Navy Executes Phase II of Public Private Venture Housing Project

SILVERDALE, Wash., – The U.S. Navy and Northwest Military Communities, LLC signed agreements on May 27, 2014 to execute the second phase of the Navy’s Public Private Venture (PPV) housing for military families stationed at Naval Base Kitsap located in Bremerton Wash.

“The signing of this agreement between the Navy and Northwest Military Communities is a positive step forward in continuing to provide a safe place for our warfighters and their families to live while stationed on Naval Base Kitsap,” said Capt. Chris LaPlatney, commanding officer Naval Facilities Engineering Command Northwest.

This subsequent phase, which took effect on June 1, 2014, will involve a comprehensive four-year development plan that will invest more than $60 million into the re-development of this site. With an initial inventory of 870 units at Jackson Park Military Housing complex, the PPV will revitalize outdated and underutilized units and right-size the overall housing inventory and bedroom mix to meet the Navy’s housing requirements. This action will result in an overall end-state of 624 privatized homes at Jackson Park that are intended for enlisted active-duty service members E1-E7. Upon completion of this phase the total number of homes privatized in Navy Region Northwest with Northwest Military Communities, LLC will be approximately 3,370.

The National Defense Authorization Act for fiscal year 1996 provides a series of authorities that allow the Department of Defense to enter into long-term agreements with private industry to design, finance, construct, own, operate, maintain, and professionally manage public/private housing ventures.

PPV is the formation of a limited liability company (LLC) between two entities, the Department of the Navy and a private company. The Navy may convey existing housing units, leases the underlying land to the LLC, and may provide an initial capital contribution. The private company secures the necessary financing and, as the managing member in the LLC, is responsible for the replacement, renovation, maintenance, management and operation of the family housing. The Navy, as a member in the LLC, maintains a vested interest in ensuring that high quality housing is available to service members and their families, and that housing is fully sustained for the life of the agreement.

Under the PPV concept the service member signs a lease and typically makes monthly rent payments to the LLC using the service member’s Basic Allowance for Housing entitlement which covers rent, normal utilities and renter’s insurance.

For more information on the Navy’s Public Private Venture program, visit

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