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How does the Navy manage PPV housing?

Program responsibilities are shared, as delegated by Office of the Assistant Secretary of the Navy (Energy, Installations, and Environment) (ASN (EI&E)), between Commander, Navy Installations Command (CNIC) and Naval Facilities Engineering Systems Command (NAVFAC). CNIC HQ, its regions and installations act as advocates for service members and their families and are responsible for providing management, control and performance oversight of housing programs. Installation Housing Service Centers (HSC) are the primary touchpoint for service members and families living in privatized housing. NAVFAC serves as the execution agent of the various agreements that govern the individual DON privatized housing projects, including business agreements. NAVFAC is responsible for establishing and implementing processes for conducting complete oversight of PPV partner compliance with governing agreements.

How does the Navy ensure PPV partners are delivering quality housing to Sailors and their families?

Though the Navy does not own or operate the privatized housing, it retains oversight and approvals over aspects of the operations and management of the projects. Oversight and reporting efforts include, but are not limited to:

Inspections - The Housing Service Center (HSC) approves the habitability of a vacant housing unit before it is available for occupancy and conducts inspections in response to specific issues such as the identification of a life, health, or safety issue.  Learn more about Navy Housing programs and services at https://ffr.cnic.navy.mil/Navy-Housing/

Site Visits -The Navy and property manager conduct site visits to assess the condition of the housing and services provided to tenants.

Tenant Relations & Advocacy - The HSC serves as the primary point of contact for tenants plus monitors and responds to tenant comments in surveys and holds town halls or meet-and-greets to stay engaged with tenants.

Tenant Satisfaction Surveys (TSS) - CNIC conducts annual surveys to solicit tenant feedback on what's going well and where there is room for improvement.  The TSS questions are now standard across all services and categories of military housing.  The survey is conducted to identify issues and level of customer satisfaction with the quality of military housing services and facilities.  The Navy uses the TSS to identify issues, implement corrective actions, and measure the level of customer satisfaction of military services and facilities across the Navy.  Learn more about the TSS and view recent results at https://ffr.cnic.navy.mil/Navy-Housing/Surveys/

Monitoring Matrix - The PPV Monitoring Matrix (MMx) is where the Navy tracks partner performance and compliance with the business agreements as well as Navy oversight of the PPV partners.

Dispute Resolution - The HSC serves as the point-of-contact for resolution of disputes between military tenants and the Property Manager that cannot be satisfactorily resolved. There are both informal and formal dispute resolution processes.

Project Reporting - The Navy uses numerous internal reports to monitor the performance of each project and the PPV portfolio as a whole such as Monthly Operating Reports (MOR) and Quarterly Operating Reports (QOR), which show metrics such as occupancy, debt service coverage and reinvestment fund balances.

What is the Navy’s role and responsibility when residents are not satisfied with Liberty’s response to their concerns?

If a resident has a concern about their unit or neighborhood, they should contact Liberty Military Housing.  If the resident is dissatisfied with the response, and has exhausted other avenues with their landlord, such as raising the issue to higher levels within the company, the member can use any one of several resources available to assist military families with housing issues.  These include the military liaison at the Housing Welcome Center, the military member’s command, the command Ombudsman, and the regional command leadership.  These resources are available to all military members.

Who in the Navy is responsible for compliance with the PPV agreements?

NAVFAC monitors compliance with the business agreements, overseeing the Navy’s investment in the privatized entity and ensuring the terms of the business agreements are met, including annual operating budgets, financial operations, development and construction, and asset management.  The Navy Housing Office (NHO), NAVFAC and Liberty also work together to conduct annual site assessments of every neighborhood in an effort to ensure suitable housing is being provided for military families.  Privatized housing is a self-sustaining enterprise which will provide quality housing to meet military demand well into the future.

How often do you check on or monitor complaints by service members and/or their families about their living conditions?

As an advocate for military families, we check on 100% of the issues brought to our attention by military families. When families let us know of issues, we can track and monitor issues on their behalf more closely.  

How do I use the formal dispute resolution (FDR) process?

Contact your local Navy Housing Office.

What is the FDR process?

Commander, Navy Installations Command (CNIC) 11101.3 governs this process.  The FDR reviews all information, recommendations, and any data collected in a dispute between a tenant and PPV partner Liberty.  An independent dispute resolution investigator may be used when appropriate.

Who makes the FDR decision?

The Region Commander, in our case Commander, Navy Region Southwest, makes the final FDR decision using available remedies.

What remedies can the FDR decision involve?

Remedies can include:

Direct the owner to take action to remediate the premises. Such an order may identify specific commercially reasonable outcomes but shall not specify methods of repair;

Direct the owner to fund tenant relocation in accordance with the minimum standard tenant displacement guidelines;

Direct a reimbursement or credit as appropriate for the payment of any fees, charges, or move-out damage assessments determined to be due to owner or tenant; and

Allow tenant to terminate the lease or excuse tenant from minimum move-out notice requirements and any associated fees.

Do families need to sign a non-disclosure agreement (NDA) to participate in the formal dispute resolution process (FDR)?

No.  There is no "non-disclosure agreement (NDA)" required of families participating in the FDR.  The term NDA has a very specific legal meaning and is not used in the FDR process.  While there is no NDA required of families participating in the FDR process, all parties participating in the FDR process agree to maintain the confidential nature of the proceeding and the final decision.

Please see Question/Answer 12, which addresses the confidentiality statement in more detail, which is standard in all FDR documents.  Your local Navy HSC team can explain the FDR process to you in more detail.

Do families lose the ability to pursue their complaint if they use the FDR process?

No.  While the decision by the Region Commander is final and closes the FDR process, nothing in the FDR process nor any decision rendered by the deciding authority prohibits a tenant, Public/Private Venture property manager or owner, or the Navy from pursuing a claim in any adjudicative body that has jurisdiction per applicable state or federal law, or both.  Your rights to pursue this in a court with appropriate jurisdiction are not removed by using the FDR process.

What does the FDR process say about confidentiality in the process?

“By using the dispute resolution process, all parties and their representatives agree to maintain the confidential nature of the proceeding and the decision.  All written decisions or remedies rendered of this dispute resolution process will remain confidential and may not be released unless it is necessary to demonstrate that any alleged damages have or have not been remedied.” 

This does not preclude a family from pursuing legal action in the relevant court system to resolve their concern, nor does it preclude them from disclosing the proceeding and decision in court if necessary to demonstrate damages have or have not been remedied.

The wording of this confidentiality statement is taken from CNIC Instruction 11101.3, Navy Public Private Venture Dispute Resolution Process (p. 7) and is also in Section 12 of the Universal Lease, which covers most (but not all) PPV residents and eventually will cover everyone.

Can I be asked to sign a non-disclosure agreement (NDA) as part of the FDR process?

No, there are no NDAs in the FDR process.

Additional prohibitions of NDAs outside the FDR process that are governed by 10 USC 2890 include a specific prohibition of NDAs in this context:  a “tenant or prospective tenant of a housing unit may not be required to sign a nondisclosure agreement in connection with entering into, continuing, or terminating a lease for the housing unit. Any such agreement against the interests of the tenant is invalid.”  However, it is important to note that this section does not apply to an NDA executed as part of the settlement of litigation; or to avoid litigation if the tenant has retained legal counsel or has sought military legal assistance.

Does Liberty use licensed or bonded vendors for repairs to HVAC systems and/or mold remediation?

Yes. All of Liberty’s internal mold Operations and Maintenance (O&M) Coordinators are certified by the Institute of Inspection Cleaning and Restoration Certification (IICRC).  In addition to all internal O&M Coordinators maintaining IICRC certification, only qualified vendors/consultants with applicable certifications are used when it comes to mold and moisture inspections, remediation work, and post-remediation verification inspections.

Liberty carefully assesses each maintenance request for the appropriate response team and provides residents with the opportunity to provide feedback if dissatisfied/concerned with the work performed.  When a service request is submitted for water intrusion and/or mold related concern, a technician is dispatched.  This service request is considered an emergency and must be responded to within one hour in person.  A Liberty Military Housing technician will arrive at the home to access the water intrusion/mold related concerns and report back on the size, location, and whether or not material must be removed.  At that point, Liberty reviews the scope of work.  A request for abatement will be reviewed if required, and a third party remediation contractor will complete any necessary work.  A follow up will occur at the conclusion of the work with additional visits if needed.
 

What should a resident in PPV housing do if they believe that conditions in their home are affecting their health?

If a military member or their family has a concern about their health, they should seek medical attention from their primary health care provider.

Learn more from highly qualified experts about mold, including resources and fact sheets provided by the Navy and Marine Corps Force Health Protection Command at:

https://www.med.navy.mil/Navy-and-Marine-Corps-Force-Health-Protection-Command/Environmental-Health/Industrial-Hygiene/Mold-Information-and-Resources/
 

What are residents told about moisture intrusion and/or mold before they move into a LMH home?

Each resident signs a lease, including a mold addendum, noting that it is important for the owner and the resident to work together to minimize any mold growth on the premises and outlining the responsibilities of both the resident and the owner.  LMH personnel walk the resident through the lease.

Families can learn more about the United States Environmental Protection Agency (EPA) standards for mold and moisture in homes at:

https://www.epa.gov/mold/brief-guide-mold-moisture-and-your-home
 

Do in home mold air test kits work?

Molds are part of the natural environment.  Commercial third party inspectors and mold testing companies use a multitude of methods not approved by any public health agency.

As a resident, you can expect Liberty to perform (or have a certified third party microbial consultant perform) a post-remediation verification inspection to ensure the remediation has addressed the issue.  In certain circumstances, Liberty’s third party certified microbial consultants will conduct surface sampling to determine if a surface has been adequately cleaned or remediated.  Liberty’s third party consultants are professionals experienced in designing mold sampling protocols, employing sampling and analytical methods recommended by reputable scientific organizations, and interpreting results.

When it comes to mold testing Liberty follows the guidance of the U.S. Environmental Protection Agency (EPA), the Centers for Disease Control and Prevention (CDC), the California Department of Public Health, and the U.S. Navy/Marine Corps.  Liberty also follows the Institute of Inspection Cleaning and Restoration Certification (IICRC) guidance for water penetration and microbial remediation.  The IICRC is an accredited Standards Developing Organization by the American National Standards Institute.  Learn more about IIRC at https://iicrc.org/   All of Liberty’s internal mold O&M Coordinators are IICRC certified, and only qualified vendors/consultants with applicable certifications are used when it comes to mold and moisture inspections, remediation work, and post-remediation verification inspections.

Below are excerpts from the attached agency cited sources that specifically address testing for mold:
 
Centers for Disease Control and Prevention (CDC):  https://www.cdc.gov/mold/

"CDC does not recommend mold testing. The health effects of mold can be different for different people so you cannot rely on sampling and culturing to know if you or a member of your family might become sick...there are no set standards for what is and what is not an acceptable quantity of different kinds of mold in a home. The best thing you can do is to safely remove the mold and work to prevent future mold growth."

U.S. Environmental Protection Agency (EPA):  https://www.epa.gov/mold/mold-frequently-asked-questions

"Is sampling for mold needed?  In most cases, if visible mold growth is present, sampling is unnecessary. Since no EPA or other federal limits have been set for mold or mold spores, sampling cannot be used to check a building's compliance with federal mold standards. Surface sampling may be useful to determine if an area has been adequately cleaned or remediated. Sampling for mold should be conducted by professionals who have specific experience in designing mold sampling protocols.”


California Department of Public Health (CDPH):
https://www.cdph.ca.gov/Programs/CCDPHP/DEODC/EHLB/AQS/Pages/Frequently-Asked-Questions-about-Mold.aspx


 “CDPH has concluded that the presence of water damage, dampness, visible mold, or mold odor in schools, workplaces, residences, and other indoor environments is unhealthy. We recommend against measuring indoor microorganisms or using the presence of specific microorganisms to determine the level of health hazard or the need for urgent remediation. Rather, we strongly recommend addressing water damage, dampness, visible mold, and mold odor by (a) identification and correction of the source of water that may allow microbial growth or contribute to other problems, (b) the rapid drying or removal of damp materials, and (c) the cleaning or removal of mold and moldy materials, as rapidly and safely as possible, to protect the health and well-being of building occupants, especially children.  Tests that identify the types of mold or the amounts of mold in buildings are not useful in telling us about the health risks.  This is why CDPH does not recommend testing for mold, such as measuring mold spores in the air.”

Navy-Marine Corps Public Health Center (NMPHC):

 “The Navy's policy, which is consistent with guidance from the U.S. Centers for Disease Control & Prevention (CDC) and the Environmental Protection Agency (EPA), is to not routinely sample for mold when evaluating indoor environmental quality (IEQ).  Expert organizations in assessing indoor air quality, such as the Environmental Protection Agency (EPA), Centers for Disease Control and Prevention (CDC), American Industrial Hygiene Association (AIHA) and the Occupational Safety and Health Administration (OSHA), recommend against routine mold sampling. Looking for evidence of water damage and visible mold growth should be the first step. If visible mold is present, sampling is usually unnecessary and the mold should be appropriately remediated. Results from mold sampling and the species of mold do not change the requirement to locate and stop the water intrusion. Finally, it is important to cleanup and remediate the affected area(s) as necessary.  Generally, home mold test kits do not provide meaningful answers. Since mold will be found anytime such testing is done, the home test kits would only confirm what we already know - that mold is everywhere, both outside and inside. Even if the home test kit analysis provides detailed information, results can be misleading and difficult to interpret, even for the professional."
 

 



Other Questions & Answers

What is privatized housing?

Legislation passed by Congress in 1996, known as the Military Privatization Initiative (MHPI), provided a series of authorities that allows the Department of the Navy (DoN) and other military services to enter into a Public-Private Venture (PPV) pursuant to which private industry designs, finances, constructs, owns, operates, maintains, and professionally manages the housing.

PPV housing may be located inside or outside a military base  and may be former military housing or new housing constructed by the private entity. The basic concept of a PPV is the formation of a Limited Liability Company (LLC) between the military service and a private company.  The private company secures the necessary financing and, as the Managing Member in the LLC, is responsible for the replacement, renovation, maintenance, management and operation of the conveyed  homes.  The military service, as a non-managing member in the LLC, maintains a vested interest in ensuring that the private company complies with its obligation to make quality housing available to service members and to fully sustain that housing for the life of the 50-year agreements.

Under the PPV plan, the service member signs a lease and makes monthly rent payments to the LLC using the service member’s Basic Allowance for Housing (BAH) entitlement, which covers rent, utilities and renter’s insurance.    If there is a lack of demand by military families and other preferred referrals, the LLC may seek non-qualified military tenants to include DoD civilians, Unaccompanied military personnel, retirees, and, possibly, unaffiliated civilians (after 30 days).

Who is privatizing their housing?

All of the services. You can learn more about Navy PPV at:

https://ffr.cnic.navy.mil/Navy-Housing/Privatized-Housing/
 

Why did the military services privatize housing?

DoD began privatization of family housing after the Military Housing Privatization Initiative (MHPI) legislation was passed in 1996 in an effort to improve the quality of military housing.   Privatization has allowed the services, including the Navy, to leverage private investment to more quickly improve the family housing inventory.   Resident satisfaction scores with housing have trended up dramatically across the entire program.

How is privatized housing similar to military housing?

A few of the similarities are:

• Zero out of pocket expenses for military residents; rent for service members is based on BAH.

• If a unit is not available when the service member arrives at a new duty station, and the member signs up for the waiting list within 30 days, the Government will pay the cost of a local move into a PPV unit when available;

• The service member continues to go to the Housing Welcome Center for housing information;

• The Housing Welcome Center continues to receive the service member’s application for PPV housing and refers the member to the Property Management Company.

How is privatized housing different from military housing?

Units are owned, managed and operated by a private property management company instead of by the government.

• The service member must sign a lease. The lease will include a "military clause".

• The service member receives BAH and pays rent directly to the property manager.

• The property management company handles all resident matters, including operation and maintenance.

When was Navy housing privatized as Liberty Military Housing?

Navy housing was privatized as Liberty Military Housing in August 2001.

 

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