VA’s Management of Land Use under the West Los Angeles Leasing Act of 2016: Five-Year Report

VA built the West Los Angeles VA Medical Center and other facilities on land donated more than 100 years ago to provide housing for veterans with disabilities. While the West Los Angeles Leasing Act of 2016 allows non-VA entities to use the land, all real property leases and land-use agreements must “principally benefit” veterans and their families. In a follow-up from a 2018 audit, the VA Office of Inspector General (OIG) found that VA has made little progress in implementing the housing and service enhancement goals laid out in the draft master plan that would ultimately provide housing for 1,200 veterans. As of July 2021, VA had available only 55 of the 480 housing units—11 percent of the draft master plan’s four-year target. This occurred due to required environmental impact studies, needed infrastructure upgrades, difficulties establishing a principal developer enhanced-use lease, and challenges in raising funding. Additionally, the OIG identified seven land-use agreements that did not comply with the West Los Angeles Leasing Act of 2016. While a prior 2018 audit identified two of these seven agreements, VA has not yet taken sufficient corrective action. The OIG recommended that VA implement a plan that brings the five new land-use agreements into compliance with the West Los Angeles Leasing Act of 2016, the draft master plan, and other federal laws. The OIG further recommended that VA ensure its capital asset inventory accurately reflects all land-use agreements lasting six months or longer on the West Los Angeles campus.