Enhanced use lease

Enhanced use lease

In the United States Enhanced Use Lease (EUL) is a method for funding construction or renovations on military property by allowing a private developer to lease underutilized property, with rent paid by the developer in the form of cash in-kind services. Currently, EULs are used by the Department of Defense and the Veterans Administration. Temporary authority has also been granted to the General Services Agency and the National Aeronatics and Space Administration. EUL authority is derived from Congress and is specific to each agency (e.g. 10 USC 2667 for the DoD). The information below is specific to DoD EULs.

Granted a fifty-year lease, the developer is able to make improvements to the property which can be leased at market rents to any interested tenants. Under EUL, federal control over the leased property is ceded to private developers, though the federal agency retains limited rights over the developers' actions.

Since the agency can issue enhanced use leases only on land that is excess to their needs, the improvements must not be directly tied to any programmatic requirements of the installation.

The advantages to the developer include prime secure convenient locations on military installations, and the opportunity to provide sole-source services and products in lieu of rent for the ground lease.

The advantages to the federal agency include the possibility of fast-tracking alterations, repairs or new construction so that the improved space becomes available for lease. Engineering, maintenance, or construction services are provided by the developer in lieu of rent, thus decreasing the federal payroll.

The enhanced use lease is becoming a very popular tool to accommodate realignment of military functions under BRAC. Military installations are legally bound, but not necessarily funded, to accommodate BRAC-mandated realignments of functions. Though the intent of EUL is to fully utilize property which is excess to the installation's needs, EUL is now thought of as a way to provide new or renovated real property which can be used to accommodate realigned functions, while circumventing the traditional (sometimes lengthy) Congressional funding process.

The use of EULs has mushroomed with the expanded authority of Title 10 USC, Section 2667, of the National Defense Authorization Act. It remains to be seen whether this form of privatization will create increased financial, security or environmental risks. Legal complications that have emerged include how EUL-encumbered property will be treated when an installation is targeted for closure under BRAC (example, Building 40 at Walter Reed).

External links

* [http://eul.army.mil/aboutEUL.htm About Enhanced Use Leasing] (U.S. Army)
* (U.S. General Services Administration)


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Lend-Lease — (Public Law 77 11) [http://books.google.com/books?id=hUoIaQqipboC pg=PA28 Crossed Currents By Jean Ebbert, Marie Beth Hall, Edward Latimer Beach] was the name of the program under which the United States of America supplied the United Kingdom,… …   Wikipedia

  • NASA Research Park — is a research park run by NASA which aims to develop a world class, shared use research and development campus in association with government entities, academia, industry and non profit organisations. It is situated in near San Jose, California.… …   Wikipedia

  • Aberdeen Proving Ground — (APG) is a United States Army facility located near Aberdeen, Maryland (in Harford County). Part of the facility is a census designated place (CDP), which had a population of 3,116 at the 2000 census.The Army s oldest active proving ground, it… …   Wikipedia

  • Military housing privatization — The Military housing privatization initiative (MHPI) was established by the United States Congress in 1996 as tool to help the military improve the quality of life for its service members by improving the condition of their housing. The MHPI was… …   Wikipedia

  • Walter Reed Army Medical Center — Infobox Military Unit unit name= Walter Reed Army Medical Center caption= The WRAMC Distinctive Unit Insignia dates= May 1, 1909 Present country= United States allegiance=United States branch= United States Army type= Hospital role= size= command …   Wikipedia

  • Walter Reed Army Medical Center neglect scandal — The Walter Reed Army Medical Center neglect scandal resulted from a series of allegations of unsatisfactory conditions and management at the Walter Reed Army Medical Center (WRAMC) in Washington, D.C. culminating in two articles published by The… …   Wikipedia

  • Hudson River Historic District — Infobox nrhp | name = Hudson River Historic District nrhp type = nhld caption = A 2007 view of the Catskills across the Hudson, one of the district s defining features location= Staatsburg, Rhinecliff, Tivoli, Annandale, Barrytown area = 34.6… …   Wikipedia

  • international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… …   Universalium

  • Europe, history of — Introduction       history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… …   Universalium

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”