Department of the Navy

Marine Corps General and Flag Officers' Quarters

Anticipated Operations and Maintenance Expenditures Exceeding $35K per Unit for Fiscal Year 2006

(Dollars in Thousands)

The Fiscal Year 2006 estimate reflects estimated collections for damages and rent. Reductions in cash collections for damages will result from the loss of approximately 5,400 homes on 30 Sep 2005 due to privatization

DEPARTMENT OF THE NAVY

FAMILY HOUSING - FY 2006 BUDGET ESTIMATE

NAVY AND MARINE CORPS LEASING

(In Thousands)

Purpose and Scope

FY 2006 Program $143,790
FY 2005 Program $136,883

This program provides payment for the costs incurred in leasing family housing units for assignment as public quarters.

Domestic Leasing Program Summary: The domestic leasing program is authorized in 10 USC 2828 as amended, which limits the number of units authorized at any one time and specifies the maximum cost limitation. This program consists of leasing on an interim basis until Section 801, military construction (MILCON) units, and homes undergoing revitalization come on line.

Section 801 of the FY 1984 Military Construction Authorization Act (PL 98115) authorized the Department of Defense to enter into agreements for the leasing of Military Family Housing units on or near military installations within the United States. This authorization was considered a test and would have expired upon execution of contracts no later than 1 October 1985. The Navy sites chosen for testing Section 801 were Norfolk, Virginia, and Earle, New Jersey. The Section 801 program was made permanent and codified as Section 2835 of Title 10, United States Code, in FY 1992. The Navy has awarded contracts for Section 801 projects at Norfolk, VA (300 units), Earle, NJ (300 units), Mayport, FL (200 units), Staten Island, NY (1,000 units), Washington, DC (600 units), Washington, DC (Summerfield-414 units), Port Hueneme/Point Mugu, CA (300 units), Pensacola, FL (300 units), and Twentynine Palms, CA (600 units). The Staten Island, NY (1,000 units) project was terminated due to base closure.

Section 802 of the FY 84 Military Construction Authorization Act (PL 98-115, 10 U.S.C. 2821 note) authorizes the Department of Defense to enter into agreements for the leasing of Military Family Housing units on or near military installations within the United States. The Department of the Army, awarded this project in 1992 under U.S. Army Garrison, Hawaii (USAG-HI). The authority transferred to the Marine Corps on 1 Oct 1998. The Marine Corps took over a

Domestic Leasing Fiscal Year Summary:

FY 2004 - The Domestic Lease program consists of 3,779 units requiring funding of $54.769 million. Funding in the amount of $45.365 million provides full funding for Section 801 projects at Earle, Norfolk, Mayport, Washington, DC, Pensacola, Port Hueneme and Twentynine Palms. The remaining $9.404 million is required to support domestic short-term leases in Everett, WA ($0.047 million), Section 802 Marine Corps leases ($0.857 million), and 485 leases for recruiters at high-cost locations not supported by a military installation ($8.500 million).

FY 2005 The Domestic Lease program consists of 3,821 units requiring funding of $56.543 million. Funding in the amount of $46.172 million provides full funding for Section 801 projects at Earle, Norfolk, Mayport, Washington, DC, Pensacola, Port Hueneme and Twentynine Palms. The remaining $10.371 million is required to support domestic short-term leases in Everett, WA ($0.048 million), Section 802 Marine Corps leases ($0.869 million), and 527 leases for recruiters at high-cost locations not supported by a military installation ($9.454 million).

FY 2006 The Domestic Lease Program consists of 3,769 units requiring funding of $56.820 million. Funding in the amount of $47.375 million provides full funding for Section 801 projects at Earle, Norfolk, Mayport, Washington, DC, Pensacola, Port Hueneme and Twentynine Palms. The remaining $9.445 million is required to support domestic short-term leases in Everett, WA ($0.050 million), Section 802 Marine Corps leases ($0.881 million), and 475 leases for recruiters at high-cost locations not supported by a military installation ($8.514 million).

Foreign Leasing: Leasing in foreign countries is authorized in 10 USC 2828, which limits the number of units authorized at any one time and specifies the maximum cost limitation.

The FY 2004 unit authorization consists of 4,229 units and funding for 2,281 of those units. The authorization difference of 1,948 is to support lease initiatives at Naples, La Maddalena and Sigonella, IT and Larissa, GR.

The FY 2005 unit authorization consists of 4,229 units and funding for 2,594 of those units. The authorization difference of 1,635 is to support lease initiatives at Naples, La Maddalena and Sigonella, IT.

The FY 2006 unit authorization consists of 4,229 units and funding for 2,771 of those units. The authorization difference of 1,458 is to support lease initiatives at Naples, La Maddalena and Sigonella, IT.