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General Overview on Privatization

In 1996 the Military Housing Privatization Initiative (MHPI) was implemented by Congress to aid the military in improving the quality of life for its service members by upgrading the condition of their housing. This initiative was created as a more productive solution to the antiquated Military Construction processes that had previously been used. Congress’ aim is to attract private sector financing and expertise for this newly developed program for military housing. The Office of the Secretary of Defense has delegated to the Military Services the MHPI which now allows them to enter into agreements with private developers. This process is a competitive one that commits the private developers into a fifty-year lease that will be spent preserving and sustaining family housing for the military.

Major Problems Addressed by the MHPI

  • The poor condition of DoD owned housing,
  • Shortage of quality private housing at an affordable price.

The MHPI is able to alleviate these problems through various loans, equity investments, leasing of land, etc. Military Service members also receive a Basic Allowances which permits them to choose between private sector housing and privatized housing.

Information provided above by the OSD Installations & Environment. Please visit www.acq.osd.mil/housing for more information on Military Housing Privitization!

NOTE: This section of PHMA.COM is being updated to bring you the latest information on Military Housing Privatization!

Learn More About Military Housing Privitization with MHLI!

The Military Housing & Lodging Institute (MHLI) has been reviewed and approved as an Authorized Provider of continuing education and training programs by the International Association for Continuing Education and Training. MHLI offers courses which lead to Certification through the Professional Housing Management Association (PHMA).

MHLI is the official training partner of PHMA and they offer a wide variety of specialized training in all areas of military and privatized housing operations. PHMA encourages you to take advantage of the many professional certification programs that we has to offer and LEARN MORE TODAY!

PLEASE NOTE: The following courses are of general interest and use to all personnel working in military housing of any type. They are, however, vital to those personnel, federal or private sector, who are or will be involved with privatization.

Certified Defense Privatization Manager—CDPM™ Level 1

MHLI is proud to join with our strategic partners Professional Housing Management Association (PHMA), the Institute of Real Estate Managers (IREM) and the National Apartment Association (NAA) to present the first Certification program specifically intended for persons involved in the privatization of military housing. This is a Level One offering and is intended to cover the privatization process from concept to pre-transition. The intent is to prepare the management level personnel for not only the requirements of the privatization process but to recognize challenges to the management process in the traditional housing office. This course will cover the Congressional legislation applicable to privatization, the Department of Defense guidance, a comparison of the various Services’ programs, ethical considerations, private sector maintenance, financial and human resource practices as compared to current Service practices. Also discussed are the traditional management roles of communicating and directing work flow, team building considerations and change management in order to better prepare the management personnel to successfully transition from a traditional housing operation to a privatized operation. By the end of this course students will be able to:

  • Summarize the privatization processes and goals of the Services.
  • Explain the role of the private sector partners.
  • Compare the different methodologies for results oriented oversight.
  • Execute your role in the privatization process.
  • Organize and integrate a working privatization partnership.

This course is intended for all levels of personnel who are or may be involved in the privatization of military housing.

Certified Defense Privatization Manager—CDPM™ Level 2

This is a Level Two offering and is intended to cover the privatization process from transition to long term viability. The intent is to prepare management level personnel for the requirements of the Portfolio Asset Management (PAM) process and provide training in financial analysis to assist in identifying trends that may positively or negatively affect the program success. This course will cover the Congressional and the Department of Defense PAM reporting requirements, the PEP program, responsibilities of the Portfolio and Asset Manager, private sector financial reporting metrics and evaluation of financial spreadsheet data to assist in the decision making process. Also discussed will be personnel transition issue, program continuity and other management tasks identified in the various Service’s Lesson Learned seminars. By the end of this course students will be able to:

  • Recall the principles of partnering.
  • Explain the framework and requirements of the Department of Defense PAM Program.
  • Understand the relationships between privatized and non-privatized assets and operational requirements that may exist on various installations/bases.
  • Plan the financial considerations in determining project trends and long-term financial viability.

Successful completion of the PVT 600 Certified Defense Privatization Manager CDPM™ Level 1 course is a non-waiverable prerequisite. Management personnel who will be responsible for the oversight, PAM responsibilities and long term viability of their respective Service’s privatization program should attend this training. It is also strongly recommended that individuals have previous training in private sector financial practices. These skill sets can be developed through courses PVT 602, PVT 603 and PVT 604.

Certified Defense Privatization Manager—CDPM™ Level 3
Capstone Course of the CDPM™ Series!

With the maturing of both the privatization process and the training jointly provided by PHMA, IREM and NAA, an overall long-term capstone program was mandated. This course will concentrate on maintaining the relationships and sustaining the privatization project through the term of the ground lease. This training is designed to enable the Asset Manager to successfully develop the successive future generations and lay the groundwork for continued success. By the end of this course students will be able to:

  • Implement strategic planning to sustain the vision.
  • Use mediation, negotiation, teamwork, integrity and ethics for a strong team.
  • Execute the agreement through a better understanding of both public and private sector real estate.
  • Judge the problem solving techniques to sustain the asset through applying and understanding project management as a discipline.

Material will be presented through classroom lectures, student discussions and group exercises and case studies. Successful completion of both CDPM™ Level 1 and CDPM™ Level 2 are mandatory prerequisites.

Register for the MHLI Online Academy Today!

VISIT MHLI ONLINE NOW! Take advantage of new and updated course offerings related to the Military Housing Privitazation Initiative and more when you register for the MHLI Online Academy!

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