AF selects contractor for housing privatization projects Published May 9, 2007 By Kent Cummins 47th FTW Public Affairs LAUGHLIN AFB, Texas -- The Air Force selected Pinnacle-Hunt Communities, LLC, recently as the highest ranked offeror in the bidding for Laughlin's housing privatization project and other Air Education and Training Command bases. The announcement means Pinnacle-Hunt will participate in exclusive negotiations with AETC officials for the design, development, construction, renovation and management of military family housing at Laughlin AFB, Columbus AFB, Miss., Maxwell AFB, Ala., Vance AFB, Okla. and Goodfellow AFB and Randolph AFB, Texas. Across the command, 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. According to the 47th Mission Support Group Vice Commander Lt. Col. Stephen Browning, privatization will give Laughlin families access to safe, quality, affordable, and well-maintained housing. "We are committed to ensuring our Airmen have the best," said Colonel Browning. "Excellent, well-maintained housing is an important element in military readiness. When Laughlin troops are deployed around the world, they don't need to be worried about their air conditioning not working or other problems with their home." Colonel Browning said it also makes good fiscal sense for the Air Force. "The Air Force housing privatization process not only provides improved housing, it saves Air Force money that can then be directed to other programs," said Colonel Browning. "It also saves the Air Force time, delivering homes sooner than through traditional MILCON (military construction.)." According to the Air Force, today more than 38 percent of housing does not meet modern standards and requires either major improvement or replacement. Housing privatization is geared to fix this challenge, said Mrs. Tinker Valero, Laughlin's Housing Privatization Project manager. "Privatized homes at Laughlin could offer more space, modern features, and additional amenities such as garages, hiking trails, and recreational facilities," said Mrs. Valero. "Rent will be based on basic allowance for housing rates and maintenance service will be provided 24/7, 365 days a year." Laughlin will privatize 534 housing units which will be designated for occupancy by pay grade. The member's rent will not exceed the BAH at the dependent rate for the designated military pay grade, minus an amount sufficient to cover 110 percent of average estimated utility charges. Rent includes refuse collection, water, sewer, and common area grounds maintenance. "The combination of rent and utility costs will be approximately the same amount as the BAH received," she said. "As long as people are prudent with their use of electricity and gas they should not have out-of-pocket expenses for utilities." Housing privatization construction at Laughlin could begin as early as the fall of 2007. "Once Pinnacle-Hunt takes over, the company agrees to bring homes up to Air Force standards through new construction or renovations within the development period," said Mrs. Valero. "The developer is responsible for operating and maintaining the homes for 50 years." Mrs. Valero said "while circumstances may vary at each installation, demolition and renovation will usually begin on vacant units first, in order to reduce the impact on families in occupied units." Laughlin residents will be provided the opportunity to ask questions during a Town Hall meeting on May 31 with base and Pinnacle-Hunt leadership. 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. Note: For more information about military housing privatization, visit the Department of Defense Web site at www.acq.osd.mil/housing.