Privatized housing now available at Scott Published Jan. 10, 2006 By Staff Sgt. Julie Weckerlein Air Force Print News WASHINGTON (AFPN) -- The Air Force closed a housing privatization deal recently at an Illinois base, bringing the total of privatized homes across the service to more than 16,000, said housing officials here. Scott Air Force Base, Ill., will benefit from $250 million in total development of 1,593 homes within the first four years of the 50-year deal without the Air Force putting any money on the table. “This is a great accomplishment because it says we are at least one-third of the way into our plans to privatize at least 70 percent of Air Force housing,” said Col. Michael Smietana, chief of Air Force Housing here. Nearly 45 percent of the Air Force’s 106,000 military family housing units need major improvements or renovations to meet modern housing and Air Force quality of life standards. Though the Department of Defense set a strategic goal of eliminating the inadequate housing by 2007, the estimated $5.6 billion price tag needed for upgrades exceeded the Air Force’s construction budget. A seven-year privatization program was created that leverages private investment dollars by partnering with the civilian residential development industry. Using the Military Housing Privatization Initiative authorities, developers are constructing new homes, completing major renovations to some older homes, and providing property management services. The journey to this milestone has not been easy, said the colonel. “There are a lot of hard-working people involved in these projects, from a lot of different agencies, and we’ve learned a lot of lessons, project-to-project, and we’ve become a stronger team -- more efficient.” The recent deal at Scott AFB is a good sign that the privatization project works, said Maj. Mark Donnithorne, housing privatization program manager who helped close the deal. “That deal was made at no cost to the government,” he said. “By the end of December 2006, we should have about 13 additional projects closed at 19 bases. We’re constantly working with existing business deals, too, to see if they can be refinanced to improve the quality of the project.” Colonel Smietana said he is sure his team will continue on its road to success. “Just within the past four months, we’ve had a lot of new homes produced on more land,” he said. “Hickam (AFB, Hawaii) was another major command installation before Scott to be privatized. "We just refinanced at Elmendorf (AFB, Alaska), which will save money over the long term," he said. "If you asked me last year if we’d be where we are today, I wouldn’t have been so confident, but we’re always getting better."