H.R. 3484 would authorize the Department of Veterans Affairs (VA) to lease property at the department’s medical campus in Los Angeles to developers who would construct supportive housing and rehabilitation facilities for homeless veterans. Once occupied, the housing would receive operating subsidies from the Department of Housing and Urban Development (HUD). VA personnel would provide a variety of services on an ongoing basis to resident veterans. CBO believes that constructing housing in that manner is a governmental activity that should be recorded in the federal budget. Funding for the construction and operation of that housing would come from a combination of nonfederal contributions, mandatory federal funding, and discretionary appropriations.
CBO estimates that enacting H.R. 3484 would increase net direct spending by $18 million over the 2017-2026 period. In addition, implementing the bill would cost $29 million over the 2017-2021 period and $118 million over the 2017-2026 period, subject to appropriation of the necessary amounts.
Pay-as-you-go procedures apply because enacting the legislation would affect direct spending. Enacting the bill would not affect revenues. CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.
