Housing privatization released
By , 14th Flying Training Wing Public Affairs
/ Published May 10, 2007
COLUMBUS AIR FORCE BASE, Miss. --
The Air Force selected Pinnacle-Hunt Communities, LLC, April 30 as the highest ranked offeror in the bidding for the Air Education and Training Command Group II housing privatization project.
This announcement moves Columbus AFB one step closer to housing privatization.
Pinnacle-Hunt will participate in exclusive negotiations with Air Education Training Command officials for the design, development, construction, renovation and management of military family housing at Columbus AFB, Miss., as well as Maxwell AFB, Ala., Vance AFB, Okla., and Goodfellow AFB, Laughlin AFB and Randolph AFB, Texas.
If the contract is awarded the privatization contract will take effect Sept. 1, 2007.
The Housing Privatization Office staff plans to bring the Pinnacle-Hunt team here for a Town Hall meeting to discuss the effects of privatization at CAFB.
The most notable change will be, service members will pay their own utilities once the houses on base are equipped with the proper metering devices. Housing residents will be given 110 percent of the average cost of utilities to cover these added costs.
Another benefit of privatization is dual military families will get to keep the basic allowance for housing of the junior member.
Other housing projects by Pinnacle-Hunt team can be viewed at www.acq.osd.mil/housing.
The project involves 2,257 total housing units of which 420 will be new units, 1,359 renovated units and 478 other units will require no work, said AETC civil engineer officials. The initial five-year development period of the project is valued up to about $300 million and is part of an overall 50-year project term for housing construction, renovation and management functions at the designated bases.
Pinnacle-Hunt is a joint venture between Hunt ELP, Ltd., and Pinnacle AMS Development Company, LLC. Pinnacle has closed five privatized military family housing projects totaling 11,485 units with development costs in excess of $1.6 billion within the past five years. Hunt has closed 15 privatized military family housing projects totaling 20,000 units with development costs in excess of $2.9 billion within the past seven years.
Congress established the Military Housing Privatization Initiative in 1996 as a tool to help the military improve the quality of life for its service members by improving the condition of their housing. The program was designed and developed to attract private sector financing, expertise and innovation to provide necessary housing faster and more efficiently than traditional military construction processes would allow, according to information from the Office of the Deputy Under Secretary of Defense for Installations and Environment.
(Editor's note: Once more information becomes available, the Silverwings' staff will write an in depth article.)