Residential Communities Initiative

Friday May 5, 2006

What is it? The Residential Communities Initiative (RCI) is the Army's military housing privatization program. RCI is a primary component of the Army's plan to eliminate inadequate military family housing using a combination of:

- Traditional Military Construction,
- Basic Allowance for Housing (BAH) increases, and
- Privatization.

In 1996, Congress provided the military Services with the authorities to obtain private sector capital and expertise to construct, improve, and sustain military housing in the U.S. 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 leases the underlying ground, for a 50-year term, to a qualified development partner. The partner collects rent from tenants (military families), equal to the Soldier's basic allowance for housing. The Army may make an equity contribution when necessary to ensure adequate funds for the required scope of work. The RCI program currently plans to include 42 locations with 82,000 homes, more than 90 percent of on-post family housing in the United States.

What has the Army done? During 2005, the Army privatized family housing at nine installations, with about 18,500 homes, for a total of 26 privatized installations, with a projected end state inventory of almost 60,000 homes. These 26 projects will complete $7.8 billion in work during the initial development period, of which the Army has contributed $421 million (an 18:1 leverage ratio).
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For more information on this and other topics see Addendum J in the Army Posture Statement.

INFORMATION YOU CAN USE

2006 Game Plan

The Game Plan performs four key functions:
- Reinforces this year's Posture Statement, which describes our situation, our Army Vision, our accomplishments, and our compelling needs;
- Explains how we will measure the execution of our strategy - to stay on course;
- Explains how several key Departmental processes have evolved to increase their value to you; and,
- Highlights key decisions made in recent months regarding Defense strategy, basing, force structure, and many other areas.
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