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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


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)













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


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


    Benefits Paid

    514 claims paid

    Total paid to date: $47.2M

    4,130 Eligible Applicants

    States with largest number of applicants


    • 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