NMHC/NAA members participating in the Military Housing Privatization Initiative will meet with members of Congress about Basic Allowance for Housing (BAH) funding on July 24. During this armed services “fly-in” lobby day, member firms will raise concerns about the fact that the Pentagon’s Fiscal Year 2015 budget request includes a five percent reduction to the BAH - a core military benefit that compensates service members for their housing costs - and eliminates the stipend for renter’s insurance.
The changes to BAH would increase the out-of-pocket housing expenses for one million troops and impact apartment communities that serve the military. The program also provides critical funding stability for the Military Housing Privatization Initiative, which has successfully transitioned a large portion of severely-deficient government-run housing into high-quality privately-owned and operated properties. NMHC/NAA military housing providers are concerned that a BAH reduction would reduce the income stream for related projects and jeopardize the continued success of the program.
Last week, the House passed the Fiscal Year 2015 Appropriations bill 340-73, rejecting proposed BAH cuts. This reflects action already taken in the House Defense Authorization bill in May. However, the Senate Armed Services Committee has moved forward with a plan to modify BAH. The timing and ultimate outcome in the Senate remains uncertain.
