until the end of the 45-day period beginning on the date of the submission of notice under paragraph (1).

(3) Each notice under paragraph (1) shall include the following:

(A) An identification of the property involved.

(B) An explanation of the background of, rationale for, and economic factors in support of, the proposed lease.

(C) A summary of the views expressed by interested parties at the public hearing conducted in connection with the proposed designation, together with a summary of the Secretary’s evaluation of those views.

(D) A description of the provisions of the proposed lease.

(E) A description of how the proposed lease—

(i) would—

(I) contribute in a cost-effective manner to the mission of the Department;

(II) not be inconsistent with the mission of the Department;

(III) not adversely affect the mission of the Department; and (IV) affect services to veterans; or

(ii) would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.

(F) A description of how the proposed lease would affect services to veterans.

(G) A summary of a cost-benefit analysis of the proposed lease.

§ 8164. Authority for disposition of leased property

(a) If, during the term of an enhanced-use lease or within 30 days after the end of the term of the lease, the Secretary determines that the leased property is no longer needed by the Department, the Secretary may initiate action for the transfer to the lessee of all right, title, and interest of the United States in the property. A disposition of property may not be made under this section unless the Secretary determines that the disposition under this section rather than under section 8118 or 8122 of this title is in the best interests of the Department.

(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.

(c) Not less than 45 days before a disposition of property is made under this section, the Secretary shall notify the congressional veterans’ affairs committees of the Secretary’s intent to dispose of the property and shall publish notice of the proposed disposition in the Federal Register. The notice shall describe the background of, rationale for, and economic factors in support of, the proposed disposition (including a cost-benefit analysis summary) and the method, terms, and conditions of the proposed disposition.

§ 8165. Use of proceeds

(a)

(1) Funds received by the Department under an enhanced-use lease and remaining after any deduction from those funds under subsection (b) shall, at the discretion of the Secretary, be deposited in—

(A) the Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title; or

(B) the Medical Facilities or Construction, Minor Projects account of the Department to be used to defray the costs of administration, maintenance, repair, and related expenses incurred by the Department with respect to property that is owned by or under the jurisdiction or control of the Department.

(2) Funds received by the Department from a disposal of leased property under section 8164 of this title shall be deposited into the Department of Veterans Affairs Construction, Major Projects account or Construction, Minor Projects account, as the Secretary considers appropriate.

(b) An amount sufficient to pay for any expenses incurred by the Secretary in any fiscal year in connection with an enhanced-use lease shall be deducted from the proceeds of the lease for that fiscal year and may be used by the Secretary to reimburse the account from which the funds were used to pay such expenses. The Secretary may use the proceeds from any enhanced-use lease to reimburse applicable appropriations of the Department for any expenses incurred in the development of additional enhanced-use leases.

§ 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.

§ 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.

§ 8168. Annual reports

(a) Report on Administration of Leases. —

(1) 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 the congressional veterans’ affairs committees, the Committees on Appropriations of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate a report on enhanced-use leases.

(2) Each report under paragraph (1) shall include the following:

(A) Identification of the actions taken by the Secretary to implement and administer enhanced-use leases.

(B) For the most recent fiscal year covered by the report, the amounts deposited into the Medical Care Collection Fund account that were derived from enhanced-use leases.

(C) Identification of the actions taken by the Secretary using the amounts described in subparagraph (B).

(D) Documents of the Department supporting the contents of the report described in subparagraphs (A) through (C).

(b) Report on Lease Consideration. —

(1) Each year, as part of the annual budget submission of the President to the congressional veterans’ affairs committees, the Committees on Appropriations of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate under section 1105(a) of title 31, the Secretary shall submit to the congressional veterans’ affairs committees, the Committees on Appropriations of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate a detailed report of the consideration received by the Secretary for each enhanced-use lease under this subchapter.

(2) Each report under paragraph (1) shall include the following with respect to each enhanced-use lease covered by the report:

(A) An overview of how the Secretary is using consideration received by the Secretary under the lease to support veterans.

(B) The amount of consideration received by the Secretary under the lease.

(C) The amount of any revenues collected by the Secretary relating to the lease not covered by subparagraph (B), including a description of any in-kind assistance or services provided by the lessee to the Secretary or to veterans under an agreement entered into by the Secretary pursuant to any provision of law.

(D) The costs to the Secretary of carrying out the lease.

(E) Documents of the Department supporting the contents of the report described in subparagraphs (A) through (D).

§ 8169. Repealed. [Pub. L. 117–168, title VII, § 705(d), Aug. 10, 2022, 136 Stat. 1800]

Source: https://www.law.cornell.edu/uscode/text/38/8161

ATTACHMENT B – EUL SITE MAP

ATTACHMENT C – EUL SITE INFORMATION

Location of Campus

The Togus Campus is located at 1 VA Center, Augusta, Maine 04330. A map depicting the approximately 500-acre campus and outlining the EUL Site is included in Attachment B.

The Togus VAMC is in Kennebec County, Maine, approximately five miles from the City of Augusta. It is situated along Togus Stream in a rural community that falls within the city limits of Augusta and Chelsea.

The Togus Campus is bordered to the south and west by wooded area and wetlands, to the east by single family homes and institutional space, and to the north by a residential area. The Togus VAMC is located on Route 17, which is a heavily trafficked two-lane road. The nearest highway is Interstate-95, which is five miles from the Campus. The EUL Site is located on the interior of the Togus Campus and is accessible only by campus roads. The Togus Campus has no access to public transportation.

ATTACHMENT [D] – INFORMATION ON SITE TOURS

The site tour will provide Offerors with an opportunity to see the EUL Site, enter existing improvements (if possible), and understand how the EUL Site relates to the rest of the VA campus and community.

Date: Tuesday, May 30, 2023, 2-4pm EST

Location: Building 205, Room 112 VA Maine Healthcare System- Togus 1 VA Center Augusta, ME 04330-6796

For Virtual attendees, please see the link for the informational:

Join on your computer, mobile app or room device

Join on your computer, mobile app or room device Click here to join the meeting Meeting ID: 299 162 309 27 Passcode: Pw7Zo7 Download Teams | Join on the web Or call in (audio only) +1 872-701-0185,,719586363# United States, Chicago Phone Conference ID: 719 586 363# Find a local number | Reset PIN

RSVP by May 19, 2023: If you are interested in attending the site visit, please email Richelle.wagner@va.gov with the name(s), organization name(s), email address(es), and telephone number(s) of the people attending. Please note in the subject line “EUL Site Visit Registration”.

ATTACHMENT [E] – POST-SELECTION PROJECT PLANS

As described in Section 3 of this RFQ, following selection, the selected Offeror will be expected to prepare the following plans with VA input and approval. These plans, once final, will constitute exhibits to the EUL.

1. SITE PLAN

Plan showing the existing EUL Site and its immediate surroundings.

2. DESIGN PLAN

Architectural drawings to include floor plans, landscape plans, elevations, and renderings of the development. A future site plan should also be included as part of the Design Plan.

3. DEVELOPMENT PLAN

(a) Project Overview

(1) The specific type of project contemplated as defined in the EUL statute and a comprehensive plan for the redevelopment of the EUL Site;

(2) Project feasibility, including any anticipated barriers and a plan to overcome those barriers at the early stage of development engage local officials for utility providers (e.g., water and sewer);

(3) Plan to ensure proposed uses are compatible with VA’s mission;

(4) Development schedule;

(5) Development team composition;

(6) Community awareness strategies;

(7) Use of small and local businesses, such as Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs);

(8) Plans to hire Veterans during the lifecycle of the project;

(9) Plan to secure applicable zoning, permits and other building and land use requirements, noting any expected obstacles and a strategy to overcome those obstacles.

(b) Transaction Terms

(1) Proposed entity that would serve as the Lessee (on behalf of the selected Offeror) under the EUL, including all ownership structures associated with the Lessee;

(2) Proposed term of EUL (i.e., up to a maximum of 99 years); and,

(c) Project Financing

(1) Financing plan, including sources of funds and any proposed tax abatements;

(2) Development budgets;

(3) Pro forma statements for a minimum of the lease term;

(4) Supportive/resident services budget;

(5) Sources and uses of funds;

(6) Plan to obtain Financing Commitment Letters that will provide written assurance(s) from the proposed funding sources that those sources will provide the project financing proposed as part of the selected Offeror’s financing structure at the EUL closing, with all conditions required for such funding clearly articulated; and,

(7) Plan to execute a performance bond that will provide a written commitment from a surety to provide a performance bond equal to the total development cost at the EUL closing.

(d) Construction Narrative, Site Plan, and Design Plans

(1) Analysis of existing land use restrictions governing the EUL Site, development and land use recommendations, variances required, and plan for obtaining them;

(2) Preliminary utilities, parking, site accessibility, traffic mitigation, and landscape plans;

(3) Impact of proposed Development Plan on historic properties, including documentation required to comply or facilitate compliance with NHPA;

(4) Plan for obtaining all necessary public/private entitlements; and,

(5) Development and construction management plan.

(e) Energy Conservation and Sustainable Design Plans for the building design, construction and other administrative work necessary to both 1) comply with the Guiding Principles outlined in VA’s Sustainable Design and Energy Reduction Manual; and 2) apply for and receive a minimum of the Silver Certification for the Leadership in Energy and Environmental Design for Homes (LEED-H) of the U.S. Green Building Council’s (USGBC) Green Building rating system for homes or equivalent by their respective rating organizations (per VA’s review and approval).

4. OPERATIONS AND MAINTENANCE PLAN

(a) Goals and Objectives Goals and objectives of the plan and any guiding principles or overarching philosophy to support the success of the project.

(b) Property Management and Staffing

(1) Realistic on-site staffing plan for resident management, service needs, and other operational considerations;

(2) Qualifications for positions; and

(3) An organization chart depicting the staff reporting structure and delineating whether staff is located on-site or off-site (e.g., at a regional corporate office) and whether staff is full-time or part-time.

(c) Supportive Services

(1) Explanation of how services appropriate for permanent housing will be coordinated and managed, including identifying which supportive/resident services are to be provided on-site;

(2) Explanation of how residents are to be involved in making facility decisions that affect their lives, including how they are to be involved in selecting supportive/ resident services, establishing personal goals and developing a plan to achieve these goals so that they achieve greater self-determination;

(3) Employment plan designed to help the residents attain long-term employment;

(4) Plans to minimize legal substance use in project (Note: Use of illegal substances is prohibited); and

(5) Plans for residents to be assisted in assimilating into the community through access to neighborhood facilities, activities and services.

(d) Maintenance Maintenance plans to include housekeeping / custodial maintenance, grounds maintenance / landscaping, service requests, routing maintenance inspections, and non-routine / capital repairs.

(e) Utilities Utilities and infrastructure plans, including the provider names and connection locations for water, gas, sewer, telecommunications, and electricity sources and arrangements with VA or utility companies for payment, maintenance, and any necessary easements.

(f) Substance, Alcohol, and Weapons Policy Statement that the project is a weapons-, alcohol-, smoke-, and drug-free (other than properly prescribed medication) community or description of the specific policies allowing for alcohol consumption (e.g., within the units but not in common areas, etc.) if a waiver has been obtained from the VAMC Director.

(g) Safety and Security Property and asset protection (e.g., security, police, fire, ambulance, etc. arrangements) description, containing a detailed explanation of how security will be assured in the project that may include but not be limited to:

(1) A property management staffing plan (number of Full Time Employees and Part Time Employees (FTEs, PTEs)) and their position descriptions, including any security personnel (if applicable);

(2) Fire safety plans and processes (e.g., equipment, inspections, drills, etc.);

(3) Summary of any jurisdiction related issues impacting provision of police, fire, and/or ambulance services to the project;

(4) Any mutual aid and/or assistance agreements for provision of police, fire, and/or ambulance services;

(5) How access will be provided to emergency providers if/when necessary; and

(6) Security policies/measures that will be implemented to keep residents safe, including a visitors’ policy and detailed access information.

5. TENANT SELECTION PLAN

(a) Legal Requirements Necessary language to ensure nondiscrimination and tenant privacy of personal information.

(b) Marketing and Leasing Plan

(1) Initial outreach methods for lease-up; and

(2) Ongoing outreach plan to identify and screen eligible Veteran residents to ensure that the facility is fully occupied (Note: It is not the responsibility of VA to provide selected Offeror with eligible Veterans.).

(c) Application and Selection Process Description of the tenant application and selection process to include accessing applications, processing applications, eligibility criteria, reasons for rejection, notification of acceptances and rejections, appeals process, assignment of units, and security deposit, if applicable.

(d) Occupancy and Waitlist Management

(1) Responsibility for and frequency of generating and analyzing occupancy reports; and

(2) Description of how the waitlist will be managed, including Veteran priority.

(e) Tenant Recertification Procedures for ongoing tenant income recertification or other eligibility recertification.

(f) Move-in and Move-out Move-in and move-out procedures including any unit inspections.

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