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Privatized Housing

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, also known as Public-Private Venture (PPV) 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:

  • construction
  • renovation
  • maintenance
  • day-to-day management of the housing

PPV housing may be located on or off government property and may include former military housing. PPV housing is only found in the Contiguous United States (CONUS) including Hawaii.

If a Sailor and their family want to live in PPV housing, the local Housing Service Center (HSC) will process their PPV housing application and refer them to the private property management company that manages the PPV housing units and handles all resident matters, including maintenance.

The goal is zero out-of-pocket rent expenses for PPV 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 direct deposit, there is no security deposit.

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