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Tackling Housing Market Challenges for Military Families

September 15, 2021 By krda

Like the rest of the country, the Greater Fort Knox Region is experiencing housing market conditions that have made the traditional summer moving season especially challenging on Soldiers and their families. You’ve likely heard the same story:

Limited inventory = higher asking prices.
Buyers are making offers above asking prices to get a contract.
If they can find a home, military families may be paying a mortgage above the prescribed Basic Allowance for Housing (BAH) rate for the region.
Some military families are buying and renting homes outside the designated Military Housing Area (MHA) which can often be in a higher priced market; and almost always means a longer commute.
Rental properties are also in high demand with limited availability.
Builders working to respond to demand are facing labor and supply shortages as well as skyrocketing material prices which are pushing sale and rental fees up even more.
Some military families are exceeding the allowable 10 days of Temporary Lodging Expenses (TLE) to cover hotel costs they incur during their move.

When we asked our local partners at the Heart of Kentucky Association of Realtors (HKAR) how things were trending, they indicated these conditions are here to stay for the foreseeable future, at least until material costs start to come down.

Fort Knox Housing

In addition to these market factors, Fort Knox’s on-post housing is at nearly 95 percent capacity, making the demand for off-post housing even higher. That means keeping the lines of communication open between post leadership and the community is even more critical. Our Army partners on Fort Knox have been terrific about sharing where the greatest needs are. Currently, that’s three- and four-bedroom homes for senior enlisted and junior officers in a price range that is at or near the BAH rate. Meeting those parameters is not easy. Fortunately, construction of 64 additional homes on post will soon be underway. The market certainly needs more inventory, and the new home construction on post is welcome news, but it does not alleviate the immediate challenge military families face.

Army Responds to Challenges

Army leaders at both the department and installation levels recognize the challenges and have taken steps to help military families.

There is greater flexibility on report dates (up to 30 days early or 20 days late).
Military personnel divisions have the authority to defer arrivals up to 60 days (but no later than Nov. 10).
Once a Soldier’s 10 days of TLE are expended, hotels on post are offering a daily rate based on the monthly BAH rate. (e.g., if a family stays in lodging for 30 days, the total cost won’t exceed their BAH).
As needed, the Army is working with off post hotels and other short-term temporary housing providers to see if similar arrangements can be made based on the BAH rate.
At installations like Fort Knox, the post leadership is looking to adjust the MHA to include additional communities where Soldiers are now living. This may positively impact BAH rates which are evaluated and adjusted annually based upon rental and utility rates in the MHA.

Advice from Local Experts

We also asked local experts at the HKAR what else they would recommend to families moving into the market. HKAR board chair and local Realtor, Mike Thomas, offered up these three key pieces of advice:

Begin looking as soon as you get your orders. Military families have always been proactive, often buying or signing lease agreements after virtual tours. “Given how quickly rental properties are filled and homes sell, we are urging families to reach out to us as soon as possible to begin your search,” said Thomas. He also added that leveraging the expertise and knowledge of a local Realtor in this environment is especially valuable. “We know the market. We know when houses are about to come on the market. We can be your eyes and ears,” Thomas said.
Get prequalified. Being prequalified has always been a best practice, but according to Thomas it is an absolute showstopper if you don’t have it. Sellers aren’t going to entertain an offer with someone who isn’t prequalified for financing. They have too many other offers and aren’t going to wait.
Use a local lender. Thomas said large national and international banks are great, but when it’s a matter of getting a clear picture of the status of a loan, it’s much easier for realtors to check in with local lenders with whom they have worked for years. The local lenders know everyone involved in the process personally and can help move things along in ways they simply can’t at larger banks. Having that sort of visibility is key.

There is no doubt the current environment makes it very challenging on all home buyers and renters. At KRDA, we are focused on the military family and what we as a community can do to help ease their transition. That is why we also created a website dedicated to supporting their transition. The site, greaterfortknox.com, is a one-stop virtual location for military families relocating to the area. It features local communities, and the resources military families need in making the move here, including finding local realtors. It won’t solve all of the challenges families are facing, but it is one additional thing we can do to help, especially in these trying times.

Are there innovative solutions you are seeing in your community? We’d love to hear them and learn from them.

Brig. Gen. (Ret) Jim Iacocca
President / CEO
Knox Regional Development Alliance
Jim@growknox.org

Beth Avey
Vice President
Knox Regional Development Alliance
Beth@growknox.org

Fort Knox Opens 31W Gate To Patton Museum

July 27, 2021 By krda

On June 14, the General George Patton Museum opened a long-awaited gate providing direct access to the museum from Highway 31W. Previously, access to the museum was available through the installation boundary at Chaffee Gate. The new gate will now serve as the sole entrance to the museum.

We cannot thank Maj. Gen. Evans and his team for providing improved access to this valuable tourist attraction in our region. KRDA was proud to help advocate for this change and joined dozens of community and installation leaders for the ceremonial ribbon cutting that marked the official opening of the 31W access point. We encourage all of our friends and colleagues to pay a visit to this first-class museum. For more information about the Patton Museum and its hours of operations, click here .

Leadership Message

July 27, 2021 By krda

Hello everyone. We hope you are enjoying the summer months and the opportunities we’ve had to see each other in person again. We certainly hope it stays this way.

It has been an exciting few months with the return of Cadet Summer Training (CST) at Fort Knox. We were thrilled when COVID-19 conditions allowed for Cadet Command to open CST graduations to the cadets’ families. That has certainly contributed to the uptick in hotel stays and restaurant sales. Most importantly, we know our community enjoys welcoming the cadets, their families and the cadre to our region.

While the modest growth at Fort Knox this year is certainly welcome, it will put even greater demands on the housing market. We continue to work with Fort Knox and community leaders to ensure that the region is doing all it can to respond to the demand. The construction of new homes on Fort Knox is welcome news and will help alleviate some of the pressure.

As you read above, the KRDA team recently had the opportunity to attend the Association of Defense Communities (ADC) Reconnect event. The chance to hear first-hand from Defense Department officials and learn about best practices from other defense communities makes these conferences so valuable. Just as important, it provides an opportunity to visit with Kentucky’s Congressional Delegation on Capitol Hill. Being able meet face to face, tell the story of Fort Knox and talk about key defense-related factors impacting our region with congressional leaders and their staff, is one of the most important aspects of our outreach efforts.

In addition to the Garrison Change of Command, there are several commands on post changing leadership this summer, including the post’s senior mission commander. We want to personally thank Maj. Gen. Evans for his leadership and commitment to community relations even in the midst of a pandemic. KRDA will host a community welcome reception in September so we can welcome all of our new senior leaders to post.

We want to continue to thank the community for their tremendous support to KRDA and, most especially, to Fort Knox Soldiers and their families. Ours is a region unlike any other and it’s a privilege to partner with all of you to promote and protect Fort Knox and support Soldiers and their families. Until our next e-newsletter.

Warm Regards,

Ray and Jim

Fort Knox Welcomes New Garrison Commander

July 26, 2021 By krda

Last month, our friend and partner Col. C.J. King relinquished command of the Fort Knox Garrison to Col. Lance O’Bryan. O’Bryan is a native of Monroe City, Missouri and has served in the Army for more than 20 years. A field artillery officer, this is O’Bryan’s second time serving at Fort Knox, having previously served at Human Resources Command in the Officer Personnel Management Directorate. This is also the second time O’Bryan has commanded a Garrison, so he brings a wealth of experience and understanding of Garrison operations. The KRDA team had the pleasure of meeting with Col. O’Bryan earlier this month where he shared his passion for community relations and his appreciation for the Fort Knox region. He said Fort Knox was his first choice as he considered his next assignment after serving at U.S. Africa Command in Germany. He has also deployed numerous times in support of combat operations in Iraq and Afghanistan. We are excited to have Col. O’Bryan and his family back in the Fort Knox region and we look forward to our continued partnership with the Garrison team. To read Col. O’Bryan’s full bio, click here.

Fort Knox Growth Trend Continues

July 26, 2021 By krda

The addition of V Corps headquarters brought significant growth to Fort Knox and the surrounding region last year. While we aren’t seeing growth of that size this year, we’re still experiencing incremental growth of military and civilian positions on post:

On USA Jobs, V Corps announced 45 department of the Army civilian positions.
1st Army Division East will add 28 military and two civilian positions.
The Colonel Officers Management Office is in the process of moving its operations to Fort Knox and will be co-located at Human Resources Command, bringing 14 additional senior officers and Department of the Army civilians and their families to our community.

In addition to on post growth, we are seeing local defense contractors expand their portfolio with renewed interest from companies considering establishing or expanding operations. We consider all of these positive developments a testament to Fort Knox’s military value.

16 Years Post BRAC

May 3, 2021 By krda

On May 13, 2005, Secretary of Defense Donald Rumsfeld forwarded his recommendations to the Base Realignment and Closure (BRAC) Commission. Fort Knox was one of 26 installations impacted, resulting in a significant transformation of the post. Sixteen years later, we are reflecting on what BRAC 2005 meant for Fort Knox and the surrounding community as well as the changes on post since then. We are also taking stock in some of the lessons learned as a community and how Fort Knox and our region are positioned for the future.

Farewell Armor, Hello Strategic Talent Management and More

For decades Fort Knox had been synonymous with the Armor Center and School, where tankers learned and honed their skills. BRAC 2005 relocated the Armor schoolhouse to Fort Benning, GA. While that change was met with disappointment, we also welcomed several new missions associated with human capital management. U.S. Army Human Resources Command (HRC), U.S. Army Cadet Command and the now inactivated U.S. Army Accessions Command would join U.S. Army Recruiting Command at Fort Knox. The 2005 BRAC also called for a Brigade Combat Team (BCT) to be activated along with an Engineer Battalion, Expeditionary Sustainment Command and Army Reserve and Army National Guard missions.

In all, BRAC 2005 equated to a net gain of some 5,000 military and civilian personnel as well as contractors. Perhaps even more significant was the shift from trainees who came here on temporary duty to permanent party personnel in more senior positions. That meant significantly higher payroll and spending power in the region and families who were more apt to settle in our communities long-term.

Expanded and new road construction bypasses commercial districts in communities near Fort Knox

Consider the Second and Third-Order Effects: While the infrastructure improvements were welcomed, the higher speed limited access roads also drew commuters away from some of the more heavily trafficked commercial corridors near Fort Knox. That was good for the commuters and overall safety, but not necessarily good for the businesses in those now less-trafficked commercial corridors. Local business leaders who point to those challenges still consider the infrastructure investments valuable and the 2005 BRAC positive. The lesson learned is it is also important to plan for the second and third-order effects to mitigate less favorable impacts.

Anticipated and Actual Housing Demand Do Not Always Match Up: Home builders will also tell a cautionary tale of BRAC 2005. At the encouragement of some military leaders, the anticipated growth spurred residential construction well ahead of the new units’ arrivals. Indications were that thousands of homeowners, moving from much higher priced markets, would be poised to buy larger homes. Then came the 2008 housing market crash which left many prospective buyers with far less spending power or unable to buy. Adding to the challenge were a disproportionate number of executive homes, leaving the local market oversaturated and some builders facing financial challenges. While no one could have predicted the housing market crisis, builders in the Greater Fort Knox Region will talk about the delicate balance of building based on anticipated growth to be ahead of the curve and having a firm demand signal from buyers based on actual market conditions.

Mission Loss and Threat of More Spur Community Action

In 2012, not long after all the BRAC moves were completed, the Army determined that the missions U.S. Army Accessions Command led could be realigned and decided to inactivate the unit. While, by population, it was a relatively small command, strategically it meant the post would no longer have a 3-star command. Even more disappointing was the 2014 inactivation of the Brigade Combat Team (BCT) resulting in a loss of 3,500 Soldiers at Fort Knox. The decision came amid changing national defense priorities and budget cuts. When the Department of Defense considered additional cuts (as many as 4,100 positions), the community rallied with a coordinated advocacy effort. The region held a community town hall with defense officials and undertook an electronic letter writing campaign that some say helped spare the post from additional cuts.

The losses and the potential threat of more served as a wake-up call to community leaders who sought to raise the bar of the existing advocacy work for Fort Knox. In 2016, with support from private and public sector investors, the Knox Regional Development Alliance (KRDA) was born. Every day the KRDA team is singularly focused on maximizing Fort Knox’s economic impact and making sure the community does all it can to support Fort Knox Soldiers and their families. While we are very careful not to take credit for the recent growth on and off post, KRDA’s work helps set the conditions that make Fort Knox and our community as competitive as possible when opportunities arise.

Fort Knox Today

So, what does Fort Knox look like 16 years post BRAC 2005? The installation has certainly changed, but it is unequivocally critical to our nation’s defense.

The Army’s number one priority is its people and with its various missions, Fort Knox is at the veritable epicenter of strategic talent management.
The installation’s world-class training areas and ranges are among the most utilized in the Army and demand will only grow when construction of the new Digital Air Ground Integration Range (DAGIR) is complete in 2023, making it the Army’s only one east of the Mississippi.
The post’s energy resilience program is the most decorated in the Department of Defense and can, if need be, operate completely independent of external providers, making Fort Knox especially well-suited for missions with large IT infrastructure needs.
The recent decision to locate the Army’s newest corps headquarters – V Corps – at Fort Knox further adds to the post’s strategic value and is spurring additional defense sector growth off post as well.
Community quality of life and support to the installation is regularly touted as among the very best in the nation.

At KRDA, it is an honor to tell the Fort Knox story each and every day. Want to learn more about Fort Knox or defense sector business opportunities in one of the greatest communities in the nation? Contact us.

krda

Tackling Housing Market Challenges for Military Families

Fort Knox Opens 31W Gate To Patton Museum

Leadership Message

Fort Knox Welcomes New Garrison Commander

Fort Knox Growth Trend Continues

16 Years Post BRAC

Farewell Armor, Hello Strategic Talent Management and More

Community Lessons Learned When Preparing for Growth

Mission Loss and Threat of More Spur Community Action

Fort Knox Today

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krda

Farewell Armor, Hello Strategic Talent Management and More

Community Lessons Learned When Preparing for Growth

Mission Loss and Threat of More Spur Community Action

Fort Knox Today

Connect With KRDA

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