How does military housing privatization affect a service members Basic Allowance for Housing (BAH)?
Privatization does not affect the amount of BAH that is paid to the service member. Prior to privatization, service members did not receive BAH if they lived in military housing. Under the Military Housing Privatization Initiative, all service members choosing to live in privatized military housing receive their BAH and use the BAH to pay the privatized housing provider. The rent payment (usually equal to BAH) will be automatically transferred to Pinnacle Hunt Communities, LLC at the end of each month; this process will be performed and monitored by Military Assistance Company, LLC (MAC), the world’s largest processor of automatic payroll deductions for military and civil service employees. The BAH is used by the company to maintain and operate the existing housing, as well as to fund the construction of the new houses and amenities.
Prior to privatization, service members would forfeit their BAH if they lived in military housing. Under RCI, all service members choosing to live in privatized military housing receive their BAH just as if they were living in private rental housing outside of the installation. Through an automated allotment system, the BAH of families who live in privatized military housing is electronically transferred to the partnership. BAH is used by the partnership to maintain and operate the existing housing, as well as to fund the construction of the new houses and amenities. Privatization does not affect the amount of BAH that is allocated to the service member.
[top of page] Prior to privatization, service members would forfeit their BAH if they lived in military housing. Under RCI, all service members choosing to live in privatized military housing receive their BAH just as if they were living in private rental housing outside of the installation. Through the automated allotment system, the BAH for families living in privatized military housing is transferred to the company that owns and operates the housing California Military Communities. The BAH is used by the company to maintain and operate the existing housing, as well as to fund the construction of the new houses and amenities. Privatization does not affect the amount of BAH that is allocated to the service member. If a service member chooses to live in privatized military housing, they should experience no out of pocket expenses, just as if they lived in non-privatized military housing at other installations. The only out of pocket expense will be if they live out of county and receiv
