Family Housing Privatization
Concourse is a leader in military housing privatization and understands the unique requirements of the military housing privatization program. Our principals have over eight years experience in the military housing privatization program as consultants to the DoD, principals in privatization projects and as key consultants to other nationally recognized teams. Concourse has considerable expertise in the strategic approach to responding to Army and Navy Step I and Step II RFQs and RFPs and fully understands the decision-making process and the decision-makers. Moreover, we understand all the requirements to close the transactions and have the DoD accept the final product. We have extensive relationships with investment bankers active in privatization projects and we are well positioned to assist our clients in the development of a successful team to pursue military housing privatization opportunities. Concourse and its partners have been involved in 33 military housing privatization projects as advisors or principals, and have been selected on transactions totaling over 9,000 units.
Overview
Improving the quality, quantity and availability of military family housing on active military bases is a priority for the Department of Defense (DoD).
In 1996, Congress granted broad authority to the Department of Defense (DoD) to privatize military family housing on active military bases in order to expedite the upgrading of the facilities and increase retention of service personnel.
The private sector competes through a Request for Proposal (RFP) process, in which the selection criteria are: the quality and track record of the developer, the scope and creativity of the development plan and the developer's financial strength to implement the plan, coupled with its operations and management capacity for a 50 year transaction.
The expected benefits to the DoD of the program include, improvement of existing housing at lower cost to the Government, construction of more housing built to market standards, leveraging of limited DoD funds with private sector resources, and reduced time and cost to deliver improved housing.
The 1996 MHPI legislation allows the DoD to provide various enhancements to promote the construction and rehab of military housing with private sector financed business partners.
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These Government-sponsored enhancements include:
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Convey or lease land and/or housing units;
Provide loan guarantees against base closure, major deployments or reduction in personnel;
Provide direct loans and enter into investment partnerships;
Provide (DLP) Supplemental Rent Payments;
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The expected benefits to the DoD of the program include:
Improvement of existing housing at lower cost to the Government;
Construction of more housing built to market standards;
Leveraging of limited DoD funds with private sector resources; and
Reduced time and cost to deliver improved housing
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The Concourse Group, and its subsidiary company, FPS Advisory Group, are contractors to the Air Force on its EUL and MHPI privatization program and therefore are strictly prohibited from providing consulting services on Air Force EUL and MHPI projects to any parties, other than the Air Force. |
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