Public Sector Application of Real Estate Analysis and Finance Techniques. A Feasibility Study for Military Family Housing.

Abstract : The Pentagon has estimated that solving the housing shortage would take tens of billions of dollars (Hudson). This amount includes the approximately $11 billion required to revitalize and replace the unfunded backlog of existing substandard units (CBO, p.2) plus eliminating the current backlog of housing supply deficiencies identified by project documentation. The $3.4 billion requested for family housing in the 1995 defense bill will barely scratch the surface (Hudson). The purpose of this paper is to approach military housing acquisition programs through the use of real estate development feasibility analysis - when combined with the revolving fund concepts of the Defense Business Operating Funds (DBOF) program - to determine if financial self-sustainability (by using housing allowance benefits for rent payments) is achievable in order to provide non-appropriated funding to plan, design, construct and operate military family housing.