The military housing privatization initiative (MHPI) was established by the United States Congress in 1996 as a tool to help the military improve the quality of life for its service members by improving the condition of their housing.
The MHPI was designed and developed to attract private-sector financing, expertise and innovation to provide necessary housing faster and more efficiently than traditional military construction processes would allow.
The Office of the U.S. Secretary of Defense has delegated to the military services the MHPI and they are authorized to enter into agreements with private developers selected in a competitive process to own, maintain and operate family housing via a fifty-year lease.
Under the MHPI authorities, DOD works with the private sector to revitalize military family housing through a variety of financial tools-direct loans, loan guarantees, equity investments, conveyance or leasing of land and/or housing/and other facilities.
[1] This article incorporates public domain material from websites or documents of the United States Government.