Battle heats up over proposed apartment complex at Sepulveda VA

By Peggy Burgess

North Hills, CA. The battle to save the Sepulveda VA from encroachment by private sector developers has heated up as Veterans and a coalition of over 662,000 opponents rejected newly amended leases between the Department of Veterans Affairs and developers New Directions and A Community of Friends (ACOF).

According to Eric Shinseki , Secretary Department of Veterans Affairs, the modification will ensure that a proposed 147 unit apartment complex, plus two managers, at the Sepulveda VA will be occupied solely by homeless Veterans. Opponents say “not so fast. Veterans only occupancy is not the issue and even it were, the amendments are meaningless since, per Article 7, Section B, 4, these Leases can be amended at any time for any reason, so they can be amended again to allow rental to anyone.”

The 75-year Enhanced Use Leases with New Directions and A Community of Friends allow conversion of two urgently needed medical buildings, 4 and 5, on 7.05 acres in the very heart of the Sepulveda campus. The 2004 estimated cost of the conversion to 149 400 sq. ft. apartments was $40 million. The 2010 cost to taxpayers, based on only a 3% inflation rate, is almost $48 million and there is no competitive bidding. Homeless Veterans can be housed anywhere and this complex can be built anywhere else for $100,000 per unit. In February 2009, L.A. County housed 50 homeless individuals permanently for only $3.6 million

According to opponents, the primary issue is will this project benefit the majority of the Veterans. The answer is no, it will not. The buildings to be converted, 4 and 5, were the psychiatric unit. They are well maintained, immaculate and in good condition. Veterans are entitled to receive medical care and treatment in their immediate area. So, the Veterans and their supporters want the buildings refurbished and staffed as medical buildings which will house 300-350 Veterans undergoing treatment at any given time. The apartments, even if they are for Veterans only, will house only 147 permanently. The cost to re-commission 4 and 5 as medical buildings will be far, far less than the cost of conversion.

The Sepulveda VA Service area includes the entire San Fernando, Simi and Antelope Valleys. North to Santa Maria and east past Lancaster Palmdale to California City. Home to over 310,000 veterans. They will be soon be joined by thousands more returning from Iraq and Afghanistan. Many suffering from serious physical and emotional problems including PTSD and Traumatic Brain Injury. They will all need medical buildings, medical care and treatment, not apartments.

According to the coalition of opponents, which include the California state wide American Legion and Disabled American Veterans, eleven San Fernando Valley Neighborhood Councils and thousands of individual Veterans throughout the Sepulveda service area, the Leases themselves are also a major issue and must be rescinded. .

”This battle has only just begun. We need more medical buildings and facilities, not less,” said Lawrence Van Kuran, Adjutant 20th District American Legion, which includes the Sepulveda VA service area. “The 160 acres on which the Sepulveda VA stands were donated to the U.S. Government specifically for a Veterans hospital and medical center. The Shinseki amendment has no teeth and is just a thinly veiled attempt to pacify the ever increasing number of opponents.

“The leases violate the intent of the donors and the public trust. If they are not rescinded and this project goes forward, the entire Sepulveda campus will be opened up to further undesirable private sector development and we will lose not only those 7.05 acres but the entire 160 acres and our hospital forever. This is Veterans Land so we want these Leases rescinded, our hospital rebuilt and the Sepulveda VA restored as the full service medical center it was designated to be, starting with buildings 4 and 5,” he said.

The North Hills West Neighborhood Council (NHWNC) has studied this project since 2004 and twice voted to deny it. Loyd Ray, co-chair of the NHWNC Land Use Committee, said “this project which is marketed as permanent supportive housing for homeless Veterans is just a smoke screen to mask the real intent of the leases which is to dispose of the land. We know that is the intent at Sepulveda, and it’s happening all over the Country. Homeless Veterans can be housed anywhere, Veterans in need of medical care must be treated at VA hospitals.” Ray cited a few of the objections to the New Directions/ACOF Leases:

• According to the Department of Veteran Affairs, the sole purpose of the Enhanced Use Lease is to allow the VA to lease Federal Land to the private sector and clear the way for the disposal of unwanted veterans land by sale or simple transfer of all rights, title and interest to the lessees.

• The individual leases do not even have to contain language that allows the sale or transfer of the property to the developers. Pursuant to the overriding documents, The VA’s Asset Management Plan, Chapter 5 Disposal Authority; Public Law 108-422 and Section 8164, Title 38 U.S. Code, the Secretary Department of Veterans Affairs can sell or simply transfer all rights, title and interest in the land and assets to the developers at any time during the 75 years.

• According to the Leases, the developers, New Directions and A Community of Friends,get title to the buildings and all improvements on 7.05 acres right in the heart of the Sepulveda campus. They also get 90% of the film revenue from buildings 4 and 5, projected by the VA at over $7M in 2010.

• The Leases can be re-assigned to other lessees

• The buildings can be mortgaged for any amount, there’s no limit in the leases, and there is no provision for what happens to the buildings and the land in event developers are unable to meet the mortgage payments and the loans are foreclosed.

“The developers and the VA claim the Sepulveda project will be permanent supportive housing for homeless Vets. It’s doubtful any homeless person could meet the occupancy requirements. These include: an acceptable credit report which the homeless Veteran must pay $15 for. Verification of all income and assets of all family members; a key deposit and a security deposit equal to the last month’s rent,” said Ray. “If the VA truly wanted housing for Homeless Vets, they could build all they want on VA land without approval from anyone. They won’t do that. It would defeat their purpose which is to dispose of the land and assets.” Ray said

In a statement issued October 14, Congressman Brad Sherman said he continues to oppose the project and stated “although this lease amendment deals with my number one concern……I urge the parties to address the numerous other concerns the community has raised….we need to work to use the facility to provide expanded health care to Valley Veterans.” The Veterans say the Congressman should be fighting for them to get the leases rescinded.

The Veterans and the Coalition of Opponents say “this country is at war. To deprive thousands of aging and disabled Veterans of medical care and treatment to house just a few would be criminal.” They vow to continue their fight until the leases are rescinded, buildings 4 and 5 are refurbished and staffed as medical buildings, the hospital rebuilt and the Sepulveda VA restored to the full service hospital medical center it was designated to be.

Peggy Burgess is a Stakeholder Member of the North Hills West NC Land Use Committee and is actively involved in the battle to save the Sepulveda VA. Email: [email protected]