$1.7 billion development brings privatized barracks to sailors in Hampton Roads

The Navy signed onto a $1.7 billion development to provide more than 8,000 beds for junior enlisted sailors stationed around Hampton Roads, Va., the service said Wednesday.

The five-year agreement signed July 1 with Hunt Military Communities, a major partner in military family housing, will be the service’s first large-scale privatization of barracks. The Navy estimated the contract will save the government more than $325 million, which it said will go into other quality-of-life projects.

“This agreement reflects the direction we want to take across our barracks portfolio: delivering high-quality, cost-effective housing solutions that provide modern, reliable homes for service members and prudent value for taxpayers,” said Adam Dontz, deputy assistant defense secretary for housing. “By combining private-sector expertise, disciplined stewardship of public resources, and strong local partnerships, we can replace aging facilities faster, improve the resident experience, and sustain quality over the long-term.”

The contract includes housing for up to 8,098 sailors through a $450 million new facility in Newport News and renovations and new rooms added across 16 facilities in Hampton Roads, according to the Navy. The work includes 712 bedrooms in seven buildings at Naval Air Station Oceana; 614 bedrooms in three buildings at Joint Expeditionary Base Little Creek-Fort Story; and 5,272 bedrooms in six buildings at Naval Station Norfolk.

The new barracks in Newport News will house 1,500 sailors assigned among the many Navy bases in the region and replace aging facilities, such as Huntington Hall Naval Berthing Facility.

The project also received an interest-free loan from the Commonwealth of Virginia to the city of Newport News, the Navy said. That support was instrumental to securing the project, said Vice Adm. Scott Gray, commander of Navy Installations Command, which oversees the Navy’s housing.

“This landmark agreement represents a massive step forward in ensuring our junior sailors have a high-quality place to live, recharge, and focus on their vital mission,” he said in a statement.

The military began in 1996 to privatize housing for families on its bases to improve the quality of homes available. The program had initial success at this, but much has been done in the last decade to mitigate a drop in quality and poor maintenance, which forced some families to live with mold, lead paint, water and sewage leaks and pest infestations.

Hunt Military Communities was recently involved in litigation for such conditions, including a lawsuit filed by an Air Force chaplain two months ago. Nine families filed lawsuits in 2019 against the company. Eight were settled out of court this year, and the ninth was awarded more than $91,000 by a jury in Texas.

Hunt already partners with the Navy to manage housing for more than 3,600 junior enlisted sailors through Homeport Hampton Roads at Norfolk and Newport News. That project also includes a mix of apartments, recreational amenities and a pool.

Across the United States, Hunt has more than 60,600 homes at 59 military bases.

The Navy also has some privatized barracks in San Diego.

Efforts to privatize unaccompanied military housing, which also had documented problems of mold, broken air conditioning and long-overdue maintenance concerns. The Army broke ground one year ago on “resort-style” barracks facility at Fort Irwin, Calif., through a contract with the Michaels Organization, another company involved in military family housing.