Second phase of area Navy housing in the works

The Navy and Northwest Military Communities, LLC, signed agreements June 1 to execute the second phase of the Navy’s Public Private Venture (PPV) housing for military families stationed at Naval Base Kitsap in Bremerton.

“The signing of this agreement between the Navy and Northwest Military Communities is a positive step forward in continuing to provide a safe place for our war fighters and their families to live while stationed on Naval Base Kitsap,” said Capt. LaPlatney, commanding officer, Naval Facilities Engineering Command Northwest.

This phase includes a comprehensive four-year plan that will invest more than $60 million into the re-development of this site.

To meet the Navy’s housing requirements, the PPV will revitalize outdated and underutilized units and right-size the overall housing inventory and bedroom mix. This action will result in 624 privatized homes at Jackson Park that are intended for enlisted active-duty service members E1-E7.

Upon completion of this phase, the total number of homes privatized in Navy Region Northwest with Northwest Military Communities, LLC will be approximately 3,370.

The National Defense Authorization Act for fiscal year 1996 provides a series of authorities that allow the Department of Defense to enter into long-term agreements with private industry to design, finance, construct, own, operate, maintain, and professionally manage public-private housing ventures.

PPV is the formation of a limited liability company (LLC) between the Navy and a private company. The Navy may convey existing housing units, lease the underlying land to the LLC, and provide an initial capital contribution.

The private company secures the necessary financing and, as the managing member in the LLC, is responsible for the replacement, renovation, maintenance, management and operation of the family housing. The Navy, as a member in the LLC, maintains a vested interest in ensuring that high quality housing is available to service members, and that the housing is fully sustained for the life of the agreement.

Under the PPV concept, the service member signs a lease and typically makes monthly rent payments to the LLC using the service member’s Basic Allowance for Housing entitlement, which covers rent, normal utilities and renter’s insurance.


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