Dive Brief:
- Satisfaction among Army families living in privatized housing declined 1.7 points in 2021 to 73.7 out of 100 points, according to the Army’s 2022 annual housing tenant satisfaction survey.
- The story was not universally bad for privatized housing. Sixteen installations with privatized housing saw their satisfaction scores increase. However, 26 saw their marks decline.
- Army-owned or leased housing also saw a slight decrease in satisfaction, with scores dropping 0.6 points to 72.3 points. While 12 installations with Army-owned or leased housing saw increased scores, 11 experienced declines.
Dive Insight:
The most common issues respondents noted in the Army survey, emailed in January and conducted by CEL & Associates, were related to maintenance services, including response times, communication, follow-up and long-term solutions.
“The survey responses are consistent with what we have been hearing directly from Army families over recent months about the challenges that have occurred in Army housing at some installations,” said Michael E. Reheuser, Army director of installation services, in a press release. “Army senior leaders remain personally committed to providing safe, quality housing on all Army installations.”
The Army is tackling housing issues on various fronts, including establishing incentive-fee metrics that aim to hold privatized housing companies accountable for maintenance and customer service. It is also including language in new ground leases to require housing companies to meet their obligations, including by complying with quality assurance plans. Finally, it is also investing billions in upgrading barracks and on-post housing.
Sen. Raphael Warnock (D-Ga.) is also tackling the problem. In July, he introduced four bills designed to address the Basic Allowance for Housing, increase homeownership and build more housing for service members. The legislative package aims to provide relief and recourse to military families “who are left vulnerable to fluctuating markets, rising prices, inadequate base housing and privatized military housing companies,” according to a press release.
The bills are part of the National Defense Authorization Act, which is awaiting approval in Congress.
A widespread problem
Privatized housing for military families has been under scrutiny since a 2019 Reuters investigation uncovered “hazardous, squalid housing” for military families.
In Dec. 2021, Malvern, Pennsylvania-based Balfour Beatty Communities, the U.S subsidiary of Balfour Beatty and one of the country’s largest providers of privatized military housing, pleaded guilty to one count of fraud and agreed to pay more than $65 million in fines and restitution.
Balfour Beatty Communities’ employees closed work orders before maintenance had been completed, and destroyed and falsified resident comment cards to inflate resident satisfaction metrics at communities in which it operated, according to the DOJ. By producing these false reports, the company was able to induce the military to pay bonus fees the company had not earned. Overall, the scheme cost the federal government $18.7 million, according to court documents.
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