Sec. 606. MILITARY HOUSING PRIVATIZATION INITIATIVE
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## SEC. 606 MILITARY HOUSING PRIVATIZATION INITIATIVE **[**[10 U.S.C. 2871 note](/us/usc/t10/s2871)**]** ###
(a)Use of Funds in Connection With MHPI ####
(1)Payments to lessors generally #####
(A)Payment authority Each month beginning with the first month after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020, each Secretary of a military department shall use funds, in an amount determined under subparagraph (B), to make monthly payments to lessors of covered housing in the manner provided by this subsection, as in effect on the day before the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020. #####
(B)Calculation of monthly payments For purposes of making payments under subparagraph
(A)for a month, the Secretary of the military department concerned shall determine the amount equal to 50 percent of the aggregate of the amounts calculated under section 403(b)(3)(A)(ii) of title 37, United States Code, for covered housing under the jurisdiction of the Secretary for that month. ####
(2)Additional payments to lessors responsible for underfunded projects #####
(A)Payment authority Except as provided in subparagraph (D), each month beginning with the first month after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020, each Secretary of a military department shall use funds, in an amount determined under subparagraph (B), to make additional monthly payments, under such terms and in such amounts as determined by the Secretary, to one or more lessors responsible for underfunded MHPI housing projects identified pursuant to subparagraph
(C)under the jurisdiction of the Secretary for the purposes of future sustainment, recapitalization, and financial sustainability of the projects. #####
(B)Calculation of monthly payments For purposes of making payments under subparagraph
(A)for a month, the Secretary of the military department concerned shall determine the amount equal to 50 percent of the aggregate of the amounts calculated under section 403(b)(3)(A)(ii) of title 37, United States Code, for covered housing under the jurisdiction of the Secretary for that month. #####
(C)Identification of underfunded projects The Chief Housing Officer of the Department of Defense, in conjunction with the Secretaries of the military departments, shall assess MHPI housing projects for the purpose of identifying all MHPI housing projects that are underfunded. Once identified, the Chief Housing Officer shall prioritize for payments under subparagraph
(A)those MHPI housing projects most in need of funding to rectify such underfunding. #####
(D)Limitation on payment ######
(i)In general Subject to clause (ii), the Secretary of a military department may not make a payment under subparagraph
(A)to a lessor unless the Assistant Secretary of Defense for Energy, Installations, and Environment determines the lessor is in compliance with the Military Housing Privatization Initiative Tenant Bill of Rights developed under section 2890 of title 10, United States Code. ######
(ii)Application The limitation under clause
(i)shall apply to any payment under a housing agreement entered into on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2024 by the Secretary of a military department with a lessor. ####
(3)Alternative authority in event of lack of underfunded projects #####
(A)In general Subject to subparagraph (B), if the Chief Housing Officer determines that no MHPI housing projects for a military department require additional funding under paragraph
(2)for a month, the Secretary of the military department concerned, in consultation with the Chief Housing Officer, may allocate the funds otherwise available to the Secretary under such paragraph for that month to support improvements designed to enhance the quality of life of members of the uniformed services and their families who reside in MHPI housing. #####
(B)Conditions Before the Secretary of a military department may allocate funds as authorized by subparagraph (A), the Chief Housing Officer shall certify to the Committees on Armed Services of the Senate and the House of Representatives that there are no MHPI housing projects for the military department that require additional funding under paragraph (2). The certification shall include sufficient details to show why no projects are determined to need the additional funds. ####
(4)Briefing required Not later than March 1, 2020, and each year thereafter, each Secretary of a military department shall provide a briefing to the Committee on Armed Services of the Senate and the House of Representatives detailing the expenditure of funds under paragraphs
(2)and (3), the MHPI housing projects receiving funds under such paragraphs, and any other information the Secretary considers relevant. ###
(b)Plan for MHPI Housing Not later than December 1, 2018, the Secretary shall submit to the congressional defense committees a long-range plan to develop measures to consistently address the future sustainment, recapitalization, and financial condition of MHPI housing. The plan shall include— ####
(1)efforts to mitigate the losses incurred by MHPI housing projects because of the reductions to BAH under section 603 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 37 U.S.C. 403(b)(3)(B)); and ####
(2)a full assessment of the effects of such reductions (in relation to calculations of market rates for rent and utilities) on the financial condition of MHPI housing. ###
(c)Reporting The Secretary shall direct the Assistant Secretary of Defense for Energy, Installations, and Environment to take the following steps regarding reports under section 2884(c) of title 10, United States Code: ####
(1)Provide additional contextual information on MHPI housing to identify any differences in the calculation of debt coverage ratios and any effect of such differences on their comparability. ####
(2)Immediately resume issuing such reports on the financial condition of MHPI housing. ####
(3)Revise Department of Defense guidance on MHPI housing— #####
(A)to ensure that relevant financial data (such as debt coverage ratios) in such reports are consistent and comparable in terms of the time periods of the data collected; #####
(B)to include a requirement that the secretary of each military department includes measures of future sustainment into each assessments of MHPI housing projects; and #####
(C)to require the secretary of each military department to define risk tolerance regarding the future sustainability of MHPI housing projects. ####
(4)Report financial information on future sustainment of each MHPI housing project in such reports. ####
(5)Provide Department of Defense guidance to the secretaries of the military departments to— #####
(A)assess the significance of the specific risks to individual MHPI housing projects from the reduction in BAH; and #####
(B)identify methods to mitigate such risks based on their significance. ####
(6)Not later than December 1, 2018, finalize Department of Defense guidance that clearly defines— #####
(A)the circumstances in which the military departments shall provide notification of housing project changes to the congressional defense committees; and #####
(B)which types of such changes require prior notification to or prior approval from the congressional defense committees. ###
(d)Definitions In this section: ####
(1)The term “BAH” means the basic allowance for housing under section 403 of title 37, United States Code. ####
(2)The term “covered housing” means a unit of MHPI housing that is leased to a member of a uniformed service who resides in such unit. ####
(3)The term “**MHPI housing**” means housing procured, acquired, constructed, or for which any phase or portion of a project agreement was first finalized and signed, under the alternative authority of subchapter IV of chapter 169 of title 10, United States Code (known as the Military Housing Privatization Initiative), on or before September 30, 2014. ## Subtitle B Bonuses and Special Incentive Pays
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