Defense Communities September/October 2015

Defense

THE MAGAZINE OF MILITARY HOUSING, LODGING & LIFESTYLES

COMMUNITIES SEPTEMBER/OCTOBER 2015

www.phma.com

Update on PHMA and NAA privatization symposium page 17

New competency model for housing management page 12

Tips for creating window safety education page 26

How resident safety programs inspire community engagement and awareness

Making a Difference

Celebrating the environment with a butterfly garden page 32

CONTENTS 14 21 SPECIAL SECTION: Safety & Security

14 Making a Difference

24 In Their Time of Need

18 Protecting Our Protectors

26 Lock Into Window Safety

Lend Lease military communities across the country are experiencing great success with safety awareness programs that engage residents of all ages and teach them the importance of looking out for one another.

By Ann M. Choo Wharton

Housing managers must understand the standards and design specifications when selecting blast protection and other secure window options for their communities.

By Greg Galloway

21 Employment Protections for Military

Our Military Kids helps to alleviate some of the financial stress on families of deployed Service members by awarding grants to pay for extracurricular activities and hobbies.

By Anna Maria G. Gallozzi

Forest City Military Communities considers window safety an important issue and offers a multitude of educational opportunities for residents to bring awareness to the potential dangers and help minimize risks.

By Kari Diaz

Families

Despite a basic understanding of the Uniformed Services Employment and Reemployment Rights Act of 1994, very few veterans, Service members, and employers are aware of the increasingly robust employment protections for military spouses and families.

By Adam Augustine Carter and R. Scott Oswald

Don’t miss these columns! n Housing Spotlight 8 n Services Corner 10

2  DEFENSE COMMUNITIES

FEATURES 29 Restoring the Vision of Privatization

With the future financial stability of our projects in question, we must adjust and update our marketing strategies and plans to ensure privatized housing works for everyone.

By Vicki Sharp, NALP, CAPS, CDPM

32 The Butterfly Effect

A bare patch of earth at Naval Air Station Jacksonville in Florida has been transformed into an oasis where pollinators can find food and habitat.

By Matt Fredmonsky

Defense

THE MAGAZINE OF MILITARY HOUSING, LODGING & LIFESTYLES

September/October 2015 u Volume 26, Number 5 u www.phma.com

COMMUNITIES A Publication of the Pro­fes­sion­al Hous­ing Man­age­ment Association

34 New Flight Center Takes Off

The U.S. Army Corps of Engineers, New York District, is constructing an energy-efficient, multipurpose complex that will improve efficiencies at the Flight Activity Center, which is part of the Communications Electronics Research, Development, and Engineering Center in Lakehurst, New Jersey.

By JoAnne Castagna, PhD

36 Giving Back to Communities

Corvias Foundation works with students, colleges and universities, military families, and employees to empower individuals to reach higher and contribute to communities in a more meaningful way.

By Brandon Masters

38 IHG Announces New Hotel on Fort Bliss

A newly retrofitted hotel on Fort Bliss provides amenities and meeting spaces to accommodate both leisure and business travelers.

Adapted From a Press Release

PHMA President Del Eulberg says our strength as a nation relies on our ability to work with our neighbors to get the job done and keep each other safe.

Josephine Rossi Barbara Sincere Christine Umbrell Janelle Welch Alison Bashian

Publishing Offices PO Box 223056 Chantilly, VA 20153-3056 703-662-5828 Advertising Sales Manager Alison Bashian 800/335-7500; fax 440/232-0398 alisonb@contentcommunicators.com Editorial Office 15004 NE 11th Street, Vancouver, WA 98684 571/594-1730 phmadefensecommunities@earthlink.net PHMA Office 154 Fort Evans Road, NE, Leesburg, VA 20176 703/771-1888; fax 703/771-0299 phmaoffice@earthlink.net www.phma.com Executive Director Jon R. Moore

DEPARTMENTS 4 President’s Message

Publisher Editor Production Assoc.

Art Director Ad Sales Manager

40 Military Marketplace 42 Corporate Sustaining Members

46 Ad Index

7 Association News

PHMA partnered with the National Apartment Association to host a privatization symposium, where participants discussed challenges and shared solutions.

Defense Communities (ISSN #1088-9000 USPS #004-502) is pub­lished bi­month­ly by Content Communicators LLC, PO Box 223056, Chantilly VA 20153-3056, for the Pro­fes­sion­al Hous­ing Man­age­ment As­so­ci­a­tion, 154 Fort Evans Road, NE, Leesburg, VA 20176. PHMA mem­bers re­ceive this pub­li­ca­tion at the an­nu­ al sub­scrip­tion rate of $30.

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Unless otherwise stated, ar­ti­cles and ed­i­to­ri­als express the views of their au­thors and not nec­es­sar­i­ly those of PHMA, the editors, or the pub­lish­er. An­nounce­ments and ad­ver­ tise­ments in this pub­li­ca­tion for prod­ucts and ser­vic­es do not im­ply the en­dorse­ment of PHMA or any of its members or staff.

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ABOUT THE COVER: Directorate Please send your articles for Defense Communities to Barbara Sincere at phmadefensecommunities@earthlink.net.

of Emergency Services (DES) Officer Sergeant Wood guides Wyatt Roberts, 4, through the DES – Bike Rodeo Course at the National Night Out event. The course teaches children about bicycle safety. Photo courtesy of Island Palm Communities LLC.

Defense Communities magazine is designed to keep those who operate and manage the whole spectrum of military housing and facilities maintenance informed on the industry’s latest technology, products, and services. It provides a forum for members to share lessons learned, news and events, and training opportunities and updates.

SEPTEMBER | OCTOBER 2015 3

AS S O C I A T I ON NEW S

PHMA and NAA Host Privatization Symposium

By Barbara Sincere

W

ith the absence of PHMA’s annual Professional Development Seminar, it has been several years since representatives from each of the Services and housing privatization partners have had an opportunity to get together to discuss challenges and share solutions. Recently, Mike McAndrew, Deputy Assistant Secretary of Defense (Facilities Investment and Management), took over responsibility for privatized housing (previously the responsibility of Joe Sikes, who retired) and expressed an interest in getting together with the chief executive officers and senior staff from all of the housing privatization partners to discuss how to continue to improve the successful privatization program. With that goal in mind, PHMA partnered with the National Apartment Association to sponsor a one-day symposium to provide a platform for open discussion, with the goal of forming the basis of a solid working relationship for the entire housing privatization program as it moves into the future.

PHMA President Del Eulberg moderated the forum, which focused on the challenges privatized housing faces in the coming years. The agenda was designed to give each Service and privatization partner the occasion to be an active participant in the discussions. The Services presented their top three challenges—with a focus on their housing privatization program—and highlighted issues related to policy changes, funding, or execution that would be of interest to attendees. The partners focused on their top three challenges and best practices.

Be sure to read the November/December 2015 issue of Defense Communities for details about the symposium, including the outcomes of the discussions and insights into the future of privatized military housing for our readers. n Barbara Sincere is the editor of Defense Communities. Reach her at PHMADefenseCommunities@earthlink.net.

Defense

THE MAGAZINE OF MILITARY HOUSING, LODGING & LIFESTYLES

COMMUNITIES

www.phma.com

Help Defense Communities Plan for 2016 As editor of Defense Communities, I am thoroughly enjoying the relationships with everyone from the Department of Defense, our housing and lodging privatization partners, and our vendors. Thank you for your continued support of PHMA! As we look ahead to 2016, we need new and fresh ideas for topics that the publication can focus on and share with our members. No one knows better than all of you in the housing business what we need to talk about. So, please take a few minutes to send me a note and let me know what you want to write about next year. I also want personally acknowledge and thank everyone who has taken the time to contribute articles so far this year.

Barbara Sincere Editor, Defense Communities PHMADefenseCommunities@earthlink.net

SEPTEMBER | OCTOBER 2015 7

H OUS I NG S P OT L I GHT

COAST GUARD

Championing Teamwork Honolulu, Hawaii

I

watched the NBA Championship this year. The Cleveland Cavaliers lost to the Golden State Warriors. I am really not into basketball, but the playoffs reminded me of a valuable lesson.

There was no question that the best basketball player on the planet played for the Cleveland Cavaliers—LeBron James. He said it on national television for the entire world to hear. No one could refute the statement because he is correct. He probably is the best basketball player on the planet. People talked about his chest-pounding bravado for days after he made the statement, and he broke many scoring records in his quest to win the championship.

However, by the end of the sixth game in a best-out-of-seven game series, it was all for naught. The Golden State Warriors team was too much for the one-man show.

There were games during the series in which the Golden State team didn’t play well, yet they were able to win the championship.

It proved to me and was a great reminder that the team will always win out against any one super-sized individual effort. In the end, the best basketball player in the world was no match for the team effort.

I find the housing business to be very similar to the game I watched— housing is not an individual sport; it is a team sport. There will be days when your best members are not on their game and need other teammates to lift them up and support them. It is the support of one another that carries a team through the tough times. There also are times when one person may receive accolades for outstanding work, but we all know that it takes a team to win.

8 DEFENSE COMMUNITIES

FROM LEFT TO RIGHT: SA Tony Stewart, YN2 Efren Reynoso, Mr. Andrew Noell and Mr. Robert Sullivan.

Housing is definitely a team sport, and that’s one of many reasons why I enjoy working in this business.

Team players who support one another and work together to achieve common goals are unbeatable. When I think about, it really doesn’t matter what business you’re in; the team concept is the only way, and certainly the most success-

ful way, to achieve common goals on a consistent basis. Watching the NBA Championship series this year reminded me of that important fact: The best team always wins. n Robert J. Sullivan is the U.S. Coast Guard area housing officer for Base Honolulu Housing. Reach him at robertjsullivan@uscg.mil.

Correction In the July/August issue of Defense Communities, page 6, we incorrectly labeled the Housing Spotlights article as Navy. The correct label should have been Marine Corps, to accompany the full headline “Navy-Marine Corps Achievement Medal Awarded to Bachelor Housing Manager.” Defense Communities regrets this error.

SE R V IC E S C ORNER

The Value of Exceptional Service

By Robert E. Moriarty, PE, SES

A

renovation process and procedures for filing renters’ insurance and reimbursement claims. Within one month of the flood, BBC restored all 31 homes on Carolina Loop.

From the moment flooding overtook the first home up until the final family moved back into its restored home, BBC provided superior customer service—the cornerstone of Air Force housing privatization.

Soaring High for Military Families The Air Force began its housing privatization journey more than 15 years ago, as its number one quality-of-life initiative. While the allure of modern appliances and well-maintained and newly constructed and renovated homes may entice prospective resi-

Photo: Staff Sgt. Matthew Plew

massive storm cell moving through eastern New Mexico on May 4, 2015, dumped more than five inches of rain on Cannon Air Force Base (AFB) in the span of a few hours. The torrential rainfall quickly accumulated, flooding portions of the base.

As conditions worsened and the rising water made its way into several homes on Carolina Loop, Balfour Beatty Communities’ (BBC) onsite management team assembled alongside base personnel and other volunteers to perform door-to-door evacuations. By 2 a.m., evacuations were complete. Within a matter of hours, BBC had ensured temporary housing, transportation, and provisions for all 31 displaced families with the assistance of base personnel.

The following day, BBC launched an aggressive cleanup and restoration schedule. The second day, it held a town hall meeting to explain the

Torrential rainfall caused substantial flooding at Cannon Air Force Base, New Mexico, May 5, 2015.

10 DEFENSE COMMUNITIES

dents, excellent customer service is the foundation of resident retention and satisfaction.

From the start of the first Air Force project at Lackland AFB, San Antonio, Texas, in 1998, through the close of the final project in 2014, we have seen resident satisfaction steadily climb, portfolio-wide.

Overall satisfaction improved three service levels, rising from “below average” to “very good,” over the past decade.

Partnering with the private sector enabled us to offer Airmen and their families high-quality homes more quickly and efficiently than the Air Force could deliver. For every Air Force dollar invested, the private sector invested $13 in the more than $8 billion development program.

From the cost of initial construction, renovations, maintenance, and operation to costs associated with out-year development and sustainment plans, everything depends on income derived from occupancy.

BBC’s response during Cannon AFB’s time of crisis is a dramatic example of the project owner putting Air Force families first. Similar scenarios play out across our bases every day on a smaller scale. For example, in New Mexico, a broken air conditioning unit is more than an inconvenience during the blistering heat of summer.

For residents in privatized housing at Holloman AFB, a broken air conditioner in summertime is categorized as an emergency—meaning Soaring Heights’ maintenance will be on site in less than an hour. Over the past 12 months, Soaring Heights’ maintenance team responded to 92 percent

of all emergency calls within one hour.

Holloman residents ranked Soaring Heights’ quality of maintenance services as “very good” in the annual resident satisfaction survey completed in October 2014.

Another component of quality customer service is compassion. A little compassion goes a long way for customers dealing with life-altering changes, such as moving to a new home. Moving is a stressful process in general, but for military families it’s just the tip of the iceberg. Our families routinely uproot their lives—moving cross-country; leaving friends and jobs behind; starting new schools; and, unfortunately, often preparing for long periods of separation.

This was the case for one particular family at Schriever AFB in Colorado Springs, Colorado. While conducting the final move-out inspection for a family preparing for deployment, the resident services coordinator with Tierra Vista Communities noticed the yard needed weeding. Instead of marking the inspection item incomplete or making the family reschedule the inspection, the resident services coordinator spent the next hour pulling weeds alongside the family, preventing damage charges.

These examples represent a mere fraction of the experiences of more than 53,000 families in privatized housing Air Force-wide. To fully appreciate the power of customer service, consider the results from our annual resident satisfaction surveys: The portfolio’s highest resident satisfaction scores to date averaged 82.9 percent, or “very good,” in 2012 and 2013. The first quarter of 2013 also marked the program’s highest occupancy rates, averaging 97.7 percent Air Force-wide.

Photo: Airman 1st Class Chip Slack

SER V IC E S C ORNER

U.S. Air Force Staff Sgt. Cleon Windley, 27th Special Operations Support Squadron host aviation resource manager, and his family, cut the ribbon at a commemorative move-in ceremony hosted by Balfour Beatty Communities Oct. 16, 2014, at Cannon Air Force Base, New Mexico.

Consistency Needed Despite good portfolio averages for resident satisfaction and occupancy, the program lacks consistency. The highest-rated project for customer service in 2014 scored 92.3 percent.

The lowest scored 69.3 percent.

This tells us that families moving from one base to another are not guaranteed a consistent, quality, customer service experience, and that’s a problem. Improving overall resident satisfaction begins with quality customer service and standardization.

From inspections and final checkout lists to maintenance response times and regular customer engagement, our Airmen deserve an exceptional living experience wherever they’re stationed.

Although other factors contribute to the rise and fall of occupancy rates, it’s important our project owners heed the correlation between customer service and resident retention. As we shift our focus from project execution to postclosing management, projects must be

financially self-sustaining, including maintenance, repairs, and midterm renovations. The Air Force will continue to be a demanding customer as we advocate for our Airmen. They are the heart of the Air Force mission, and they deserve the best housing experience we can deliver. Alongside our partners, we’ve improved the overall quality of life for today’s Airmen and their families, validating the value of privatization. But that’s only half the battle.

The only way the program can generate the revenue necessary to support tomorrow’s Airmen is to ensure today’s Airmen continue to choose privatized homes. Influencing that decision doesn’t require a new resident-relations strategy; good customer service is a decision you make every day. Start with one family—one small gesture—and then tomorrow do the same. n Robert E. Moriarty, PE, SES, is the director, Installations Directorate, Air Force Civil Engineer Center.

SE R V IC E S C ORNER

Competency Model for Housing Management

By George Mino, PE

T

wo top trends in education technology are skills measurement and competencybased training, according to the February 2015 issue of Inc. magazine. These trends were recognized by Congress in the FY 2010 National Defense Authorization Act, which included a new statute, Title 10, U.S. Code, Section 115b (10 USC 115b), requiring the preparation of a Department of Defense (DoD) Strategic Workforce Plan. This plan, which must be updated biennially and reported to Congress, calls for the department to ensure that all DoD civilians have an assessment of their critical skills and competencies, and to develop training strategies to close any competency gaps. These statutory requirements are captured in DoD Instruction 1400.25, v250, Civilian Strategic Human Capital Planning.

The Defense Civilian Personnel Advisory Service (DCPAS) is leading this workforce initiative by grouping all of the DoD civilian occupational series (OS) into Functional Communities (FCs). OS 1173, Housing Management, is one of 64 OS in the Facilities Engineering and Management (FEM) FC, which is overseen by the Deputy Assistant Secretary of Defense for Facilities Investment and Management (FIM) in the Office of the Assistant Secretary of Defense (Energy, Installations, and Environment). To manage this effort, a DoD FEM working group was established with functional and human resources representatives from the military Services, defense agencies, DCPAS, and FIM. 12  DEFENSE COMMUNITIES

One important function of the DoD FEM working group is to periodically assess the health and future trends of the workforce by reviewing human resources data on demographics, recruitment, incentives, and separations (including retirements). Starting in FY 2015, FEM subject matter experts from the Services began participating in panels led by DCPAS industrial organizational (IO) psychologists to develop competency models using the Defense Competency Assessment Tool (DCAT). This year, models have been developed for four FEM OS, including OS 1173, Housing Management.

The process to develop the OS 1173 competency model began with DCPAS IO psychologists reviewing relevant documentation submitted by the Services, including housing management knowledge, skills, and abilities statements; position descriptions; competency models; career program information; etc. Using Office of Personnel Management-approved procedures, the IO psychologists developed a draft list of technical competencies with a list of task statements for each competency. Two subject matter expert panels composed of experienced, senior-level housing managers from the Services (headquarters, subordinate commands/regions, and installations) then reviewed and revised the competencies and task statements. There were five competencies in the final OS 1173 competency model: 1. Housing Management Program Administration: Manage and advise on the technical and administrative aspects of military family and unaccompanied housing programs (e.g., government-owned, leased, privatized, community).

Includes five task statements.

2. Housing Operations: Execute, manage, and oversee operations (e.g., inventory management, community liaison, requirements, resourcing, etc.) for all housing assets and programs.

Includes 11 task statements.

3. Housing Requirements Determination and Planning: Determine existing and/or future housing requirements through surveys, analyses, and evaluation of housing programs in order to create or update housing plans. Includes five task statements.

4. Housing Relocation and Referral Services: Develop, implement, and execute a housing services program (e.g., referral, home-finding, customer outreach, community liaison, etc.). Includes three task statements.

5. Privatized Housing Oversight: Provide oversight of the privatized housing business entity to ensure compliance with project documents and program policy. Includes seven task statements.

To assess the competency of the OS 1173 workforce (DoD general service civilians only), as required by 10 USC 115b, DCPAS loaded the final competency model into DCAT and emailed it to a randomized sample population of employees to request their self-assessment. It also requested that respondents provide their supervisor’s email, so DCPAS could also have their supervisor complete the assessment. Employees and supervisors were told that their responses would be kept confidential and that the results of the competency assessments were only to be used to inform future training and devel-

SER V IC E S C ORNER

Table 1 – Survey Participation Rates Service

1173 Population

Sample Population

Employee Responses

Air Force

368

197

76

38%

57

29%

Army

375

200

93

37%

62

31%

Navy & Marine Corps

446

237

67

28%

40

17%

DoD Total

1,189

634

236

37%

159

25%

Number

Supervisor Responses

Percent

Number

Percent

Table 2 – Competency Model Survey Results Target Proficiency

Average Employee Proficiency

Employees With Gaps

Management Program Administration

4.4

3.9

41%

11%

53%

27%

2%

7%

Operations

4.4

3.9

38%

12%

54%

24%

3%

7%

Requirements & Planning

4.4

3.8

43%

27%

32%

28%

10%

3%

Relocation & Referral

4.1

3.4

31%

12%

54%

18%

8%

8%

Privatized Housing Oversight

4.0

3.3

35%

22%

44%

26%

4%

4%

opment opportunities. Supervisors were instructed not to use the survey for performance management.

The OS 1173 surveys were conducted from May 11 to June 5, 2015.

Table 1 shows the resulting survey participation rates. The overall 25 percent participation rate for the OS 1173 surveys ranked among the highest compared to similar surveys of other occupational series.

The employee self-assessment for each competency included questions about that competency’s importance, frequency performed, difficulty, criticality, and differentiation (i.e., does it distinguish between a superior and average worker?). The survey asked the employee to assess his or her proficiency in each competency based on a five-point Likert scale that included the following options: 0-None, 1-Awareness, 2- Basic, 3-

Recommended Training Strategies To Close Gaps Instructor Led

On the Job

Intermediate, 4- Advanced, and 5Expert.

The supervisor’s assessment also included questions about competency importance (at recruitment, currently, and in five years), frequency performed, difficulty, criticality, and differentiation. And for proficiency, supervisors were asked to provide both the employee’s current proficiency and the target proficiency. The consolidated results of the survey are shown in Table 2. While the data results (Table 2) are sufficient to meet congressional reporting requirements, the department continues to analyze the data to further refine the results. For example, the data set needs to be separated by U.S. and foreign locations because the Military Housing Privatization Initiative is not authorized outside of the United States.

Using input from other competency

Challenging Assignment

Online

Job Rotation

efforts and available training resources, the Services will then have the option to use the raw survey data (with Personally Identifiable Information removed) and the DoD 1173 Competency Model to help make datadriven decisions to narrow or eliminate workforce competency gaps. Efforts also will be undertaken to standardize competencies across the Services to develop less costly, competency-based enterprise training. n George Mino, PE, is a senior program analyst for the Deputy Assistant Secretary of Defense (Facilities Investment and Management) in the Office of the Assistant Secretary of Defense (Energy, Installations, and Environment). He is responsible for programmatic oversight of various aspects of unaccompanied and family housing programs within DoD. SEPTEMBER | OCTOBER 2015 13

SPECIAL SECTION: Safety & Security

Making a Difference By engaging residents in safety programs, communities can build an environment of awareness, ownership, and teamwork

By Ann M. Choo Wharton

14 DEFENSE COMMUNITIES

Photo: Island Palm Communities LLC

O

n a typical weekday morning, parents are waking up kids for school, packing lunches, and getting themselves ready for work and the activities that fill their days. Did I mention waking up the kids? Mornings can be hectic, and we often find ourselves rushing out the door, piling into the car, and trying to get the kids to school and ourselves to work on time. We are joined by hundreds of parents on the road, hundreds of kids walking and riding bicycles, and thousands of others headed to work on a military installation.

We often are on “auto pilot” during our morning routine, and a short lapse in focus could be disastrous. “There’s a lot going on, especially during the morning rush hour, with kids headed to school and soldiers doing physical training,” said COL Richard A. Fromm, commander, U.S. Army Garrison-Hawaii (USAG-HI). “We can easily get distracted and not see a car or pedestrian, and with the pressure to arrive on time, many of us unconsciously exceed the speed limit, putting people—including our own family—at risk.”

To bring awareness and attention to this safety issue, the USAG-HI and Island Palm Communities (IPC), the Army’s housing privatization partner, recently initiated the Slow Down Now campaign.

Speeding drivers who compromise the safety of children are of great concern to families living on the installation.

On behalf of its residents, the IPC staff reached out to the Directorate of Emergency Services (DES) to assist with getting out the important message to drivers: Slow down. IPC staff rallied residents, reached out to school officials, and gathered support from parents and students to partner with the DES bike patrol officers.

As a result of reaching out, together the IPC and Army teams launched the Slow Down Now campaign. Several times during the year, dozens of volunteers holding colorful banners and signs line the sidewalks along busy

Inspector Kevin Miller of the Federal Fire Department demonstrates fire safety to children at the National Night Out event. Inspector Miller passed away earlier this year.

Kids on Patrol program where children learn about road safety from members of the Directorate of Emergency Services, U.S. Army Garrison Hawaii.

Volunteers from Directorate of Emergency Services and US Army Garrison Hawaii at the Slow Down Now event held at the Island Palm Communities.

thoroughfares during rush-hour traffic to remind drivers to slow down. They often are met with horns honking as a show of support; shout-outs from appreciative passersby; and, most importantly, drivers actually slowing down. Parents, teachers, and students of all ages are part of the effort, volunteering alongside IPC staff and DES officers.

The Slow Down Now campaign is just one example of how the IPC property management team facilitates effective communication between families and DES employees. “It also is a great example of how we are helping put more feet on the ground and eyes on the street by promoting and coordinating volunteer efforts, in order to support the U.S. Army Garrison’s safety initiatives,” said Pete Sims, IPC’s project director.

Photos: Island Palm Communities LLC

Creating Awareness The safety of everyone, including Service members and their families, civilians, and residents and their guests, is the responsibility of DES, and this has not changed with the privatization of housing. However, the additional resources and increased opportunities to engage residents SEPTEMBER | OCTOBER 2015 15

Volunteers from Directorate of Emergency Services and U.S. Army Garrison Hawaii at the Slow Down Now event held at the Island Palm Communities.

needs so we can collaborate on finding a solution,” said Tom Adams, IPC’s director of property management.

One discussion point was the issue and possible safety risks for pre-teens, who often are home alone after school or hanging out with friends with not much to do. The solution: giving the kids something constructive to do. Promoting a constructive, safe, and healthy lifestyle, the Kids on Patrol program was originally created by another Lend Lease Army privatization project, Fort Hood Family Housing in Killeen, Texas. Kids learn about safety and respect for people and property through fun activities, including community service projects. They also have a chance to meet new friends in a positive, supportive environment. The DES and members of the Federal Fire Department Photo: Island Palm Communities LLC have an important role in the safety education component of the program. “There’s a Bike Safety Bonanza that educates kids on the rules of the road and programs that teach them about fire prevention and first aid,” said Adams. “Of course, one of the ultimate benefits is giving our kids the opportunity to interact with positive role models, who are part of their community.”

More adults also are getting involved in community safety initiatives. IPC is helping to spread the word throughout our neighborhoods about the DES Neighborhood Watch program, and we facilitate meetings between officers and residents interested in enhancing safety in their neighborhoods. Residents provide support to DES by keeping a have indeed changed. At USAG-HI, IPC’s property manage- watchful eye over their community and alerting officers to ment team works closely with DES staff not only to help potential risks, and IPC’s property team supports volundeliver the important safety information to the approxi- teers by helping them communicate with residents in their mately 20,000 family members living on the installation, neighborhood.

As a result of the partnership between the Army and but also to develop, implement, and facilitate programs that enhance DES safety initiatives and create a greater IPC teams, safety awareness is being communicated to and practiced by those who work, live, and play on the USAGawareness.

The timely communication of important informa- HI at Schofield Barracks. “It’s been great to see our DES tion to residents and the IPC property management officers and the IPC team come together in a positive and team is integral to building confidence and trust in the productive way, encouraging residents of all ages to take U.S. Army Garrison’s safety personnel. IPC’s community ownership of their community and work together to promanagers and operations directors meet quarterly with mote a safe place for their family, friends, and neighbors,” the provost marshal, DES operations officer, and bike said COL Fromm, Garrison Commander, USAG-HI. n patrol staff to receive updates on criminal activities or trends that may impact the safety of residents and discuss Ann M. Choo Wharton is a senior marketing manager relevant issues. “Regularly scheduled meetings provide for Lend Lease Public Partnerships serving at Island Palm our staff and residents with accurate information, and Communities in Hawaii. Reach her at ann.wharton@lendgive us an opportunity to identify where there might be lease.com.

The safety of everyone, including Service members and their families, civilians, and residents and their guests, is the responsibility of DES.

16 DEFENSE COMMUNITIES

| FEATU R E |

Restoring the Vision of Privatization In a time of shifting priorities and changing perceptions, we must work together to find long-term solutions instead of short-term fixes

By Vicki Sharp, NALP, CAPS, CDPM

E

veryone in the rental housing industry loves to raise the rent. Higher income means higher-quality amenities; a more robust resident activity plan; a little breathing room when unexpected expenses occur; and, of course, salary increases and/ or bonuses for employees. We need

to raise the rent every year, if for no other reason than to cover potential increases in property taxes, insurance, supplies, and employee benefits. However, increasing rental rates isn’t always possible, especially in military housing.

Before privatization, many residents thought housing on the installation was

free because their Basic Allowance for Housing (BAH) was not shown on their Leave and Earning Statement (LES). In other words, their BAH was simply forfeited. As such, they were willing to live in older homes and accept deferred maintenance due to a lack of funding. Because BAH was forfeited, Service members never saw the “rent increase.”

SEPTEMBER | OCTOBER 2015 29

| FEAT U R E |

After housing was privatized, Service members’ BAH became “visible” on their LES, and residents realized they had options, including moving off an installation. This was the first “hiccup” to the income stream in many privatization projects. Fortunately, as Service members saw the improvements being made, new homes being built, and existing homes renovated as a result of privatization, many residents returned to privatized military housing, quickly solving that income shortfall.

For several years, housing markets across the United States were overbuilt, resulting in an excess of rental units,

was met with apprehension and, in some cases, flat out refusals from the Services.

This created a significant risk to the financial health of the projects.

Misconceptions Abound It has been more than a decade since the first wave of privatization of housing, and most of the government employees who were leaders and active in the initial privatization of housing have retired or left the Service. These were the folks who were very involved in the startup and operations of each project and clearly understood the project’s short- and long-term financial plans. They knew the details,

From my perspective, the vision of a better future of military housing has been lost. stagnant rental rates, and incentives to encourage potential tenants to rent.

Service members were quick to notice the signs and banners offering a free month’s rent or a free flat-screen TV. These types of incentives enticed many Service members to move off our military installations into nearby communities. Many newcomers to an installation chose to live off base for the same reasons, and occupancies began to drop. Then came changes in mission and a reduction in the military strength, which decreased our potential customer base even more and created another hiccup to the rental income stream.

The drop in occupancy triggered the need to implement the tenant waterfall, which is a part of the privatization plan to ensure occupancies are high enough to meet mortgage payments. Unfortunately, this was easier said than done, as implementation of the occupancy waterfall 30 DEFENSE COMMUNITIES

understood how the financials worked, realized that the success of the project was a team effort, and helped develop the full “playbook” for the out-years.

Unfortunately, it appears that the next generation of government housing employees and those new to command are not aware of how our military housing programs were operated prior to privatization, when the annual maintenance budget was spent by June, and only life-threatening emergencies could be funded until the new budget year started in October. From my perspective, the vision of a better future of military housing has been lost. As I travel around the country, I am amazed when I hear things like, “I don’t know why the government turned housing over to a contractor,” or, “If I complain enough, you guys will lose this contract and the government will take it back.” Yes, these are comments

I have heard from government housing employees as well as Service members.

The comment I hear most often from residents is, “You guys are just taking my BAH and stuffing your pockets with it.”

In fact, I heard that very comment from a Service member in a leadership position, who I thought would be in a position to understand more about the financial plan of a project and how the cash flow process works. This indicates that there is a gap between those who understand the history and the vision of the privatization of military housing and those who simply do not know. I think most everyone knows the history. I want to bring the vision back to life.

The privatization of military housing plan utilized private-sector funding to build and properly maintain housing for our Service members. Included with the vision was a plan to save for future renovations and new construction over the next 50 years. With a large influx of capital and the ability to leverage that money, new homes and communities were built; existing homes were renovated; and maintenance is now a year-round activity, with no gap in services. Resident services and programs were greatly improved and now include lawn care, responsive and timely maintenance service, and many resident activities, all of which are mostly funded through the Service members’ BAH. Additionally, funds are set aside to ensure that the 50-year plan of continually maintaining and improving the housing inventory and replacing homes when necessary can be funded. There has always been a vision to the future, as well as a plan to put aside money to fund that vision.

Finding a Long-Term Answer Today, the 50-year plan is being threatened. Conversations about Base Realignment and Closure and reductions in our overall military strength, as well as limits on the BAH, may put projects at financial risk. We must work together as a team to ensure that housing quality does not return to

preprivatization conditions. Because rent (in most projects) is capped at the Service member’s BAH, and there is little other income source, occupancy has the greatest impact to the financial health of a project. Therefore, understanding and possibly enacting the tenant waterfall becomes critical to maintaining the project and the vision.

The suggested changes in the structure of the BAH will certainly result in less income to the project—and a decrease in income means a decrease in expenses.

There are expenses that are not controllable, such as the mortgage payment.

However, those expenses that are controllable include resident services and activities. Some of these services include lawn maintenance and a short response time for routine and preventive maintenance.

As project managers work to balance the budgets, these are the services that may be cut first. Obviously, these will not be popular decisions and will likely trigger many complaints.

One of the most important benefits of privatization that may be in jeopardy is the funding for the out-year development plans. Most of the projects are budgeted based on 95 percent occupancy, yet they may actually be sitting at 90 percent or less. That 5 percent loss of income may result in the loss or delay of replacement construction or major renovation projects in the out-years. We all know of projects that did not complete the initial development period plans due to changes in the financial plan, leaving some of the inventory less desirable and costly to maintain.

The trend of continued income losses will only exacerbate that situation, and we must begin to plan for this challenge.

We need to recognize that a reduction in strength of our Service members will occur in the near future, and it is time to give serious consideration to the tenant waterfall agreement. This may actually be a long-term answer instead of a shortterm fix, as the income stream must be protected.

The solution may be creating marketing plans that target all potential resi-

dents, as outlined in the tenant waterfall.

These marketing plans should be well thought out, and must be agreed to by all stakeholders, both private partners and government leadership. Everyone needs to understand and support the plan, including sharing the details of the situation and the plan with enlisted leadership, who are in direct contact with the Service members. It’s important that the master chief, the first shirt, and the sergeants major have a good understanding of the program.

We cannot continue to be vague about the availability of housing for

waiting list. I never would have thought that ad was actually directed to me.

It is time to rethink marketing campaigns to make sure the targeted audience realizes that rental housing on a military installation is available to them.

It’s time to brush off our old marketing campaigns from the private sector and see what works today for privatized military housing projects. We are entering a period when the reduction in our military strength will be more than just a hiccup to the financial stability of our projects.

This may be the new normal of military housing, so our marketing strategies and

It is time to rethink marketing campaigns to make sure the targeted audience realizes that rental housing on a military installation is available to them. all categories of eligible tenants. Here is a favorite example of mine to demonstrate the challenge: While traveling through an airport near a fairly large military installation, I saw an ad that read, “Housing now available at Camp Swampy. Call today to schedule your tour.” This was an expensive ad in an expensive location. Frankly, I thought the location of the ad was excellent.

When I checked, I found that the ad had yielded few, if any, results. Why? The ad never stated that housing was available to everyone! If I were a civilian living in an area with a large military installation and saw this ad, I would assume it was aimed at military personnel, perhaps to let them know that there was no longer a

plans must be updated to address the challenge.

In the November/December 2015 issue of Defense Communities, I will provide tips and tools for creating a successful marketing plan. The article will not be directed just to the privatized partner, but also will include thoughts and ideas for command personnel to assist in increasing occupancy. Remember, we are all in this together, and our successes will continue to create a better living environment for our Service members and their families. n Vicki Sharp, NALP, CAPS, CDPM, is the president of The Sharp Solution. Reach her at vicki.sharp@thesharpsolution.net.

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ADVERTISING INDEX Company

Contact

Phone

Web Site

Page

Corvias Group

Amanda Filipowski

401/228-2800

www.corvias.com

1

Entech Supply

Don Smith

800/221-4785

www.entechsupply.com

7

HD Supply

877/610-6912

www.hdsupplysolutions.com

Microfridge

Lea Tuccinardi

800/637-7567 x2121

www.microfridge.com

Oakwood Corporate Housing

Mary Jacenich

888/268-9998

www.oakwood.com/government

22

Salsbury Industries

Ricardo Alva

323/846-6700

www.mailboxes.com

37

Universal Storage Containers

Rod Bolls, Vice President

720/263-5687

www.universalstoragecontainers.com

C4

Valley Forge Fabrics

Jason Gans

954/971-1776

www.valleyforge.com

C2

Wells Fargo Home Mortgage

Customer Service

800/644-8083

www.wellsfargo.com

17

Yardi Systems, Inc.

Spencer Stewart

800/866-1144

www.yardi.com

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