Edwards prepares families for military housing privatization

  • Published
  • By Staff Sgt. Angelique Smythe
  • 95th Air Base Wing Public Affairs
EDWARDS AIR FORCE BASE, Calif. --  Six U.S. Air Force bases will enter into a real estate and financial transaction to privatize military family housing, said the U.S. Air Force Center for Engineering and the Environment.

The bases form the Continental Group and include Edwards AFB, Calif.; Eglin AFB, Fla.; Eielson AFB, Alaska; Hurlburt Field, Fla.; McConnell AFB, Kans.; and Seymour Johnson AFB, N.C.

This is considered the Military Housing Privatization Initiative which is a long-term commitment between the Air Force and private developers and is owned, operated and managed similar to off-base community rental properties.

Both the Air Force and project owner will benefit from this project. Privatization saves the taxpayers' money. The homes will be built and owned by private businesses. This will also take away overhead expenses once paid by the U.S. Air Force.

Total, the selected private sector project owner will convey 4,385 housing units and 2,414 acres of land, as they will assume responsibility for housing on all six installations. Edwards will be leasing 422 acres of land with 796 housing units as part of this 50-year transaction.

"They can't just bid on one base; they have to bid on the whole package, so this is a huge undertaking," said Jeanette White, 95th Air Base Wing Civil Engineer Division Capital Asset Management Section. "Right now it's projected to close at the end of September 2011. So, we need to get ready, prepare people for that. Hopefully, it will be a seamless transition."

The project owner is expected to bring a complete and feasible business/financing package; well-developed community plans and quality designs; demolition, renovation and construction expertise and quality property management for 50 years.

"Most of the time, project owners must do a lot of renovations when building new homes, but in Edwards' case, all of our homes are pretty new," said Ms. White. "They've all been built since 1998 and they're all really nice homes, so they don't have to do any of that here. They will be doing some modification of homes and making the xeroscape look nicer, and create an area which looks like a more thriving community. We're also going to get a new playground in Mesquite Meadows and upgrade our other playgrounds."

Active duty military families will receive top priority for living in the privatized housing community. However, living in privatized housing is not mandatory for military members, so the property owner can fill vacancies with other tenants who are not military.

This will be similar to living and renting homes in an off-base community. Rental lease agreements, usually for a one year term, will be signed. Tenants will pay rent, which is usually based on the basic allowance for housing received for that rank, minus 110 percent of the average cost of gas and electric utilities for the type of unit occupied. Rent includes water, trash and sewage. However, the tenant is responsible for their own gas and electric bills.

Tenants are reminded that they will need to acquire personal property insurance, which may be offered by the property owner.

Also, moving into privatized housing will allow reimbursement by the government in the same way as if the military member were moving to an off-base community in accordance with government regulations. For more information, military members should contact the housing office regarding various types of moves and allowances which may be allowed.