PEARL HARBOR – Naval Facilities Engineering Command (NAVFAC) and Hawaii Military Communities, LLC signed agreements Sept. 30 to execute the sixth phase of the Navy’s public-private venture (PPV) Hawaii Regional housing project for Marine Corps and Navy families stationed at Marine Corps Base Hawaii (MCBH), Kaneohe Bay.
The sixth phase of the PPV project involves a comprehensive 30-month development plan that will invest $161 million to demolish 276 existing, inadequate 2-bedroom units in the Hana Like neighborhood and construct 260 new, high-quality, energy-efficient three- and four-bedroom duplexes and multiplexes at Hana Like and Waikulu.
After phase six is completed in 2018, there will be a total number of 2,576 safe, affordable and sustainable homes for Marine Corps and Navy families stationed at MCBH Hawaii and Camp Smith
From May 2004 to October 2014, Hawaii Military Communities, LLC has constructed 3,085 new homes and renovated 1,507 homes for the Navy in Hawaii at a total development cost of $1.69 billion. Overall, the Hawaii Navy and Marine Corps PPV team has privatized more than 6,800 homes and will invest over $1.85 billion in development over a 14-year period through 2018 on Navy and Marine Corps installations on Oahu and Kauai.
PPV is the formation of a limited liability company (LLC) between the Navy and Marine Corps and a private company. The private company secures the necessary financing and, as the managing member in the LLC, is responsible for the demolition, construction, renovation, maintenance, management and operation of the family housing. The Department of the Navy, as a non-managing member in the LLC, maintains a vested interest in ensuring that quality housing is available to service members and that the housing is fully sustained for the life of the 50-year agreement.
Under the PPV plan, the service member signs a lease and makes monthly rent payments to the LLC using the service member’s Basic Allowance for Housing (BAH) entitlement, which covers rent and normal utilities.
For more information on the Navy’s Public Private Venture program, visit www.housing.navy.mil.
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