Air Force Housing Privatization

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Air Force Housing Privatization

• Mr. Ian Smith, P.E., REM
• Housing Privatization Division
• Air Force Center for Environmental Excellence

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Overview

• Why Privatization
• How We Privatize
• The Way Ahead

• Highest Quality Housing and Services for Members
  of the Worlds Best Air and Space Force

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(No Transcript)
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Why Use Privatization

• Air Force has 107,000 family housing units
• Average age is 32 yrs
• 49,000 inadequate
• Presidential directive to eliminate inadequate
  housing by 2007
• Traditional Approach is the Military Construction
  Program
• 6 Billion over 12 years
• (at current funding levels)

Non-traditional approach to MFH revitalization
is required!
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Why Use PrivatizationWhere Were Going
Beginning FY06 90,300 Units (Programmed)

• Eliminate inadequate houses by 2007 in CONUS,
  2009 overseas
• Increase privatization to at least 70 end state
  in CONUS
• Rely on local community first Requirement
  88,950 units
• 2010 End State 37,900 AF owned, 45,600
  privatized, 7,000 leased
• Funding Required (FY06-11) Investment 3.5B,
  OM 3.7B

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Why Use PrivatizationAir Force Model

• 50 Year Lease
• Govt may Provide Loan and/or Limited Loan
  Guarantee
• Basic Allowance for Housing minus utility
  allowance is basis for rent
• Member not required to live there

Lackland AFB (420)

• Privatization project criteria
• 31 Leverage
• Government Loan lt Private Loan
• Privatization lifecycle cost lt MILCON

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How We PrivatizeProject Phases At-A-Glance

• Phase I Project Identification
• Goal Identify project requirements and potential
  for privatization initiate project execution
• Phase II Project Definition
• Goal Refine project alternatives obtain
  approval of project concept and Request for
  Proposal (RFP)
• Phase III Project Acquisition
• Goal Solicit and select best value project owner
  and close the transaction
• Phase IV Portfolio Management
• Goal Oversee post-closing activities of all
  parties to ensure that all contractual
  obligations are met or exceeded
• Phase V Project Closeout
• Goal Determine continuing requirements and
  dispose of or acquire assets as appropriate

Phase I(1-3 months)
Project Timeline gt 50 Years
Phase II(7 months)
Phase III(9 months)
Phase IV(50 years)
Phase V(TBD)
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How We PrivatizeObjectives for Privatized Housing

• House military families in Air Force communities
• No out of pocket costs
• Housing grouped by officer/enlisted and grade in
  community setting
• Community activities centered around ancillary
  facilities -- playgrounds, sports courts,
  community center
• High standards of appearance
• Ability to interact with leadership in town
  meetings
• -- Retain Military Culture --

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How We Privatize Housing Waterfall

• Privatized Housing Priority Placement
• - Referred Military Families
• - Other Active Duty Military Members
• - Federal Civil Service Employees
• - Retired Military Members/Family
• - Guard and Reserve Military
• Members/Families
• - Retired Federal Civil Service
• - DoD Contractors/Permanent Employees (US
  Citizens)
• - General public

Standard RFP Requirement If a unit is vacant
for more than 90 days then the developer can
rent to the Waterfall Listing at market rent
for a period not to exceed on year
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How We PrivatizeAwarded to Date (16)
ELMENDORF AFB I (828)
Total 14,615 units
ELMENDORF AFB II (1,194)
HANSCOM AFB (784)
HICKAM AFB I (1,356)
WRIGHT-PATTERSON AFB I
(1,536)
OFFUTT AFB I (1,640)
HILL AFB I (1,018)
Dover AFB (980)
BUCKLEY AFB (351)
KIRTLAND AFB (1,078)
ROBINS AFB I (670)
DYESS AFB I (402)
MOODY AFB (606)
PATRICK AFB (552)
LACKLAND AFB I (420)
Construction Complete
Recently Awarded
Construction Underway
As of 1 Oct 05
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The Way Ahead In Acquisition

• Ready to Award
• AETC Gp I
• Beale
• Nellis
• Scott
• Almost There!
• Eglin/Hurlburt
• Lackland II
• McGuire/Ft Dix
• Wright-Patterson II
• RFP on the Street
• ACC Gp II

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The Way Ahead In Development
Concept

• PACAF
• Hickam II
• US Air Force Academy

• ACC
• Shaw
• AETC Group II
• Laughlin
• Randolph
• Vance
• Goodfellow
• Maxwell
• Columbus
• Keesler
• AFMC
• Edwards
• Robins II
• Tinker

• AFSPC
• Tri Group
• -- Los Angeles
• -- Peterson
• -- Schriever
• FE Warren
• Vandenberg
• AMC East
• Andrews
• MacDill
• AMC West
• McChord
• Fairchild
• Travis
• BLB
• Bolling

Potentials Andersen Charleston Dyess II
Edwards Ellsworth Grand Forks Malmstrom Minot Mou
ntain Home Seymour Johnson Whiteman
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The Way Ahead Project Locations
McChord
Fairchild
Minot
Elmendorf I II
Malmstrom
Grand Forks
Hanscom
Ellsworth
Mountain Home
Hill
FE Warren
Beale
Offutt
McGuire
Wright-Patterson I II
Dover
Buckley
Travis
Bolling
Scott
USAFA
Andrews
Nellis
Langley
Peterson
McConnell
Whiteman
Schriever
Vandenberg
Vance
Seymour Johnson
Edwards
Kirtland
Arnold
Tinker
Luke
Los Angeles
Little Rock
Altus
Columbus
Shaw
Robins I II
Holloman
Dyess I II
Charleston
Sheppard
Barksdale
Maxwell
Davis-Monthan
Moody
Goodfellow
Tyndall
Laughlin
Randolph
Hurlburt-Eglin
Patrick
Keesler
Lackland I II
MacDill
Brooks City-Base
Successful Projects
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It All Comes Back to Our Goal
Provide access to safe, contemporary,
affordable, adequate housing on off base. CE
Strategic Plan, Vol. I
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Questions?