In 1996, under the provisions of the Military Housing Privatization Initiative, Congress authorized the legislation for a Public-Private Venture (PPV) partnership with the private sector. As a result, our partnership with Forest City (www.fcmarineshawaii.com) will enable homes to be constructed faster and more efficiently.
Marine Corps Base Hawaii’s family housing’s inventory was privatized in two phases. Beginning 1 October 2006, the first phase of privatization included 1,175 units. Our remaining inventory of 1,142 units was privatized 1 October 2007.
Presented below are frequently asked questions concerning the Marine Corps Base Hawaii’s Public Private Venture (PPV) Partnership.
Q. What are the benefits of a PPV Partnership at Marine Corps Hawaii?
A. A shrinking housing budget coupled with aging homes and a maintenance backlog make it difficult for the Marine Corps Base Hawaii to provide quality housing for families. The PPV partnership will make it possible for the Marine Corps to renovate and construct new family housing units quickly and affordably. Readily noticeable benefits will be enhanced unit designs and neighborhood layouts which will include strategically placed quality of life amenities.
Q. How is PPV different from government housing?
A. Homes are managed and maintained by a private property management company who is directly associated with the PPV/Marine Corps partnership. The property management company will serve in the capacity of a "landlord." Homes will be built faster and are larger then those built under the existing Military Construction (MilCon) Program. Residents will sign a lease and abide by Base Orders and the Hawaii Landlord-Tenant laws. Service members receive Basic Allowance for Housing (BAH) in their pay check and in turn pay rent on a monthly basis. The Property Management Company will handle all resident matters including maintenance issues.
Q. How is PPV similar to government housing?
A. When applying for housing, your first stop will continue to be the "Government Housing Office" where your paper work will be verified and you’ll be placed on the appropriate housing wait list. Neighborhood policies continue to be patterned after Base Order P11101.35A, Ch 5 and the government continues to pay for costs associated with moving into PPV homes. Government representatives continue to actively participate in the over site of the housing units and ensure funds and services are utilized in the best interest of the service members and their families.
Q. Will residents of PPV housing start collecting BAH?
A. Yes, effective October 2006, military members living in PPV Housing will collect BAH, just as if they were residing in a civilian community home.
Q. Why is rent charged by rank?
A. As is the case in Government owned Marine Corps housing, the rent amount is based on the rank of the senior service member regardless of the number of bedrooms in a home. This established government policy will continue to be used when determining the rent for PPV homes.
Q. Why is my benefit of living in Marine Corps government housing being taken away?
A. There is no loss of benefit to the service member and their family. PPV housing is still "Marine Corps Housing," the only change is, units will be owned and managed by a private company who has entered into a partnership with the Marine Corps.
Q. What happens if my family size increases?
A. Marine Corps Housing guidelines continue to apply regarding eligibility for quarters. As with current policy, you will need to notify the housing office of your increased family size and be placed on the proper wait list.
Q. What are the vacating requirements for PPV Housing?
A. Vacating requirements for PPV housing are based upon existing vacating requirement for government quarters. Revisions to existing requirements, if any, will be shared with you when signing your lease.
Q. Will I be responsible for bringing my home to a "move-in condition" when I move out?
A. No. Families will not be responsible for normal wear and tear conditions when vacating their residence. As with current policy, you will be responsible for damage that is determined to be beyond normal wear and tear and you will be required to clean your quarters. Cleaning guidelines will be given to you at lease signing by a property management representative.
Q. What neighborhoods are in the Marine Corps PPV?
A. Phase 1 of the Marine Corps Base Hawaii’s Privatization Partnership is comprised of the following neighborhoods: Manana, Hawaii Loa, Pond Rd, Rainbow, NCO Row, Manning Court, Mokapu Court, Nani Ulupau, PaHonua (Cochran & Web Court areas, 238 units), Ulupau (54 units located closest to Nani Ulupau), Hilltop, Hillside and Camp Smith. Phase 2 will include Capehart, Ulupau, PaHonua Phase III, 10 units on Manning Street.
Q. What does the Marine Corps expect to achieve from PPV housing?
A. The Marine Corps expects to gain high quality, well maintained and well-managed housing at a reasonable cost to military families. Additionally, a re-capitalization fund will be generated to ensure the full and successful sustainment of the homes for a 50 year time period. These funds are congressionally mandated and restricted for the sole purpose of sustaining the PPV project.
Q. What type of return on investment is the Marine Corps looking for?
A. The Marine Corps contributes existing housing and cash when entering into the partnership. The partnership places a portion of the rent into a re-capitalization and improvement fund for future renovations, construction and improvements to homes and neighborhoods. The re-capitalization fund will fully sustain the partnership for a 50 year time period. Thus, the Marine Corps expects homes, neighborhoods and community centers to be well maintained and to remain competitive with the civilian market over the long term. The retention of service members and their families is key to the success of this project!
Q. What is the Marine Corps policy on out of pocket (OOP) costs families are expected to pay?
A. The goal is for service members and their families to have zero out of pocket expenses for rent, normal utility consumption, and personal property insurance (renter insurance).
Q. How will the normal utility consumption be determined?
A. The normal utility consumption will only apply to recently completed MilCon homes and will include newly constructed PPV homes as they are released for occupancy. The process in determining the normal utility consumption is: A pre-determined number of homes will be randomly selected and fitted with utility meters for a 12 month period. After the 12 month period is over, an average utility consumption rate will be determined based upon the square footage of the units metered.
Q. What if I don’t wish to reside in privatized housing?
A. Assignment to privatized housing is voluntary. As with current policy, service members have the ability to use their BAH as they see fit; i.e. rent in the civilian market or purchase real estate in the civilian market.