What types of financial tools are included in the Housing Privatization?
Under the MHPI authorities, 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, Click Here. How much investment is required in these deals by a developer? Each of the Military Services approaches equity in a different manner. For example, the Air Force has determined that project owners must contribute a minimum of 5% cash equity. (Return to FAQ List) How much can the investors expect to make on their investment? Return on investment will vary by project. Housing privatization projects are competitively bid, so the competition of the marketplace will ultimately determine an investor’s rate of return. DoD’s goal is to obtain the best value for its subsidy contribution.
