By David Holtzman
With some military housing facing challenging conditions and a maintenance backlog, some service members are looking off-base for a safe and affordable place to live. But advocates say neighborhoods around military bases can be small and lack enough housing to accommodate the demand.
The problem has attracted the attention of military leaders who have raised the funds service members receive when they seek housing off their bases. It’s also drawn interest from lawmakers, who argue private commercial developers have a role to play in easing the housing crunch.
A bipartisan bill introduced by Reps. Blake Moore, a Utah Republican, and Marilyn Strickland, a Washington Democrat, gives developers increased tax breaks through the federal low-income housing tax credit program for projects within 15 miles of some military facilities. Rather than the typical 70% credit available through the program, a developer building close to a base could obtain a subsidy of more than 90% of their project costs.
The bill would also deduct the allowance the military gives service members from their income for the purpose of determining their eligibility to live in off-base housing. That would make it more likely that service members would qualify for affordable housing that is typically restricted by income if it is government-subsidized. The allowance amount is based on a survey of the rental market in each geographic location and varies by pay grade and whether a service member has dependents.
“As hundreds of lower-enlisted service members are struggling to afford housing near the base and officers are being forced to turn down assignments in Utah because of the difficult real estate market, this bill will spur development interest,” Moore said in a joint statement with Strickland.
The bill’s provisions are limited to “large-site” Army, Navy, Air Force and Marine Corps facilities where the cost to rebuild them, if necessary, would be more than $2.8 billion. That applies to 159 of the roughly 7,000 military facilities around the U.S., according to the U.S. Department of Defense.
The legislation was referred to the House Committee on Ways and Means, of which Moore is a member. While it’s unclear if the committee will consider the legislation before the Congressional session ends in January, its filing and support from a Democrat and Republican from different regions of the country reflect that the issue has gained national attention.
About 70% of the nearly 55,000 service members at Joint Base Lewis McChord in Strickland’s district near Tacoma, Washington, live off-base, the statement said.
More funds
The Department of Defense increased the basic allowance for housing for 2024 by an average of 5.4%. The previous year, the department raised rates 12% in response to soaring housing prices. Rates are typically set in December for the following year.
The housing allowance is designed to cover 95% of the average housing costs for service members, according to a 2023 Bipartisan Policy Center report; the allowance was intended to cover 100% of costs before Congress reduced it at the U.S. Defense Department’s request in 2015. A number of military households pay significantly more for rental housing than the allowance, the report said. A House committee passed the National Defense Authorization Act in June, with a provision to restore the 100% coverage. The bill is now pending in the Senate.
An increasing number of service members are seeking off-base housing because of a variety of factors, including a maintenance backlog on bases. Some military dormitories have poor living conditions, according to a U.S. General Accounting Office report. But when service members venture into nearby neighborhoods, they find a limited housing supply and escalating prices, according to Strickland and Moore’s statement.
The large number of people seeking that limited housing has created infrastructure challenges for neighboring communities, according to Emily Cadik, CEO for the Affordable Housing Tax Credit Coalition that backs the proposed legislation. For example, near Hill Air Force Base in Utah, the housing shortfall means as many as four service members who all have their own vehicles may share a small housing unit, creating a parking problem.
“Some of these areas were not built for the number of people who have come there for the base, so this is one way to add some affordable housing supply and some amenities that would make it more viable to live there,” Cadik said in an interview.