Frequently Asked Questions About Privatization
This listing of FAQs reflects the most common military questions asked by military members and their families. The answers are provided from a Navywide corporate level. Some of the activity websites may include similar FAQs and the answers to those questions may vary slightly because of local differences in the PPV Projects.
What is Privatized housing?
Privatized housing is owned by a private entity and governed by a business agreement in which the Navy has limited rights & responsibilities. The private entity is entirely responsible for the construction, renovation, maintenance and day-to-day management of the housing. Privatized housing may be located on or off government property and may be former military housing.
Who privatized their housing?
All of the services: Navy/USMC, Army and Air Force privatized their housing. You can see all the locations that have been privatized on the OSD website.
Why did we privatize our housing?
Privatized housing offers several advantages over traditional military housing:
1. It relies on the private sector to provide housing services versus duplicating this function within the Navy and allows the Navy to focus on its core mission requirements
2. It eliminates the need to rely on annual Family Housing funding appropriations, which historically have not kept pace with the funding required to maintain our Navy housing
3. It attracts private investors to finance housing construction, renovations and maintenance which allows the Navy to reduce housing deficits, upgrade aging homes, and perform needed maintenance much quicker than through annual military family housing appropriations
How is privatized housing similar to military housing?
A few of the similarities are:
1. Zero out of pocket expenses for residents; rent is based on BAH
2. You will continue to live in a military community
3. Government pays for the cost of moves into privatized units for eligible Service Members
4. You will continue to go to the Housing Service Center (HSC) for housing information
5. The HSC will receive your application for privatized housing and will refer you to the Property Management Company
How is privatized housing different from military housing?
Units are managed and operated by a private property management company.
1. You must sign a lease. The lease will include a “military clause”
2. You will receive BAH and pay rent directly to the property manager
3. The property management company handles all resident matters, including maintenance
What happens if I don’t pay my rent?
All PPV Property Managers have a process to resolve delinquent payments. Resolution could include eviction for unpaid rent. Delinquent payments of rent in PPV housing could adversely affect your credit rating, just as any other history of late payments. This could result in a poor credit rating and denial of future credit requests.
Will I have to pay deposits?
Security deposits are not required if rent is paid by allotment. Pet deposits are not generally required in most privatized housing but there may be exceptions in some locations. Contact your local HSC for specifics of pet deposits.
Where can I get more information?
Here are some resources for more information:
1. Contact Navy Housing Headquarters if you have any issues with privatized housing
2. Contact your local housing office.
3. The Office of the Secretary of Defense
Military Housing Privatization Initiative Tenant Bill of Rights
The Department of Defense is fully committed to ensuring that Military Housing Privatization Initiative (MHPI) housing projects provide our Nation’s most valued resource—its military members and their families—safe, quality, and well-maintained housing where our members and their families want and choose to live. The Department of Defense has issued all policy guidance necessary to implement prospectively all rights for military members and their families residing in privatized family and unaccompanied housing (Tenants) at all MHPI housing projects. However, as Congress recognized, retroactive application of the requirements at existing projects requires voluntary agreement by the respective MHPI company; the Department cannot unilaterally change the terms of the complex, public-private partnerships that established the MHPI housing projects. The Department of Defense has been seeking to secure voluntary agreements, and nearly all of the MHPI companies have agreed to implement all 18 Tenant rights at their existing projects. The Department will continue to pursue agreements not yet reached. Tenants should contact their installation housing office to confirm the rights fully available to them.
The following rights are effective on August 1, 2021:
1. The right to reside in a housing unit and a community that meets applicable health and environmental standards.
2. The right to reside in a housing unit that has working fixtures, appliances, and utilities and to reside in a community with well-maintained common areas and amenity spaces.
3. The right to be provided with a summary of the maintenance conducted with respect to a prospective housing unit by the landlord for the previous seven years, before signing a lease, and upon request, all information possessed by the landlord regarding such maintenance within two business days after making the request. Upon request, a current Tenant who did not receive maintenance information before signing a lease has the right to receive such information within five business days after making the request.
4. The right to a written lease with clearly defined rental terms to establish tenancy in a housing unit, including any addendums and other regulations imposed by the landlord regarding occupancy of the housing unit and use of common areas.
5. The right to a plain-language briefing, before signing a lease and 30 days after move-in, by the installation housing office on all rights and responsibilities associated with tenancy of the housing unit, including information regarding the existence of any additional fees authorized by the lease, any utilities payments, the procedures for submitting and tracking work orders, the identity of the Military Tenant Advocate, and the dispute resolution process.
6. The right to have sufficient time and opportunity to prepare and be present for move-in and move-out inspections, including an opportunity to obtain and complete necessary paperwork.
7. The right to report inadequate housing standards or deficits in habitability of the housing unit to the landlord, the chain of command, and housing management office without fear of reprisal or retaliation, including reprisal or retaliation in the following forms: (A) unlawful recovery of, or attempt to recover, possession of the housing unit; (B) unlawfully increasing the rent, decreasing services, or increasing the obligations of a Tenant; (C) interference with a Tenant’s right to privacy; (D) harassment of a Tenant; (E) refusal to honor the terms of the lease; or (F) interference with the career of a Tenant.
8. The right of access to a Military Tenant Advocate through the housing management office of the installation of the Department at which the housing unit is located or a military legal assistance attorney to assist in the preparation of requests to initiate dispute resolution.
9. The right to receive property management services provided by a landlord that meet or exceed industry standards and that are performed by professionally and appropriately trained, responsive, and courteous customer service and maintenance staff.
10. The right to have multiple, convenient methods to communicate directly with the landlord maintenance staff, and to receive consistently honest, accurate, straightforward, and responsive communications.
11. The right to have access to an electronic work order system through which a Tenant may request maintenance or repairs of a housing unit and track the progress of the work.
12. With respect to maintenance and repairs to a housing unit, the right to the following: (A) prompt and professional maintenance and repair; (B) to be informed of the required time frame for maintenance or repairs when a maintenance request is submitted; and (C) in the case of maintenance or repairs necessary to ensure habitability of a housing unit, to prompt relocation into suitable lodging or other housing at no cost to the Tenant until the maintenance or repairs are completed.
13. The right to receive advice from military legal assistance on procedures involving mechanisms for resolving disputes with the property management company or property manager to include mediation, arbitration, and filing claims against a landlord.
14. The right to enter into a standardized, formal dispute resolution process, should all other methods be exhausted, to ensure the prompt and fair resolution of disputes that arise between landlords and Tenants concerning maintenance and repairs, damage claims, rental payments, move-out charges, and such other issues relating to housing units. The dispute resolution process shall contain the following elements: installation or regional commander as deciding authority; a process for withholding allotment of rental payments; standard mechanisms and forms for requesting dispute resolution; minimal costs to Tenants for participation; a completed investigation within seven days; and except in limited circumstances, a decision within 30 days and in no event longer than 60 days. A decision in favor of the Tenant may include a reduction in rent or an amount to be reimbursed or credited to the Tenant.
15. The right to have the Tenant’s basic allowance housing payments segregated, with approval of a designated commander, and not used by the property owner, property manager, or landlord pending completion of the dispute resolution process.
16. The right to have reasonable, advance notice of any entrance by a landlord, installation housing staff, or chain of command into the housing unit, except in the case of an emergency or abandonment of the housing unit.
17. The right to not pay non-refundable fees or have application of rent credits arbitrarily held.
18. The right to expect common documents, forms, and processes for housing units will be the same for all installations of the Department, to the maximum extent applicable without violating local, State, and Federal regulations.
Tenants seeking assistance with housing issues should continue to engage their installation housing office, installation leadership, or chain of command.
Per your lease, it is your responsibility to:
Report in a timely manner any apparent environmental, safety, or health hazards of the housing unit to the landlord and any defective, broken, damaged, or malfunctioning building systems, fixtures, appliances, or other parts of the housing unit, the common areas, or related facilities
Maintain standard upkeep of the housing unit as instructed by the housing management office
Conduct oneself as a tenant in a manner that will not disturb neighbors, and to assume responsibility for one’s actions and those of a family member or guest in the housing unit or common areas
Not engage in any inappropriate, unauthorized, or criminal activity in the housing unit or common areas
Allow the landlord reasonable access to the rental home in accordance with the terms of the tenant lease agreement to allow the landlord to make necessary repairs in a timely manner
Read all lease-related materials provided by the landlord and to comply with the terms of the lease agreement, lease addenda, and any associated rules and guidelines
Additional tenant responsibilities
Renters insurance is a responsibility of the resident, and is strongly encouraged to protect your belongings and prevent financial hardships
Residents are responsible for keeping their home clean and in good order