How does military housing privatization affect a service member’s Basic Allowance for Housing (BAH)?
Prior to privatization, service members would forfeit their BAH to a larger Army fund that maintained and replaced housing through the Army MILCON program, if they lived in military housing. Under RCI, all service members choosing to live in privatized military housing receive their BAH as they would if the service member lived off post. Through the automated allotment system, the BAH for families living in privatized military housing is seamlessly transferred to the company that owns and operates the housing – Desert Oasis Communities. This will be reflected on the soldiers LES as an additional line in the Entitlement column allowing BAH and a corresponding Allotment amount for exactly the BAH amount. The soldiers BAH is used by the company to maintain and operate the existing housing, pay for utilities, 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.
