Portfolio and Asset Management Program Support Contacts Policy/Guidance
Air Force Privatization policy is periodically reviewed and amended to conform to industry-standard best practices, to protect the interest of the Air Force and to provide an optimal living environment for Air Force service members. Policy revisions are officially issued by the SAF, Air Staff and the ESG, but may be initiated by any Privatization stakeholder. Recommendations for changes in current Air Force policy should be directed to AFCEE/HDP.
Legal
Due to the extensive amount of legal documentation that accompanies each Privatization project, a professional reading and interpretation is often necessary to ensure proper compliance with the transaction documents. HQ USAF/A7CH interprets housing policy and provides guidance to asset managers. SAF/GCN provides interpretation of legal documents and policy guidance.
Finance
The Air Force Portfolio Management team assumes a fiduciary responsibility for the Privatization program. In this capacity, the team monitors the financial health and performance of all projects individually and the portfolio as a whole. This includes both present performance-such as Debt Coverage, Lockbox Administration and Net Operating Income relative to pro forma-as well as long-term health as it relates to reinvestment. Additionally, the Portfolio Financial experts assist the Base Asset Manager in analyzing and evaluating proposed Project Operating Budgets. Questions for the Privatization financial experts should be directed to AFCEE/HDP.
Construction/Development
The development and construction phase entails a collaborative process between the Project Owner, the Base Housing Office, and the Portfolio Management Team. While day-to-day activities and topics are handled at the local level, larger issues, including disputes and delays, often involve consultation with the Portfolio Management team, who contribute experience and mediation skills. Additionally, in the event of significant development or construction problems, Portfolio Management may contract with outside development experts to analyze the situation and work toward a resolution. Questions on design, development and construction should be directed to AFCEE/HDP.
Loan Servicing
DFAS-Indianapolis (IN) acts as the loan servicer, or the organization responsible for providing accounting and finance support and reporting services to the Military Housing Privatization Initiative (MHPI) for Direct Loans and Loan Guarantees. Air Force Portfolio Management ensures that all government loans and loan guarantees are adequately serviced in accordance with the DFAS Memorandum of Agreement (MOA), and the Credit Reform Act of 1990. At a minimum, they determine that all loan servicing requirements listed in the OMB Circulars A11, A34, A129 and DoD FMR Volume 12, Chapter 4, Credit Management are accomplished. Questions regarding the Direct Loan and Loan Servicing process should be directed to AFCEE/HDP. The AFCEE HDPM Financial Guide provides comprehensive information on subsidy transfers, Government Direct Loans, Loan Guarantees, loan repayments, and subsidy re-estimates, in addition to the topics covered here.
Restructure/Refinance
In rare occasions, Privatization projects may undergo either a restructure or refinance. These processes, which can involve amending legal documents, altering project scope and modifying project structure and debt, occur in order to protect the long term interests of the Air Force. Past instances have not only saved the Air Force money, but also prepared projects to better meet demand and be healthier over the contract term. Restructures may be proposed by any stakeholder, but require SAF/ESG approval. Inquiries regarding or recommendations for restructure should begin with AFCEE/HDP.
Insurance
Per the transaction legal documents, each project is required to maintain a variety of insurance protections. Compliance with these mandates is assessed yearly by the Portfolio Management team in the Annual Insurance Review. Additionally, during the Initial Development Phase, insurance experts ensure the project maintains satisfactory performance and payment bonds, or other construction sureties. Lastly, should any damage or casualty occur to a project, these experts work with all stakeholders to ensure claims and remedies are undertaken according to the transaction legal documents. Questions regarding insurance should be directed to AFCEE/HDP.
Document Management
Given the vast amount of documentation which accompanies each project-from RFPs, to submittals, to pro forma, to executed legal documents-document management is essential to sustaining proper project functionality and information flow. Each stakeholder should maintain a copy of all applicable project documentation. Additionally, Portfolio Management is charged with maintaining the AFPACES (Air Force Portfolio & Asset Control/Evaluation System) which contains all documents, reports and other relevant materials. Access to AFPACES is strictly controlled and monitored by AFPM. Questions regarding document management and AFPACES should be directed to AFCEE/HDP.
