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AF schedules closing for Continental Group housing

JOINT BASE SAN ANTONIO -- LACKLAND, Texas (AFNS) --

The Air Force Civil Engineer Center has completed the transaction closing for the Continental Group Housing Privatization project with Corvias Military Living.

On Sept. 1, Corvias assumed full housing operations at all six Continental Group bases: Edwards Air Force Base, Calif; Eglin AFB, Fla., Eielson AFB, Alaska; Hurlburt Field, Fla.; McConnell AFB, Kans.; and Seymour Johnson AFB, N.C.

The privatization project, valued at $455 million in total development costs, will provide new and renovated housing for 3,840 military families using only $87.2 million in government funding.

Corvias Military Living, an affiliate of Corvias Group, is responsible for the development, renovation, operation and management of other military privatization housing projects for the Army. Corvias manages more than 21,000 housing units at seven Army installations, including Fort Rucker, Ala.; Fort Polk, La.; Fort Riley, Kans.; Fort Sill, Okla.; Fort Bragg, N.C.; and Aberdeen Proving Ground and Fort Meade, Md.

Under this project, the Air Force will lease 2,422 acres of land as part of a 50-year transaction and convey 4,036 existing housing units. Of the existing units, 1,504 inadequate units will be demolished. The project will also provide 1,308 new and 1,077 renovated homes to be completed within five years.

The housing units will become the property of Corvias, and the company will finance, design, maintain and manage the rental housing development for military families. Ultimately, Corvias will maintain at least 3,840 housing units for the 50-year lease period.

"The Air Force chose Corvias after determining that it offered the most advantageous proposal considering all of the criteria in the request for qualifications," said Col. Greg McClure, director of the Air Force Civil Engineer Center's Housing Privatization Division.

In 1996, Congress created the Military Housing Privatization Initiative as part of the National Defense Authorization Act. The goal was to provide military members with quality homes faster than through traditional military construction alone.

According to McClure, the Air Force has accomplished in 13 years through housing privatization what would have taken 32 years using traditional military construction and saved taxpayers billions in the process.

"The Air Force has privatized more than 52,400 homes at 63 bases at a cost to the Air Force of $621 million, and brought in $8.2 billion in private funding to provide quality homes for our Airmen," said McClure. "The ability to partner with the private sector development community has helped the Air Force provide quality homes for Airmen and their families faster than traditional military construction programs."

Dr. Dorothy Robyn, deputy under secretary of defense for installations and environment, recently said, "Housing privatization is the greatest quality of life improvement in the history of the Air Force."

Assistant Secretary of the Air Force (Installations, Environment & Logistics) Kathleen Ferguson touted the significant success of the Air Force Housing Privatization Program in a written statement submitted for the April 12, 2013, House Appropriations Subcommittee on Military Construction-Veterans Affairs.

"Through housing privatization, the Air Force has invested ... to provide quality homes for Airmen much more quickly than we could have done with traditional military construction processes," Ferguson wrote. "And, we remain committed to caring for our Airmen and their families as we strive to eliminate inadequate housing by 2018, and to complete our privatized housing initiative in the United States by 2013."

AFCEC, headquartered here, serves as the Air Force service agent for housing privatization efforts including completing feasibility analyses, developing project concepts and solicitations, and providing support to the integrated acquisition teams that execute projects.

(Courtesy Air Force Civil Engineer Center Public Affairs)

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