Air Force celebrates 15 years of housing privatization

  • Published
  • By Breanne Smith
  • AFCEC Public Affairs
JOINT BASE SAN ANTONIO-LACKLAND, Texas --  Fifteen years ago, Air Force housing was in an unacceptable state. Airmen and their families would move from base to base, from one outdated house to the next.

Despite the Air Force's intent to provide Airmen with spacious and well-maintained homes, it just wasn't feasible because essential missions took priority and there was a lack of available manpower. That was the environment, until key legislation brought about a much needed change.

The enactment of the Military Housing Privatization Initiative of 1996 provided the Air Force and other military branches with the authority they needed to enter into the public and private sector. Housing privatization was developed to attract private sector financing and expertise to provide necessary housing faster and more efficiently than traditional military construction processes allowed.

In 1998, Lackland became the first Air Force base to close a privatized housing contract. Today, Ernie Casiano serves as a housing division project manager at the Air Force Civil Engineer Center - 15 years ago he was a lieutenant colonel newly assigned to Air Education and Training Command at Randolph Air Force Base, Texas.

"AETC was the first command to take advantage of the initiative with Lackland Air Force Base (in San Antonio) selected as the test base."

Casiano was assigned to the special project team tasked with developing the processes and procedures that would dictate the future of Air Force housing privatization.
"Prior to closing the contract, Lackland had more than 750 homes, and approximately 60 percent of those units fell below established Air Force standards," he said. "Some were even termite infested."

In August 1998, Casiano's team closed the first privatized contract. With 420 brand new units, Lackland became the first installation in the Department of Defense to privatize its military family housing.

"The reaction from the families was very positive; they loved the bigger living spaces and new amenities," he said.

Following Lackland's success, housing privatization picked up Air Force-wide, becoming the number one quality of life initiative by the Air Force.

"When military families are moving into nice spacious homes that are close to support facilities with access to great amenities, retention and re-enlistment numbers go up," said Casiano. "It's a win-win situation for everybody."

Fifteen years after closing the first privatized housing, AFCEC is approaching yet another milestone for the housing program.

"We are in the process of closing out the final two contracts that will essentially make Air Force Housing 100-percent privatized," said Col. Gregory McClure, director of housing for AFCEC's Installation's Directorate. "Once that's complete, we will no longer require tax dollar support for operation, maintenance, construction or renovation of our homes."

For the past 15 years, the Air Force has stood by the original procedures that were first developed at Lackland.

As the final contracts are closed, there will be a shift in responsibilities within AFCEC's housing division. The focus will shift to evaluating the midterm revitalization of all the long-term contract deals that have been awarded since 1998.

"These privatized arrangements are agreements that last over the course of 50 years," said McClure. "At approximately the midpoint of the 50 years, we have a major renovation effort to keep the homes in great shape throughout the final course of the program and ensuring that these out-year development plans come to reality."

Despite the initial skepticism that the program received in the early years, Casiano feels that the program's success speaks for itself.

"It's human nature to be reluctant about change," said Casiano. "Lackland was the springboard and testing ground that was ultimately the determining factor on whether or not to move forward. From the initial 420 units that were constructed at Lackland, today the MHPI program includes 53,339 units across 63 installations, resulting in $8.6 billion of work for housing replacement and renovations that wouldn't be available in such a timely manner through normal appropriations."

Of the $8.2 billion, approximately $609.8 million came from government contributions, with the private sector contributing the remaining amount. In other words, for every dollar the Air Force spent; $13 dollars was invested by the private sector.

"It's our job to take care of the warfighter, especially on the home front where family is concerned," said McClure. "Fifteen years ago we took a hard look at our housing program, and we didn't like what we saw. Today, it's a completely different story. We've set a new standard for military living."