Air Force selects contractor to privatize housing at Edwards, other bases

  • Published
  • By Air Force News Service
SAN ANTONIO --  The Air Force has identified Picerne Military Housing to privatize military family housing for Continental Group bases at Edwards; Eglin AFB, Fla.; Eielson AFB, Alaska; McConnell AFB, Kan.; Seymour Johnson AFB, N.C.; and Hurlburt Field, Fla. The deal, valued at over $545 million development cost, provides new and renovated housing for 4,188 military families.

The Air Force selected Picerne after a competitive solicitation process led by the Air Force Center for Engineering and the Environment. This is Picerne's first Air Force housing privatization project. Picerne is a partner in the Army's residential communities initiatives at Fort Rucker, Ala.; Fort Polk, La.; Fort Riley, Kan.; Fort Sill, Okla.; Aberdeen Proving Ground and Fort Meade, Md.; and Fort Bragg, N.C.

Under the deal, the Air Force will lease approximately 2,425 acres of land as part of a 50-year transaction and convey 3,739 existing housing units and other improvements to PMH. There will also be a delayed conveyance of an additional 368 units under construction at Eielson and Seymour Johnson. The project will provide approximately 1,535 new and 1,595 renovated homes to be completed in 5 years.

At closing, the houses become property of Picerne who will own and operate the rental housing development for military families, as well as finance, plan, design, and construct improvements in the development that maintain at least 4,188 housing units for the 50-year lease period.

In 1996, Congress created the Military Housing Privatization Initiative as part of the National Defense Authorization Act. The goal was to provide military members with quality homes faster than through MILCON alone.

According to Ian Smith, AFCEE Deputy Division Chief for Housing Privatization, the Air Force has accomplished in 10 years through housing privatization what would have taken 25 years using traditional MILCON, and saved the taxpayer billions in the process. "The Air Force has privatized some 38,000 homes at 44 bases at a cost to the Air Force of $423 million," Mr. Smith said. "And, brought in $6.5 billion in private funding to provide quality homes for our Airmen."

In 2010, the Air Force and private sector project owners delivered an average of 520 new and renovated homes per month, as well as community features like community centers, pools, sports courts, playgrounds, and dog parks. These amenities help to provide the thriving housing communities military members and their families have come to appreciate.

For more information, please visit www.afcee.af.mil/resources/housingprivatization/index.asp or email HPinfo@us.af.mil.