The Military Housing Privatization Initiative (MHPI) was enacted on February 10, 1996, as part of the National Defense Authorization Act for fiscal year 1996. Under the MHPI authorities, DoD can work with the private sector to revitalize our military housing by employing a variety of financial tools to include:
- direct loans
- loan guarantees
- equity investments
- conveyance or leasing of property or facilities
- rental guarantees
Privatized housing is owned by a private entity and governed by a business agreement in which the Navy has limited rights and responsibilities. The private entity is entirely responsible for:
- day-to-day management of the housing
Privatized housing may be located on or off government property and may include former military housing. Privatized housing is only found in the Continental United States (CONUS) including Hawaii.
If a Sailor and their family want to live in privatized housing, the local Housing Service Center (HSC) will process their privatized housing application and refer them to the private property management company that manages the privatized housing units and handles all resident matters, including maintenance.
The goal is zero out-of-pocket rent expenses for privatized housing residents, who sign a lease with the property management company. Sailors still receive their housing allowance and pay rent directly to the property manager. There is no pet deposit and if rent is paid by Allotment there is no security deposit.
Find Privatized Housing at your duty station!