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Residential Communities Initiative (RCI)

What is it?
The RCI is the Army's military housing privatization program. It is the primary component of the Army's integrated plan to eliminate inadequate military Family housing.

The RCI program leverages appropriated funds and on-post housing assets to obtain private capital and expertise to build, renovate, operate, and maintain adequate Family housing for the long term. The program conveys existing units and 50-year leases for the underlying ground to each RCI project led by a qualified development partner. The RCI projects collect rent from each resident (military Families) equal to the Soldier's basic allowance for housing. The Army may make an equity contribution if necessary to ensure adequate funds for the required scope of work. The RCI program currently plans to include 45 locations with a projected end state of just over 88,000 homes—97 percent of on-post Family housing in the United States.

What has the Army done?
Through September 2007, the Army privatized family housing at 36 installations, with an end-state inventory of 76,000 homes. These 36 installations will complete $10.4 Billion in work during the initial development period, of which the Army will contribute $1.3 Billion. The initial development period is the 3 to 11-year build-out period following privatization, during which inadequate housing is eliminated by replacement, renovation, or demolition, and new construction is completed. Although most projects are in the early stages of development, since August 2007, the private sector has built more than 11,000 new and replacement homes and renovated more than 10,000 homes.

The Army is protecting its investments and the interests of Army Families with a rigorous portfolio and asset management process. This process monitors project performance, compliance with development plans and schedules, each project's financial health over the 50-year term of the business agreements and looks to find, and implement, program enhancements and best practices.

What continued efforts does Army have planned for the future?

Another four installations are scheduled to transfer to privatized operations by March 2010. The Army will work with the development partners to expand on-post Family housing at locations to meet the housing requirements generated by Army transformation and the Grow the Army initiative.

Why is this important to the Army?
The RCI is critical to the Army's goal of eliminating inadequate housing and sustaining quality residential communities for the long term. The RCI allows the Army to leverage appropriated funds to achieve these results more economically than through traditional military construction appropriations. Quality affordable housing is a key issue for the well-being of Army Families and a significant contributor to recruitment, readiness, and retention.

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