Military family housing privatization on track Published April 18, 2008 By Brion Ockenfels Tinker Public Affairs TINKER AIR FORCE BASE -- Air Force officials are back on-track with the privatization of Tinker's military family housing in spite of the current real estate and financial market crisis. Excluding unforeseen circumstances, Tinker AFB Base Civil Engineer, Mr. Gallogly anticipates having a signed real estate transaction to privatize Tinker housing no later than 30 June. Mr. Gallogly said he is optimistic and that once all improvements are complete, Tinker residents should be very happy with the results. "GMH was the highest ranked offeror [community developer] and entered into exclusive negotiations with the Air Force," said Mr. Gallogly, "they had given us proposed designs, solidified plans for community features, and refined their financing package. GMH was in the process of securing financing when historically low rates took a turn for the worse. He said, the gloomy outlook for several major mortgage financing firms and bond insurers sent interest rates and basis points for projects like ours [AMC West Project] through the roof overnight, forcing the team to reevaluate our assumptions and to look for ways to reduce risk. "Financing has stabilized a little, and we have confirmed a few assumptions and options that have no impact on the residents to make the project more financially feasible. We have also sourced additional Air Force funds for some of the demolition," said Mr. Gallogly. But he cautioned, given the day-to-day fluctuations in financing, some minor amenities may still have to be scaled back to make the project feasible for the developer. "Those reductions will be minimal." said Mr. Gallogly. "We looked for features that added little value for the occupant, items like less expensive siding or fewer community barbeque pavilions. Depending on the financing rates we get, we may or may not have to reduce any of these features." The Department of Defense housing privatization program uses private sector investments to improve military family housing and community amenities. While the crunch on securing and insuring bonds negatively influenced large-scale building efforts like the AMC West Project, the GMH and Air Force team have found solutions to make the project financially feasible. "Once privatized, military members and their families will enjoy the same amenities and features offered in off-base housing," said Carol Hill, Tinker's base housing privatization program manager. Ms. Hill said when details of the transaction are agreed upon, the government will lease the land and convey the existing homes to the developer. The base intends to sign a 50-year lease with the selected developer. Tinker will have 398 new homes built and 262 units in McNarney Manor will be renovated." Prior to closing, residents responsible for yard care Earlier this year, base officials informed residents that once the housing was privatized, residents would no longer have to mow their unfenced yards. With the delay in closing, resident are required to care for their yards until privatization occurs. Residence will also continue to call the Kira service desk at 732-3324 for military family housing maintenance needs. For information about the privatization of Tinker's military family housing, go to the Tinker Web site at http://www.tinker.af.mil/ housingprivatization/.