What is military family housing privatization?
The Military Housing Privatization Initiative (MHPI) is a public/private program whereby private sector developers may own, operate, maintain, improve and assume responsibility for military family housing, where doing so is economically advantegeous and national security is not adversely affected. The MHPI was enacted on February 10, 1996 as part of the National Defense Authorization Act for fiscal year 1996. In 2004, Congress approved the removal of the statutory limit on the amount that can be invested in projects to build or renovate military family housing, and made the MHPI authorities permanent. Under the MHPI authorities, the Department of Defense (DoD) can work with the private sector to revitalize military family housing by employing a variety of financial tools-including: direct loans, loan guarantees, equity investments, and conveyance or leasing of property or facilities. For more information on these authorities, see MHPI Overview.
