The military housing problem: Public Private Venture (PPV) and complete privatization alternatives

Abstract

This thesis examines the current problems facing military housing, mainly inadequate quantity and quality to meet current demand. The Secretary of Defense testified before Congress that meeting today's military housing requirements would necessitate 30.40 years of effort at a cost of approximately $20B, if funded under the traditional Military Construction (MILCON) appropriation. This study considers the following alternatives for solving the housing problem: the current approach of MILCON; Public Private Venture (PPV); and complete privatization. Results indicate that MILCON is slow and underfunded and will not efficiently solve the housing problem. Public Private Venture may be a more efficient alternative but is also slow based primarily on legal difficulties. Complete privatization is clearly the best alternative, but this option must also overcome primarily political resistance to the traditional MILCON process. Complete privatization appears to be cheaper, more aligned with the private sector housing market, and would probably increase the Quality of Life (QoL) of all service members.