Military Housing Privatization Initiative
Congress established the Military Housing Privatization Initiative (MHPI) in 1996 as a tool to help the Department of Defense 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.
Currently, Novogradac is a Transaction Advisor and Portfolio/Asset Manager for DoD’s Military Housing Privatization program. To date, DoD has successfully awarded 62 projects (132,000 housing units) with development cost of over $12 billion. There are over 40 projects (60,000 housing units) with $10 billion in development costs, either in the planning or solicitation stages.
Over the years, Novogradac personnel have been involved in all aspects of the Military Housing Privatization Program from feasibility analysis to proposal evaluations to transaction closure, including:
- • Visiting potential sites
- • Providing market analyses
- • Developing project scope
- • Performing cash-flow analyses
- • Interpreting congressional legislation
- • Determining cost to the government
- • Facilitating discussions between the military and private industry
- • Developing solicitations
- • Developing legal and financial documents
- • Reviewing and evaluating bidders’ proposals
- • Negotiating final contract terms
- • Post-transaction portfolio management
For further information contact Stephen Redlich at 240.235.1701.