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MHPI Facts

BACKGROUND: The Military Housing Privatization Initiative (MHPI) is authorized by the FY 1996 National Defense Authorization Act, as amended. The MHPI authority applies only to military housing in the continental United States (CONUS).

KEY POINTS:

• Quality, affordable housing is a key quality-of-life factor affecting service member recruitment, retention, readiness and morale. Congress enacted the MHPI to accelerate the revitalization of military family housing.
• There has been no case of a default on a government loan.
• Tenant satisfaction is high, particularly for revitalized and replacement housing.
• The government's $2.5B cash contribution in MHPI projects has generated $25B in up-front housing construction and will generate several times that amount over the 50-year term of most of these projects.
• As of February 2009, DoD has privatized 94 projects including over 184,000 housing units, with 193,000 units scheduled to be privatized by the end of Fiscal Year 2010.
• MHPI projects have eliminated over 122,000 of 130,000 inadequate CONUS housing units to date. The remaining inadequate CONUS units will be eliminated through Air Force MHPI projects scheduled in FY 2009 and FY 2010.
• The government’s $2.5B cash contribution in MHPI projects has generated $25B in up-front housing construction and will generate several times that amount over the 50-year term of most of these projects.

MHPI Year in Review
94 projects with executed deals > 7 projects in CY08 AMC West Travis AFB, CA; Fairfield AFB, WA; Tinker AFB, OK Military Academy at West Point, NY Fort Jackson, SC Fort Drum, NY – Phase II Fort Sill, OK Fort Lewis-McChord AFB, WA Lackland AFB, TX – Phase II > 185,000 total privatized units

DOD’s awarded MHPI projects have an average lifecycle cost savings of 10-15%, when compared to MILCON housing.

The Navy is privatizing barracks for junior enlisted personnel at three installations under a pilot program authorized by Section 2881 of title 10, United States Code.

The Army is privatizing senior unaccompanied personnel housing (UPH) at five installations through the Army’s Residential Communities Initiative (RCI), under the MHPI authority.

The Army is pursuing lodging privatization at 12 installations through the Privatization of Army Lodging (PAL) program, under the MHPI authority.