MILITARY HOUSING STATE OF GEORGIA CHALLENGES & OPPORTUNITIES November 30, 2006 Issued by: Kennesaw State University A.L. Burruss Institute of Public Service & Research Produced Under Contract for Georgia Department of Community Affairs Engagement Team John M. Fuchko, III, Lead Researcher Bill McClure, Researcher Alicia Newberry, Researcher TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. BACKGROUND, OBSERVATIONS, AND RECOMMENDATIONS III. LIST OF SOURCES Page 1 Pages 2 13 Page 14 EXECUTIVE SUMMARY Military housing is a "key component of military readiness" and significantly impacts the quality of life for active duty service members and their families. The purpose of this research project was to: Describe military policy on base housing to include living allowances, length of posting, and deployment practices Analyze the impact of military policies on military personnel Generally describe and analyze military housing and family statistics in the state of Georgia This study was requested and funded by the Georgia Department of Community Affairs in support of their efforts to better define what assistance active duty military in Georgia require to obtain quality and affordable housing. There are 70,283 active duty military personnel based in Georgia. Georgia's demographics generally reflect those of the nation in that roughly 84% of our personnel are enlisted and 16% are officers. 95% of these personnel reside in just under 6% of the counties in Georgia with most of those personnel focused around Fort Stewart, Fort Benning, Fort Gordon, and Robins AFB. Our survey of housing officers at various bases around the state generally found: Moderate satisfaction with the availability of housing particularly privatized housing (where offered) and rental properties Moderate satisfaction with the quality of housing Operational tempo (increased pace of military operations) has the most significant impact on a service member's decision to purchase home but no single factor appears to be a significant constraint Educational services have the highest potential impact on service members but financial assistance also would be beneficial. The following action steps are recommended: Establish a coordinating committee to include military housing representatives, state representatives, and representation from local officials to further analyze housing needs on a community-specific level. Give consideration to the following programs o Priority #1 Establish a service member education program designed to assist service members in the purchasing, financing, maintenance, selling, and renting of a home or housing unit. o Priority #2 Establish a program to provide home ownership and/or rental financial assistance for a defined period of time to service members meeting income and dependency criteria. While this could be provided as one-time down-payment assistance to reduce the monthly payment, a VA Guaranteed Home Loan addresses the need for actual down-payment assistance. While some of these programs could be enacted using existing DCA programs, DCA should consider implementing state-funded programs that can exclude BAH when calculating income levels. The methodology used in conducting the research included: Review of various web sites maintained by the federal government (including U.S. military), non-profit organizations, and journalistic resources Review of published journals, reports, and other data pertaining to military housing, military families, pay, and related issues Limited review of programs maintained by other states in support of military housing Obtaining and analyzing active duty service member organization for military personnel based in Georgia Survey of housing officers for military bases in the state of Georgia 1 BACKGROUND, OBSERVATIONS, & RECOMMENDATIONS BASES There are twelve active duty military bases in Georgia in addition to the Navy Supply Corps School in Athens, Georgia. Additionally, active duty military personnel are stationed throughout the state as recruiters, in smaller military installations, and in various training or liaison capacities to include ROTC and other military training programs. See Exhibit 1 for the current locations of major military installations in Georgia. Exhibit 1 Military Bases in Georgia Source: 11AliveNews (http://www.11alive.com/specials/usworld/iraq2003/maps_georgia.asp) PERSONNEL Active duty military personnel from all four branches of the military serve in Georgia. These include the Air Force, Army, Marine Corps, and Navy. Members of the Public Health Service, Coast Guard, or NOAA were not considered in the course of this research. Nationally, there are roughly 1.5 million service members in the active duty military consisting of a little over1.2 million enlisted service members (E1-E9) and 216,800 officers (W1-O10). Officers include warrant officers (W1-W5) and commissioned officers (O1-O10). As of federal fiscal year 2002, 58% of military personnel were married and this rate was much higher among senior enlisted and senior officers at 93% married. Of these spouses, 66% were employed. 2 The structure of military personnel in Georgia is fairly similar. As of April 2006, there were 70,283 active duty military personnel living in Georgia. This number does not include reserve personnel called to active duty. Of these 70,283 personnel, roughly 84% were enlisted compared to 80% nationally. The remaining 16% were officers compared to roughly 20% nationally. See Exhibit 2 for a more detailed breakdown of active duty military living in Georgia by rank structure and branch of service. Exhibit 2 Active Duty Military by Pay Grade1,2 - Georgia Ranks Air Force Army Marines Navy E1-E4 3,207 21,430 832 1,722 E5-E7 4,959 20,473 768 3,298 E8-E9 392 1,605 69 229 W1-O3E 1,433 5,510 94 554 O4-O6 729 2,611 87 245 O7-O10 2 33 1 0 Totals 10,722 51,662 1,851 6,048 Source: U.S. Department of Defense, Researcher Analysis 1 This exhibit does not include either Public Health, Coast Guard, or NOAA. 2 The exhibit includes all service members with BAH based in Georgia. Totals 27,191 29,498 2,295 7,591 3,672 36 70,283 The family structure of active duty military personnel was not so readily available. However, we were able to determine which active duty military service members were being paid as "with dependents." This status could include service members who are married, married with children, or single/divorced with children. In total, 59% of service members had dependents while 41% of service members reported no dependents. It should be noted that dual-military couples are reported as without dependents in the military pay system and this may slightly skew Georgia-specific results. 59% of service members with dependents compares quite closely to the national average of 58% married. Of course, the actual number of married service members is most likely less than the national average, as Georgia's data includes single and divorced service members with children. Among higher ranking service members (E8-E9 and O4-O10), the percentage of service members in Georgia with dependents is 89% which is only slightly less than the national average of 93% of senior enlisted and senior officers married. The same national study revealed that 93% of military personnel in federal fiscal year 2002 held a high school diploma. Given the similarities between Georgia's data and national data, it is likely that the same average holds true for active duty military personnel stationed in Georgia. See Exhibit 3 for a more detailed analysis of active duty military personnel dependency status by rank structure. 3 Exhibit 3 Analysis Active Duty Military Dependency Status1,2 - Georgia Ranks E1-E4 E5-E7 E8-E9 W1-O3E O4-O6 O7-O10 With Dependents 8,724 22,685 2,088 4,698 3,252 31 % of Total 12.41% 32.28% 2.97% 6.68% 4.63% 0.04% Without Dependents 3 18,467 6,813 207 2,893 420 5 % of Total 26.28% 9.69% 0.29% 4.12% 0.60% 0.01% Totals 41,478 59% 28,805 41% Source: U.S. Department of Defense, Researcher Analysis 1 This exhibit does not include either Public Health, Coast Guard, or NOAA, 2 The exhibit includes all service members based in Georgia. 3 BAH without dependents may also include dual-military couples. PAY & ALLOWANCES Military pay and allowances consist of multiple components. Generally, military pay and allowances may include: Basic Pay Determined by rank and creditable years of service Basic Allowance for Housing (BAH) Determined by location, rank, whether or not the service member has dependents, and if the service member has incurred a cost Basic Allowance for Subsistence (BAS) Determined by Enlisted versus Officer status and meant to offset the cost of food Other There are various other special pays associated with family separation, special skills (e.g., flight pay, jump pay, etc.), combat pay (e.g., combat zone tax exclusion, imminent hostile fire pay, etc.), and per diem associated with temporary duty travel Military pay in Georgia will differ from other parts of the United States primarily in that the rates paid for BAH differ depending on the actual duty location of the service member. Please see Exhibit 4 for a complete breakdown of basic pay and BAH for service members stationed in Georgia. Please note that the actual pay will most likely be higher as the actual years of service will generally be higher than the minimum listed on the pay charts. Additionally, this chart does not include other special pays that service members may be receiving. BAH rates are determined used the presumed rental rate for a certain size apartment, town home, or single family detached home in the service member's community. The actual rate will increase with rank given the BAH assumption outlined in Exhibit 4 but the underlying basis for the BAH calculation is tied to the Department of Defense (DOD) analysis of rental rates. 4 Exhibit 4 2006 Monthly Active Duty Military Base Pay & BAH Ranks E1 E2 E3 E4 E5 E6 E7 E8 E9 W1 W2 W3 W4 W5 O1 O1E O2 O2E O3 O3E O4 O5 O6 O7 O8 O9 O10 Base Pay 1 $1,178 $1,427 $1,501 $1,663 $1,814 $1,980 $2,289 $3,292 $4,022 $2,361 $2,674 $3,040 $3,329 $5,720 $2,416 $3,040 $2,783 $3,774 $3,221 $4,298 $3,664 $4,247 $5,094 $6,873 $8,271 $11,690 $13,365 BAH w/dependents 2 $697-$1,118 $697-$1,118 $697-$1,118 $697-$1,118 $752-$1,229 $769-$1,246 $853-$1,316 $946-$1,393 $1,022-$1,470 $770-$1,247 $891-$1,348 $1,004-$1,441 $1,028-$1,482 $1,056-$1,529 $754-$1,231 $872-$1,331 $769-$1,246 $987-$1,427 $1,000-$1,438 $1,003-$1,489 $1,068-$1,549 $1,114-$1,625 $1,123-$1,638 $1,136-$1,658 $1,136-$1,658 $1,136-$1,658 $1,136-$1,658 BAH Assumption 3 2-Bedroom Apartment 2-Bedroom Apartment 2-Bedroom Apartment 2-Bedroom Apartment 2-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Single Family Home 3-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Single Family Home 3-Bedroom Single Family Home 3-Bedroom Single Family Home 2-Bedroom Townhome 3-Bedroom Townhome 2-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Townhome 3-Bedroom Single Family Home 3-Bedroom Single Family Home 4-Bedroom Single Family Home 4-Bedroom Single Family Home 4-Bedroom Single Family Home 4-Bedroom Single Family Home 4-Bedroom Single Family Home 4-Bedroom Single Family Home BAH w/out dependents 2 $578-$947 $578-$947 $578-$947 $578-$947 $620-$987 $649-$1,021 $700-$1,125 $755-$1,232 $761-$1,238 $675-$1,075 $755-$1,232 $761-$1,238 $790-$1,264 $874-$1,333 $641-$1,006 $752-$1,229 $733-$1,191 $759-$1,236 $763-$1,240 $769-$1,246 $862-$1,323 $918-$1,370 $1,004-$1,441 $1,024-$1,470 $1,024-$1,470 $1,024-$1,470 $1,024-$1,470 BAH Assumption 3 Monthly Totals - Annual Totals - BAS Range Range 1-Bedroom Apartment $272 $2,028-$2,568 $24,336-$30,816 1-Bedroom Apartment $272 $2,277-$2,817 $27,324-33,804 1-Bedroom Apartment $272 $2,351-$2,891 $28,212-$34,692 1-Bedroom Apartment $272 $2,513-$3,053 $30,156-$36,636 1-Bedroom Apartment $272 $2,706-$3,315 $32,472-$39,780 2-Bedroom Apartment $272 $2,901-$3,498 $34,812-$41,976 2-Bedroom Apartment $272 $3,261-$3,877 $39,132-$46,524 2-Bedroom Townhome $272 $4,319-$4,957 $51,828-$59,484 2-Bedroom Townhome $272 $5,055-$5,764 $60,660-$69,168 2-Bedroom Apartment $187 $3,223-$3,795 $38,676-$45,540 2-Bedroom Townhome $187 $3,616-$4,209 $43,392-$50,508 2-Bedroom Townhome $187 $3,988-$4,668 $47,856-$56,016 3-Bedroom Townhome $187 $4,306-$4,998 $51,672-$59,976 3-Bedroom Townhome $187 $6,781-$7,436 $81,372-$89,232 2-Bedroom Apartment $187 $3,244-$3,834 $38,928-$46,008 2-Bedroom Townhome $187 $3,929-$4,558 $47,148-$54,696 2-Bedroom Apartment $187 $3,703-$4,216 $44,436-$50,592 2-Bedroom Townhome $187 $4,720-$5,388 $56,640-$64,656 2-Bedroom Townhome $187 $4,171-$4,846 $50,052-$58,152 3-Bedroom Townhome $187 $5,254-$5,974 $63,048-$71,688 3-Bedroom Townhome $187 $4,713-$5,400 $56,556-$64,800 3-Bedroom Townhome $187 $5,352-$6,059 $64,224-$72,708 3-Bedroom Single Family Home $187 $6,285-$6,919 $75,420-$83,028 3-Bedroom Single Family Home $187 $8,084-$8,718 $97,008-$104,616 3-Bedroom Single Family Home $187 $9,482-$10,116 $113,784-$121,392 3-Bedroom Single Family Home $187 $12,901-$13,535 $154,812-$162,420 3-Bedroom Single Family Home $187 $14,576-$15,210 $174,912-$182,520 Sources: U.S. Department of Defense Per Diem, Travel and Transportation Allowance Committee (http://141.116.74.201/bah/acrobat/2006/) Office of the Secretary of Defense, Military Compensation (http://www.dod.mil/militarypay/pay/bp/01_activeduty.html) 1 This table assumes the minimum years of service published for that rank. Actual base pay will increase with an increase in years of service. 2The range of BAH rates in order from lowest paid area to highest paid area are as follows: Albany, Moody AFB, Fort Stewart, King's Bay, Dahlonega, Fort Gordon, Robins AFB, Athens, Fort Benning, and Atlanta. 3 BAH assumptions considers the DOD assessed rental costs, utility costs, and rental insurance costs with some ranges provided by rank. It should be noted that the inclusion of BAH and BAS in family income when calculating active duty military eligibility for various federally funded programs will result in relatively few military personnel being eligible for these assistance programs. Using the 2006 Atlanta Adjusted HOME Income Limits (set by HUD) as an example, the 30% income limit for one person is $14,950. Very low income is considered $24,900 and low income is $39,850. Using these standards, there are only a very few E-1s who may fall within the "low income" definition, while none would fall within the 30% standard. This problem is exacerbated when location is factored in, as most active duty military personnel are not located in the Atlanta area. HOUSING There are several types of housing generally in use by active duty military personnel. These include: Barracks or barracks-style housing Managed Family Housing 5 o Post-Managed o Privatized (may be provided off base) Quarters Properties on the open market for rental, lease, or sale It is DOD policy to first "rely on the private sector" for its housing and DOD estimates that approximately 65% of military families live in private housing. However, roughly 24% of families live on post in base-managed housing versus roughly 11% in privatized housing provided through the Military Housing Privatization Initiative (MHPI). Exhibit 5 Analysis Active Duty Military Living On versus Off Base1,2 - Georgia Living off Base 3 (Receives BAH) Living on Base 3 (No BAH) Ranks E1-E4 E5-E7 E8-E9 W1-O3E O4-O6 O7-O10 With Dependents Without Dependents 4 With Dependents Without Dependents 4 8,280 2,716 444 15,751 21,817 5,214 868 1,599 2,030 189 58 18 4,550 2,570 148 323 3,099 384 153 36 12 0 19 5 Totals 39,788 11,073 1,690 17,732 Percentage 57% 16% 2% 25% Source: U.S. Department of Defense, Researcher Analysis 1 This exhibit does not include either Public Health, Coast Guard, or NOAA, 2 The exhibit includes all service members based in Georgia. 3 This assumes that those receiving BAH either rent, own, or lease off base. There are minimal exceptions to this assumption. 4 BAH without dependents may also include dual-military couples. Estimates from our research are that 73% of military personnel living in Georgia reside off base or in privatized housing while the remaining 27% reside on base. However, only 2% of those not receiving BAH who presumably live on base are classified as with dependents. See Exhibit 5 more detailed analysis by rank structure. It would also appear that the vast majority of those living on base without dependents are generally the lower enlisted (E1-E4) in that this group comprises 22% of the total military population in Georgia and 89% of military personnel living on base without dependents. The DOD has focused on improving their housing in two significant areas over the past several years. The first area addressed is BAH adjustments and the other significant area for improvement is the MHPI. The DOD has worked to more closely track actual rental costs to include utilities and rental insurance. They have used this data to adjust BAH rates to ensure that all personnel are provided a fair rate. Previously, BAH was tracked using member-reported data on what they actually spent on housing. This resulted in junior-ranking service members receiving consistently less as these members were often unable to use their base pay for home expenses and would, at times, spend less than their allotted BAH. Conversely, higher ranking members would supplement their housing expenses with their base 6 pay and this resulted in driving up the BAH for higher ranking service members. The new policy was designed to eliminate this self-reinforcing inequality. MHPI was first initiated as part of the National Defense Authorization Act enacted on February 10, 1996. The Office of the Deputy Undersecretary of Defense for Installations and Environment describes MHPI as a "public/private program whereby private sector developers may own, operate, maintain, improve and assume responsibility for military family housing, where doing so is economically advantageous and national security is not adversely affected." This office reports 53 privatization projects totaling "over 111,000 family housing units." There are several projects either awarded, pending, or in planning for military personnel stationed in Georgia. Housing projects for Georgia consist of: Awarded o Moody AFB 606 units awarded February 2004 o Fort Stewart 3702 units awarded November 2003 o Robins AFB 670 units awarded September 2000 Pending or in Solicitation o Robins AFB (phase II) 403 solicited June 2006 o Fort Benning 4200 solicited January 2006 o Fort Gordon 887 solicited May 2006 Planning o Navy project for Florida, Georgia, Mississippi, Texas 5501 with an originally planned solicitation date of May 2006 While our research did not specifically target privatized housing, it should be noted that several housing officers surveyed commented favorably on privatized housing due to its improvements in quality of life for service members. COUNTY & BASE DISTRIBUTION The vast majority of military personnel residing in Georgia do so in close proximity to a military base. Some military personnel may reside in other states and perform duty in Georgia or may reside in Georgia and perform duty in other states. However, our data analysis only considered those active duty service members reporting residency in a Georgia county. Exhibit 6 below lists the active duty service member population by county in Georgia and provides an estimate of the base to which the service member is assigned. There are nine counties in Georgia with an active duty service member population of over 1,000 personnel. These include Chattahoochee and Liberty counties with military populations of over 17,000 personnel. Adding the military population to the 2005 U.S. Census estimated population for these counties reveals that approximately 45% of the population in Chattahoochee County and 23% of the population in Liberty County is active duty military. Additionally, we have analyzed the living arrangements and dependency status for military personnel at each duty location. It should be noted that the duty location is assumed based on the relative proximity between certain Georgia counties and known military installations. The actual duty location may vary slightly. Additionally, the population data does not include personnel living in adjacent states that cross the state line on their way to perform duty nor does it include personnel on temporary duty at an installation whose permanent home of record is at another duty location. Finally, none of our 7 numbers include the nearly 30,000 civilian personnel associated with various military installations in Georgia. See Exhibit 7 for an analysis by installation. Exhibit 6 Active Duty Military Population1 - Georgia Counties2 Military Population - Range Counties Associated Military Base 3 Population 10,000 - 20,000 7,501 - 10,000 5,001 - 7,500 2,501 - 5,000 Chattahoochee Liberty Richmond Houston Camden Chatham Lowndes Fort Benning/Lawson Army Airfield Fort Stewart/Hunter Army Airfield Fort Gordon Robins AFB King's Bay Naval Submarine Base Fort Stewart/Hunter Army Airfield Moody AFB 18,151 17,627 8,665 5,798 4,230 4,144 3,801 Fulton Atlanta Area Bases4 2,880 1,001 - 2,500 Cobb Atlanta Area Bases4 1,644 501 - 1,000 101 - 500 Clayton Dougherty Clarke Atlanta Area Bases4 696 Marine Corps Logistics Base 534 Navy Supply Corps School 421 Dekalb Muscogee Lumpkin Atlanta Area Bases4 385 Fort Benning/Lawson Army Airfield 265 North Georgia College & State Univ. 181 50 - 100 Gwinnett Columbia Atlanta Area Bases4 166 Fort Gordon 97 Henry Glynn Bibb Atlanta Area Bases4 82 King's Bay Naval Submarine Base 73 Robins AFB 70 Douglas Atlanta Area Bases4 53 1 - 49 Cherokee Atlanta Area Bases4 51 Hall North Georgia College & State Univ. 50 Fayette (35), Jasper (30), Rockdale (29), Peach (19), Baldwin (16), Bryan (14), Dawson (12), Harris (9) Berrien (8), Wayne (7), Cook (5), Long (4), McDuffie (4), Tattnall (4), White (4), Pulaski (3), Brooks (2), Charlton (2), Evans (2), Habersham (2), Oconee (2), Union (2), Lanier (1), Lee (1), Oglethorpe (1), Worth (1) Varies 219 Source: U.S. Department of Defense, Researcher Analysis 1 This exhibit does not include either Public Health, Coast Guard, or NOAA. 2 The exhibit includes all service members with BAH based in Georgia. 3 An assumption is made that service members generally will reside in the area of the base to which they are assigned. 4 Atlanta area bases include Fort McPherson, Fort Gillem, Naval Air Station Atlanta/Dobbins Air Reserve Base. Most of these bases are in various stages of shutting down due to BRAC. As can be ascertained in Exhibit 6 above, 95% of military personnel in Georgia reside in just under 6% of Georgia's counties. 8 Exhibit 7 Analysis Active Duty Military Structure, BAH Status & Dependency Status1,2 - Georgia Ranks E1-E4 E5-E7 E8-E9 W1-O3E O4-O6 O7-O10 Totals Percentage Ranks E1-E4 E5-E7 E8-E9 W1-O3E O4-O6 O7-O10 Totals Percentage Ranks E1-E4 E5-E7 E8-E9 W1-O3E O4-O6 O7-O10 Totals Percentage Fort Benning / Lawson Army Airfield Fort Gordon Live on Post (No Live Off Post (BAH) Live on Post (No BAH) Live Off Post (BAH) w/out w/out w/out BAH) w/out w/dep dep 3 w/dep dep 3 w/dep dep 3 w/dep dep 3 1,711 280 28 7,002 763 491 138 1,959 5,171 738 55 549 2,465 686 200 360 371 28 2 0 241 24 11 4 1,138 589 10 252 598 281 55 25 439 47 3 0 374 46 27 11 3 0 0 0 0 0 1 2 8,833 1,682 98 7,803 4,441 1,528 432 2,361 84% 16% 1% 99% 74% 26% 15% 85% Atlanta Area Bases Robins AFB Live Off Post (BAH) Live on Post (No BAH) Live Off Post (BAH) w/out w/out w/out w/dep dep 3 w/dep dep 3 w/dep dep 3 Live on Post (No BAH) w/out w/dep dep 3 417 105 7 205 464 487 89 527 2,012 375 204 169 1,860 654 152 72 417 62 30 9 252 24 2 3 413 145 14 9 426 334 33 18 1,086 154 82 18 382 51 30 6 5 0 17 2 1 0 0 1 4,350 841 354 412 3,385 1,550 306 627 84% 16% 46% 54% 69% 31% 33% 67% Marine Corps Logistics Base King's Bay Naval Submarine Base Live Off Post (BAH) Live on Post (No BAH) Live Off Post (BAH) w/out w/out w/out w/dep dep 3 w/dep dep 3 w/dep dep 3 Live on Post (No BAH) w/out w/dep dep 3 28 9 32 86 329 118 104 1,044 129 28 80 24 1,536 380 143 95 22 1 6 0 160 4 6 0 32 9 8 0 189 57 9 3 34 1 4 0 113 10 3 0 0 0 1 0 0 0 0 0 245 48 131 110 2,327 569 265 1,142 84% 16% 54% 46% 80% 20% 19% 81% Fort Stewart / Hunter Army Airfield Live on Post (No Live Off Post (BAH) w/out BAH) w/out w/dep dep 3 w/dep dep 3 4,043 805 39 4,445 7,082 1,890 17 319 464 39 0 1 1,379 729 3 10 446 55 1 1 3 0 0 0 13,417 3,518 60 4,776 79% 21% 1% 99% Moody AFB Live Off Post (BAH) w/out w/dep dep 3 Live on Post (No BAH) w/out w/dep dep 3 435 406 2 440 1,259 416 9 7 60 5 0 1 268 312 1 1 161 17 1 0 0 0 0 0 2,183 1,156 13 449 65% 35% 3% 97% Navy Supply Corps School Live Off Post (BAH) w/out w/dep dep 3 Live on Post (No BAH) w/out w/dep dep 3 14 7 5 42 63 15 8 4 18 2 1 0 80 112 15 5 26 2 2 0 0 0 0 0 201 138 31 51 59% 41% 38% 62% Other North Georgia College & State University Live on Post (No Live Off Post (BAH) Live on Post (No BAH) Live Off Post (BAH) BAH) Ranks w/dep w/out dep 3 w/dep w/out dep 3 w/dep w/out dep 3 w/dep w/out dep 3 E1-E4 55 7 0 1 21 1 0 0 E5-E7 88 8 0 0 152 24 0 0 E8-E9 15 0 0 0 10 0 0 0 W1-O3E 16 2 0 0 11 0 0 0 O4-O6 26 1 0 0 12 0 0 0 O7-O10 0 0 0 0 0 0 0 0 Totals 200 18 0 1 206 25 0 0 Percentage 92% 8% 0% 100% 89% 11% 0% 0% Source: U.S. Department of Defense, Researcher Analysis 9 SURVEY RESULTS Our research included a survey of selected housing officers in the state of Georgia. Of the twelve active duty bases, seven (58%) installations were selected for survey purposes. Of the seven installations, six installations responded resulting in 50% coverage for military bases in Georgia and an 86% survey response rate. We estimate that the survey response rate represents more than 70% of the active duty military stationed in Georgia as represented by their respective housing officers. The survey response range and mean is summarized in Exhibits 8 - 11 below. Following each exhibit are relevant "remarks" made by the housing officers during the survey and an analysis of the data. It should be noted that survey responses falling into the N/A or other category were not included in the survey summary below. Exhibit 8 generally pertains to housing availability. Exhibit 9 pertains to housing quality. Exhibit 10 pertains to current factors impacting service member's ability to obtain quality and affordable housing. Exhibit 11 pertains to the likelihood of potential programs impacting a service member's ability to obtain quality and affordable housing. Availability: On-Base Housing Exhibit 8 Survey Results Housing Availability & General Data / Poor (5) Fair (4) Good (3) O = 2.4 \ Very Good (2) Excellent (1) Availability: Privatized Housing Poor (5) Fair (4) / Good (3) O=2 \ Very Good (2) Excellent (1) Availability: Housing for Sale / Poor (5) Fair (4) O = 2.5 Good (3) \ Very Good (2) Excellent (1) Availability: Housing for Rent Poor (5) Fair (4) / Good (3) O = 2.5 \ Very Good (2) Excellent (1) Average Length of Assignment 3-4 Years Military Preference to Own or Rent 70% Favorable Response for Rent 1 Source: Georgia Military Base Housing Officer Survey, Researcher Analysis 1 One response also noted preference to own among officers and higher ranking enlisted The most positive results generally fell into the categories of privatized housing, on-base housing, and rental housing. This is particularly important given that the survey results suggest that a significant majority of military service members prefer to rent. 10 Quality: On-Base Housing Exhibit 9 Survey Results Housing Quality Poor (5) Fair (4) / Good (3) O = 2.4 \ Very Good (2) Excellent (1) Quality: Privatized Housing Poor (5) Fair (4) Quality: Housing for Sale / Poor (5) Fair (4) Quality: Housing for Rent Poor (5) Fair (4) Source: Georgia Military Base Housing Officer Survey, Researcher Analysis / Good (3) O = 2.3 \ Very Good (2) Excellent (1) O = 2.8 Good (3) \ Very Good (2) Excellent (1) / O = 2.8 Good (3) \ Very Good (2) Excellent (1) The quality of available housing generally fell into the "Very Good" category with little difference noted among the various types of housing. On-base housing and privatized housing would appear to be rated slightly higher than the other types of available housing. However, this contradicts the federal government's studies in this area and may reflect a bias on the part of the housing officer. However, one housing officer specifically stated that on-base housing needs improvement. The positive change brought about by privatized housing was also noted. Exhibit 10 Survey Results Current Factors Impacting Service Member Ability to Afford Quality Housing Credit-Worthiness / O = 2.3 \ 5 - Most Important 4 3 2 1 - Insignificant Community Support / 5 - Most Important 4 O = 2.5 3 \ 2 1 - Insignificant Operational Tempo / 5 - Most Important 4 O = 2.8 3 \ 2 1 - Insignificant Down-Payment Amount / 5 - Most Important 4 O = 2.2 \ 3 2 1 - Insignificant On-Going Cash Flow / 5 - Most Important 4 Source: Georgia Military Base Housing Officer Survey, Researcher Analysis O = 2.4 \ 3 2 1 - Insignificant The general comment from survey participants pertaining to the question of current factors suggested that financial concerns per se do not play a significant role. They may prevent a service member from purchasing a 4-bedroom or larger house but a service member can purchase a home. In fact, there seemed to be some sentiment that service members may be able to purchase homes that they can not afford or lose money on when they have to move due to a change of duty station. The increased deployment (operational tempo) associated with overseas service has impacted some service members in that the spouse may elect to return home to family while their service member is overseas. As a result, these families will often rent a home in lieu of purchasing a home as this permits them to leave during periods of deployment. 11 Exhibit 11 Survey Results Assessment of Factors with Highest Potential Impact for State of Georgia in Designing Housing Program Down-Payment Assistance / O = 3.3 \ 5 - Most Important 4 3 2 1 - Insignificant Loan Guarantees / 5 - Most Important 4 O = 2.7 3 \ 2 1 - Insignificant Developer Financing 5 - Most Important 4 / O = 1.3 \ 3 2 1 - Insignificant Educational Services / O = 4.3 \ 5 - Most Important 4 3 Source: Georgia Military Base Housing Officer Survey, Researcher Analysis 2 1 - Insignificant There was very little support for "developer financing" or other incentives to encourage development close to the installation. The consistent response to this suggestion was that there was already significant developer interest in their area. There was some interest in the state of Georgia providing financial assistance in the form of either down-payment purchase assistance or ongoing financial assistance directly to the service member for use in either rental or mortgage payments. However, most survey respondents suggested that the VA home loan coupled with BAH should allow most service members to purchase or rent a home that meets their needs. There was an overwhelmingly favorable response to the state of Georgia providing educational services to potential homeowners. Many housing officers suggested that young military personnel could significantly benefit from training on preparing a budget, selecting the right home, the responsibilities of home ownership, and related topics. OTHER STATES & BENEFITS We contacted or researched six other states in the course of our study (California, Florida, Illinois, North Carolina, Texas, Virginia). Only one state (Virginia) reported the existence of a program specifically designed to assist military in the purchase or rental of a home. Additionally, we spoke with a senior program analyst for housing at the Office of the Secretary of Defense. This analyst helped us to collect our housing survey data and indicated an interest in our research results. The Virginia Housing Development Authority (VHDA) has partnered with the Department of Housing and Community Development (DHCD) and Community Housing Partners and other community groups in Virginia to offer "Granting Freedom." Military service members who have been injured during service in a combat theatre of operations now have the opportunity to obtain grant funds to pay for accessibility modifications to their homes or apartments. These grant funds can be used to widen doorways, install ramps, grab bars, and any other modification that is recommended by an approved source (see below #1). Due to limited funding, this is a first-come, first-serve opportunity. No more than $4,000 is available to pay for the housing modification per dwelling unit, and funds will be paid directly to the merchant or contractor who has performed the modification after the work has been completed. To obtain these funds, various requirements must be met by the applicant: 12 1. A recommendation for a housing modification is required from either a VA hospital Rehabilitation Officer, VA attending physician, or a VA physical therapist. 2. The home or apartment must be on property in the state of Virginia to receive these funds. 3. Each applicant is also required to complete an application and a W-9 form to be considered for an award. 4. VHDA must also receive an estimate from the applicant's contractor, an application confirmation, and a completed inspection report signed by a VHDA-approved inspector and the applicant. The inspection will be overseen by VHDA. 5. Modifications must be completed within four months; otherwise an application extension must be secured from VHDA. Information about the "Granting Freedom" program and downloadable applications for the award are available at http://www.vhda.com under "accessibility." Also listed is contact information for Julia Perkinson, the grant administrator for this program. Finally, VA Guaranteed Home Loans are used widely to: Buy or build a home Refinance an existing loan Repair, alter, or improve a home The VA loan can be used to guarantee up to $417,000 of the total loan and does not require a down payment. Of course, it should be noted that this may be a downfall of the program in that service members who could not otherwise afford a more expensive home purchase one using the VA loan program. One housing officer commented that the VA approved him for a much higher loan amount than he could truly afford given his monthly income and expenses. RECOMMENDATIONS While financial assistance is always welcome, the state's ability to consistently provide military-specific assistance will always be subject to factors such as continued political support and appropriations. However, providing additional state support for military personnel may encourage continued military presence in Georgia and the attendant economic benefits generally associated with a military presence. Given the above caveat, the following action steps are recommended: Establish a coordinating committee to include military housing representatives, state representatives, and representation from local officials to further analyze housing needs on a community-specific level. Give consideration to the following programs o Priority #1 Establish a service member education program designed to assist service members in the purchasing, financing, maintenance, selling, and renting of a home or housing unit. o Priority #2 Establish a program to provide home ownership and/or rental financial assistance for a defined period of time to service members meeting income and dependency criteria. While this could be provided as one-time down-payment assistance to reduce the monthly payment, a VA Guaranteed Home Loan addresses the need for actual down-payment assistance. While some of these programs could be enacted using existing DCA programs, DCA should consider implementing state-funded programs that can exclude BAH when calculating income levels. 13 LIST OF SOURCES A complete list of material used, original survey responses, and exhibit analysis will be provided with the final report. 14