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Military Housing: DOD Can Further Strengthen Oversight of Its Privatized Housing Program [Reissued with Revisions Apr. 20, 2023]

GAO-23-105377 Published: Apr 06, 2023. Publicly Released: Apr 06, 2023.
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Fast Facts

Private-sector companies own and operate about 99% of homes at U.S. military installations.

Laws put in place since 2019 increased DOD's responsibilities to oversee this housing. DOD has taken steps to address requirements but could do more. For example, DOD:

  • Provided residents with a formal dispute resolution process and access to a tenant advocate, but should improve advocates' training, provide residents better information, and solicit residents' input on the process and the advocate's role
  • Increased home inspections but should develop uniform inspection standards and train inspectors

Our 19 recommendations help DOD address these issues.

A uniformed servicemember holding a miniature two-story house cupped in both hands with arms stretched out in front of him

Reissued with Revisions Apr 20, 2023
Revised April 19, 2023 to correct page 10 (Table 1). The corrected section should read: 'As of the end of March 2023, 11 of the 14 private housing companies have voluntarily agreed to fully implement all 18 rights, and the remaining three have voluntarily agreed to implement 16 of the 18 rights'.
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Highlights

What GAO Found

The Department of Defense (DOD) has taken steps to implement statutory requirements from the Fiscal Year 2020 National Defense Authorization Act (2020 NDAA). These statutory requirements were designed to increase assistance to residents of privatized housing, ensure DOD has adequate personnel to conduct oversight activities, and improve DOD's oversight of the condition of private housing units. DOD has taken steps to implement these requirements, but gaps in guidance and training remain. For example, GAO found a need for

  • More detailed formal dispute resolution guidance. The 2020 NDAA required DOD to provide residents the right to enter into formal dispute resolution processes to resolve issues with private housing companies. The Office of the Secretary of Defense issued guidance establishing a formal dispute resolution process and directed the military departments to work with private housing companies to implement it. However, the guidance provided to residents on the process lacks detailed information, such as how and when they can file a formal dispute. Also, military housing officials have not received adequate guidance or training for assisting residents in the process.
  • Improved guidance on the role of the tenant advocate. The 2020 NDAA required DOD provide residents with access to a tenant advocate. Each military department has designated personnel to act in this capacity. However, the military departments have not clearly identified the roles and responsibilities for these personnel, or communicated useful information to residents about how they can and cannot use the tenant advocates.
  • Better oversight of the condition of private housing units. The 2020 NDAA required that DOD conduct inspections of privatized homes prior to resident occupancy. GAO found that, although each of the military departments is conducting these inspections as required, DOD has not developed clear or consistent inspection standards and the military departments have not provided adequate inspector training. This has contributed to inconsistencies in how inspectors rate homes, resulting in homes with similar issues receiving different ratings and, according to private housing company representatives, has increased project costs.

By addressing these implementation weaknesses, DOD could enable personnel to more effectively perform their duties, reduce residents' confusion and frustration, and more fully meet the congressional intent of improving the privatized housing program.

DOD has authorities and processes in place to hold private housing companies accountable for poor performance or misconduct, including fraud. Specifically, according to DOD officials, it can place companies on performance improvement plans, withhold performance incentive fees, or terminate and replace specific project stakeholders. DOD can also fully terminate a project, but has never identified the need to do so. Officials stated that such need would be unlikely, in part because the projects are structured to allow the military departments to address poor performance without disrupting the entire project. Moreover, private companies have typically shown a willingness to step out of projects due to poor performance when under pressure from DOD to do so.

Why GAO Did This Study

Private companies own and operate 99 percent of family housing at domestic military installations, totaling approximately 203,300 units. Since 2019, questions have been raised about assistance available to residents, poor housing conditions, and private company performance. Legislation has included requirements aimed at improving DOD's oversight of the privatized housing program.

GAO was asked to review DOD's oversight of the privatized housing program. This report evaluates the extent to which DOD has (1) implemented statutory requirements to improve assistance to residents, (2) improved oversight of privatized housing, and (3) the authorities and processes in place to hold private housing companies accountable for poor performance.

GAO analyzed DOD policies and guidance; and interviewed DOD housing officials and private company representatives at five installations selected for variation in service and experience with initiatives. GAO met with a nongeneralizable sample of residents currently living in privatized housing and solicited views from private housing companies.

Reissued with Revisions Apr. 20, 2023

Revised April 19, 2023 to correct page 10 (Table 1). The corrected section should read: 'As of the end of March 2023, 11 of the 14 private housing companies have voluntarily agreed to fully implement all 18 rights, and the remaining three have voluntarily agreed to implement 16 of the 18 rights'.

Recommendations

GAO is making 19 recommendations, including that DOD clarify guidance and training on efforts to increase assistance to residents and improve home inspection standards and training. DOD generally concurred with the recommendations and described some related actions.

Recommendations for Executive Action

Agency Affected Recommendation Status Sort descending
Department of the Air Force The Secretary of the Air Force, in collaboration with the other military departments, should develop supplemental training and job aids to assist military housing office personnel in conducting dispute resolution processes. (Recommendation 5)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should ensure that the Deputy Assistant Secretary of Defense for Housing establishes a department wide turnover inspection guidance that includes clear and consistent inspection standards for assigning ratings to each of the components evaluated in the turnover maintenance checklist. (Recommendation 16)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy, in collaboration with the other military departments, should develop supplemental training and job aids to assist military housing office personnel conducting dispute resolution processes. (Recommendation 6)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Army The Secretary of the Army, in coordination with the other military departments, should establish detailed training for military housing office inspectors based on the inspection standards once established. (Recommendation 17)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Army The Secretary of the Army, in collaboration with the other military departments, should update internal policy documents, as well as brochures provided to residents, to more clearly identify the specific roles and responsibilities of the military housing office officials designated as tenant advocates, including what they can and cannot do to support residents (Recommendation 7)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Air Force The Secretary of the Air Force, in coordination with the other military departments, should establish detailed training for military housing office inspectors based on the inspection standards once established. (Recommendation 18)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Air Force The Secretary of the Air Force, in collaboration with the other military departments, should update internal policy documents, as well as brochures provided to residents, to more clearly identify the specific roles and responsibilities of designated resident advocates, including what they can and cannot do to support residents. (Recommendation 8)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy, in coordination with the other military departments, should establish detailed training for military housing office inspectors based on the inspection standards once established. (Recommendation 19)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy, in collaboration with the other military departments, should update internal policy documents, as well as brochures provided to residents, to more clearly identify the specific roles and responsibilities of the military housing office officials designated as tenant advocates, including what they can and cannot do to support residents. (Recommendation 9)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should ensure that the Deputy Assistant Secretary of Defense for Housing, in collaboration with the military departments, develops a mechanism to collect and incorporate resident feedback on the formal dispute resolution process and the tenant advocate position. This mechanism could be included as part of the department's ongoing effort to develop metrics to evaluate the effectiveness of statutory requirements related to the privatized military housing program. (Recommendation 10)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should ensure that the Deputy Assistant Secretary of Defense for Housing completes OSD's study of military housing personnel needs, and establishes deadlines for submitting a report to Congress evaluating the shortage of civilian personnel performing oversight functions at DOD's military housing offices. (Recommendation 11)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Army The Secretary of the Army, in collaboration with the other military departments, should clarify guidance for residents explaining how and when they can enter into the formal dispute resolution process. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Army The Secretary of the Army should establish deadlines for assessing personnel needs and completing needs-based workforce studies related to the number of positions the Army needs to oversee privatized military housing. (Recommendation 12)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Air Force The Secretary of the Air Force, in collaboration with the other military departments, should clarify guidance for residents explaining how and when they can enter into the formal dispute resolution process. (Recommendation 2)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Air Force The Secretary of the Air Force should establish deadlines for assessing personnel needs and completing needs-based workforce studies related to the number of positions the Air Force needs to oversee privatized military housing. (Recommendation 13)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy, in collaboration with the other military departments, should clarify guidance for residents explaining how and when they can enter into the formal dispute resolution process. (Recommendation 3)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy should establish deadlines for assessing personnel needs and completing needs-based workforce studies related to the number of positions the Navy needs to oversee privatized military housing. (Recommendation 14)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Army The Secretary of the Army, in collaboration with the other military departments, should develop supplemental training and job aids to assist military housing office personnel in conducting dispute resolution processes. (Recommendation 4)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Navy The Secretary of the Navy should establish deadlines for assessing personnel needs and completing needs-based workforce studies related to the number of positions the Marine Corps needs to oversee privatized military housing. (Recommendation 15)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Defense budgetsDefense programsHome inspectionsHousingMilitary departmentsMilitary forcesMilitary housingMilitary facilitiesProperty managementAlternative dispute resolution