Sec. 602. Limitation on basic allowance for housing modification authority for members of the uniformed services residing in Military Housing Privatization Initiative housing
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Paragraph
(3)of section 403(b) of title 37, United States Code, is amended by adding at the end the following new subparagraph: The Secretary of Defense may not reduce the rate of basic allowance for housing in effect on December 31, 2017, for a member of a uniformed service who resides in a housing unit acquired or constructed under the alternative authority of subchapter IV of chapter 169 of title 10 (known as the Military Housing Privatization Initiative) until January 1, 2019. . Subparagraph
(B)of such paragraph is amended in clause
(iv)by striking Four and inserting Subject to subparagraph (C), four . Not later than March 1, 2018, the Comptroller General of the United States shall submit to the Committees on Armed Services of the House of Representatives and the Senate a review of the following: An analysis of the impact of reductions in the rate of the basic allowance for housing under section 403 of title 37, United States Code, on the long-term viability of the Military Housing Privatization Initiative (MHPI). An analysis of projected revenue for the MHPI, considering projected reductions in such basic allowance for housing, which compares projected revenue under the assumption that members of the armed forces will make out-of-pocket payments in addition to rent and under the assumption that members will not make such out-of-pocket payments. An analysis of the extent to which the Department of Defense has relied and continues to rely on the assumption that members of the armed forces who live in housing units acquired or constructed under the MHPI will make out-of-pocket payments in addition to basic rent in order to offset reductions in such basic housing allowance. An analysis of the future military construction costs that will be necessary to offset reduced reinvestment account distributions as a result of reductions in such basic housing allowance, consistent with the requirement included in project ground leases under the MHPI that all assets will be in like-new condition at the end of the lease. The impact on maintenance of housing units acquired or constructed under the MHPI because of the reductions in revenue for the MHPI that will result from reductions in such basic housing allowance. The impacts of the costs described in paragraph
(4)and the reduction in revenue described in paragraph
(5)on occupancy and revenue generated by occupancy under the MHPI, and the impact of changes in occupancy and associated revenue on the costs described in paragraph
(4)and the reduction in revenue described in paragraph (5). The process for establishing the criteria for and the execution of market surveys used to establish the rates of such basic housing allowance.