Department of Defense

OHA to BAH System for OCONUS

All OHA needs to switch to the BAH system. This would drive the OCONUS housing market to be more competitive, with massive benefits to the Air Force, many benefits to the service members, and even, to a lesser degree, some benefits to the local community. Members have absolutely no incentive for saving the Government money under the OHA system.

 

Short term estimated savings in Guam alone: $45,000,000+ per year

 

Long term estimated savings in Guam alone: $117,000,000+ per year

 

I have prospected several houses here on Guam. At first, the landlord or real estate agent is under the assumption that I am not in the military. On a majority of the houses, I am quoted anywhere from $900-$1200 on monthly rent. Then I inform them that I am in the military. They re-quoted all the prices for me for my OHA cap at $1900. In the house I ended up renting, my neighbors ended up paying $900 instead of my $1900.

 

In Guam, the local rate for a rental is $900-$1200. Average OHA paid to local owners is $2500. Of the estimated 5000 Service Members here on Guam, let's say half live off base at the average $2500. That would be $75,000,000 dollars in OHA each year. If we received the average local rate of $1000, we would save $45 million dollars a year.

 

If the Marines move the estimated 8000 members here in the future, and half lived off base, we would be saving in excess of $117 million a year in Guam alone!

 

Please also note; several members in Guam were contacted on the day that the OHA increased by their landlords, asking them to re-lease their dwelling at the new higher rate, even though their contract has not expired. The landlords in Guam are veterans on milking the Government dry.

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Idea No. 8667