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Congress established the Military Housing Privatization Initiative (MHPI) in 1996 as a tool to help the military improve the quality of life for its service members by improving the condition of their housing. The MHPI was designed and developed to attract private sector financing, expertise and innovation to provide necessary housing faster and more efficiently than traditional Military Construction processes would allow. The Office of the Secretary of Defense has delegated to the Military Services the MHPI and they are authorized to enter into agreements with private developers selected in a competitive process to own, maintain and operate family housing via a fifty-year lease.

MHPI addresses two significant problems concerning housing for military Service members and their families: (1) the poor condition of DoD owned housing, and (2) a shortage of quality affordable private housing. Under the MHPI authorities, DoD works with the private sector to revitalize our military family housing through a variety of financial tools-direct loans, loan guarantees, equity investments, conveyance or leasing of land and/or housing/and other facilities. Military Service members receive a Basic Allowance where they can choose to live in private sector housing, or privatized housing.


New to Housing Privatization?
Start with the MHPI 101 presentation


OSD Perspective

PHMA 2012



Family Housing Privatization:
Lessons from the 1950s

By Dr. William C. Baldwin
Baldwin Article
PHMA 2012:
Conference Presentation on DoD Housing privatization

Privatized Housing Plans Hit New Phase
By Karen Jowers
The Marine Corps Times