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Housing Privatization

About MHPI
The goal of the Military Housing Privatization Initiative is to provide military families access to safe, quality, affordable, well-maintained housing in a community where they will choose to live. The MHPI projects involve the Air Force leasing land and conveying housing and associated improvements to a private developer for the purpose of revitalizing, maintaining, and managing Air Force family housing communities for a period of 50 years. When Congress authorized housing privatization as part of the 1996 National Defense Authorization Act, the vast majority of the Air Force housing inventory was antiquated or in dire need of repair or replacement. The time required to program, fund, design, and execute projects needed to create modern, revitalized housing communities for our Airmen through traditional processes was infeasible. Housing privatization provided a win-win mechanism that leveraged limited federal resources to improve housing at all domestic installations while allowing the private sector to bring its expertise to ensure long-term quality management and sustainment.

Privatization creates mutual benefits for all stakeholders. It gives the Air Force the ability to provide quality and affordable housing communities to it members much quicker than traditional methods while opening the military construction market to a greater number of development firms and stimulating local economies through increased building activity. Housing Privatization's biggest benefits, however, are for Airmen and their families. These benefits are outlined below.



Development Benefits
  More square footage than traditional military construction
  Reality construction meeting modern local standards
  Modern appliances, finishes, and fixtures
  Garages and other amenities
Community Benefits
  Additional playgrounds and tot lots
  Basketball/Volleyball/Tennis Courts and athletic fields Community Centers
  Community activities such as:
--Educational/Safety events
--Holiday celebrations
--Family and community bonding activities
Cost Benefits
  Basic Allowance for Housing covers rent and utilities (efficient energy use can mean more money in your pocket)
  Renter's insurance provided at most communities
  Convenient access to work and base services

AFCEC/CIMH's Role in Privatized Housing
Project Execution: Closing remaining MHPI projects and executing future programmatic housing initiatives.

Post-Closing Management: Design and construction oversight, Annual Site Visits and scoring for each project and/or installation, and semi-annual Program Evaluation Plan reporting.

Housing Operations: Support of ongoing operations at privatized locations. Responsibilities include training installation personnel on transition to and continued oversight of privatized housing, transaction document and amendment reviews, resident satisfaction survey oversight and analysis, Management Review Committee oversight, and development of policy guidance.

Portfolio Management: Working with AFCEC Installations Directorate on oversight and monitoring of privatization project financials, quarterly project reporting, quarterly compliance testing to ensure project owner adherence to transaction documents, project lockbox oversight, Government Direct Loan administration, annual project budget reviews, project restructuring, and database management.

Standardization and Benchmarking: Development and management of standard practices where feasible and beneficial. This process includes the development, collection, and dissemination of lessons learned across the privatized housing portfolio.

See the links below for more information on HP.




Housing Contacts

AFCEC/CIMH, Bldg. 171
2261 Hughes Ave, Ste 155
JBSA Lackland, TX 78236-9853
Toll Free: 1-888-232-3721
Comm: 1-850-283-6995
DSN: 312-523-6995

Housing Branch

SAF/GCN San Antonio (Legal)