File:Budget savings through the responsible use of energy in Navy privatized housing communities (IA budgetsavingsthr1094544661).pdf

In 1996, Congress authorized the Military Housing Privatization Initiative, which led to the increase in basic allowance for housing (BAH) for active duty members to achieve zero out of pocket housing expenses while living in military privatized housing. Privatized housing residents are not fully incentivized to conserve energy. Average energy costs, taken over like sized groups, are used as a baseline to justify the amount paid to the actual energy provider out of BAH proceeds collected from the service member. Water baselines do not exist in privatized housing, resulting in zero incentive to conserve water. We propose that the responsible use of energy incentive options can be promoted using a different system. Our approach pays members a direct subsidy equal to a fair market value of the rental property, coupled with a utilities model which is based on baseline utility costs and family size. This approach will effectively and efficiently utilize the Navy BAH system while reducing overall costs to the Navy. Future research could be conducted on the feasibility of expanding our recommendations to encompass all services.

Subjects: basic allowance for housing (BAH); basic allowance for quarters (BAQ); variable housing allowance (VHA); military privatized housing; military housing privatization initiative (MHPI); energy conservation.