In our continuing efforts to help facilitate a smooth transition for BRAC with our military partners at the Aberdeen Proving Ground, Harford County Government is working to help enhance the military housing at APG at no cost to county taxpayers. 

In 1996, Congress authorized the Residential Communities Initiatives Program (RCI) which allows for the privatization of military housing across the country.  Through a combination of private and public resources, the United States Army has been able to upgrade the quality of homes that it provides for service members.

RCI is a critical component of the Army’s effort to eliminate inadequate housing and make Army installations safe, attractive and modern places for service members and their families to live. To that extent, the Army has privatized 98% of its on post family housing the U.S. and the APG initiative is one of the last remaining sites to be addressed.

The firm chosen by the Department of Defense for the APG housing initiative is Picerne.  Picerne is not and will not be under contract with Harford County Government to build or modernize housing on the APG.  The Army and Picerne form a partnership in which the Army contributes the ground in the form of a lease and Picerne contributes its construction, development and management expertise.

Picerne takes on debt in the Capital Markets by leveraging the rental income stream, also known as Basic Allowance for Housing. The debt, combined with the Net Operating Income of the project, will be used for the construction and renovation of all homes during the six-year initial development period.  All income from the project is reinvested into the project.

Recently, Picerne partnered with the Army on six installations (Ft. Meade, Ft. Bragg, Ft. Polk, Ft. Rucker, Ft. Riley and Ft. Sill, serving as developer, property manager and general contractor.  In doing so it was recently recognized by the Association of Defense Communities for its efforts to improve housing for the warfighters.

Picerne, supported by the Aberdeen Proving Ground, has requested that Harford County designate the on-base redevelopment of family housing as a “Priority Development Area” and thus help facilitate the issuance of conduit taxable municipal bonds to finance the redevelopment.  This proposal does not require any taxing for financial support from the taxpayers of Harford County and it does not adversely affect Harford County in any way.

Harford County does benefit from the redevelopment of the Post, as nearly $68 million of the Picerne Project must be spent on local, small and disadvantaged businesses in our community.  The conduit bonds do not require the credit or taxing powers of Harford County or the State of Maryland and will only be backed by the credit of the military family housing project.

I have tried my best since 2005 to do all I can as County Executive to support our friends at the APG as we prepare for the challenges and opportunities that BRAC brings to our region.  Providing cost effective housing and attractive housing for military families that live on post here in Harford County is also in the best interest of the county. 

Therefore, Harford County Government supports the Picerne Project at APG and we look forward to helping to bring this initiative to fruition in the near future, once again at no cost to the taxpayers of Harford County.  This is our chance to truly help our men and women in uniform who protect our basic freedoms.