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JBSA News
NEWS | April 10, 2008

Phase II housing privatization coming; town hall meeting set for May 13

By 37th Civil Engineer Squadron

Big changes are coming in the way Lackland's housing areas are managed.

Sometime this summer, most remaining government housing on Lackland will be privatized and combined with existing privatized housing at Frank Tejeda Estates.

Thirty days prior to privatization taking effect, base housing residents electing to stay in their current housing will be required to sign a lease with Lackland's private developer.

Those who elect not to sign a lease must notify base housing and move off base by the time privatization begins, an expense that will be paid for by the government.

Current housing tenants have the choice of moving off base, should they want to own their own home or live in a different area.

Once all Lackland housing areas are privatized, the military members living in those areas will see an entry on their leave and earnings statement for basic allowance for housing.

Previously, only members living off base saw this benefit reflected on their statement and in their bank accounts. Unlike off-base residents, however, on-base residents will not actually see the additional money.

Instead, at the time the housing occupants sign the lease, the military member will also sign a form issuing an allotment to the Realm Group, the developer's managing partner, totaling the amount of the BAH. That amount covers the rent, utilities and refuse of the privatized housing unit.

This BAH allotment ensures there are no delinquent payments, money that will be used to build and upgrade housing on Lackland. It also allows the developer to waive the requirement for a security deposit from the member.

The BAH is used to finance this because the Air Force does not have the capital investment for the traditional military construction project formerly used to build new homes. The BAH will automatically go to the developer.

The developer then uses that money to build homes much more quickly than the Air Force could.

Additionally, with Lackland's privatization, utilities are paid for by the BAH allotment to the developer. The member will not have a utility bill for the first few years after privatization.

Sometime in 2012, the developer will begin providing members a mock bill showing their actual usage. By 2013, the developer will complete the installation of water and electric meters on the housing units and set a benchmark for normal household utility use for each unit based on at least one year of measured usage.

The member's entire BAH will continue to be allotted to the developer to cover the utility bill. The member may be subject to paying any additional amount of excessive utility usage to the developer to cover the amount exceeding 110 percent of average use.

However, this will ultimately be the developer's decision, not the military's.

The developer also provides free renter's insurance.

Two pets per household will be allowed.

The developer will continue to provide quality maintenance service already seen at Frank Tejeda Estates, a housing area privatized in 2000.

Lackland has more than seven years of history with Realm Group, and they have proven to be very responsive to maintenance problems.

Should problems arise, there are various avenues to resolve issues, such as the quarterly management review committee at the 37th Mission Support Group level, as well the monthly tenant representative meeting with base housing, in the event there are any unresolved issues.

Not all housing areas are going to be privatized. Those currently living in Billy Mitchell Village and Chennault housing will not be privatized. However, these residents will be able to put their names on a waiting list to move into privatized housing.

The 362 newly constructed units will be on par or better than off base. The new homes to be built on Lackland will be large units. The square footage is very comparable, and in some cases more than what Airmen could get off base.

At the conclusion of construction in 2012, Lackland will have 883 housing units less than 13 years old.

There will be a Town Hall Meeting on May 13 at 9 a.m. and 3 p.m. at the Bob Hope Theater. There, residents can ask questions and receive information on lease signing locations and time frames.

Additional questions may be addressed to 671-7663 or e-mailed to 37CES.HousingPriv@lackland.af.mil.