> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # VA lengthens lease extension - URL: https://www.smdp.com/va-lengthens-lease-extension/ - Published: 2008-08-07T15:00:00.000Z - Updated: 2026-10-25T00:33:50.000Z - Author: Melody Hanatani - Tags: Real Estate & Housing, Santa Monica, #archive-import, Homeless *Lease extension makes it easier for nonprofits to secure financing* A homeless housing project at the Veterans Administration campus is closer to fruition after federal officials this week announced a major development that would make it more feasible for potential service providers to overcome one of its biggest obstacles — securing financing. The Department of Veterans Affairs notified City Hall on Monday it was extending the term of its enhanced sharing agreement for the Building 209 Homeless Housing Project — which would convert three existing facilities on the VA grounds to support homeless services — from 40 to 55 years. The relative short time-frame for the lease was a concern for advocates of the long-awaited housing initiative, fearing that potential homeless service providers would not be able to find the necessary financing and tax credits to make the program a reality. 3E1,“This indicates good faith on the Veterans Administration to address the significant constraints with moving the project forward and a very quick response to address that constraint,” Barbara Collins, the housing manager for City Hall, said. The project had been mostly stagnant since former VA Secretary Jim Nicholson announced last August that three buildings located in the northern part of the campus would be used to support the homeless veteran population. The buildings were originally constructed for mental patients and had been collecting dust for more than 25 years. The City Council, frustrated with the slow pace of the initiative, issued a non-binding resolution last month calling on federal officials to move the project along. In a meeting with VA representatives, the council learned it may be more than a year before the veterans could move into the buildings, the slow timeline attributed to a lack of room to move the patients who currently occupy one of the buildings. Concerns with the financing first arose earlier this year when a new legislation banning future commercial development on the VA, as well as enhanced-used leases, was enacted. The longer-term leases were typically used in the sale of property, but also by homeless service providers. “When they proposed this at 40 years, it meant that the principal source of financing for this wasn’t available,” Councilmember Bobby Shriver, one of the project’s main supporters, said. “It’s finally financable.” Tim Cantwell, one of the principals of Cloudbreak Development, which focuses on special needs housing for homeless veterans, said the change to the lease agreement will open up additional financing mechanisms that would not have been available if it remained at 40 years. Cloudbreak Development, which operates under parent company Cantwell-Anderson, could be interested in the building rehabilitation aspect of the project, having previously worked on the Westside Residence Hall, which provides 515 beds for homeless veterans, and the Villages at Cabrillo, a 26-acre program in Long Beach. The U.S. Veterans Initiative, a nonprofit organization that works with homeless and at-risk vets, has expressed interest in the program, having attended a site visit on the campus for potential providers last month. The organization is thinking of partnering with a developer for the project, which is the course most non-profits take for such a large-scale project. While the estimate for rehabilitation has yet to be determined, Dwight Radcliffe, the CEO and president of U.S. Veterans Initiative, suspects it could exceed $13 million, given the necessary earthquake retrofit and the extra sensitivity involved for the historic properties. “There’s significant abatement issues,” Radcliffe said. “It’s a huge project.” Jump hedline: Lease extension makes it easier for nonprofits to secure financing Suggested pullquote: “This indicates good faith on the Veterans Administration to address the significant constraints with moving the project forward and a very quick response to address that constraint.” Barbara Collins Housing Manager, City Hall Lucida Grande 40, 4 0 400 0¬ 1 0 40, Minion 40, 4 0 231A 0¬ 1 0 *Originally published in the Santa Monica Daily Press print edition on August 7, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/080708.pdf?ref=smdp.com)