R 281640Z JUN 16
MARADMIN 337/16
MSGID/GENADMIN/CMC WASHINGTON DC L LF//
SUBJ/REMOVAL OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING LEASES//
REF/A/DOC/OSD/27 AUG 2015//
REF/B/DOC/ASN EIE/22 APR 2016//
NARR//REF (A) IS OSD MEMO, APPLYING BASIC ALLOWANCE FOR HOUSING REDUCTIONS TO PRIVATIZED HOUSING. REF (B) IS ASN EIE MEMO, PROVISION OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING//
POC/E. DAUER/CIV/UNIT: MCICOM GF-3/HQMC LFF-3/TEL: 571-256-2837/DSN 260-2837/EMAIL: ERIC.L.DAUER@USMC.MIL//
GENTEXT/REMARKS/1.  Purpose.  The Purpose of this MARADMIN is to announce forthcoming changes to Marine Corps Military Family Housing Public Private Venture (PPV) business agreements directed by the references that will impact residents in Department of Navy PPV Housing.
2.  Background.
a.  Prior to 2015, Office of the Secretary of Defense (OSD) included the cost of renters insurance when establishing Basic Allowance for Housing (BAH) rates.  Since rents for privatized military family housing (known as PPV Housing) are capped at the prevailing BAH rates established by OSD, residents in PPV housing automatically received renters insurance as a provision of their PPV lease.
b. On 1 January 2015, OSD eliminated the renters insurance component from the BAH rate calculation in an effort to slow the growth in compensation costs.  Corresponding adjustments to PPV housing renters insurance provisions were not made concurrently.
c. Reference (a) provided guidance to the services on implementing the renters insurance changes within PPV housing.  By reference (b) the Assistant Secretary of the Navy (Energy, Installations, and Environment) directed the Naval Facilities Engineering Command (NAVFAC) to amend PPV business agreements to remove the automatic inclusion of renters insurance from PPV leases consistent with reference (a).  Accordingly, PPV Partners will soon have the option to provide renters insurance to military residents as a promotional incentive either at no cost or for a fee.  Additionally, military residents will be encouraged, but not required, to obtain renters insurance from the PPV Partner or from local insurance companies once current insurance coverage expires.
d. Members with rate protected BAH pre-dating the 1 January 2015 changes will continue to receive BAH that includes an insurance component.  PPV Partners are required to provide continued insurance coverage or a benefit of corresponding value to those members until their rate protection would otherwise cease (e.g., permanent change of station, change in pay grade, or change in dependent status).  BAH for all other members presently accounts for the eliminated renters insurance component.
e. In accordance with reference (b), PPV business agreements will be amended and the effective implementation date is targeted for 1 July 2016.  PPV Partners will continue to provide renters insurance for the term of all PPV leases (including renewals) executed prior to the amendment of the PPV business agreements.
3.  Action.
a. The NAVFAC will take the necessary actions to amend PPV business agreements to remove the automatic inclusion of renters insurance in PPV leases; and
b. The Military Housing Offices (MHOS) will:
(1) Notify residents in PPV housing that in accordance with the references, renters insurance will be removed as an automatic entitlement in their PPV leases;
(2) Educate military members seeking housing referral counseling on the importance of renters insurance, benefits of renters insurance, and encourage residents to purchase renters insurance for their own protection;
(3) Coordinate with PPV property manager to provide PPV residents with at least 30 days prior notice of when renters insurance will no longer be provided in their leases, and advise on whether coverage will be provided as a promotional incentive; and
(4) Make frequently asked questions (FAQ) on renters insurance available in all MHOS.
4.  This MARADMIN is applicable to the reserve component.
5.  Release authorized by LtGen M. G. Dana, Deputy Commandant, Installations and Logistics.//