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OSD Housing Perspective. Joe Sikes Director Office of the Secretary of Defense Housing and Competitive Sourcing. PHMA Atlanta February 2010. Military Family Housing Program.

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Osd housing perspective

OSD Housing Perspective

Joe Sikes

Director

Office of the Secretary of Defense

Housing and Competitive Sourcing

  • PHMA Atlanta

  • February 2010


Military family housing program
Military 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)


Privatized

Housing

27%

Private

Government

Sector

Owned

62%

8%

801/802

Leased

3%

Where Military Families Are Living

89% of military personnel with families will receive BAH


Where Military Live (~1.5M)

Shipboard (1%)

Privatized (15%)

Rent in Community

(31%)

Gov. Control ( 6%)

UPH ( 23%)

Homeowners (24%)

69% of military personnel receive BAH


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


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


  • Project structure
    Project Structure

    • Long Term Health

      • Capehart / Wherry

      • Section 801

    • Lease Terms

      • BAH rents should standardize on tour length

      • Shorter terms at increased rent


    How much do you pay
    How Much Do You Pay?

    • Privatized

    • Off – Base

    • Rent for 2 Bdr, 2 Bath is $900

    • Utility costs approximately $200

    • Short term lease (< 1 yr) $75

    • Total $1175

    • Security deposit - $200

    • Rent = BAH

    • avg. cost = $1,083

    • Utilities included

    Bluff Ridge Apartments

    Berkeley Manor

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


    Social issues
    Social Issues

    • Waterfall Issues

      • Base Access

    • Single Parent Families

      • Pregnant service members

    • Dog Policy

      • American Kennel Club (AKC) response



    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


    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 program
    Homeowners 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


    Homeowners assistance program1

    As of January 28, 2010

    Homeowners Assistance Program

    Applicants

    Benefits Paid

    514 claims paid

    Total paid to date: $47.2M

    4,130 Eligible Applicants

    States with largest number of applicants


    Potpourri

    • Barracks

    • Q Ratings

    • Joint Basing

    • Housing Market Analyses

      • Overseas Policy


    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


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