OSD Housing Perspective OSD Housing Perspective

Joe SikesDirector Office of the Secretary of DefenseHousing and Competitive Sourcing

PHMA Atlanta

February 2010

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Military Family Housing ProgramMilitary Family Housing Program

• Improve Service Members’ and their families quality of life by ensuring access to suitable, affordable housing

• Look to the local community first to provide housing for military families

• Ensure access to family housing where the market cannot

– Privatization is the primary option– Government owned family housing (e.g. overseas)– Leased housing (includes Section 801)

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Where Military Families Are Living

89% of military personnel with families will receive BAH

801/802 Leased

3%

Private Sector62%

Government Owned

8%

Privatized Housing

27%

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Where Military Live (~1.5M)

69% of military personnel receive BAH

Rent in Community (31%)

Rent in Community (31%)

Homeowners (24%)Homeowners (24%)UPH ( 23%)UPH ( 23%)

Gov. Control ( 6%)Gov. Control ( 6%)

Privatized (15%)Privatized (15%)Shipboard (1%)Shipboard (1%)

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Privatization Status Privatization Status• Businesses vice Bases

– Force structure changes (BRAC/Global re-posture)– Restructuring due to occupancy issues

• Recent projects– Access debt capacity when market improves– Debt Service Reserve Guarantee

• OMB Director’s Memo (2005)– Partnerships fully scored– Negotiating extension

• Barracks/Lodging Privatization

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Privatization Business Entities Privatization Business Entities• Projects melding together

• As remaining projects complete – they typically fit into one of three classifications

Grouped: Projects involving multiple locations which were conceived prior to solicitation/award -- but executed as a single project entity

Mid-Atlantic Regional - Hampton Roads; USNA; NSWC Indian Head; NSWC Dahlgren; NSGA, Sugar Grove; NAS Patuxent River

AETC Group II - Columbus; Goodfellow; Laughlin; Maxwell; Randolph; Vance AFBs Carlisle Barracks/Picatinny Arsenal

Integrated: Installations integrated into an existing deal structure after award. Projects already owned by eligible entities subsequently merged or integrated into an existing ownership structure.

Falcon Group - Patrick AFB, Hanscom AFB, Moody AFB, Little Rock AFB Northeast Integrated - Walter Reed/Ft. Detrick, Picatinny Arsenal/Carlisle Barracks AMCC - Camp Lejeune/Cherry Point, Tri-Command

Phased: Phased projects involve housing on the same or related installations that were /are intended to ultimately be included in a single project entity

Camp Pendleton/Quantico -- Elmendorf AFB -- Fort Drum

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Project StructureProject Structure

• Long Term Health – Capehart / Wherry– Section 801

• Lease Terms– BAH rents should standardize on tour length– Shorter terms at increased rent

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Bluff Ridge Apartments

Berkeley Manor

Rent = BAHavg. cost = $1,083

Utilities included

Rent for 2 Bdr, 2 Bath is $900

± Utility costs approximately $200± Short term lease (< 1 yr) $75

± Total $1175

± Security deposit - $200

Off – Base

How Much Do You Pay? How Much Do You Pay?

Privatized

(e.g. An E5, located on Camp Lejeune, receives BAH for a 2 bedroom Townhouse)

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Social Issues Social Issues

• Waterfall Issues– Base Access

• Single Parent Families– Pregnant service members

• Dog Policy– American Kennel Club (AKC) response

DOG LATRINEDOG LATRINE

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Energy/ Sustainability Energy/ Sustainability

• Good for the planet

• Good for business

• Great examples in Privatization– We need to publicize success– Expand the model beyond housing

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Energy Savings Idea from PAL Energy Savings Idea from PAL

• Holiday Inn's new bed warmers service uses special all-in-one sleeper suits and is provided to warm the beds of guests before they get under the covers.

• ''A warm bed – approximately 20 to 24 degrees Celsius – is a good way to leave the heat off in the room.'‘

• Holiday Inn spokeswoman Jane Bednall said the idea was ''like having a giant hot water bottle in your bed''.

“. . .a giant hot water bottle in your bed''.

Homeowners Assistance ProgramHomeowners Assistance Program• The American Recovery and Reinvestment Act of 2009 (Public

Law 111-5) authorized expanding an existing program– Provided $555 million

• Provides some financial relief for service member and civilian homeowners whose homes lose value both resulting from DOD action, and also from the current market downturn.

Wounded, injured, ill military/civilians and surviving spouses

BRAC 2005 affected military and civilians (without proof of causal relationship)

Military homeowners relocating under Permanent Change of Station (PCS) orders

4,130 Eligible Applicants

Homeowners Assistance Program

Applicants Benefits Paid• 514 claims paid• Total paid to date: $47.2M

As of January 28, 2010

States with largest number of applicants

33%

20%20%

9%

8% 2%FloridaCaliforniaVirginiaGeorgiaNevadaArizona

PCS BRAC WII/SS0

1000

2000

3000

4000

96%

1%3%1%PCS BRAC WII SS

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• Barracks

• Q Ratings

• Joint Basing

• Housing Market Analyses– Overseas Policy

PotpourriPotpourri

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Hey! Could we move into one of your houses? They won’t let us in the big white one anymore!

We saw them at:

www.acq.osd.mil/housing

Hey! Could we move into one of your houses? They won’t let us in the big white one anymore!

We saw them at:

www.acq.osd.mil/housing