Day 12: “The VA is good at many things.... housing definitely isn’t one of them.”
A VA director returns to the stand to explain why the department relies so heavily on enhanced-use leases: “It gets assets off our books so we don’t have to maintain them,” he said.
The 12th day of Powers v. McDonough was focused on process, specifically the process of enhanced-use leases (EULs) on the West LA VA campus.
After the completion of testimony by Keith Harris, the VA’s senior executive homelessness agent for greater Los Angeles who had originally taken the stand beginning on Thursday, the defense called back to the stand C. Brett Simms, executive director of the VA’s Office of Asset Management, who oversees the VA’s real property.
Simms had previously testified in the trial two weeks prior when called by the plaintiffs. During his testimony then, he spoke about the VA’s interpretation of a clause in the 2016 West Los Angeles Leasing Act which dictates how EULs on the West LA VA campus are operated.
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According to the VA’s interpretation of the clause, EULs are “the only method to deliver housing,” Simms said on Day 8 of testimony.
In the August 15 proceeding, plaintiffs counsel Roman Silberfeld asked, “My question fundamentally is: As the head of your office, are there other ways in which VA can build permanent supportive housing other than through an EUL mechanism?”
“I do not believe there are,” Simms replied.
“Congressional intent and their policy direction to us was very clear that the EUL program is how (housing) should be delivered,” Simms said later in that day’s testimony.
Back on the witness stand yesterday, he expounded on the extensive process required of EULs including project bidding, infrastructure improvement, and financing requirements. Using EULs, we can leverage VA assets to provide value, he said. “It gets assets off our books so we don’t have to maintain them.”
Simms explained that “in general,” housing projects are considered for leases first before other types of facilities are considered. Leases are put up for congressional approval he said, noting that Congress has not rejected an EUL since the program was first introduced in the early 1990s.
Simms’ city: How the VA says enhanced-use leases can build a veteran community
Earlier this year, C. Brett Simms spoke with Jasper Craven, a lead reporter on “Home of the Brave.” In this candid interview, Simms noted that “(EULs) were specifically put in place to develop housing.”
However, Simms also makes a bold point when it comes to terminating the leases: “If we ever got to the point where we ended the deal, the assets, the property, reverts back to VA, and the developers are essentially left with nothing to show for their investment.” For more, read on.
Simms also testified to the benefits of outsourcing the construction and operation of housing on the VA campus. “The VA is good at many things; construction, in general, isn’t one of them,” he said. “Housing definitely isn’t one of them.”
“We don't have experience in building communities like what we are looking at in West LA,” Simms added. The VA “understands” medical centers, which are at the core of the VA’s mission, he said. But the VA is “just not the right entity to do that type of work.”
Simms walked through some of the extensive processes required to be completed during the execution of an EUL, particularly as they related to the proposed construction of the thousands of housing units called for in the 2022 Master Plan.
Simms noted that the VA campus is a designated historical district. As such, the impacts of extensive construction on the campus would need to be considered. He inferred that construction and demolition could have a “cumulative effect” resulting in the loss of the designation.
As Simms was referring to a map of the campus depicting its historic designation, Judge David Carter asked Simms to point to places like Barrington Park and the Brentwood School’s baseball and softball fields, which also fall within the designated area.
Simms was then asked about the demands on infrastructure the envisioned 1,800 additional permanent supportive housing units and 750 temporary housing units would cause. The defense presented a series of maps that illustrated the campus’ existing stormwater management, electrical, sewer and water systems and their conditions (good, fair, poor).
The defense asked Simms if the stormwater system, for instance, was “ready to handle” the influx of units. “Possibly,” he answered.
During the questioning, however, Carter noted that the maps being used to illustrate the state of the campus’ infrastructure were based on 2020 surveys of the utilities. Carter pointed out on the map where units of housing are due to come online soon. He noted that in that area, the map showed the stormwater management system as being poor.
Simms answered that the stormwater management system had been redone as part of the renovation to the residential buildings.
Carter held up the map. “So this is inaccurate,” he said, shaking his head slightly.
The defense counsel asked Simms about several other maps that depicted the states of other infrastructure systems.
At one point, Carter again interjected about the accuracy of the maps stating that he had the feeling that he might be being “misled, frankly.” He added that he should have been informed of changes to the maps “to begin with.” Simms is expected to continue when testimony resumes.
Proceedings for Powers v. McDonough will continue on Tuesday, August 27 at 8:00 a.m.