Congressional Research Service, Privatized Military Housing: Costs and Budgetary Is-sues for Congress : Congressional Research Service (CRS) , July 25 , 2024
July 25, 2024
Congressional Research Service (CRS)
From the report, "During the past 20 years, DOD has privatized nearly all of the family housing facilities in the United States. For housing that supports service members without dependents, privatized housing accounts for less than 2% of DOD's housing facilities; the remaining 98% of unaccompanied housing is owned and operated by the government.
The advent of privatized housing programs has resulted in a new set of costs, benefits, risks, and oversight issues associated with military housing. DOD's long-term legal agreements with private housing entities have reshaped annual spending for military construction and family housing accounts, military personnel accounts (for Basic Allowance for Housing, or BAH), parts of the general Operation and Maintenance accounts, and certain mandatory spending related to government loans. Some advocates assert that the MHPI program is a cost-effective way to provide military housing. The Congressional Budget Office (CBO) has asserted that the MHPI approach is ultimately more expensive than traditional military construction and management program, due in part to the long-term or indirect costs incurred by the government. After more than two decades of operating privatized housing programs, DOD has documented some of the long-term costs and budgetary effects associated with the MHPI programs. Cumulative DOD contributions to MHPI to date total at least $28.0 billion."
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