When I arrived in the Pentagon in June 2001, one of our biggest challenges was dealing with the Army’s old, deteriorating and insufficient number of on-post family housing units. One of the ugliest secrets in the Army was that married junior enlisted soldiers could not get housing on post. The neediest were moved to the back of the line. They were forced to live in trailer parks long distances from post often in unsavory neighborhoods–with drive-by shootings and lousy schools. This big quality of life issue was magnified when we began deploying our Soldiers to Iraq and Afghanistan every other year—leaving their families in jeopardy.
The sad history of poor, scarce enlisted Army on-post housing was punctuated with the suicide of 13-year-old Danny Holley in Marina, CA outside the gates of Fort Ord in 1984. Danny’s father was serving an unaccompanied tour of duty in Korea following a transfer from Germany. He left his wife and four children at Fort Ord. They could not get housing on post and were forced to live off-post in a tiny home at an exorbitant rent. The danger signals came when Danny was found collecting bottles for tiny refunds and visiting the Army Community Services Food Pantry seeking to obtain food for himself, his sister and two brothers. When he hung himself, his suicide note read: “If there is one less to feed, maybe things can be better”.
When the Army considered the situation further, it was learned that there were 37 Army families living in tents on camp grounds at Fort Ord. This tragic incident was one spark that motivated Congress ultimately to pass legislation authorizing the Department of Defense (DOD) to privatize military housing via the Military Housing Privatization Initiative (MHPI) as part of the National Defense Authorization Act of 1996. The leadership of former Congressman Leon Panetta (Ft. Ord was in his CA District) was critical to getting this legislation passed. (Note: Secretary of Defense from 2011-2013, Leon Panetta was the 2015 Association of the U.S. Army Marshall Award Winner.)
Each uniformed service created a new or augmented an existing organization to implement the MHPI legislation. The Army’s approach was to create the Residential Communities Initiative (RCI) to manage this process. When I arrived at the Pentagon, the RCI program was just beginning to take root.
RCI champions came from both sides of the aisle — but most notable was former Congressman Chet Edwards (D, TX), with the Army’s RCI Pilot Project at Ft. Hood in his district. Because it was a new program that did not quite fit the mold of established real estate projects, there was uncertainty on Wall Street and the banks were skeptical of providing debt funding to the Ft. Hood RCI Project. Chet Edwards weighed in, and lent his support both inside and outside government. As a former real estate executive, Congressmen Edwards had a unique perspective and understanding of both the governmental and the private sector requirements associated with this program. In essence, he became an important “Rosetta Stone” for governmental and commercial entities.
The beauty of RCI funding is that the income stream comes from the Soldiers’ Basic Allowance for Housing. In this sense the revenue that would be available to the various projects was an entitlement as opposed to annual discretionary funding such as military construction budgets. The Army was able to select world class industry housing development partners and hired Jones Lang LaSalle (led by Dr/COL retired Barry Scribner USMA 1974) to augment the Army RCI team. We created a privatized housing acquisition center of excellence at the Baltimore District of the Corps of Engineers with outstanding attorneys and financial analysts.
A key ingredient to our success was the financial genius of my USMA 1969 classmate Tom Fagan. After over 20 years active duty and a very successful career in finance, Tom, following 9/11, agreed to lend his expertise to the Army as a civilian consultant for the program under Jones Lang LaSalle. Tom’s financial and development acumen were key to the success of the RCI program. In fact, one of the projects that he led for the Army in Hawaii was named Wall Street magazine, Project Finance’s – “Deal of the Year” in 2005.
RCI enabled the total recapitalization and expansion of the Army’s family housing inventory via a collaborative process called the Community Development Management Plan (CDMP). The CDMP took a holistic view of the residential portion of a military installation and added quality of life improvements such as neighborhood community centers, jogging trails, and new/improved schools. This could never have been accomplished under the old Corps of Engineers military construction (MILCON) method.
The next time you are on an Army post, check out the Family Housing neighborhoods…I believe you will find quality homes, in friendly neighborhoods, where you would be proud to have your children and grandchildren live.
Privatizing the Army’s family housing inventory was my proudest accomplishment as a President George W. Bush appointee in the Pentagon leading the Army’s Installations and Environment team.
Examples of Residential Communities Initiative Military Housing
Ft. Drum, NY
Ft. Stewart, GA
Ft. Lewis, WA
Ft. Rucker, AL
Jeff – interesting times, I remember you as the 45cal toting adjutant coming to the field for LTC Spry. My 29 years involved 5+ active and 24 in the USAR doing everything from commanding an active SF Company to servicing as a Deputy DCST in an ARCOM, taking 3 classes through CASS3 including graduation runs on the tarmac at Ft. Leavenworth as well as 5 classes through CGSC including their Ft. Leavenworth graduations. Finally commanding a USAR School until they decided to create the 85th Training Div and run us all out of our USAR school slots. Total of 265 parachute jumps after completion of US Airborne School, Viet Nam Airborne School, and German Airborne School and 3 1/5 years jumping 3 times per week with SF Company and doing all of the jumps for record qualifying for GA Air Guard, Alabama Air Guard, and FL Air Guard.
Unfortunately, my sad recollections are from the 1st Bn, 15th Inf, 3rd ID in Kitzingen, Germany. After commanding a platoon and then a company in Viet Nam I returned to Germany to again take command of the CS Company for two and one half years. We had the challenge after VN of getting rid of the aftermath of the Volar troops as well as the druggers and other elements of that time. Under tremendous pressure, the Army was trying to institute a “diversity policy” that was horribly handled by the Army. On two occasions as a company commander, I was instructed by my Bn Cdr, LTC Ed Bushyhead, American Indian, Korean War Vet and OK ROTC grad, to run two promotion board for SGT E-5. First board instruction were that promote 5 soldiers, 3 to be black. Second Board, promote 7 and 5 to be black. My questions as to qualifications..ie knowledge, deportment, etc. met with locking my heels and letting me know that this was directive from Army, thru USAEUR, to Div, Brigade and Bn. Questions, problems CPT……no sir and on we went. I had to go back to my company of 140 great soldiers – 4.2 platoon, Scout Plt, GSR Plt, TOW plt, and tell them, many Hispanics that were outstanding, how good they were and you will get the stripe “next time.” They knew the BS I was trying to sell.
As a reservist, I completed Inf Officer Advanced, CAS3, CGSC, and majority of War College. My graduates distinguished themselves in taking their reserve Bns and Brigades to Iraq and beyond and brought their soldiers home. The pay and recognition given to myself and others in the reserve is beyond description as we get nothing for our service. USAR in NOT ONE WEEKEND A MONTH AS COMMANDERS ARE ON CALL 24/7 and spend countless hours only to get credit for 69 points a year (plus summer camp). Far, Far cry from the 365 points X number of years serviced for active duty. Perhaps you and your DC friends can attempt to politic on our behalf for future reservists. I know, no money.
Jeff – great article, I too saw much of the problems you describe. I have on son, Marine Corps Desert Storm, retired E-7, one son retired Army SFC (Kuwiat and Desert Storm), and one son who service 3 years as SGT, E-5 so I feel very proud that this family has contributed to the overall cause of freedom.
Great report!! Too often well meaning spouses of post commanders were the ones who tried to do this job. Not that they were not capable and willing but the task was obviously overwhelming.
Great article Geoff. Thank you for writing it and for your contributions to making it happen!
Rob, thanks for your comments.
Yes, the old traditional way of providing and sustaining Army Family Housing via appropriated Military Construction (MILCON) funding was failing.
The use of Basic Allowance for Housing (BAH) guaranteed/entitlement funding enabled the Army to look deep and develop at each intallation long range Community Development Management Plans to fix the entire family housing inventory.
Bob,
Thank you for your comments and for your sustained, distinguished service to our Army and the West Point Society of Houston, TX. Army Strong.
Great article. Thanks, Geoff. I continue to be amazed at all the great things that our classmates have been doing these past 50 years. God bless.
Ray,
Thank you for your comments and for your wonderful recent journey to celebrate the sacrifices of our Fallen ’69 Vietnam Warriors.
Best Regards, Army Strong,
Super report, Geoff. You and Tom did the Army and its families a great service. Panetta’s effforts were a part of his being selected the 2018 Thayer Award recipient to be presented on 4 Oct at West Point.
Best, KC
KC,
Thank you for your comments.
Congressmen Leon Panetta (Ft Ord) and Chet Edwards (Ft Hood) were instrumental in getting the Army Residential Community Iniative approved and galvanizing support from other members of Congress across the aisle including: Sylvester Reyes (Ft Bliss), Norm Dicks (Ft Lewis), Solomon Ortiz (Corpus Cristie Depot), and John McHugh (Ft Drum).
Best regards, Army Strong,
You should take great pride in your accomplishments, Geoff! I certainly am proud to be your classmate and, most importantly, your friend!
Best regards,
Pete