General Overview on Privatization

This section of PHMA.COM is being updated to bring you the latest information 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 by the OSD Installations & Environment. For more information please visit www.acq.osd.mil/housing/.