Minot AFB to transition to privatized housing

  • Published
  • By Airman 1st Class Jessica McConnell
  • Minot Air Force Base Public Affairs
MINOT AIR FORCE BASE, N.D. --  The Air Force recently selected Balfour Beatty Communities as the Housing Privatization developer for the privatization of family housing here under the Northern Group project.

Minot AFB housing units are scheduled to become privatized housing in the spring of 2012 as part of the Military Housing Privatization Initiative.

Privatized housing first began in the mid-1990s when Congress recognized that nearly half of the houses on Air Force installations were in dire need of renovations and repairs, and military funding could not cover the cost of renovating them or building new ones.

The MHPI allows the Air Force to privatize the housing on all domestic Air Force installations. Privatization shifts the renovations, construction, operations and maintenance responsibilities to the private sector, allowing the Air Force to focus on the mission and its Airmen.

"Providing quality homes for our Air Force families is one of the most significant measures we can take to ensure the retention and readiness of our Airmen," said Gen. Carrol Chandler vice chief of staff of the Air Force.

Housing privatization promotes a mutually beneficial relationship between the Air Force and the private sector. For the Air Force, it results in the construction of more housing built to market standards for less money than through the military construction process.

As with living in the local community, Airmen will receive their Basic Allowance for Housing and sign a tenant lease agreement. The lease will include a military clause.

The monthly rental payment is set-up by the service member authorizing an allotment that is directly paid to the property owner. The tenant lease agreement spells out all relevant rent payment terms and conditions.

Rent and utilities are established using the current BAH rate for each Airman's rank as a basis. In the beginning of the project before the utility meters are installed, the rent and utilities are be paid to the property owner as a lump sum. Once meters have been installed, usage will be monitored and an average cost for each type of home will be determined. Each tenant will receive a copy of the gas and electric bill for approximately one year to inform them of the usage and cost and to establish the average amount, but during this time the property owner will still pay the bill. From this data collection, 110 percent of the average cost of gas and electric utilities (for each unit type) is subtracted from the amount of BAH to determine the rent. The rent payment includes water, trash, and sewage expenses while the Airman keeps the remainder of the BAH to pay for gas and electric.

An on-site property manager representing the Project Owner will be employed at the base and will be available to answer questions and can advise Airmen of the rates for rent and utilities; Airmen will also be able to speak with someone at the Housing Management Office on base.

Housing privatization also benefits Airmen and their families in several ways to include development benefits, community benefits, and cost benefits.

Community centers, indoor play areas, playgrounds, ball fields, jogging trails and picnic shelters are amenities offered by privatized communities.