The Navy announced Wednesday that Hunt Military Communities will take over the management of all housing for young sailors at bases in Norfolk and Virginia Beach, and build a new 17 story complex in Newport News.
WHRO first reported in 2024 that the Navy was contemplating privatizing all of the barracks in Hampton Roads. Though the plan was conceived during former President Joe Biden’s administration, the Navy signed a term sheet with Hunt Military Communities in July.
Under the deal, the company will control more than 8,089 beds, building new facilities over the next five years, The plan will add or renovate rooms across 16 facilities in Hampton Roads. The work includes 712 bedrooms across seven buildings at NAS Oceana; 614 bedrooms in three buildings at JEB Little Creek-Fort Story; 5,272 rooms across six buildings at Naval Station Norfolk and 1,500 new beds in Newport News, according to the Navy.
“This landmark agreement represents a massive step forward in ensuring our junior Sailors have a high-quality place to live, recharge, and focus on their vital mission,” said Vice Adm. Scott Gray, Commander, Navy Installations Command, which oversees the Navy’s housing.
Hunt Military Communities already owns and operates the privately built Homeport Hampton Roads complex on Naval Station Norfolk.
The new complex in Newport News is funded in part by a loan from the Commonwealth of Virginia, which will be reimbursed if the project meets its criteria, according to the city.
The new construction includes two 17-story residential towers with approximately 750 two-bedroom units. It would replace Huntington Hall.
“This is the largest federal investment in Newport News history and a transformational investment in the Sailors who serve our nation,” said Mayor Phillip Jones.
The terms of the agreement were not released. Hunt will run all of the housing for junior sailors, refurbishing some facilities, while building new barracks over a five year plan. The Navy estimates it will save $325 million by allowing Hunt to own and operate the barracks.
Critics have pointed out that Hunt is one of the companies sued by tenants since the military privatized all of family housing nearly 20 years ago. Outcry from military families prompted Congress to pass reforms, including a tenants bill of rights.
Each of the services, except for the Marine Corps, have run pilot projects to turn over housing for junior enlisted to private companies. The $1.7 billion project in Hampton Roads is by far the largest to program in the military.
“This agreement reflects the direction we want to take across our barracks portfolio: delivering high-quality, cost-effective housing solutions that provide modern, reliable homes for servicemembers and prudent value for taxpayers,” said Deputy Assistant Secretary of Defense for Housing Adam Dontz.
Following a rash of suicides on board USS George Washington in 2022, the Navy investigation recommended improving the living conditions for sailors assigned to ships undergoing extended maintenance at Newport News Shipbuilding.
The Navy has also been pressed for space as it tries to move sailors off ships.
Previous Chief of Naval Operations Lisa Franchetti and current CNO Daryl Caude each committed to ending the Navy tradition of having most junior sailors live on board their ships, even after returning home from long deployments. The change has caused a shortfall of barracks, especially in fleet concentration areas in San Diego and Hampton Roads.
