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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.

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OSD Housing Perspective

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  1. OSD Housing Perspective Joe Sikes Director Office of the Secretary of Defense Housing and Competitive Sourcing • PHMA Atlanta • February 2010

  2. 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)

  3. 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

  4. 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

  5. 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

  6. 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

  7. Project Structure • Long Term Health • Capehart / Wherry • Section 801 • Lease Terms • BAH rents should standardize on tour length • Shorter terms at increased rent

  8. 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)

  9. Social Issues • Waterfall Issues • Base Access • Single Parent Families • Pregnant service members • Dog Policy • American Kennel Club (AKC) response

  10. DOG LATRINE

  11. Energy/ Sustainability • Good for the planet • Good for business • Great examples in Privatization • We need to publicize success • Expand the model beyond housing

  12. 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''.

  13. 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

  14. 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

  15. Potpourri • Barracks • Q Ratings • Joint Basing • Housing Market Analyses • Overseas Policy

  16. 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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