Tinker Military Family Housing privatization update: Shedding light on some myths

  • Published
  • By Brion Ockenfels
  • Tinker Public Affairs
"There is a myth that new ways of doing business through privatization mean the Air Force is no longer committed to ensuring military family members have adequate and affordable housing, but nothing could be further from the truth." said Carol Hill, Tinker's base housing privatization program manager.
   According to Ms. Hill, the privatized housing program initiative allows the military to use private sector financing to improve base housing for families much faster than through regular housing appropriations.
   The program to make MFH improvements under the new business model began in 1998 with Lackland Air Force Base, Texas.
   Air Force officials report that housing privatization has accelerated their ability to provide military families safe, affordable and well-maintained housing.
   To date, the Air Force has awarded 23 housing privatization real estate transactions at 25 installations to various builders to secure nearly 26,000 homes at a total development cost of $4.2 billion.
   Grouped with Fairchild AFB, Wash., and Travis AFB, Calif.; Tinker AFB is just one many bases preparing for privatized housing under the program Congress authorized 11 years ago.
   Ms. Hill has heard other rumors, too, and she wants current and future military members to know the facts. For example, it's not true that families living in privatized housing must use out of pocket funds to cover their electric and gas utility costs.
   "That view point leaves out very important facts," said Ms. Hill. "The Air Force is actually giving each member an allowance as part of their (Basic Allowance for Housing) to cover 110 percent of a housing unit's typical utility costs once units become individually metered.
   "For members who are conservative energy users, that creates an opportunity to save money. Of course, if you use a lot more energy than the average family in your type of home, you may have out of pocket expenses to offset your gas and electric costs the same as you would elsewhere. The water, sewage and refuse collection are included in the rent, so our residents won't have to worry about another bill for these services.
   "With privatization comes many concerns and questions," said Ms. Hill. "We want our families be informed during the transition to privatized housing at Tinker."
   Military family members are encouraged to send questions to 72abw.ce.privatized.mfh@tinker.af.mil or check Tinker's informative Web site at https://wwwmil.tinker.af.mil/72abw/ce/Housing%20Privatization/HousPrivat.asp.
   Utilities Q's & A's
   How are utilities paid? Are they a part of my rent?
   Initially, the project owner collects the member's entire BAH and pays the utilities directly to the utility provider until the house is individually metered. This is usually for all or part of what is known as the "Initial Development Period," while construction is taking place. During the Initial Development Period one of the requirements is for the project owner to install gas and electric meters on each house.
   How is the utility allowance calculated? Can it be challenged?
   The utilities allowance is calculated as 110 percent of the average utility costs for each unit type (or 110 percent average utility consumption for each unit type multiplied by the applicable utility rate). Once there is actual historical data, average consumption is determined by actual utility meter readings. The utility allowance is recalculated annually, reviewed by the utilities engineer(s) and approved by the government. Rates may increase or decrease at that time and the 110 percent monthly utility allowance will be adjusted accordingly. An individual tenant may not challenge the utilities allowance. They can, however, address their concerns to the property manager or the asset manager at the Housing Management Office. Keep in mind, different transaction documents could contain other approved methods of calculating utilities.
   What utilities do we pay?
   During the Initial Development Period, water, sewer, gas and electric are included in the member's rent, which is 100 percent of the BAH. Once units are metered, generally, the member is responsible for paying electricity and/or gas bills directly to the utility provider from their utility allowance.
   How much would utility bills be each month?
   The cost of utilities depends on the amount consumed and the applicable utility rate set by the utility provider (either local company or installation) at the time of consumption. 
   Tentative Timetable
   AMC West Housing Privatization Project
   Tinker grouped in AMC West with Travis, Fairchild and McChord AFBs -- June 2006
   AMC West Project Realigned. McChord AFB removed from project -- April 2007
   Request for Proposal Released -- June 2007
   Evaluation/Review/Approval Process -- In progress (began in August 2007):
   Negotiation with developer -- Anticipate conclusion by April 2008
   Transition to Privatization -- Anticipated April 2008