{"id":65453,"date":"2019-09-11T20:36:03","date_gmt":"2019-09-11T20:36:03","guid":{"rendered":"https:\/\/one.sightlinemg.com\/armytimes\/uncategorized\/2019\/09\/11\/new-association-of-privatized-housing-companies-pushing-back-on-some-reforms\/"},"modified":"2026-08-08T11:46:00","modified_gmt":"2026-08-08T11:46:00","slug":"new-association-of-privatized-housing-companies-pushing-back-on-some-reforms","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/armytimes\/management\/pay-benefits\/2019\/09\/11\/new-association-of-privatized-housing-companies-pushing-back-on-some-reforms\/","title":{"rendered":"New association of privatized housing companies pushing back on some reforms"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In the wake of withering criticism about how they have maintained the military base housing they run, five companies have formed a new coalition to represent their interests. And some have ramped up how much they spend to lobby Congress.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of their first actions of this coalition, called the Military Housing Association, has been to meet with and send a letter to congressional staff members voicing objections to some of the <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2019\/06\/10\/more-military-housing-watchdogs-on-the-way-but-debate-remains-on-cost\/\" target=\"_blank\">proposals for military housing reform<\/a>. That\u2019s raised the concern of some advocates, who are already alarmed by the Trump administration\u2019s objections to the changes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Trump administration \u201cstrongly objects\u201d to significant changes outlined in the Senate bill, according to their Sept. 4 letter to the armed services committees. It specifically notes issues with altering the terms of existing legal agreements with the privatized companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawmakers heard <a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2019\/02\/14\/black-mold-rodents-lead-paint-in-privatized-housing-no-rent-until-its-fixed-military-spouses-say\/\" target=\"_blank\">testimony of military families<\/a> earlier this year about mold, lead-based paint, water leakage and damage, vermin and host of other problems with their military housing; their frustration in getting their privatized housing company to fix them; and the lack of assistance from the military in getting their problems fixed. In a <a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2019\/02\/13\/more-than-half-who-took-survey-are-dissatisfied-with-military-privatized-housing\/\" target=\"_blank\">survey<\/a> earlier this year conducted by the Military Family Advisory Network, more than half of the 14,558 privatized residents who responded reported having a negative experience with their housing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Military Housing Association, formed this year, includes the larger privatized housing companies &#8212; Balfour Beatty Communities, Corvias, Hunt Military Communities, Lendlease Communities and Lincoln Military Housing, according to a spokeswoman for the organization, who declined to be named. The companies contacted referred questions to S-3 Public Affairs, which is an arm of S-3 Group, also a lobbying firm.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new association\u2019s core goal \u201cis to provide high quality housing, community amenities, and responsive property management to improve the quality of life of service members and their families who live in privatized military housing communities,\u201d the spokeswoman said, in response to questions about the association\u2019s purpose and focus, and actions taken.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the problems with housing came to light, defense and service officials have been working with privatized housing companies to immediately address issues. The housing companies have taken a number of steps to improve services, including hiring more personnel, adding more subcontractors, finding more transparent and efficient ways to process work orders and listening directly to tenants\u2019 concerns with town halls and informal forums, the spokeswoman stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Committee staff members contacted by Military Times declined to comment, citing the ongoing negotiations process as House and Senate lawmakers reconcile differences in their proposals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Sen. Tim Kaine, D-Va., who has been vocal about his concern regarding military families\u2019 housing problems, said the bottom line is fixing the problem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kaine \u201cappreciates feedback from anyone affected by the proposed changes,&#8221; said Sarah Peck, a Kaine spokeswoman. &#8220;However, his number one priority is ensuring military families no longer have to endure dangerous conditions in their own homes, and that\u2019s what will determine which policies he supports.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some of the proposals would be \u201clegally and practically impossible to implement,\u201d stated the Trump administration\u2019s letter, from the Office of Management and Budget<b>.<\/b> The proposals would also create unfunded requirements; and, to the extent that the measures could even be implemented, would be \u201coverly prescriptive and burdensome,\u201d officials stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe provisions erroneously assume that privatized housing project entities operate as DoD contractors and that legislation can alter the terms and conditions of previously executed legal agreements.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That statement from the administration is of particular concern, if in fact legislation wouldn\u2019t be able to change legal agreements made with the housing companies, said Eryn Wagnon, director of government relations for the Military Officers Association of America. \u201cAs the [Army Inspector General] put it, these deal structures present unique challenges to the Army and all the services, and highly favor the companies.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wagnon also expressed concern that the administration\u2019s position may make some lawmakers apprehensive about pushing key and important provisions, and that the housing companies\u2019 positions on key parts of the bills might also present a barrier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Wagnon said, \u201cWe\u2019re pretty confident the armed services committees are taking into consideration what they heard from families through the hearings, and through statements for the record, and that they\u2019re looking out for families\u2019 best interests.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2019\/09\/10\/jury-awards-marine-corps-family-more-than-2-million-for-mold-health-issues-in-privatized-housing\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Lincoln-Military-Housing-at-Gateway-Village.-Point-Loma.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Jury awards Marine Corps family more than $2 million for mold, health issues in privatized housing<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Military family of 4 each awarded $500K for pain and suffering and emotional distress. The company will appeal.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The Military Housing Association supports a number of provisions in the bills, such as those requiring a tenant bill of rights, processes for dispute resolution, and for designation of chief of housing officers. But they cited objections to six provisions, including one that would allow the military services to renegotiate the privatized housing contracts at least every five years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a position letter to staff members of the House and Senate armed services committees, the Military Housing Association stated that if the agreements were structured as five-year deals rather than the current 50-year agreements, it could affect companies\u2019 ability to do future renovations or build new homes, and could set a precedent that will make it difficult to get private-sector financing in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Military Housing Association cited objections to these proposals:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><b>Allowing the tenant to request their basic allowance for housing to be withheld from the privatized housing landlord, and requiring the Defense Finance and Accounting Service to hold it in escrow until matters are resolved , if the landlord hasn\u2019t met maintenance guidelines, or if the unit is deemed uninhabitable according to state and local law. <\/b>\u201cThey could request to withhold their BAH at any time for any reason \u2013 and DFAS is required to grant their request,\u201d the housing association stated, contending it could harm the financial viability of the project. They instead proposed a different \u201corderly and fair process&#8221; in which the company would withhold the BAH.<\/li><li><b>Requiring the landlord to pay all medical bills for a tenant of a housing unit, if service officials have determined that the company hasn\u2019t maintained the minimum standards of habitability.<\/b> If the companies have lifetime liability for medical bills, this could result in the housing project\u2019s insolvency, the companies stated, adding that military families have the option of requesting mediation or arbitration as required by state law, and residents have the ability to take the case to court.<\/li><li><b>Requiring a 10-year maintenance history of the home to tenants<\/b>. Instead, the housing companies propose the prospective tenant receive the results of the move-out inspections, using a proposed hazard assessment tool in the House proposals.<\/li><li><b>Requiring DoD to publish all the financial details of each contract in the Federal Register. <\/b>The companies aren\u2019t opposed to sharing important financial information with their DoD partners and with the congressional defense committees, they noted. They\u2019re open to further disclosure and financial transparency &#8212; assuming such disclosures are reasonable and don\u2019t jeopardize sensitive business information, they stated, noting their contract documents already require \u201csignificant disclosure\u201d of financial information.<\/li><li><b>Diverting 3 percent of BAH to pay for DoD housing inspectors<\/b>. \u201cWe are strongly opposed to using BAH as a funding mechanism for other DoD priorities. BAH is the revenue source that drives the [housing privatization] program,\u201d the companies stated, and is not profit for the companies. Rather, it\u2019s used for maintenance, debt payments and long term sustainment of the housing. The proposal would divert millions of dollars of BAH revenue, and DoD would be, in effect, asking service members to subsidize the DoD\u2019s cost of doing business, the companies stated.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A search of the nonprofit Center for Responsive Politics\u2019 website <a href=\"http:\/\/opensecrets.org\/\" target=_blank>OpenSecrets.org<\/a> indicates that some of the five members of the Military Housing Association have apparently stepped up their lobbying spending this year. For example, Balfour Beatty Communities had increased spending on home builder lobbying from $20,000 in 2018, to spending $120,000 through July 24 of this year. But of note, Balfour Beatty Communities include more than military housing, such as other multifamily communities and student communities, so it\u2019s unclear whether there were military-specific issues of interest. There were no lobbying expenses cited for 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lincoln Military Housing has already increased its spending on real estate lobbying by 57 percent in the first seven months of 2019, compared to all of 2018. They\u2019ve spent $220,000 through July 24, compared to $140,000 in 2018. No lobbying expenses were listed for 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Corvias Military Living is on track to spend about what they did in the last two years on \u201cmiscellaneous defense\u201d lobbying. They\u2019ve spent $60,000 as of July 24, compared to $120,000 in each of the last two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lendlease Corporation is also on track with last year\u2019s numbers, spending $120,000 in the first seven months of 2019 on general contractors lobbying, compared to $240,000 in all of 2018, and $160,000 in 2017. This company also has a broader portfolio than military housing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hunt Companies so far this year is spending less on real estate lobbying: $160,000 in the first seven months, compared to $575,000 in all of 2018. In 2017, the company spent $160,000. The company has been named in lawsuits filed by military families at Keesler Air Force Base, Miss. (Of note: Hunt Military Communities is part of the larger Hunt Companies.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What influence will they have on current legislative reform to fix military housing problems?<\/p>\n","protected":false},"author":7,"featured_media":68353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":15,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[100,23,92,12,25,15,68,18],"tags":[],"coauthors":[3343],"class_list":["post-65453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-home","category-left-column","category-news","category-newsletters","category-pay-benefits","category-pentagon-congress","category-spouse"],"acf":{"subheadline":"","legacy_arc_id":"PCV2NHTWNJF47PEV2VWZIOLCM4","arc_canonical_url":"\/pay-benefits\/2019\/09\/11\/new-association-of-privatized-housing-companies-pushing-back-on-some-reforms\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New association of privatized housing companies pushing back on some reforms - Army Times<\/title>\n<meta name=\"description\" content=\"What influence will they have on current legislative reform to fix military housing problems?\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New association of privatized housing companies pushing back on some reforms\" \/>\n<meta property=\"og:description\" content=\"What influence will they have on current legislative reform to fix military housing problems?\" \/>\n<meta property=\"og:url\" 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