Military Housing Privatization: DOD Faces New Challenges Due to Significant Growth at Some Installations and Recent Turmoil in the Financial Markets

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Abstract:

In response to challenges the Department of Defense DoD was facing to repair, renovate, and construct military family housing, Congress enacted the Military Housing Privatization Initiative in 1996. The initiative enables DoD to leverage private sector resources to construct or renovate family housing. As of March 2009, DoD had awarded 94 projects and attracted over 22 billion in private financing. DoD plans to privatize 98 percent of its domestic family housing through 2012. Since GAOs last housing privatization report in 2006, major force structure initiatives have placed new demands on DoD for housing. GAO was asked to assess the following 1 the progress of DoDs housing privatization program, 2 the occupancy rates of the housing projects, 3 the impact of various force structure initiatives and DoDs efforts to mitigate any challenges, and 4 the effect of financial market turmoil on some projects. To perform this work, GAO visited 13 installations with privatization projects analyzed project performance data and interviewed DoD officials, real estate consultants, and private developers. GAO recommends that DoD provide more current information on investment caps and the impact of the current financial market on projects in its semiannual report to Congress. In response to a draft of this report, DoD concurred with GAOs recommendations.

Author(s):
Lepore, Brian J. ; Talbott, Laura ; Arbogast, Shawn ; Banovac, Steven ; Ditto, Susan ; Duncan, George ; Ellington, Laurie ; Lenane, Katherine ; Perdue, Charles ; Scire, Mathew ; Westley, Steven
Author Organization(s):
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
Descriptive Note:
Congressional rept.
Supplementary Note:
Report to the Subcommittee on Readiness, Committee on Armed Services, House of Representatives.
Pagination:
0054

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release
Distribution Statement:
Approved For Public Release; Distribution Is Unlimited.

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
GAO-09-352
Monitor Series:
GAO
 Subject Terms
Joint Capability Areas:
JCA_4.7_Base and Installations Support; JCA_4.7.2_Installation Services; JCA_4.6_Engineering; JCA_4.6.1_General Engineering; JCA_6.4.1_Secure Information Exchange; JCA_5_Command and Control; JCA_6.4_Information Assurance; JCA_6_Net Centric; JCA_5.3_Planning; JCA_4.2.1_Manage Supplies and Equipment; JCA_4.2_Supply; JCA_1_Force Support; JCA_5.6.3_Assess Achievement of Objectives; JCA_5.6_Monitor; JCA_4.3_Maintain; JCA_1.1.1_Global Force Management; JCA_1.1_Force Management; JCA_8_Building Partnerships; JCA_8.2_Shape; JCA_1.2_Force Preparation; JCA_8.2.1_Partner with Governments and Institutions
Communities of Interest:
Human Systems
Descriptor(s):
*CONSTRUCTION, *PRIVATIZATION, *HOUSING(DWELLINGS), *MILITARY FORCE LEVELS, *PROJECT MANAGEMENT, *DEPARTMENT OF DEFENSE, *MILITARY PERSONNEL, COSTS, SITE INVESTIGATIONS, OPERATION, FAMILY MEMBERS, MAINTENANCE, MILITARY FACILITIES, AUDITING, REPLACEMENT, MILITARY FORCES(UNITED STATES), INVESTMENTS
Field(s)/Group(s):
Administration and Management, Personnel Management and Labor Relations, Structural Engineering and Building Technology, Military Forces and Organizations
Keyword(s):
*FINANCIAL CRISES, *RENOVATION, MILITARY HOUSING PRIVATIZATION INITIATIVE, OCCUPANCY RATES, INTEREST RATES, RECAPITALIZATION, FINANCIAL MARKETS, SITE VISITS, BOND FINANCING, INADEQUATE HOUSING, DEVELOPERS, PERSONNEL RELOCATION, FORCE STRUCTURE
Report Date:
2009 May 01
Creation Date:
2009 Jun 17