Assessment of costs and benefits of the military housing privatization initiative in selected areas

Abstract

The Military Housing Privatization Initiative (MHPI) represents a dramatic revision in the construction and maintenance of military housing. The Basic Allowance for Housing (BAH) initiative is also a long waited major step towards providing an adequate quantity and quality of living quarters for service members and their families. This MBA compares MHPI to the other two family housing programs, such as military construction (MILCON) and BAH and analyzes the interrelationship among them. This project studied the examples of the Presidio of Monterey/NPS and the Hickam AFB housing privatization projects in details. The research concludes that MHPI is a valuable and flexible tool for bridging the gap between existing housing needs and what the Government has been able to provide through traditional military construction. Since many long-term uncertainties exist regarding DOD's future housing needs and the resulting effect of the BAH initiative, this project recommends capitalizing on the strength of each housing tool (BAH, MHPI) through a more integrated approach to ensure that the military's housing needs are met as efficiently as possible. A better coordination on housing initiatives appear to be important, since housing allowances could rise in some areas, thereby making more local housing affordable to service members and lessening the need for renovation and construction. Greater adherence to policy of coordination is needed if DOD is to avoid building or revitalizing more housing than is needed under both military construction and privatization programs.