VA’s Management of Land Use Under the West Los Angeles Leasing Act of 2016

The VA Office of Inspector General (OIG) conducted this audit to determine VA’s compliance with the West Los Angeles Leasing Act of 2016 (Act). This Act requires that all real property leases and land sharing agreements involving the West Los Angeles (WLA) campus—part of the VA Greater Los Angeles Healthcare System (GLAHS) in California—principally benefit veterans and their families. Specifically, the OIG assessed whether such leases and other land use agreements were used for purposes allowed under the Act, comply with other federal laws, are veteran-focused and consistent with VA’s objective to revitalize its WLA campus, and were managed effectively. The OIG reviewed 40 land use agreements and determined that 11 did not comply with the WLA Leasing Act, other applicable federal laws, or the Draft Master Plan (DMP). Also, 14 non-VA entities were operating on campus with either an expired or no documented agreement. The OIG determined these noncompliant arrangements resulted from insufficient veteran input on land use, unclear VA policies on what constituted appropriate use of “out leases” and revocable licenses, and incomplete capital asset inventory land use agreement records maintained by GLAHS.Further, although WLA is making progress to implement the DMP, is not on track to meet its revised milestone to provide 484 permanent supportive housing units by September 2020. The OIG recommended VA implement a plan that puts the WLA campus in compliance with the Act, the DMP, and other federal laws. VA should also ensure all agreements are compliant with the Act, create a process to obtain input from the veteran community advisory board on campus land use, update policies and procedures, and ensure the capital asset inventory reflects all agreements.