NARPM Presentation 10/14/10 Larry Fredrich Director, Government Services Runzheimer International lrf@runzheimer.com 262-971-2551

The Military has changed in the last 35 years Volunteer versus Draft Over 60% of the military are married with dependents Over two thirds live “on the economy” Still relocate every 2-3 years, on average Investment in training requires reenlistment “Recruitment and Retention” is essential “You recruit an individual, but you retain a family”

Military Housing Statistics As of 1995, over 250,000 housing units were owned by DOD domestically Over 2/3rd’s were deemed inadequate (yet most were occupied) The bill for rehabilitation & renovation: $30 billion (and unfunded) DOD didn’t want to be a landlord anymore As of 2010 over 200,000 DOD housing units have been privatized

Background Information Largest group of relocating families in the United States is the military Over 750,000 military families relocate annually More to come due to Basic Realignment And Closure (BRAC) BRAC must be complete by Sept. 30, 2011 and significantly behind schedule.

Misinformation – The Military are poorly paid Military raises exceed civilian raises in government Bonuses have been as high as $150,000 (Special Force’s, hostile environment, 8 year re-enlistment) $90,000 re-enlistment bonuses are not uncommon ~40% of Regular Military Compensation is from allowances An O6 (Colonel) with 20 year’s has an RMC of $151K

Basic Allowance for Housing (BAH) Done by Runzheimer for the past 12 years Over one million military members receive this allowance Based upon real and available properties Inadequate properties eliminated Must be year-round rentals No seasonals, furnished, efficiencies, subsidized units FMR’s vs. BAH 350,000 data points collected annually All properties verified BAH set at median for properties in a given area No more Out-Of-Pocket costs Updated annually (January 1) http://perdiem.hqda.pentagon.mil

How has the military member traditionally found housing? Contact the housing office Talk to friends assigned there Internet: Rents.com, Apartments.com, etc. Show up at the front gate, with dependents in tow, resulting in: Temporary Quarters Temporary Storage

So what’s the solution? www.AHRN.com BAH determines Affordability BAH addresses Adequacy Availability can still be a problem www.AHRN.com Available properties only Exclusively for the military Sponsored and funded by DOD and the Service Branches No charge to Property Managers Unlimited listings

Washington DC BAH Rates WITH Dependents Rank Paygrade 2010 Army Corporal E4 $2,010 Sergeant Major E9 $2,514 1st Lieut. O2 $2,259 Colonel O6 $2,949

Washington DC BAH Rates WITHOUT Dependents Rank Paygrade 2010 Army Corporal E4 $1,356 Sergeant Major E9 $2,106 1st Lieut. O2 $1,890 Colonel O6 $2,436

AHRN Statistics to Date AHRN has been deployed at over 439 military bases in the United States AHRN now deployed at 29 installations in Europe and Asia Over 35,000 available properties listed Over 451,000 properties in national data base Over 535,000 Military Members registered in AHRN Over 123,000 Property Managers have registered rental units in AHRN.