[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 116-29] MISMANAGED MILITARY FAMILY HOUSING PROGRAMS: WHAT IS THE RECOVERY PLAN? __________ HEARING BEFORE THE SUBCOMMITTEE ON READINESS OF THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ HEARING HELD APRIL 4, 2019 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ______ U.S. GOVERNMENT PUBLISHING OFFICE 36-903 WASHINGTON : 2020 SUBCOMMITTEE ON READINESS JOHN GARAMENDI, California, Chairman TULSI GABBARD, Hawaii DOUG LAMBORN, Colorado ANDY KIM, New Jersey, Vice Chair AUSTIN SCOTT, Georgia KENDRA S. HORN, Oklahoma JOE WILSON, South Carolina CHRISSY HOULAHAN, Pennsylvania ROB BISHOP, Utah JASON CROW, Colorado MIKE ROGERS, Alabama XOCHITL TORRES SMALL, New Mexico MO BROOKS, Alabama ELISSA SLOTKIN, Michigan ELISE M. STEFANIK, New York VERONICA ESCOBAR, Texas JACK BERGMAN, Michigan DEBRA A. HAALAND, New Mexico Jeanine Womble, Professional Staff Member Dave Sienicki, Professional Staff Member Megan Handal, Clerk C O N T E N T S ---------- Page STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Garamendi, Hon. John, a Representative from California, Chairman, Subcommittee on Readiness...................................... 1 Lamborn, Hon. Doug, a Representative from Colorado, Ranking Member, Subcommittee on Readiness.............................. 2 WITNESSES Beehler, Hon. Alex A., Assistant Secretary of the Army for Installations, Energy and Environment.......................... 7 Henderson, Hon. John W., Assistant Secretary of the Air Force for Installations, Environment, and Energy......................... 6 McMahon, Hon. Robert H., Assistant Secretary of Defense for Sustainment, Office of the Secretary of Defense................ 3 Modly, Hon. Thomas B., Under Secretary of the Navy............... 4 APPENDIX Prepared Statements: Beehler, Hon. Alex A......................................... 57 Garamendi, Hon. John......................................... 29 Henderson, Hon. John W....................................... 49 Lamborn, Hon. Doug........................................... 31 McMahon, Hon. Robert H....................................... 32 Modly, Hon. Thomas B......................................... 41 Documents Submitted for the Record: Military Officers Association of America Statement for the Record..................................................... 65 US Army Bi-Weekly Housing Action Plan Update................. 81 Witness Responses to Questions Asked During the Hearing: Ms. Gabbard.................................................. 85 Ms. Horn..................................................... 86 Ms. Houlahan................................................. 87 Mr. Kim...................................................... 85 Questions Submitted by Members Post Hearing: Mr. Kim...................................................... 95 Mr. Scott.................................................... 91 Ms. Stefanik................................................. 92 MISMANAGED MILITARY FAMILY HOUSING PROGRAMS: WHAT IS THE RECOVERY PLAN? ---------- House of Representatives, Committee on Armed Services, Subcommittee on Readiness, Washington, DC, Thursday, April 4, 2019. The subcommittee met, pursuant to call, at 9:00 a.m., in room 2212, Rayburn House Office Building, Hon. John Garamendi (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. JOHN GARAMENDI, A REPRESENTATIVE FROM CALIFORNIA, CHAIRMAN, SUBCOMMITTEE ON READINESS Mr. Garamendi. The committee will come to order. I want to thank my colleagues for joining us here on the dais. And I notice in the back of the room, some military families joining us again, and thank you for your--for enlightening us and telling us about the problem so that we can move forward with a solution. In February, this committee heard from a panel of very courageous military spouses who told us of the unhealthy and unsanitary living conditions that they were experiencing in the privatized military housing and the continuing impacts these conditions have on the health of their families. In addition to our panelists, this committee and many of our members have received thousands of emails and letters with similar accounts of mold, lead contamination, shoddy maintenance, shoddy workmanship, unprofessional property management staff. These accounts paint an unsettling picture of many of our privatized, family-housing developments. Equally disturbing is the fact that when these families reached out to their chain of command for help, instead of getting the support that they desperately needed, they received shrugs of indifference, and they were told that there is nothing the military service could do to help them. Well, that was the wrong answer. We heard from them, we held a committee hearing, and we are here today to hear what the United States military is doing to support the families and the services that they provide to this country. In recent weeks, the military services seem to have become energized about getting to the root cause of this crisis. We have heard encouraging news from senior leadership at the engagement of health and safety inspections, inspector general investigations into work order processes, and housing hotlines to expedite getting families the needed help. However, efforts have been performed--these efforts have been performed at the headquarters level, and they may not have necessarily trickled down to the installations. We continue to receive large amounts of correspondence from families struggling in today's privatized housing. We have heard that in some cases, the very efforts headquarters have put in place to improve the situation have led to counterproductive practices, like closing the maintenance work orders too quickly, and instead of using privatized partners, nondisclosure agreements are often used also. The services must expeditiously move from their assessment mode into implementation. They must use best practices from the housing developments that are working well and quickly implement the fixes required to conduct effective oversight at headquarters level, and provide the necessary support to our military families at their installations. I expect our witnesses will provide us with information on the steps they are taking today to make headway on these issues and a detailed road map from here into the mid term and long term to keep this issue from ever happening again. Our families deserve better, and this committee will demand that the services do better. With that, I would like to turn to my ranking member and good friend, Doug Lamborn of Colorado, for any remarks he may have. [The prepared statement of Mr. Garamendi can be found in the Appendix on page 29.] STATEMENT OF HON. DOUG LAMBORN, A REPRESENTATIVE FROM COLORADO, RANKING MEMBER, SUBCOMMITTEE ON READINESS Mr. Lamborn. Okay. And thank you, Mr. Chairman. Thank you for calling this important hearing. This is the second hearing we have had on this extremely important topic. To begin with, I want to commend the courage and persistence of military spouses for bringing this issue to our attention. Without the diligence of military families raising their voices on behalf of others, we might still be uninformed about these troubling problems. This was truly a grassroots effort in the best tradition of America. Sadly, our collective management of military family housing was not in keeping with our proud traditions. There is no question that Congress and the military services were less than diligent in our oversight. My colleagues will recall the compelling testimony we had from several military spouses last February. They described an unyielding bureaucracy unwilling to address health issues and closing work orders with no real resolution. The frustrations they faced in trying to resolve health and safety concerns for their families made a deep impression on all of us. Thankfully, the military services now understand and accept that they have not provided adequate oversight over housing programs and they are each taking steps to improve the situation. To be sure, not all housing programs suffered from mismanagement. Even so, the general disengagement of service leadership and the evisceration of housing staff, particularly at installation level, left a void. That void led to mismanagement at too many projects. By now, the military departments have assessed the situation. We are here to learn what needs to be done to fix the problems and maintain those fixes into the future. There is no more important work for this subcommittee to undertake, and we will work with our Senate colleagues to make sure that this important issue is addressed as successfully as possible. Thank you, Mr. Chairman, and I yield back. [The prepared statement of Mr. Lamborn can be found in the Appendix on page 31.] Mr. Garamendi. Thank you, Mr. Lamborn. I would now like to welcome our witnesses, but before they start, as I think all of us know, we will have votes in about an hour, maybe an hour and 15 minutes. So we are going to move along a little more expeditiously than normal. So, Mr. Robert McMahon, Assistant Secretary of Defense for Sustainment, we welcome you; also, Mr. Thomas Modly, Under Secretary of the Navy; Mr. John Henderson, the Assistant Secretary of the Air Force for Installations, Environment, and Energy; Mr. Alex Beehler, Assistant Secretary of Army for Installations, Energy and Environment for the Army. All of us should note that Under Secretary Modly appears before us today due to the turnover of personnel in the Office of the Assistant Secretary for Navy for Energy, Installations and Environment. And his seniority should in no way reflect negatively on the Air Force, Army, or Department of Defense, who send the people that are specifically responsible. So having done that little bit of appropriate--we will now move on. So, let's start with Mr. McMahon. STATEMENT OF HON. ROBERT H. McMAHON, ASSISTANT SECRETARY OF DEFENSE FOR SUSTAINMENT, OFFICE OF THE SECRETARY OF DEFENSE Secretary McMahon. Chairman Garamendi, Ranking Member Lamborn, distinguished members of the subcommittee, thank you for the opportunity today to testify on military housing. I would like to begin by acknowledging all of the family members that have come forward in recent months to share their experience. This took tremendous courage, and we appreciate not only what they did, but more importantly, what they do every day in support of their spouses. What we have heard from them reinforces that we collectively must do significantly better. For those of us that have lived in military housing before privatization--and I have lived in nine different base homes during my 34-year military career--we know that the quality of privatized housing is significantly better than when DOD managed it. However, for more than 80 percent of our current military population who didn't experience the poor housing of the past, this is all they know, and they expect us to get it right 100 percent of the time. As you know, 90--or 70 percent of our military members live off base. For the 30 percent that live on base, our goal is to offer them a safe, high-quality, and affordable home where they want and choose to live. We must and will do better. We need to improve upon communications, we need to improve upon engagement, and we need to improve upon responsiveness. At the same time, we must ensure the long-term viability of our privatized housing projects, so that the future residents will have high-quality housing 20 years from now as well. It is important to distinguish between what housing privatization is, and what it is not. The key element is that we no longer own privatized homes. This does not mean we should not have oversight responsibilities and authorities, but it does mean that we do not have contracts to be governed by clauses. As such, we exercise our authority through the agreements we have entered into with our privatized partners. This partnership is key. We must fulfill our oversight responsibilities and our partners must meet their obligations as landlords. Since the beginning of the year, the military departments have conducted an intense campaign consisting of site visits, reviews of privatized housing conditions, meetings with families in communities, and senior-level discussions with privatization partners to address property management issues. We have developed a series of corrective actions, based upon this campaign, that we are now putting in motion, categorized in terms of near-term, mid-term, and long-term. Examples of these actions include implementing a resident bill of rights, determining the feasibility of developing a common tenant lease, clarifying processes for residents to raise health concerns, and for health providers to report issues as appropriate, and establishing resident customer care advocates. The Department of Defense is committed to working closely with you and your staff to ensure our members and families have safe places to live, work, play, and pray. We, and our industry partners, are fully committed to first ensuring that today's residents of privatized housing have a safe, high-quality, and affordable home, where they want to live and choose to live, and secondly, ensuring the long-term viability of our privatized housing projects, so that our future residents, 20 years from now, have exactly the same thing. I look forward to your questions. [The prepared statement of Secretary McMahon can be found in the Appendix on page 32.] Mr. Garamendi. Thank you. Now, Mr. Modly. STATEMENT OF HON. THOMAS B. MODLY, UNDER SECRETARY OF THE NAVY Secretary Modly. Chairman Garamendi, Ranking Member Lamborn, distinguished members of the Readiness Subcommittee, on behalf of the Secretary of the Navy, Richard B. Spencer, thank you for the opportunity to testify to you regarding the urgent actions we are taking to immediately improve privatized housing and the quality of life for our sailors, Marines, and their families. As you well know, we ask a tremendous amount from the members of our Navy-Marine Corps team in defending our Nation. So to learn that we, as the Department of the Navy and its leadership, have not fully lived up to our commitments to provide quality, safe housing was both embarrassing and alarming to us. It was embarrassing because it reflects poorly across our entire naval institution, to include those thousands of people who actually work extremely hard every day to ensure that those goals and objectives are met. And alarming in that it raised a number of systemic issues that we needed to correct, issues that should have been addressed long ago, given our solemn commitment to each and every service member and their families that we take care of them to the very best of our ability. In the end, this issue is not so much about property management as it is about leadership. We have recommitted ourselves to fixing this problem so that our people are provided the housing they deserve, and so that they can focus on the important jobs we ask them to do. Therefore, we are comprehensively reviewing the business systems, reporting mechanisms, and oversight procedures governing the way housing maintenance issues are reported, remediated, and verified in privatized housing. We are also striving to make personal contact with every sailor and Marine who lives in a PPV [Public Private Venture] housing unit. And to date, I am proud to say that the Navy is 100 percent complete on that task, reaching over 44,000 sailors living in PPV or government-run housing. The Marine Corps will be complete with this task by April 15th, and to date, they have made direct contact, face-to-face, with over 58,000 Marines. I have also directed the Naval Audit Service to perform a comprehensive review of the PPV program and to report back to me within 60 to 90 days. The objective of this audit is not only to look backwards, but to provide insight into how we can better understand and anticipate emerging trends and align incentives and accountability across the program. Finally, we are reaffirming that our PPV partners must remain an important component of the housing solution offered to military families. Our agreements with them are designed as a partnership, and not as a traditional outsourcing contractor relationship. And so we need far more frequent senior leadership engagement with them going forward. We are also ensuring our military leaders understand that we have not outsourced their responsibility to be advocates for our service members who reside in a PPV housing unit. It is an essential function of commanders and small unit leaders to be engaged in the well-being of sailors and Marines and their families. This is a moral obligation commanders have to their people, but it is also one that can have a profound impact on overall readiness of the force. It is important that they understand that the PPV structure is a partnership in which their role in that partnership is not only financial and governance, but rather, it is to be an advocate for the tenants whom that partnership serves. We cannot allow ourselves to take our eyes off the ball on this critical responsibility again, and we are taking every possible step to ensure that we don't. I detailed many of the specific actions we have taken in my written statement, and I can assure you, the Department of the Navy is all hands on deck in getting after this problem. I respectfully request that the statement--written statement be entered into the record. And thank you, and I look forward to your questions. [The prepared statement of Secretary Modly can be found in the Appendix on page 41.] Mr. Garamendi. Thank you. Without objection, your statement and the statement of all of the witnesses will be entered into the record. Mr. Henderson. STATEMENT OF HON. JOHN W. HENDERSON, ASSISTANT SECRETARY OF THE AIR FORCE FOR INSTALLATIONS, ENVIRONMENT, AND ENERGY Secretary Henderson. Good morning, Chairman Garamendi, Ranking Member Lamborn, and distinguished members of this subcommittee. It is an honor to represent our airmen and senior Air Force leaders here today. My full written statement has been submitted for the record, but I just wanted to submit-- just summarize the actions we have taken to address the challenges with privatized housing at some of our Air Force bases. We have heard the concerns of our airmen, their families, and Congress, and Air Force leadership at every level is aggressively addressing the challenges identified with family housing. We take the health and safety of our airmen and their families very seriously. Air Force leadership is currently working through 39 significant initiatives along 5 lines of effort to empower residents, integrate leadership, improve communication, standardize policy, and improve oversight. On February 12th, Secretary Wilson and General Goldfein directed an inspector general assessment of policies, procedures, and best practices for handling resident complaints and protecting residents from potential health and safety hazards. This assessment will wrap up soon, and we intend to incorporate their recommendations into this action plan. On February 15th, Secretary Wilson and General Goldfein directed 100 percent health and safety review of family housing in an effort to identify the scope and extent of our housing challenges across the Air Force. We completed the review on March 1st, and our commanders are addressing over 4,700 deficiencies that were identified. To date, over 1,900 of those deficiencies have been resolved, and we continue to aggressively work with our project owners to close out the remaining 2,800 or so items. And this week, the Secretary, Chief of Staff, and Chief Master Sergeant also sent a tri-signed letter to all wing commanders, reinforcing their leader roles and responsibilities as they apply to privatized housing management at our bases. We are collaborating with the Office of Secretary of Defense, the other services, Congress, project owners, and our families and advocates to develop a resident bill of rights, which is intended to be consistent across all the services. The Air Force submitted a $31.2 million fiscal year 2020 unfunded request to add 250 personnel to our housing management offices. This team is the center of gravity for advocating for our residents, providing oversight for our project owners, keeping the chain of command informed, and providing the critical, on-site leadership and management where it matters the most. We are also taking steps to improve engagement with our airmen who lived in privatized housing. For instance, we established a toll-free hotline where residents can report their concerns with privatized housing, and we are crafting a policy to establish tenant councils for both privatized and government-owned housing across the Air Force. Along with these near-term actions, we have also initiated a number of mid- and long-term efforts in collaboration with our project owners to improve performance incentive fee structure, to automate systems for maintenance work order visibility, to add rigor to our maintenance quality assurance, to provide mold and moisture policies, and enhance our annual site audits. Thank you for the invitation to appear here today and for your continued support of our airmen and their families. I look forward to your questions. [The prepared statement of Secretary Henderson can be found in the Appendix on page 49.] Mr. Garamendi. Thank you, Mr. Henderson. Mr. Beehler. STATEMENT OF HON. ALEX A. BEEHLER, ASSISTANT SECRETARY OF THE ARMY FOR INSTALLATIONS, ENERGY AND ENVIRONMENT Secretary Beehler. Chairman Garamendi, Ranking Member Lamborn, and distinguished members of the subcommittee, thank you for this opportunity to testify on the current state of the Military Housing Privatization Initiative, and answer any questions you may have. I want to begin by thanking the committee members for their continued support and commitment to the Army soldiers, families, and civilians. I look forward to working with you to achieve our mutual goal of improving the condition of Army housing. First, I would like to emphasize that the safety and well- being of our soldiers and their families is paramount. The Army is committed to providing safe and secure housing across its 104,000 family homes, of which more than 87,000 are privatized. The recent reports of substandard conditions in some of our military housing units are deeply disturbing. It is unacceptable for any of our families, who sacrifice so much for our country, to endure such hardships in their own homes. Army senior leadership directed installations to inspect housing, talk with families, and press housing CEOs [chief executive officers] into action. We recently required installation commanders to visit all family housing to ensure no family resides in a home with life, safety, or health deficiencies, and we are currently evaluating the results. Additionally, a recently revised Army survey addressing housing issues will be sent to residents shortly, and we will review our findings with housing CEOs. To further address concerns, each installation garrison commander has established hotlines and conducted town hall meetings, providing residents the opportunity to voice concerns to Army leadership. Common themes at these town hall meetings included poor customer service, lack of work order transparency, and residents' inability to hold housing companies accountable. Additionally, the service secretaries recently introduced a tenant bill of rights, to which we welcome your input, though the reforms will not stop there. All companies have agreed to ensure sufficient trained technicians and staff will be available to address problems, as well as issues brought up in our town hall meetings. The incentive fee structure and project metrics will also be reviewed. Going forward, it will be our task to take these commitments and codify them in project documents. Our mission is to provide high-quality homes and living experiences, both privatized and Army-owned. We remain committed to providing safe and secure housing for our soldiers and their families, but we need to do better. It is clear that we have let some of our Army families down, and moving forward, we are committed to applying the resources necessary to oversee and fully address these issues. Our soldiers and their families deserve no less. Thank you for your interest in this matter as well as your continued support of the Army. [The prepared statement of Secretary Beehler can be found in the Appendix on page 57.] Mr. Garamendi. Gentlemen, thank you for your testimony. We have a very significant participation by the members of the committee, and we have little time. I would ask the members to see if we can work on 3 minutes rather than 5. Otherwise, we are going to leave a lot of our members without having an opportunity for questions. And I will make mine very, very brief here. It is very obvious to me that the principal problem here was a lack of attention to this issue. From the witnesses today, and from the written testimony as well as personal meetings, the branches of the military, including the Office of the Secretary, have stepped up, paying attention, and have put in place plans that, if enacted and carried out over time, will reduce this problem and quite possibly eliminate it. And I want to make quite sure that the commanders and the officers responsible for the installations are given both the responsibility and the authority to solve the problem on their bases. And I think this is a question that goes to at least the three--well, all four of you. Is that the case, has this issue been pushed down to the commanders, the officers responsible for the various installations? Secretary McMahon. Mr. Chairman, let me start, and what I will tell you is, we reviewed it from a legal perspective that says that our commanders have full authority to have both the responsibility and the authority to oversee that, and then I will let the services comment specifically. Mr. Garamendi. Thank you. Let's start with the Navy and just run down the line. Secretary Modly. Yes, sir. Absolutely, we have empowered our installation commanders to be at the forefront of trying to resolve these issues, but I would also say it is also a command issue as well, even to the--as I mentioned in my remarks, at the smaller unit level, making sure that our junior leaders understand their responsibility for watching out for their sailors and Marines, and being engaged in that. That helps to elevate issues more quickly, and I think that is going to be a key to getting after these problems more quickly. Mr. Garamendi. Mr. Henderson. Secretary Henderson. On behalf of the Air Force, yes, we are counting on our leaders and commanders to lead us for our corrective action plan. Secretary Beehler. On behalf of the Army, absolutely. It has already been implemented, what to reinforce to the garrison commanders what their responsibilities, duties, and obligations are in this area. It is reflected in enhanced training that the garrison commanders will have. It also has been reinforced by requiring the garrison commanders to have regular town meetings; be engaged with responding, and their housing authorities, to the 24/7 hotlines; and basically educating the residents to make sure that they engage their chain of command up through and including the garrison commanders, and on up to senior commanders, and even the Army headquarters, if, indeed, no satisfaction at the lower level has been incurred. Finally, the garrison commanders also are being instructed in how effectively to use the incentive fee approval that occurs every 90 days as far as appropriately rewarding the private companies for their performance during that time period. Mr. Garamendi. Thank you. Also, it is probable that you will need additional personnel, or at least people assigned to these tasks. As we review and prepare for the NDAA [National Defense Authorization Act], we will look specifically for that piece of it. Are people going to be assigned to carry out this, and some of your testimony spoke to that. Mr. Lamborn. Mr. Lamborn. Thank you, Mr. Chairman. Once again, thank you for this important hearing. I will work with you to make sure that the action plans that are formulated are carried out, and we will continue our oversight in the future. Mr. Henderson, before I get into the general question for all of the service branches that are represented here today, I am going to ask you about one item in particular that apparently is some late-breaking news. And it has to do with an employee of the firm that operates privatized housing at the Air Force Academy having been arrested for fraud. What can you tell us about that, and does it reflect in any way on the Air Force's oversight. Secretary Henderson. Good morning. Thanks. This is an ongoing situation at the Air Force Academy, and with our project owner there. It is a very unfortunate situation. But I also think it serves as a good example of what routine oversight looks like, and what it looks like when it is working correctly. Just to give a little background, to speak in generalities since it is still ongoing, in the fall of 2017, our project owner, and through our normal audits, our annual audits that we do at the projects, we caught some financial anomalies with the management at the Air Force Academy. We immediately took action with an initial investigation conducted by the project owner, that the Air Force was--that monitored. Once we found out that those anomalies led us to what we thought was fraudulent activity, we turned those matters over to the law enforcement authorities in Colorado Springs who conducted their own investigation, again, that we cooperated with. Since then, a person has recently been charged with financial fraud. Hunt--I am sorry. I wasn't going to say the company. Our project owner there has agreed to come back and reimburse the academy, the $169,000 which is, we think it was the estimated amount of the financial fraud, so that is taken care of. The matter is still ongoing. We are respecting the investigative process and the due process of the individual charged, but we continue to cooperate with authorities to ensure that--and ensure that these mechanisms are in place so that we can catch these things when they come up each year. Mr. Lamborn. Okay. Well, thank you for taking action on that. Please keep the committee informed on how that comes along in the future. And my question for each of the three service branches here, including the Navy and Marines, is, do you have the necessary legislative authorities to improve management of privatized housing, and are you able to carry out your action plan under your current budget numbers? Secretary Modly. Sir, I think that we absolutely have enough legislative authority to handle this problem, as it has been brought to light. This was really a management and leadership problem, less so than an authorities problem. So I think we are okay in that respect. We probably will need some help with respect to staffing, just staffing up some of these housing offices, in legislation. But I think with respect to authorities, I think we all feel comfortable that there is nothing lacking in the authorities themselves. This is more of a--as the chairman mentioned, paying closer attention to it, getting better metrics, so we have more leading indicators of problems before they occur. Mr. Lamborn. Thank you. Mr. Henderson. Secretary Henderson. I would agree with that. I think with regard to legislative authorities, we have that. Any constraints that we have are really within the transactional documents, with the project owners, and, in some cases, we need to go in and adjust those. For instance, the metrics in performance incentive fees, things like that. And then with regard to help--per my opening statement, we are going to look to restaff our housing offices that were cut during the course of personnel cuts and sequestration. We need to--we have decided that was clearly a mistake, and we are asking for $31 million in an unfunded request to restaff those back to their original strength. Mr. Lamborn. Well, I will insert an editorial comment here before Mr. Beehler comments, and that is, sequestration had some very unfortunate results. We know you had to make tough choices and sometimes unpalatable choices. We are hoping with last year's budget, the current-year budget, and next year's budget that we are still negotiating, we have the top-line numbers that really allow us to get back to where we should be. Mr. Beehler. Secretary Beehler. I echo the comments that have just been made by my fellow counterparts in the services. It applies to the Army. We are undergoing comprehensive assessment in what our requirements and needs are. At this point, we don't feel that we need additional legislative authorities. It is clearly, first and foremost, getting our management side of the house in order. We have already hired 119 additional staff for our housing authorities at the installation level. We have money put in for the fiscal year 2020 budget to make sure most of those positions are sustained going forward. We know that the private companies with whom we work have committed to up to several hundred additional, to perform some of the same overarching oversight, and we will hold them accountable as well. So we--as I say, we are an ongoing assessment, so we will have a better handle in 3 to 6 months as to how effective we have been in providing the management oversight we need to have. And we will come back to the committee. Mr. Lamborn. Okay. Thank you all for being here. Thank you for the first steps that we are taking. Mr. Chairman, I yield back. Mr. Garamendi. Thank you, Mr. Lamborn. Mr. Kim. Mr. Kim. Thank you for taking the time to come here today and talk about some of these next steps that you are planning to take. I think that is critically important. But I just want to take a step back here, because I want to make sure that as we are talking about this, and as we are thinking about these next steps, that we understand that this isn't really just a policy debate here about what to implement here. This is very personal. This was as personal as anything that I have seen in my time in Congress, where right here in this room, we had military families telling us about their immediate needs right now. So what I am concerned about, what I don't have a good sense, leaving this room right now, yet, is, what are you doing right now to be able to address those that have immediate concerns, health concerns, housing concerns, with the places that they have, right now? You know, what can you say to me right now, to assure me that your response to this is at the scale of the magnitude of the problem at stake? A number of you have mentioned how you are doing surveys of different homes, and the numbers of homes that have problems are in the thousands. So have you scaled up? Are you surging personnel and resources right now? Do you have a timeline in which I can reassure some of the families that I am in touch with, that they are going to have the kind of response that they need on an immediate and very personal level? I would like to just go through the line here, please. Secretary McMahon. Congressman, if I could, let me start. After the February hearing, I literally gave out my email address to some of the family organizations that if they did not feel that they were getting adequate response, they could email me directly and that I would personally get involved. I have done that on a number of occasions. I have contacted the individuals to my left right now. They have been extremely responsive. And then the follow-up by individual to make sure that we were taking care of issues. I will speak for my partners, and then allow them to speak for themselves. But the responsiveness that we have, both in general but to specific issues, is focused on ensuring we take care of our soldiers, sailors, airmen, Marines, and their families. Secretary Modly. Representative, I want to echo those points, and particularly echo your points. I mean, this is extremely personal for everybody. And as I mentioned in my statement, there are a lot of people who work very, very hard and have done an outstanding job in PPV to ensure these homes are in good condition for our sailors and Marines. But they are now painted with the same broad brush, and that is a little bit unfair. But they are taking it because they recognize that this is part of family responsibility in the service to handle this. I have two children on Active Duty. One of them has lived in privatized housing. It was fantastic for them. So we know that these are problems that we have to address. We are--as I mentioned, we are talking personally, reaching out personally to every single person in the Navy and Marine Corps who lives in privatized housing. Through that process, we have identified on the Navy side over 4,000 issues--about 4,700 issues. Of those 47, about 2,800 have asked for a personal visit, in- person visit to try and resolve the issue. And we are well on the way at ticking away at that. I think we made about 900 of those visits to address the specific problems. That is in the Navy. And the Marine Corps has about 7,000, and they have had 7,000 personal visits in follow-up to these questions. So I think we are taking it extremely seriously, as well as taking it personally, but we are trying to do everything we can immediately to address the immediate concerns. But the longer-term issues are also very important to us. We just don't want to seem like we are overreacting. We want to make sure we fix this in the long run, and that is some of the longer-term things that we are working on, with the partners as well. Secretary Henderson. Good morning. The--like Mr. McMahon, my family and I spent about 18 years in military housing, some of it privatized, some of it before privatization. And I completely understand how personal this gets with families when things aren't going right, or when the family members deploy and we are leaving our families to fend for this on their own. And so it is a very difficult situation. That is why we went in for the immediate actions and to ask for a 100 percent review of the health and safety conditions in our housing. That resulted, and now our numbers are up to close to 50,000 of our families who live in housing have been contacted, interviewed, assessed their safety concerns. And per my opening statement, where we had come back, commanders and leaders went into the house, validated what the issues were, and we opened up about 4,700 work orders for which they are now surging on, and we are battle tracking here essentially with the Air Force. At the rate that we are resolving these, I expect it to take another 30 to 45 days to close these out. In some cases where conditions were unsafe, we are moving families into safer housing and taking care of that for them. And then part of this, a huge part of the loss of trust here in our assessment was just--was just a lack of communication, a lack of understanding of what the--what a dispute resolution process, the lack in roles and responsibilities of the commanders and leaders, and a lack of understanding of maybe the resources that were available. So we are working really hard to reengage and communicate better with our families. Mr. Kim. Thank you. Unfortunately our time has expired, but I just want to press having tangible timelines of when we can deliver for these families, make sure they are getting the health care that they need to be able to have these remedies in tangible ways. I just ask that we follow up on them. Thank you. I yield back. [Secretary Beehler's response to Mr. Kim's question can be found in the Appendix on page 85.] Mr. Garamendi. Thank you. We are going to try to keep this as tight as we possibly can. We have a lot of members that would like to speak. Mr. Scott, you are next. Oh, before you come on, Mr. Scott, we have received a statement for the record from the Military Officers Association of America. Without objection, we will enter that into the record here. Thank you. [The information referred to can be found in the Appendix on page 65.] Mr. Garamendi. Mr. Scott. Mr. Scott. Thank you, Mr. Chairman. Mr. Chairman, I have known General McMahon for a long time now, and I can assure you that if he is in charge of resolving an issue, that you are going to get a satisfactory outcome. He is--he takes it head on, and has done a wonderful job. Did a wonderful job at Robins Air Force Base, and I am glad he is in the position he is in. I had a chance to talk with Mr. Henderson yesterday for a while. One of the things that I will tell you, in the bill of rights, that is important to me, and in talking to the men and women that came to testify before us, when a contract mandates mediation, and then that contract has loser-pay provisions in it, that would--could effectively force a soldier to pay 100 percent of their annual income to carry a housing company, a multimillion dollar housing company, to a mediation, that is not acceptable. And so the loser-pay provisions of the contracts--I don't mind the mediation. I am happy that the mediator, as I understand it, is going to be part of the chain of command, but that is not a--that is not a square deal or a fair fight for our soldiers to mandate mediation and then to mandate loser-pay on our soldiers. With that said, I want--Mr. Henderson, Hurricane Michael hit the southeastern United States October the 10th. Is the most pressing thing for the Air Force right now, in your position as head of installations, a disaster supplemental? Secretary Henderson. So I think the most--the most pressing, the most pressing thing for the Air Force right now is solvency, getting through fiscal year 2019, and a lot of that is attributed to the money that we fronted on--to recover from disasters at Tyndall Air Force Base, now Offutt, earthquakes in Alaska. And by fronting--by taking the fiscal year 2019 funds and--and doing exactly what we believe was the right thing to help those bases recover and get those missions back online, we have asked for supplemental funding, and at this point, without that supplemental funding, we are looking at very severe impacts to Air Force solvency for the rest of fiscal year 2019. Mr. Scott. Perhaps ``urgent'' would have been a better word. But I want to make my colleagues aware of this, and I want to give equal criticism where criticism is due. A Senator from New York, a Senator from Vermont, refused to allow a vote to push forward on disaster assistance this past week. We had been promised--those of us hit by the storm have been promised disaster assistance from both sides, in both Chambers, since mid-October, that any bill to open the government would include the disaster assistance and the supplemental funding, including the funding for the Air Force. That hasn't happened. Now, I do think that those games are being played, and I think that it is a Senator from New York and a Senator from Vermont predominantly playing those games. But I also think it is extremely irresponsible for the Office of Management and Budget to not submit an official request for supplemental disaster assistance funding. And I can't--I just can't understand with the magnitude of the impact of these storms to our Air Force, to readiness, to our installations, to the men and women in uniform, I can't understand why our Office of Management and Budget, controlled by my party, didn't submit a request for supplemental assistance, which I think is absolutely unacceptable. And I think it is unacceptable that Senator Schumer and Senator Leahy have played the games they have played with disaster assistance. And I want to remind everybody, we have one legislative day after today before we leave, and we will not return until April the 29th. Would it make a difference to you if you got a disaster bill today versus, say, May? Secretary Henderson. Absolutely, Congressman. We have already stopped projects, stopped funding for projects in order to preserve those funds for readiness needs. We are impacting aircraft and satellite repair, and we are--at some point, we are going to have to--we will be stopping or slowing down recovery at Tyndall, and we will only do life, health, and safety things at Offutt. And that--by deferring that money, since it is one-year money, if there is supplemental funding, that means we have to come back and work twice as fast to get that executed at the end of the year. Mr. Scott. My time is about to expire. I have a tremendous amount of respect for you. I apologize for interrupting, but you are also, according to the Air Force, going to cut 18,000 training and flying hours starting over the next couple of months. Is that correct? Secretary Henderson. That is--that is the intended consequence without supplemental funding. Mr. Scott. Thank you. Mr. Garamendi. Thank you, Mr. Scott. I will control myself. Although I will say there is $1 billion slushing around in the Department of Defense that could have been made available for this purpose. Let me now move to our next, Ms. Houlahan. Ms. Houlahan. Hi, and thank you. And, Mr. Scott, I also appreciate your comments, too, and I don't think it is a good idea to play games. I trained at Tyndall Air Force Base, but I also have family in Puerto Rico, and I feel like we are playing with everybody's lives in these partisan games, and so I appreciate your comments. I also am a third-generation military member myself. My dad and my grandfather served full careers in the Navy, and my brother and I grew up in military housing. My mom and her five brothers and sisters grew up in military housing off and on. And so this is personal to me, too, for a lot of reasons. And so my questions first are sort of, I guess, tactical in nature, and then maybe a little bit more personal in nature. One is that we have talked a little bit about readiness and whether or not people are genuinely going to be able to deploy when they have issues like this at home. But a second question is, how about recruitment? Have you seen any sort of implications to this in terms of recruitment because of this narrative that has been following military housing around? Secretary McMahon. Congresswoman, I will start, and then I will turn it over to the services. We all understand that we recruit the individual; we retain the family. And they care about four things. Our military families are tremendously resilient, and they can go with just about any challenges they face. All they ask for is a safe place to live in, adequate medical attention, good schools for their kids, and when we move them, we don't break all their stuff. And so this is an integral part---- Ms. Houlahan. That is a lot. Secretary McMahon. In reality, we are working those issues today. I personally have two of those four that are on my plate. We are dead serious about making sure that we provide our military families, whether on installation or off, with a safe place to live and something they can---- Ms. Houlahan. And I guess I only have 3 minutes' time. Has anybody any data about whether or not this has impacted recruitment in any form? Secretary Modly. Representative, we don't have any data on that just yet. We are, obviously, getting a lot--pressurized on recruiting because of the state of the economy. That is always going to cause us issues. But we haven't seen anything yet related to this that is impacting either recruiting or retention in the Navy. Ms. Houlahan. Thank you. And my second question is also a two-part question. And I, in addition to being a former military member, a veteran, I am also a mom, and I spent the last few years of my career focused on early childhood development, pre-K through fourth grade, literacy particularly. We know that kids under 6 who are exposed to things like lead and like mold and those sorts of things, end up experiencing pretty significant delays. Have we--I know that, Mr. Henderson, you talked a little bit about the 50,000 people who you had documented. Have we quantified at all how many kids under 6 have been impacted by this? Secretary Henderson. Ma'am, we have not quantified numbers for children under 6. Ms. Houlahan. And my second part of the question is, if we haven't quantified that, perhaps we should. But has there been any effort to put some sort of teeth into this, by identifying through teachers, or daycare providers, or parents themselves, sort of the signs that you should look for if your child has been impacted by mold, or your child has been impacted by lead? Secretary Henderson. We have--ma'am, I would like to take that for the record--it is an important question--and get you a detailed response. We have done some communications on--with mold awareness for our families who move into the homes, especially when we have ones that are prone to mold, and areas that are prone to mold. I don't know that we have reached out to teachers and counselors and outside folks like that, though. [The information referred to can be found in the Appendix on page 87.] Secretary McMahon. Congresswoman, if I could add to that as well, we have created, within the Office of the Secretary of Defense, a team of both our military construction, our family housing personnel, plus our medical folks to begin to look at where there is a cross-utilization of some of the experiences that we have had. An integral part of that is one of our deputy assistant secretaries, who happens to be a pediatrician, who happens to be an expert in the effects of both lead and mold, to help us better understand how we ought to move forward. So we are not where we want to be with that, but we are looking at that and have an understanding that we need to do a better job in the future of being able to respond to the issues of our children. Ms. Houlahan. And this has something to do with sort of what Representative Kim was talking about. I think that we can all agree that we are in a bad place. I think what we need to agree on is what the path forward is, and how we--I am not engineer, how we quantify it, how we measure it, you know, how we move forward with discrete programs that will address it, and I am just sort of poking around for that. I only have a half a minute left. Does anybody have any sort of quantifiable discrete programs that are out there to address these issues, particularly pre-K or early childhood development issues? Secretary Beehler. Ma'am, the Army has comprehensive testing of children under 6 for lead, particularly focused on housing from pre-1978, and has been able to track data that shows that children with lead in their systems at that age, within the greater Army community--all children are tested for lead, whether they are in the 1978, old housing or not. And the vast majority, which is an extremely small minority of such children, are actually--they reside outside military housing. So the important thing for the Army---- Ms. Houlahan. And I am terribly sorry. I have run out of time, but I am happy to take the rest of your answer on the record. [The information referred to can be found in the Appendix on page 87.] Secretary Beehler. We are happy to do it. The point is that we test the children, regardless of where they are housed, and track it appropriately through their development. Ms. Houlahan. Thank you, sir. Mr. Garamendi. Ms. Houlahan, you raised an important issue, one that--the committee has become aware of a document produced by the Navy and the Marine Corps Public Health Center, that seems to discourage clinicians from suggesting that a patient's home could be contributing to their condition, and to--and here I quote--``avoid commenting on the habituality, integrity, and remediation requirements for specific buildings,'' end quote. I am sure the Navy has taken steps to rescind that memo and to send out an appropriate one. We will let it go at that. I would like now to turn to Mr. Bergman. Mr. Bergman. Thank you, Mr. Chairman, and thanks to all of you for being here. I heard someone mention it, about the role of the commander. And when you think about the role of a unit commander, whether it is, let's say, go right down to platoon commander and second lieutenant and the platoon sergeant, okay. We know that the role of the command team at any unit level is not just on the battlefield. It is 24/7. If you are deployed, it is one thing; if you are in garrison, it is another thing, but it is the welfare of your troops and their families. And I was glad to hear you mention that, because that is one of the challenges, as you know, as we bring in the all-recruited force here, and it is third generation, is that it is not a 9-to-5, Monday-through-Friday job. You have responsibility for the health and welfare of all of your Marines, soldiers, sailors, airmen, coastguardsmen, et cetera. And I applaud your efforts to develop that role in conjunction with the continuing role of the base commander, and how that all relates then to those being served, the families, and then how largely then it falls into the base commander's lap in dealing with the Patricians or Lincoln or whoever the PPV, you know, owner of the property is. This is evolving. And we know we have issues. But I applaud you, and whatever we, this Congress, can do to back you up, as you develop that role of those various commanders, and then with the company, you know, the companies. That is going to be our success. We will get through this. But I just thank you for that, and I will buy back some of the valuable thing that we cannot ever get back, is time. And I yield back. Mr. Garamendi. Mr. Bergman, thank you so very, very much. We all look for more time. Ms. Gabbard. Ms. Gabbard. Thank you very much. Thank you, gentlemen. I would like to follow up on the focus on command. I think each of you responded to the chairman's question about the important role that first-line leaders have, all the way up the chain of command to the installation commander. I think it has been a common feeling that has been addressed as more and more of this issue has been exposed, about the lack of role that command has played thus far. And so my question is, as you have said, this will be the focus going forward. What will change so that the command is empowered to actually do something about it? It is one thing to be informed of the issue; it is another thing to actually be empowered. Were they not empowered to take action to address some of these problems with the contractors previously? If not, what will change so that they can going forward? Mr. McMahon. Secretary McMahon. Congresswoman, thank you for the question. If you go back early in the program, when folks didn't think they understood it, we had very comprehensive education programs for our leaders to describe to them what their role was, what authorities they did not have, what authorities they had, so that they could effectively oversee the privatization effort. Over time, as we became comfortable, as we looked at the metrics and perceived the metrics to tell us it was going well, as you know we have an infinite number of issues, a finite amount of time, in terms of training, this quite frankly is something that fell off the scope. We thought it was going fine and so we reduced, and then, in some cases, actually eliminated that education as part of our leadership development for our leaders at all levels. The reality is, of when we look at this today, it was an issue that we should not have dropped off, and the services are taking action today to reinstitutionalize that training that was integral a decade ago but over time, as we have continued to reduce that training, has fallen off the scope. And I will let them comment further. Ms. Gabbard. Thank you. Secretary Modly. Representative, I think it is a really good, important question, because some of the things that we can do at the command level, I think, are very, very simple, and not sophisticated things at all. You know, asking our junior leaders to have a face-to-face conversation with their people once a week and ask them: How are things going with your housing? How are things going with your family? Look them in the eye and just ask those questions. That is not a high-tech solution, but that would solve a lot of these problems. The biggest problem, from my perspective, in looking at this, was finding out about issues after they had become major problems. So we need to have much better systems and ways to understand issues as they emerge, as we start seeing trends. And the data is all there. Most of our--most of our partners manage these properties using the same data system. We just have to be able to get into there and understand when trends are happening, so we can measure how long it is taking, and we can start raising the alarm bells at the right time. So that is sort of, one, the sophisticated data side. But to your point, we have to emphasize with our younger leaders how important it is to have those types of conversations, because of their responsibility to the member and their families. Mr. Garamendi. I am going to do something here. Mr. Beehler, you have been kind of on the far edge of this table. So if we can jump over to you, then we will come back to the Air Force. Ms. Gabbard. I will just add another follow-up to that, Mr. Beehler, that I wanted to, that is linked to this, but also to something you mentioned earlier about making some changes that will reward some of the private contractors. You know, from-- from my standpoint, we are talking about a basic level of service that we, as taxpayers, are paying these companies to provide for our service members and their families. So I guess my first question is, as we are talking about empowerment, we are also talking about accountability. So before we start talking about rewards, I think we first need to address how these contractors are being held accountable for providing what we are paying them to do. [The information referred to can be found in the Appendix on page 85.] Secretary Beehler. Thank you, Representative. And what I meant by, quote--and I should have put it in quotes--rewarding the private companies, is that every 90 days, and I think this applies to--across the services, there is an incentive-fee determination that is made by the garrison commander, based on performance of the private companies. And it is the--it is the perfect opportunity and responsibility for the companies to be, if you will, judged and rated, so that if the companies have not done well in those 90 days, they don't get 100 percent of the incentive fees. In some cases, they might not get any percent of the incentive fees. And the point that I was attempting to make is that the garrison commanders, in the case of the Army, had all too often sort of rubberstamped the request for 100 percent award of incentive fees per quarter. That is no longer the case. We actually have removed, for the time being, and brought it up to Army headquarters, to, A, make those determinations, but more importantly, we are training the garrison commanders to know their responsibilities in this area, and that they will take advantage of the data collection on, for instance, the work order responsiveness and performance to help them make the judgment---- Ms. Gabbard. Thank you, Mr. Beehler. I am sorry, my time has expired. It is obviously very disturbing to see that this kind of rubberstamp and 100 percent incentive payments were being made previously. Glad to hear that it is not any longer. I hope we have the opportunity to address the fact that if a contractor is not performing, if they are underperforming and not meeting their marks, we are not talking about getting a lower percentage of incentives. We are talking about accountability to make sure that they are actually doing what they are contracted to do before you even begin to have a conversation about incentives. Thank you. Mr. Garamendi. Thank you. Ms. Horn. Ms. Horn. Thank you. Thank you all for being here today, and thank you to the chairman and ranking member for this critical conversation. I have many things I want to ask and say. First, I am glad we are addressing this; but second, I still remain horrified at the stories that I have heard from service members and their families in my community and across the country. And as we continue to address this, there is a couple of things that I want--I want to start off with, is going further into the conversation around the culture, the commanders, and how this was allowed to get to the place where it was, because I have heard a couple of you say that you are beginning to address it, and that these were a few people, and that I am incredibly troubled by the fact that--that these companies were getting their full incentive pay, even as thousands of people across this country and enlisted who--and their families, who are suffering. I have stories from my district, and images, of these things that were being covered up. And it is just--it is unacceptable. And as we fix--as we move forward to fix this problem, one, I want to find out if you have begun to make any plans to reimburse these families for the out-of-pocket costs for things, including mold testing, medical care, and so many other things that our military families have had to incur as a result of the mismanagement and problems that these companies have caused. Secretary Modly. Representative, thanks for the question. I don't know that we have been presented with opportunities to do that. However, once we are, I am quite certain we will look at those and figure out a way to compensate if there was a problem like that. I just am not aware, and I will take that one for the record to find out exactly what has happened in the past with respect to those types of issues. [The information referred to can be found in the Appendix on page 86.] Secretary Henderson. Ma'am, for the Air Force, what we have done is ensured that the--in an effort to better communicate with our residents, make sure that they know that they have resources inside the Air Force and legal assistance resources inside the Air Force to request claims and make claims against the project owner for costs like mold testing, maybe damages to furniture or something because of negligence, or extended medical care costs. And so we have provided the information for them to better go about doing that. [The information referred to can be found in the Appendix on page 86.] Secretary Beehler. In the case of the Army, the project companies are reimbursing family. We will take further details for the record, but this has been ongoing at least over the past several months, if not longer. [The information referred to can be found in the Appendix on page 87.] Ms. Horn. Thank you. And following up on a couple of other things from Ms. Gabbard and Mr. Scott, one, I want to echo--and I appreciate being on this committee and working with the concern across the aisle that these are not issues that should ever be partisan, and we should be placing the well-being of our service members above everything else. So, to Mr. Scott's point, I just want to reiterate that the fact that we have lose-or-pay provisions and forced mediation from enlisted is something that I would like to say I think we need to address. And, Mr. McMahon, I would like to know if there is any plans to begin to address those issues. Secretary McMahon. Congresswoman, as you look at the bill of rights that we are putting together that we have shared with the committee so we can get your specific input, next week we will sit with the family organizations, share it with them so they have the opportunity. But that is exactly what we want to ensure we deal with with the bill of rights, that it is clear to both our private partners as well as to our members, what they can expect and set those expectations before we get into a situation where we are trying to resolve this. Ms. Horn. And, finally, I want to circle back one more time to Ms. Gabbard's point about the incentive fees and if there has been a consideration that these fees could be recovered that were previously paid, if there is any pathway to recover some of those fees for these properties that were clearly mismanaged and are now requiring costs be outlaid for health care, for so many other things for our service members. Secretary McMahon. Congresswoman, I will take it for the four of us. I am unaware--I will go back and talk to our acquisition personnel to see if there is, but I am unaware of any tools since we have made the commitment at this point that they could be recovered. [The information referred to can be found in the Appendix on page 86.] Ms. Horn. Thank you. My time has expired. Mr. Garamendi. Thank you. Ms. Haaland. Ms. Haaland. Thank you very much, Chairman. And thank you all so much for taking the time to be here today. Like some of my colleagues, I was raised in military housing as well. My dad had a 30-year career in the Marine Corps, and so I spent my entire childhood growing up on military bases. And it is interesting that, back when I was a kid, before you could move out they would come in with a white glove and go in every corner and look in every vent, and, I mean, it was as disciplined as my father's career was. And so it is a little disheartening to have learned about this over the past months. And it is happening, in fact, in my home State of New Mexico, where the climate is extremely dry. So I am disheartened, to say the least. But in addition to everything that has been mentioned here today, I have heard reports that retaliation still persists against military families who are raising concerns about the conditions of their housing. This is extremely troubling as retaliation is a big part of the breach of trust between the Department of Defense and families that lead these families to come to the press and to Congress in the first place, and it must stop. I realize that for some military wives one way they can communicate with other families is through social media. And so I realize that that is one way they have been trying to figure out who all is suffering from the same issues that they are. So I wanted to ask each of you if you commit now to adopting and enforcing a zero-tolerance policy on retaliation against any families, any military families, who are raising concerns about the housing, including within the chain of command, on the bases where our service members live and serve and the housing offices that should be advocating for our military families and among the private contractors who we are paying to serve our families. So if each of you could let me know if the zero-tolerance policy on retaliation is happening now and if it is being enforced. Secretary McMahon. Congresswoman, I will tell you that we have zero tolerance for it, to the point of proactively giving out our email addresses, so if we hear of it, folks can reach out to us to take care of it. But absolutely a zero tolerance. Secretary Modly. And for the Department of the Navy, Representative, absolutely that is the case. We have made it very clear to our partners it is unacceptable, and it is also one of the key planks of the tenant bill of rights that we are developing. Ms. Haaland. Thank you. Secretary Henderson. Ma'am, that has always been the policy of the Air Force, and this was an opportunity for us to reinforce that. Secretary Beehler. Ma'am, the same with the Army. And one step forward, the Army has an inspector general assessment going on that will be completed in about a month and a half, and that is one of the aspects that they are looking into, to see if there is any such activity reported and further investigate. So we will have confirmation of exactly the lay of the land. And if there is such activity, it will be dealt with appropriately within the particular channels involved. Ms. Haaland. Thank you. And I will ask that any of those contact emails or contact numbers be submitted to the record so that, in the chance that anyone from my district calls me and tells me they are being retaliated against, I can actually have some information where they can contact someone to remedy that situation. So thank you for that. [The information referred to was not available at the time of printing.] Ms. Haaland. You might have already kind of answered this, but who is responsible for investigating claims of retaliation against families, whether internal or external, to the Department of Defense? Do we know that? Secretary McMahon. Within the Department and with each of the services, ma'am, the inspector general has a responsibility of taking that on. Prior to that point, our leadership ought to be looking at those issues. And should it get to the level, it would be the DOD IG [Department of Defense Inspector General]. But each of the service inspectors general will look at that. Ms. Haaland. Excellent. Does anyone else have anything to add to that? No? Okay. And are there any consequences, and what are they, for anyone who retaliates against any military families trying to report these housing issues? And, to your knowledge, have those been enforced? Secretary McMahon. Congresswoman, in terms of specific actions, I will tell you, because there is zero tolerance, if it is a military member, specific action is taken against that individual on a range of different actions. If it is a civilian member of the Department of Defense, action is taken against them, up to and including removal from service of the Nation. So it is taken very seriously. Ms. Haaland. Thank you. And last on this issue, when and how will you communicate this policy, including resources for families and the consequences for those who engage in retaliation, to relevant parties? Secretary McMahon. Congresswoman, across the board, each of our services have communicated that to their members and the families. Part of the town halls that you have heard alluded to is underscoring the fact that there is zero tolerance for retaliation. I have personally shared that with all of the CEOs of the respective privatization partners that we have, so there is clear understanding of what our expectations are, and that is that we support our family members and our military members in terms of privatized housing. Ms. Haaland. Thank you very much. And, Chairman, I yield back. Mr. Garamendi. Thank you, Ms. Haaland. We have completed the first round of questions. Mr. Lamborn, if you would like to make some closing remarks, if you would, and then I will do the same. Mr. Lamborn. Thank you. And this is an important hearing. Thank you all for being here. Thank you for the first steps that each of the services and that DOD-wide are making. I can tell that the specificity is there, the metrics, the harnessing of incentives, the re-education or better education down to the garrison level of the leverage that we do have with the private contractors and for it to be reenforced to them of their obligations and responsibilities, contractually and morally. So I am really happy that we are making progress. But we will be continuing to oversee this. This is something that is-- like I say, good first steps, but it is only the first steps. And time will prove and tell that this is being successfully rectified, and I look forward to that. Thank you, Mr. Chairman. I yield back. Mr. Garamendi. I want to thank the committee members for their intense interest in this matter and, equally or perhaps more important, the family members who had the courage to bring this issue to the attention of Congress. You have done a great service for all of the members, all of the men and women who serve in our military. And I want to really express to you, those people that had the courage to come forward, you have made a difference. Within, really, 2 months here, less than 2 months, the leadership of the Department of Defense and the services have stepped forward and have put in place a series of projects and programs that should, if carried out over time, resolve many of these problems. I want to just follow up on some of those. First of all, each of the services and the Secretary, or the Office of the Secretary, have indicated that they have emails and telephone numbers that are available to receive complaints. I assume that those will be available, the committee will have those, and we will make those available to anybody that would like those. Similarly, when the bill of rights is produced, I believe there is a draft that the committee has. I think it is being updated today and on into the days ahead. When that update is available, we will pass it around to all the members of the committee and to any Member of Congress that is interested for their comment as to the effectiveness, the efficiency, or the sufficiency of it. And that will, I assume, have the various contacts within the garrisons, within the installations, as well as at headquarters. Also, we noticed that each of the services are rebuilding the personnel necessary to monitor. That will be part of the work that we will do in the NDAA and the upcoming work that this committee has in that regard to make sure that that is in place. And we will, of course, beg our appropriators to fund those positions. The lease contracts are under review. The information that I have received on some of the leases would indicate that the leases that are in effect would clearly be illegal in some States and communities--for example, Washington, DC. So those contracts are in process of being reviewed--that is, the contract between the owner of the housing and the tenant that is the military family. So that will be part of it. And I would assume those leases will also have a--the new leases will have some sort of mechanism for complaints. The issue of retaliation has been raised by all the members and by the services. Those issues of retaliation are over, and we will be watching. Finally, we will be following up. I want to commend and compliment the services and the Office of the Secretary for jumping on this issue, for laying out paths that will resolve these issues going forward. And heads up, folks, we are going to be coming back to this issue before this year is over. We will let a couple of months go by, we will see how things are going, and then you will all come back and we will have a conversation to see the progress that has been made. With that, we are adjourned. [Whereupon, at 10:15 a.m., the subcommittee was adjourned.] ======================================================================= A P P E N D I X April 4, 2019 ======================================================================= ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD April 4, 2019 ======================================================================= [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ======================================================================= DOCUMENTS SUBMITTED FOR THE RECORD April 4, 2019 ======================================================================= [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ======================================================================= WITNESS RESPONSES TO QUESTIONS ASKED DURING THE HEARING April 4, 2019 ======================================================================= RESPONSES TO QUESTIONS SUBMITTED BY MS. GABBARD Secretary Henderson. The Air Force has initiated five lines of effort to specifically address the problems we are facing in privatized housing. These efforts include: empower residents, improve oversight, integrate leadership, improve communications and standardize policy. Each of these lines of effort have a number of tasks we are actively working. We concur that ensuring that our chain of command and leaders are actively involved with privatized housing is critical. To that end, the Air Force recently sent a letter signed by the Secretary, Chief of Staff, and Chief Master Sergeant of the Air Force to each installation commander reemphasizing their roles and responsibilities regarding oversight in privatized housing and the protection of the health and safety of military members and their families. Additionally, to integrate leadership, we are currently doing the following:Increasing commander involvement in Management Review Committees and performance incentive fee determinations to drive compliance with closing documents Adding resident councils that will communicate directly with commanders Adding a tenant advocate position at the installation level to act for the commander in assisting residents when issues arise Adding additional manpower to our Air Force housing offices which support the commander in increasing quality assurance inspections of work orders and other maintenance tasks Providing commanders information on the outcome of inspections, any health and safety concerns, and maintenance and leasing metrics during monthly and quarterly updates All of the above actions will inform commanders along the chain of command and empower Air Force leaders to rectify any negative trends. We believe these actions in concert with others in our lines of effort will address the underlying root causes, integrate our commanders and ensure the program is delivering safe and high quality housing our military members deserve. [See page 19.] Secretary Beehler. Safe and secure family housing is a key function of Army installations and, ultimately, Soldier readiness. To provide long-term oversight the Army has realigned Installation Management Command under Army Materiel Command, which improves advocacy within the Army for all installation requirements. This realignment establishes unity of command and effort on Army installations, improves the readiness of our Soldiers and formations, and strengthens the well- being of our Soldiers, Civilians and their Families. An immediate change in March 2019 to improve accountability over Army's MHPI Residential Communities Initiative (RCI) partner performance was to elevate the approval of all incentive fee awards to the HQDA level. The Army continues to review incentive fee metrics with the RCI companies with an eye to enhancing garrison commanders' involvement in the incentive fee decision process. These metric changes are intended to shift focus to achieving positive housing outcomes for our military families, quickly and with quality workmanship. The Army is also rebuilding its expertise in exercising oversight at the installation level, to include hiring additional quality assurance personnel, gaining access to RCI partner work order data to improve responsiveness, and continuously improving garrison commanders' housing oversight training. Additionally, the Army, in conjunction with the other Services, is working to codify the methodology for residents to withhold rent when RCI partners do not meet their obligations. [See page 19.] ______ RESPONSE TO QUESTION SUBMITTED BY MR. KIM Secretary Beehler. The Army conducted 100% visits to all privatized and Army owned family houses. We immediately set up a Housing Crisis Action Team to monitor and track homes with life, health and safety issues. We established a Hot Line phone number at every installation which can be accessed by any housing resident should they prefer privacy to report any housing issue. The Army is hiring 114 Quality Assurance and Quality Control personnel across its installations over the next two months to increase its oversight, and we have enhanced our Quality Assurance Program and oversight to ensure maintenance trends are captured and addressed. The enhanced quality assurance procedures are conducted by Army Housing careerists; 100% inspection of all homes are completed between occupancy maintenance; 100% physical inspections of all life, health or safety issues work orders; we contact 5% of all residents with recently-completed work orders to determine satisfaction and Army Housing Management staff visits those expressing dissatisfaction with the maintenance conducted. The Army is also working to empower residents through a smartphone/web application that will streamline customer feedback submissions and enhance quality assurance and quality control for work orders. [See page 13.] ______ RESPONSES TO QUESTIONS SUBMITTED BY MS. HORN Secretary McMahon. The housing privatization projects own, operate, and maintain the privatized housing under the Military Housing Privatization Initiative and, therefore, are the entities responsible for timely and properly remediating any issue in a privatized home. If a project fails to timely and properly remediate an issue, the existing deal structures provide the mechanisms for the Military Departments to hold the MHPI private partners accountable for substandard housing. In addition to withholding of incentive fees, the Military Departments have certain rights regarding major decisions made by the privatization project, to include the right to require replacement of the housing management and maintenance service providers if warranted based on overall poor performance as defined in the deal structure documents. In a small number of cases, a Military Department has required the housing privatization project to replace the property management service provider. As ASD(Sustainment), I am working closely with the Military Department Assistant Secretaries who directly oversee their respective privatized housing projects to establish near-term, mid-term, and long- term actions that the Department needs to take to address current conditions in privatized housing and restore the program to the success that it enjoyed in its first 20 years. [See page 20.] Secretary McMahon. The existing legal documents do not provide a mechanism to recover fees previously paid to a service provider of a project. However, as mentioned previously, I have been working closely with the Military Department Assistant Secretaries to ensure that they are taking steps to reinvigorate their oversight of privatized housing projects, to include quality assurance, monitoring, enforcement of performance requirements by privatization projects, withholding of incentive fees, and other action forcing mechanisms provided for in the existing legal deal structures. I am also working with my staff to implement new performance metrics to better monitor Military Department oversight and privatization partner performance to help ensure that the Department addresses housing concerns raised by residents and keeps this commitment over the long-term. [See page 21.] Secretary Modly. The Department of the Navy is committed to working with our private partners and installation commanders to remedy systemic Military Housing Privatization Initiative issues. We are working diligently with the other military services to develop a Resident Bill of Rights, which will better describe problem resolution options for families when dealing with private housing companies. Military members and their family members are eligible for care through the military medicine network including military treatment facilities and network providers. Treatment provided by these services is covered under normal military medical benefits with TRICARE, as the medical insurance provider. Care from out of network providers is not covered and will not be reimbursed without valid pre-authorization. Tests not approved by the Food and Drug Administration, other non-approved tests, and treatments are not covered. Validated clinical tests exist for very few environmental exposures, and Navy Medicine has established processes for reporting and response. These include lead, drinking water quality, lead in drinking water in priority areas (i.e., schools, day care centers), and perfluorochemicals. Many more environmental exposures, such as mold and radon, have no validated clinical tests or findings to support a direct linkage between environmental exposures and clinical symptoms or physiologic changes in patients that are exposed. With respect to mold testing, Navy Medicine's policy reflects Environmental Protection Agency and Centers for Disease Control recommendations to not routinely sample for indoor mold. Reimbursement for testing in private homes or privatized housing falls outside the scope of Navy Medicine and would need to be addressed to the landlord. However, no mechanism or funding source has been identified to reimburse service members or their families for unauthorized expenses pertaining to this matter. [See page 20.] Secretary Henderson. Air Force military members who are seeking reimbursement for the costs of mold testing within the home and any associated property damage due to mold in privatized housing have several avenues for remedy. First, they should first file a claim directly with the privatized housing owner. If the member is not satisfied with the resolution of that claim, they may then file a claim against any private renter's insurance policy they have, and then finally file a claim with the Air Force (through the Air Force Claims Service Center). Congress enacted the Personnel Claims Act to lessen the hardships of military life by providing payment for certain types of property loss. However, it is not insurance coverage and is not designed to make the United States an insurer of the personal property of claimants. The Air Force cannot prejudge whether such claims will or won't be payable, but the Claims Service Center will review the claims individually in light of the Personnel Claims Act and the associated regulations. The Personnel Claims Act does not authorize the Air Force to approve claims made by civilians or retirees for the cost of home mold testing or other personal property damage. Reimbursement for costs associated with medical care is dependent upon the individual's status. TRICARE covers active duty members and their dependents and they could receive their care free of cost at a military medical treatment facility. Retirees could also be covered by TRICARE and treated at military medical treatment facilities at no additional personal cost. Civilians who live in privatized housing do so of their own choice. Any medical costs they incur as a result of the negligence of the privatized housing contractor could result in a tort claim against the contractor, not the Department of Defense or the United States Air Force. There is no legal authority that would allow the United States Air Force to pay a claim to civilians in this instance. [See page 20.] Secretary Beehler. Families who have paid out of pocket costs for things such as mold testing can seek reimbursement from the Army's MHPI Residential Communities Initiative (RCI) Project Company. Families can use the installation established housing Hot line to discuss any concerns they have regarding the home to include reimbursement. Families also have an Army advocate at each installation housing office from whom they can seek assistance. [See page 20.] ______ RESPONSES TO QUESTIONS SUBMITTED BY MS. HOULAHAN Secretary Henderson. Question 1. How many children under 6 years of age have encountered developmental delays from lead and/or mold? Children are screened for developmental delays at regular intervals according to the American Academy of Pediatrics. The etiology of developmental delays in children is diverse and evaluation for risk factors for, or a causal etiology of, developmental delays is dependent upon the individual clinical scenario. There is insufficient evidence to link mold exposure as a causal risk factor for developmental delays in children. There is sufficient evidence to link lead exposure as a causal risk factor for developmental delays in children. Further investigation is required to understand how many children under 6 years of age may have developmental delays from lead exposure and we would be happy to provide you with that information. Question 2. What has AF/DOD done to educate parents, teachers, daycare providers, etc. on lead and mold-related developmental delay symptoms? As previously mentioned, there is insufficient evidence to link mold exposure as a causal risk factor for developmental delays in children. Pediatric patients are screened for lead exposure at intervals according to the American Academy of Pediatrics and local requirements. Additionally, education for patients and parents is provided based on the individual clinical circumstance. Per Air Force Policy, all children with an elevated blood level, as defined by the Center for Disease Control (see CDC Fact Sheet), are referred to Public Health. Public Health initiates a lead toxicity investigation and tracks and follows-up results for children younger than 6 years of age. The USAF School of Aerospace Medicine Public Health provides surveillance and maintains a historical database of past pediatric blood lead screening results from each installation. We are not aware of a communications campaign specifically directed to non-parents on lead and mold-related symptoms. A pediatric medical advisor from the Medical Treatment Facility is assigned as liaison to Child and Youth Programs on base for assistance with medical issues and training. [See page 16.] Secretary Beehler. Army senior leaders have directed and led the effort to ensure command oversight of Army's MPHI Residential Communities Initiative (RCI) housing. Roles and responsibilities at every echelon are being codified in policy, and the Army is incorporating training specific to housing oversight in our Command courses. The Army is also working closely with Navy and Air Force officials to finalize the Resident Bill of Rights, which will be incorporated into a revised, standardized tenant lease framework. [See page 16.] ? ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING April 4, 2019 ======================================================================= QUESTIONS SUBMITTED BY MR. SCOTT Mr. Scott. I have heard from several sources that there are no plans to touch any of the housing or billeting funds for either disaster relief or border wall funding. Is this accurate? What constraints will you be faced with if we are unable to come to an agreement on budget caps and sequestration kicks in this fall? Secretary McMahon. As the Acting Secretary has testified, no military housing, barracks, or dormitory projects will be used to fund disaster relief or, in the event the Acting Secretary decides to undertake or authorize military construction under section 2808, to fund the border barrier construction under that section. At the beginning of 2017, the Department had suffered from unstable budgets and devastating sequestration cuts that had eroded readiness and exacerbated our challenges. Over the past two years, this Administration, with Congress's support, has made investments to undo this damage and we are already seeing significant benefits to readiness across military services. As we move forward, we must work together to protect these gains while building a military to meet the challenges of the future. Mr. Scott. The timeliness and quality of work performed by partner subcontractors and maintenance personnel is of great concern to families. How will each service perform oversight required to increase the transparency and effectiveness of work order tracking to ensure that residents get the service they deserve? Secretary Modly. Navy and Marine Corps housing offices at installations have access to the partner's electronic maintenance database system (e.g., YARDI) and review work orders for potential environmental concerns and other issues. The Department of the Navy (DON) is implementing a series of partner and government metrics, as well as associated spot checks to improve transparency in tracking work order status. The DON maintains the right to inspect Public Private Venture Housing under the terms of the ground lease and associated project legal agreements, to include short notice inspections for environmental matters. We remain committed to working with our private partners and installation commanders to address housing oversight issues, including improved transparency in tracking work order status. Mr. Scott. The timeliness and quality of work performed by partner subcontractors and maintenance personnel is of great concern to families. How will each service perform oversight required to increase the transparency and effectiveness of work order tracking to ensure that residents get the service they deserve? Secretary Henderson. The Air Force has initiated five lines of effort to specifically address the problems we are facing in privatized housing. These efforts include: empower residents, improve oversight, integrate leadership, improve communications and standardize policy. Each of these lines of effort have a number of actions we are actively working. Specific to improving oversight and work order tracking, we are doing the following: Working with project owners to provide complete work order transparency to the residents Adding additional manpower to increase quality assurance inspections of work orders and other maintenance tasks Adding a tenant advocate position at each installation with privatized housing that will assist residents when issues arise to connect them with the resources to help resolve them Establishing resident councils and improving feedback tools to detect issues earlier. Increasing commander involvement in Management Review Committees and performance incentive fee determinations to drive compliance Placed Regional Construction Managers at our most troubled locations with specific training in mold remediation to assist the local Housing Management Offices and ensure our privatized partners are carrying out work properly and are employing an effective quality control team Established a toll-free line for residents to elevate concerns, including work order issues, and have them addressed directly by the Air Force Civil Engineer Center We believe these actions in concert with others in our lines of effort will address the underlying root causes and ensure the program is delivering the safe and high quality housing our military members and their families deserve. Mr. Scott. The timeliness and quality of work performed by partner subcontractors and maintenance personnel is of great concern to families. How will each service perform oversight required to increase the transparency and effectiveness of work order tracking to ensure that residents get the service they deserve? Secretary Beehler. The Army will increase oversight by enhancing our quality assurance inspections of all homes between occupancy to ensure Families are moving into homes that have no outstanding maintenance issues. The Army is increasing the number of Quality Assurance and Quality Control personnel across its installations to improve oversight of housing maintenance tasks. The Army is also working to empower residents through a smartphone/web applications that will streamline work order requests, monitor progress, and provide immediate customer service feedback for a service request. ______ QUESTIONS SUBMITTED BY MS. STEFANIK Ms. Stefanik. Secretary McMahon, given the complex nature of mold and the lack of a national standard for removing and detecting it, do you believe the Department is equipped to satisfactorily establish a testing and remediation standard for mold contamination? Follow-up: Would it be fair to say guidance from public health experts would be beneficial to developing, implementing and enforcing standards for acceptable levels of mold and clean-up procedures? Secretary McMahon. The Military Departments and MHPI project partners continue to work together to review housing conditions, address health and safety hazards, and to evaluate policies and procedures to ensure that any health and safety issues are addressed in a manner protective of human health and the environment, in compliance with all applicable federal, state, and local laws and regulations, and applicable DOD and Military Department policies. In all cases, it is my expectation that the Military Departments and housing privatization partners keep residents informed about lead-based paint, mold, or other hazards, and associated mitigation or abatement measures. As health concerns continue related to exposure to mold, which is a natural hazard, Federal regulations may become necessary to provide consistent standards for both remediation as well as treatment for exposure. My office is working with the Office of the Assistant Secretary of Defense for Health Affairs [OASD(HA)] to ensure military families who have health concerns that may be related to housing receive appropriate health care services, and that there are clear processes in place for medical and public health officials to raise concerns about housing conditions to installation housing offices for investigation and remediation, as appropriate. My office is also working the OASD(HA) to ensure processes are in place for DOD medical or public health officials to share information bout potential housing-related health conditions with other health officials, as appropriate. Ms. Stefanik. The Army Housing Action Plan includes adding curriculum on military housing to the garrison commander course. Is the Army certain that this is appropriate level of command preparation to insert this particular training requirement? How will you measure the training effectiveness? And what comparable actions are the other services taking? Secretary McMahon. As ASD(Sustainment), I am working closely with the Military Department Assistant Secretaries who directly oversee their respective privatized housing projects to establish near-term, mid-term, and long-term actions that the Department needs to take to address conditions in privatized housing, to include the need for Military Departments to reinstate quality training for installation commanders and housing staff regarding their responsibilities in connection with privatized housing so that they are able to provide quality assurance, and monitor and hold privatized housing projects accountable for providing timely, responsive, high-quality service and housing for service members and their families. This includes understanding their authority to withhold incentive fees and other forcing mechanisms provided for in the existing legal deal structures, or to raise significant concerns to high leadership, as appropriate. Effectiveness will be measured over the long-term based on both the financial sustainment of the program and improved resident satisfaction. We are fully committed at the leadership level to ensuring that the success enjoyed over the first 20 years of the program is reestablished and sustained over the remaining life of the program. Ms. Stefanik. How are the services making modifications to the current lease military privatized house agreements to integrate mechanisms for improved oversight and responsiveness to housing problems, such as a tenant bill of rights or customer satisfaction incentives? How will this be enforced? What is the level of oversight within the Department? Secretary McMahon. The health and safety of our Service members and their families is a top priority for the DOD. Although privatization has dramatically improved the quality of on-base housing, there is room for improvement, including in those areas raised in recent media coverage. Under my leadership, working together with the Military Departments and the Military Housing Privatization Initiative (MHPI) partners, inspections of individual homes are underway, resident communication has increased, and development of an MHPI Resident Bill of Rights, with input from families and family advocates, is underway. We are committed to improving communication with residents, without fear of retribution, and to quickly identify and address health and safety issues going forward. As ASD(Sustainment), I have met three times with the housing privatization partner CEOs to ensure their commitment to the shared goal of providing safe, quality, and affordable housing where service members and their families will want and choose to live. Additionally, I have been working closely with the Military Department Assistant Secretaries to ensure that they are taking steps to reinvigorate their oversight of privatized housing projects, to include quality assurance, monitoring, and enforcement of performance requirements by privatization projects, and withholding of incentive fees and other forcing mechanisms provided for in the existing legal deal structures. I am also working with my staff to implement new performance metrics to better monitor Military Department oversight and privatization partner performance to help ensure that the Department addresses housing concerns raised by residents and keeps this commitment over the long-term. Ms. Stefanik. Specifically how are the services making modifications to the current lease military privatized house agreements to integrate mechanisms for improved oversight and responsiveness to housing problems, such as a tenant bill of rights or customer satisfaction incentives? How will this be enforced? What is the level of oversight within the Department? Secretary Modly. The Department of the Navy (DON) and Military Housing Privatization Initiative (MHPI) partners are collaborating on the development of a uniform set of key lease provisions to be included in every MHPI resident lease across the Services. Lease provisions will be written to clearly identify tenant rights and responsibilities and integrate mechanisms for improved responsiveness to housing concerns. In addition, the DON has been working to strengthen the business agreement oversight processes, property maintenance metrics on responsiveness, strategic communications, and incentive fee criteria. The DON has requested additional resources to enable hiring personnel at installation, region, and headquarters levels to provide additional oversight of MHPI housing and execution of the program. Ms. Stefanik. How are the services making modifications to the current lease military privatized house agreements to integrate mechanisms for improved oversight and responsiveness to housing problems, such as a tenant bill of rights or customer satisfaction incentives? How will this be enforced? What is the level of oversight within the Department? Secretary Henderson. The Air Force has initiated five lines of effort to specifically address the problems we are facing in privatized housing. These efforts include: empower residents, improve oversight, integrate leadership, improve communications and standardize policy. Each of these lines of effort have a number of actions we are actively working. Specific to empowering residents, we are currently doing the following: Working with our sister Services and privatized partners to develop a Tenant Bill of Rights that will identify basic housing rights of military members and their families residing in privatized housing to ensure they receive quality housing and fair treatment. Adding a tenant advocate position at each installation with privatized housing that will assist residents when issues arise to connect them with the resources to help resolve them Working with our sister Services and privatized partner to develop a common lease to inform residents of their rights and establish consistent expectations with the landlord-tenant relationship Evaluating the current CEL & Associates housing survey for possible alterations to the survey tool or its implementation to better assess customer satisfaction There are also several other measures underway to improve oversight and ensure responsiveness of project owners. We are currently doing the following: Working with project owners to provide complete work order transparency to the residents Adding additional manpower to increase quality assurance inspections of work orders and other maintenance tasks Adding a tenant advocate position at each installation with privatized housing that will assist residents when issues arise to connect them with the resources to help resolve them Establishing resident councils and improving feedback tools to detect issues earlier. Increasing commander involvement in Management Review Committees and performance incentive fee determinations to drive compliance Placed Regional Construction Managers at our most troubled locations with specific training in mold remediation to assist the local Housing Management Offices and ensure our privatized partners are carrying out work properly and are employing an effective quality control team Established a toll-free line for residents to elevate concerns, including work order issues, and have them addressed directly by the Air Force Civil Engineer Center With respect to enforcing the requirements of our agreements, the Housing Management Office verifies the performance of project owners at the local level. We expect improved project owner quality and responsiveness by increasing oversight resources at the local housing office level. Validation of specified performance requirements and contractual metrics (work order responsiveness, for example) rests with the Air Force Civil Engineering Center. Enforcement should not be confused with day-to-day responsibility for the protection and well- being of the residents of privatized housing. This responsibility resides with the installation commander and was reinforced through a recent letter from the Secretary of the Air Force and Chief of Staff. We believe these actions in concert with others in our lines of effort will address the underlying root causes and ensure the program is delivering safe and high quality housing our military members and their families deserve. Ms. Stefanik. Secretary Beehler, I had the opportunity to review the Army Housing Action Plan. How will you ensure the positive Command- led changes that are taking place right now are enduring solutions, opposed to short-term fixes that may not last beyond the current leadership? Secretary Beehler. Primary prevention involves minimizing exposure to environmental hazards. Facilities managers and housing contractors identify and mitigate potential hazards through routine inspections, response to specific complaints, and scheduled turnover maintenance before a new leaseholder moves in to a vacant unit. Housing offices educate incoming residents about user-level upkeep and processes for reporting any concerns. Secondary prevention involves screening for potential issues before any clinical symptoms develop. To prevent lead toxicity, Army healthcare providers screen children according to the American Academy of Pediatrics/Bright Futures guidelines during routine check-ups at 6, 9, 12, 18, and 24 months, and annually from ages 3 to 6 years of age. Healthcare providers use screening to assess for risk of lead exposure. Children at increased risk undergo blood testing to determine exact blood lead levels. Healthcare providers also use standard questions to screen for other environmental hazards and provide recommendations to address them. Examples include screening for second-hand smoke exposure and use of carbon monoxide detectors. A portion of the screening questions prompt providers to ask general questions about home and daycare issues, but it does not contain specific questions about asbestos or mold. Finally, tertiary prevention includes treating conditions to prevent them from getting worse. For example, healthcare providers treating a patient with moderate asthma typically prescribe medicines to control the condition and prevent wheezing episodes. In cases where mold triggers a patient's asthma attacks, healthcare providers work with parents, preventive medicine teams, and facilities managers to help reduce exposure to mold. Ms. Stefanik. The Army Housing Action Plan includes adding curriculum on military housing to the garrison commander course. Is the Army certain that this is appropriate level of command preparation to insert this particular training requirement? How will you measure the training effectiveness? And what comparable actions are the other services taking? Secretary Beehler. Yes, the additional curriculum in the Garrison Commander and Senior Commander Courses is targeted at the appropriate level. Installation Management Command initiated a comprehensive retraining session in early spring for current and incoming garrison commanders on family housing oversight. This training was used by the Commanders during the 100% home visits that took place in March. It is my understanding other Military Departments have implemented similar refresher training programs. Ms. Stefanik. How are the services making modifications to the current lease military privatized house agreements to integrate mechanisms for improved oversight and responsiveness to housing problems, such as a tenant bill of rights or customer satisfaction incentives? How will this be enforced? What is the level of oversight within the Department? Secretary Beehler. The Army, is working closely with Navy and Air Force officials to finalize the MHPI Resident Bill of Rights. The intent is to incorporate these tenets into a revised, standardized lease framework. The Army's oversight of housing management and maintenance is provided at three levels: HQDA performs RCI project and program portfolio performance oversight management, and monitors each privatized project through reviews of monthly, quarterly, and annual reports as well as compliance visits and special purpose reviews; tactical day-to-day level oversight is performed by the Army Material Command and its subordinate, Installation Management Command. ______ QUESTIONS SUBMITTED BY MR. KIM Mr. Kim. Military families have a right to make informed decisions about whether to move in to the homes that are offered to them in privatized family housing. Are you looking at creating a publicly accessible database for housing that would contain environmental health issues related to specific homes and steps taken to remedy these concerns? Secretary McMahon. Providing our members with the information they need to make informed rental decisions, on an as requested basis is something that the Department can and will facilitate with its privatization partners immediately. As for a publically accessible database, that is something we will have to consider carefully, to ensure it can be reliably operated and maintained so as to serve as an accurate and complete resource. Mr. Kim. Military families have a right to make informed decisions about whether to move in to the homes that are offered to them in privatized family housing. Are you looking at creating a publicly accessible database for housing that would contain environmental health issues related to specific homes and steps taken to remedy these concerns? Secretary Modly. The Department of the Navy (DON) is not creating a public database populated with remediated repair issues. Instead, the DON is implementing systemic improvements to its business processes and metrics to improve reporting mechanisms and oversight procedures that govern how discrepancies are reported, remediated, and verified. This includes use of government and Military Housing Privatization Initiative partner database systems to track, rate, and resolve issues to ensure quality repairs. Mr. Kim. Military families have a right to make informed decisions about whether to move in to the homes that are offered to them in privatized family housing. Are you looking at creating a publicly accessible database for housing that would contain environmental health issues related to specific homes and steps taken to remedy these concerns? Secretary Henderson. The Air Force agrees military families have a right to have access to environmental health information to make informed decisions about the homes offered them in privatized family housing, but believes a publically accessible database is not the best solution. Instead, we are looking to better empower our residents through a Tenant Bill of Rights. A Tenant Bill of Rights will ensure tenants are present for move-in inspections of homes offered to them for rent. The Air Force will inspect 100% of units prior to occupancy with a focus on the health and safety aspects of the home. The privatized owners are required to make the same disclosures required by all landlords prior to lease signing. These disclosures provide test results and other data specific to the home, mitigations in place, housekeeping recommendations, and guidance on what to do if they have concerns. The Air Force will ensure these disclosures are taking place in 100% of leases signed with military residents. In those areas where mold is more prevalent, project owners will provide residents a mold addendum as part of their lease and handouts on what to do if they find any mold. Mr. Kim. Military families have a right to make informed decisions about whether to move in to the homes that are offered to them in privatized family housing. Are you looking at creating a publicly accessible database for housing that would contain environmental health issues related to specific homes and steps taken to remedy these concerns? Secretary Beehler. The Army understands residents need information to make informed decisions about their housing choices. The Army's MHPI Residential Communities Initiative (RCI) Project Companies will report on homes being offered that could contain the age of the home, possible environmental hazards, steps to remedy the environmental hazards, and what the resident should do if they encounter any maintenance concerns.