This model will help DOD determine the number of government-owned housing units that need to be constructed or maintained as well as determine the size of the Department’s housing privatization projects.”
DOD and the services have worked to develop the framework for a single, consistent process for determining housing requirements. Issues such as what constitutes affordable civilian housing and reasonable commuting distances have slowed the adoption of the process. This rationale is not consistent with DOD’s stated policy of relying on the private sector first. Although the change in the housing allowance program is likely to decrease the demand for military housing relative to civilian housing, there are indications that the services are reluctant to reduce on-base family housing. While costs for the increased housing allowance appear substantial in the short term, evidence shows that it is cheaper for the government to provide an allowance for private sector housing than to provide a military house on base. Considerable evidence suggests that providing a housing allowance is less expensive and more flexible than providing a military house. Conclusions

As the housing allowance increase is phased in—eliminating the financial disincentive to living in civilian housing—demand for military housing is likely to decrease. Scope and Methodology

To determine whether DOD has implemented a standard process for determining the need for military housing based on available private sector housing, we held discussions with, and reviewed documents from, DOD housing officials about the Department’s efforts to develop such a process. The Congress, GAO, and the Department of Defense (DOD) Inspector General have identified problems with the military services’ methodologies for developing housing requirements.
Why GAO Did This Study

This report reviews the Department of Defense's (DOD) family housing program.

What GAO Found

GAO discusses (1) whether DOD has implemented a standard process for determining the required military housing based on housing available in the private sector and (2) how an increase in the housing allowance is likely to affect the need for housing on military installations over the long term. Despite calls from Congress, GAO, and DOD's Inspector General, DOD has not introduced a standard process for determining military housing requirements. DOD and the services have worked to develop the framework for the process, but technical concerns, such as standards for affordable housing and commuting distance, have stalled its adoption. Increasing the housing allowance underscores the urgent need for a consistent process to determine military housing requirements because it is expected to increase demand for civilian housing and lessen the demand for military housing. From a policy standpoint, increasing the allowance better positions DOD to rely on the private sector first for housing because it removes the financial disincentive to living in civilian housing. From a management standpoint, considerable evidence suggests that it is less expensive to provide allowances for military personnel to live on the civilian market than to provide military housing. Although overall program costs are increasing significantly in the short term to cover increased allowances, DOD could save money in the longer term by encouraging more personnel to move into civilian housing.