Housing Privatization continues to achieve milestones

  • Published
  • By Lisa Fisher
  • Housing Privatization Division
LACKLAND AIR FORCE BASE, Texas --  
U.S. Air Force photos
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Master Sgts. Sarah and Anthony DeLuzio cut a ribbon May 14, 2010, to celebrate the opening of 61 new homes in the North Skeet neighborhood at Lackland Air Force Base, Texas. Others pictured are (left to right) Ian Smith, AFCEE deputy director of Housing Privatization, and Balfour Beatty Communities representatives Raul Martinez, Ron Nestor and Kristi Sharp.
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Privatized homes line Kirtland Air Force Base, N.M.
The Air Force Housing Privatization program continues to make significant progress in taking care of Airmen and their families.

Working with private industry project owners, the Air Force has privatized 70 percent of the original Air Force housing inventory, effectively saving the Air Force $7 billion when compared to traditional military construction.

At the conclusion of fiscal year 2010, privatization successfully leveraged $423 million of investment to $6.54 billion in development. As a result, for every dollar the Air Force spends on its stateside housing, private industry invests $15.

Through this program, the Air Force provides modern homes at a faster rate and at a lower cost than through traditional construction.

"Before housing privatization, it was going to take us the better part of 25 years to improve or replace the homes in our inventory," said Ms. Kathleen Ferguson, Deputy Assistant Secretary of the Air Force for Installations. "Through housing privatization, we have been able to eliminate nearly all of our inadequate houses in the Air Force, and in their place build thriving housing communities for Airmen and their families."

Since the program's inception in 1998, the Air Force Housing Privatization program has eliminated more than 35,000 inadequate homes in the United States. To date, some 38,000 units at 44 bases have been privatized.

As of September 2010, 10 of the 44 installations have completed their initial project construction or renovation requirements. The Air Force and project owners have provided more than 20,000 new and renovated homes, averaging 575 units delivered per month in 2010. In addition to homes, project owners have provided 52 community centers, 55 jogging trails, 30 pools, and numerous other sports courts, playgrounds and dog parks for Airmen and their families.

"Housing privatization is central to the success of our stateside military family housing initiatives," Ms. Ferguson said. "We plan to privatize 100 percent of our family housing in the United States by (fiscal year) 2012."

Currently, 23 installations are awaiting privatization. The Air Force anticipates privatizing the remaining housing units by October 2012, resulting in 52,900 end-state units for Airmen and their families.

Housing officials have been paying close attention to portfolio metrics, particularly occupancy and delinquency rates, to ensure not only the success of closed projects, but also the success of projects pending privatization.

"We plan to utilize lessons learned from previously privatized projects to ensure all of our future projects remain sustainable for the next 50 years," said Maj. Gen. Timothy Byers, Air Force Civil Engineer.

High occupancy in privatized housing communities contributes to project sustainability, and an overall successful program. Rent payments help fund additional construction, services and amenities. A portion of this money is also set aside for long-term maintenance and upgrades throughout the 50-year lease with the Air Force.

The current program occupancy rate is 91.1 percent, which is the highest level in five years. Occupancy at projects where construction is complete is 95.6 percent, which is the highest level in the past six years, housing officials reported.

The Air Force is supporting a number of initiatives to keep the program on track, such as co-locating the project owner and housing management office staffs, which is expected to create synergy and help the projects at the installations run smoother, General Byers said. Co-location has already been successfully implemented at some installations, such as Andrews Air Force Base, Md.

The general added co-location is integral to the future of the program.

"With co-location, we are better able to posture the HP program for success," he said. "We are continuing to provide housing information to Airmen, but now we can make it simpler by sending them to a 'one stop shop' for all of their housing needs."