(a) Third-Party Use: Any use of California Veterans Home property, other than by the State of California for veterans' purposes, is a third-party use. Housing accommodations provided to employees shall not be a third-party use. Permitted third-party use must be of substantial and direct benefit to the Veterans Home and its members. Permitted third-party use shall conform to these regulations.

(b) Determining Benefit to the Home and its Members

(c) Determination of Fair Market Value: Fair market value, used in determining compensation to the Home for the purposes of Military and Veterans Code section 1023.2(a)(3), shall be understood to conform to the definition of fair market value contained in California Code of Civil Procedure section 1263.320. If fair market value is not readily determinable by the department, the department may require a written appraisal by a licensed professional real estate appraiser to determine questions of compensation. In any such case, the department shall select the appraiser and the third party proposing use of Veterans Home property shall be responsible for costs of the appraisal.

(d) Requirement of Written Findings: A proposed third-party use of Veterans Home property shall be reviewed by the Department's Chief Counsel who, prior to submission for the Secretary's discretionary approval, shall make a written finding that the proposed use conforms to all legal requirements, including, but not limited to, the applicable provisions of the Military and Veterans Code and these regulations.

(e) Written Agreement and Secretary Approval

(f) Leases of Veterans Home Property: Any permitted third-party use of Veterans Home property for more than a single event shall be set forth in a lease pursuant to Military and Veterans Code sections 1023.1 and 1023.2.

(g) Leases of Veterans Home Property, Additional Conditions: If a proposed lease is conditionally approved, the lessee shall comply with all requirements the Department of General Services imposes for leases of state-owned property.

(h) Request for Lease of Veterans Home Property: Requests to lease Veterans Home property shall be made in writing and directed to the Secretary or their designee for initial review. The request shall specify:

(i) Licensed Use of Veterans Home Property: A one-time third-party use of Veterans Home property shall be governed by the licensing requirements set forth herein.

(j) Licensed Use of Veterans Home Property, Additional Conditions: If a proposed licensed use is conditionally approved, the licensee shall comply with all requirements the department imposes including, but not limited to, obtaining insurance coverage in specified amounts naming the department as an additional insured; providing on-site security during the event; obtaining permits from the fire marshal, California Highway Patrol, or other entity with appropriate jurisdiction; and, any other conditions that the department identifies as necessary.

(k) Request for Licensed Use of Veterans Home Property: Requests to use Veterans Home property under a license shall be made in writing and be directed to the Secretary or their designee for initial review. All requests for licensed use must be submitted at least ninety (90) days prior to the proposed use. Requests not timely submitted may not be considered. The request shall specify:

(l) Easements on Veterans Home Property: In recognition of the trust created under Military and Veterans Code section 1023, no easement for third-party use shall be granted except for easements necessary to provide utility access to the Veterans Home and temporary construction easements necessary for public works construction projects. In all cases where easements are necessary for utility access to the Veterans Home, underground and aerial easements shall be the only easements considered. No surface easements shall be granted for utility use. Fair market value compensation shall be required for any easements granted for use of Veterans Home property. Direct and substantial benefits to the Veterans Home, or its member residents, accruing solely through the grant of the easement and the authorized operations thereon, may offset the requirement for compensation.

(m) Third-Party Veterans' Affordable Housing Projects: Licenses, easements, or rights of entry that are necessary solely for the development of veterans' affordable housing projects adjacent to Veterans Home property, which are intended to be sold to or occupied primarily by qualified low income veterans, and which in the opinion of the Secretary provide a substantial benefit to the State veteran population, may be granted for such terms, and for such compensation, as the Secretary shall direct, taking into consideration the impact to the Veterans Homes operations, and the availability of alternate options for development that do not require the grant of a license, easement, or right of entry over and across Veterans Home property. The third-party use of Veterans Home property for veterans' affordable housing projects permitted by this section shall be narrowly construed and shall not apply to any other proposed third-party use of Veterans Home property.