Keesler housing privatization latest step in 15-year initiative Published Oct. 12, 2011 By Air Force Center for Engineering and the Environment and 81st Training Wing Public Affairs KEESLER AIR FORCE BASE, Miss. -- Privatization of Keesler's military housing Sept. 30 marked another step in an initiative that was launched 15 years ago to provide quality homes for military personnel at a faster pace than military construction alone. In 1996, Congress created the Military Housing Privatization Initiative as part of the National Defense Authorization Act. The Air Force has accomplished in 10 years through housing privatization what would have taken 25 years using traditional military construction, according to Ian Smith, deputy chief of the housing privatization division for the Air Force Center for Engineering and the Environment at Lackland Air Force Base, Texas. "The Air Force has privatized more than 47,000 homes at 47 bases at a cost to the Air Force of $469.4 million and brought in $7 billion in private funding to provide quality homes for our Airmen," said Mr. Smith. Keesler's housing privatization was part of the Southern Group housing privatization project with Forest City Military Communities that also includes Arnold AFB, Tenn., and Charleston and Shaw AFBs, S.C. The Southern Group deal, valued at $308.1 million in development costs, provides new and renovated housing for 2,185 military families using only $23.4 million in appropriated funds. Forest City currently operates and manages 14,100 housing units across the country. In addition to Keesler's 1,188 units, plans also include 22 units at Arnold, 345 units at Charleston and 630 units at Shaw, with features that include two-car garages and at least three bedrooms. Planned amenities at the bases include community centers, pools, tot lots and neighborhood parks. Under the deal, the U.S. Air Force is leasing approximately 860 acres of land as part of a 50-year transaction. The Air Force conveyed 2,385 existing housing units. Of the existing units, 1,184 inadequate units will be demolished. The project will provide 987 new and renovated homes to be completed in about four years. As-is units don't require any updating or renovations -- nearly all of the 1,198 as-is units for Southern Group are units at Keesler that were rebuilt after Hurricane Katrina. At closing, the houses became property of Forest City Military Communities which will own and operate the rental housing development for military families, as well as finance, plan, design and construct improvements in the development and maintain at least 2,185 housing units for the 50-year lease period. A formal notice to proceed with construction was issued Oct. 3. "This is the first time in the history of the HP program that a notice to proceed was issued within one business day of closing," said Allen Fennigkoh, AFCEE/HPE project manager. "Usually, they take months." AFCEE serves as the primary Air Force service agent for worldwide housing privatization efforts including completing feasibility analyses, developing project concepts and solicitations, and providing support to the integrated acquisition teams that execute projects. For more information, visit http://www.afcee.af.mil/resources/housingprivatization/index.asp or email HPinfo@us.af.mil. Susan Griggs, 81st Training Wing Public Affairs, contributed to this report.