Frequently Asked Questions About Privatization (PPV)

This listing of FAQs reflects the most common military questions asked by military members and their families. The answers are provided from a Navywide corporate level. Some of the activity web sites may include similar FAQs and the answers to those questions may vary slightly because of local difference in the PPV Projects.

What is Privatized housing?

Privatized housing is owned by a private entity and governed by a business agreement in which the Navy has limited rights & responsibilities. The private entity is entirely responsible for the construction, renovation, maintenance and day-to-day management of the housing. Privatized housing may be located on or off government property and may be former military housing.

Who privatized their housing?

All of the services: Navy/USMC, Army and Air Force privatized their housing. You can see all the locations that have been privatized at the OSD website.

Why did we privatize our housing?

Privatized housing offers several advantages over traditional military housing:

1. It relies on the private sector to provide housing services versus duplicating this function within the Navy and allows the Navy to focus on its core mission requirements.

2. It eliminates the need to rely on annual Family Housing funding appropriations, which historically have not kept pace with the funding required to maintain our Navy housing.

3. It attracts private investors to finance housing construction, renovations and maintenance which allows the Navy to reduce housing deficits, upgrade aging homes, and perform needed maintenance much quicker than through annual military family housing appropriations.

How is privatized housing similar to military housing?

A few of the similarities are:

1. Zero out of pocket expenses for residents; rent is based on BAH

2. You will continue to live in a military community

3. Government pays for the cost of moves into privatized units for eligible service members

4. You will continue to go to the Housing Service Center for housing information

5. The Housing Service Center will receive your application for privatized housing and will refer you to the Property Management Company

How is privatized housing different from military housing?

Units are managed and operated by a private property management company.

1. You must sign a lease. The lease will include a “military clause”.

2. You will receive BAH and pay rent directly to the property manager

3. The property management company handles all resident matters, including maintenance

What happens if I don’t pay my rent?

All PPV Property Managers have a process to resolve delinquent payments. Resolution could include eviction for unpaid rent. Delinquent payments of rent in PPV housing could adversely affect your credit rating, just as any other history of late payments. This could result in a poor credit rating and denial of future credit requests.

Will I have to pay deposits?

Security deposits are not required if rent is paid by allotment. Pet deposits are not generally required in most privatized housing but there may be exceptions in some locations. Contact your local HSC for specifics of pet deposits.

Where can I get more information?

Here are some resources for more information:

1. Your local housing office.

2. The Office of the Secretary Defense website.