Housing Privatization 101: Why must I sign a lease

Published March 13, 2007
By Terry Seaman

PETERSON AFB, Colo. -- Most bases within the Air Force and Air Force Space Command are transitioning to privatized housing.

This transition may be a frightening concept for some military families, especially when asked to sign a new lease.

"This is not an unusual requirement," said Ms. Johnna Phillips, Peterson Air Force Base Military Family Housing manager. "All tenants must sign a lease regardless if they reside in military family housing, privatized housing or off-base housing."

Peterson will get more than 200 additional family housing units. Eventually, all family housing on Peterson, with the exception of about a dozen general officer quarters, will be replaced. Ground work for the project could begin by this fall, with the first new units complete in 2009.

When the new housing becomes available, the terms and conditions of each of these leases will be similar to off-base leases.

Military members who live in base housing sign a lease, through which, members forfeit their Basic Allowance for Housing and agree to abide by a variety of rules. These rules typically limit the types and numbers of pets, dictate yard care, enforce home and yard improvements and regulate parking.

A lease for off-base or privatized housing is much the same as both are legally binding contracts between a tenant and a landlord. They grant the tenant the right to inhabit the landlord's property and define the tenant's basic responsibilities such as rent and occupancy length. They also establish owner responsibilities that are above the minimums established by state and local laws and protect tenant's rights that are not otherwise specified by law.

Leasing privatized housing has many similarities to renting off-base housing. In both cases, military members receive BAH based on their rank and qualifying dependents. Should both spouses be on active duty, then both spouses will receive BAH. The tenant is responsible for rent, utilities, television and telephone service.

Leasing privatized housing includes some benefits that the member won't find in off-base housing.

"The privatized housing lease is an enhancement of the standard off-base lease as the Air Force has worked with the developer to craft specific language to make the conditions more favorable to the military tenant. These leases limit rent to not more than a military member's BAH, include a standard military clause and limit the amount and types of security deposits," said Ms. Phillips.

Since rent is based on the senior military member's accompanied BAH rate, rent cannot be inflated at a higher rate than the housing allowance.

Privatized housing rent will initially include all utilities. Once the developer installs utility meters on the electrical and natural gas services to the houses, the rent will be reduced to allow for a utility allowance.

"This utility allowance will equal 110 percent of the average utility cost for that size and type of unit. Energy conscience families will enjoy more money in their monthly budget," said Ms. Phillips.

Leases are just one aspect of the transition that military members need to consider when deciding where to live. Many other issues need to be weighed, and will be discussed in subsequent articles.

There will be a housing privatization Town Hall meeting for Peterson, Cheyenne Mountain and Schriever personnel from 5:30 to 7 p.m. March 22 at the Base Auditorium. For information on local privatization matters, call the Peterson housing office at 556-7946.

(Editor's Note: This article is the first in a series intended to help military families transition to privatized housing.)

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