A long overdue report from the VA reveals major shortcomings in the way land use agreements on the West Los Angeles VA Medical Center campus are being managed, according to recent filings with Congress. The report was first mandated by the West Los Angeles Leasing Act of 2016.
The VA’s report finds that several third-party leases on the West LA campus generate significantly less revenue than what the land could command on the open market. The combined market rental value of leases held by Brentwood School, UCLA, and the company operating the SafetyPark parking lots is estimated at roughly $48 million annually, while the actual revenue collected during the reporting year was only about $1.7 million.
Additionally, the VA says it cannot verify millions of dollars in “in-kind” benefits claimed by lessees, which are services or support allegedly provided for Veterans that the VA cannot substantiate. Brentwood School, for example, claimed in-kind benefits of around $1.84 million during the period in question, but the VA reported that it could not confirm whether those benefits were actually delivered or whether the valuation was accurate.