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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

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

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.

Choosing A Post-Military Home And Career

February 25, 2021 By krda

*Retired Brig. Gen. Jim Iacocca, now in the role of President and CEO of the Knox Regional Development Alliance, speaking to the business community.*

There is no question that making the transition from military to civilian employment can be challenging. I’ve been through it personally and in my role as CEO of the Knox Regional Development Alliance, we regularly collaborate with agencies and organizations working to better connect employers with veterans and transitioning service members. While most employers seem eager and willing to hire veterans, the challenge of making that connection persists. As one friend put it, part of the problem is there are so many resources that you are simultaneously drowning and dying of thirst. So, three years post-retirement, here are four key pieces of advice I typically offer others:

Have a plan and start as early as you can
Determine what’s important to you
Yes, the job matters but place matters too
Expect it to be stressful

*Soldier For Life Transition Assistance Program (SFL-TAP) class.*

Have a plan and start early

The Army provides transition assistance to Soldiers up to 24 months from retirement and 18 months from separation. I know that seems like a long time, but no matter your branch of service, I would recommend you use every bit of time allowed to prepare for your transition. As I mentioned, there are so many options and resources available that without a long lead time it can be an overwhelming endeavor. Use the resources the military provides, develop a plan and take it on in bite sized pieces. Build a calendar to keep yourself on track and stick to it. That includes getting your VA physical and submitting VA paperwork before you leave the service.

Determine what’s important to you

There is no doubt you want to be able to provide for your family like you always have, but sometimes chasing a high-paying salary comes at a cost. I often tell friends to think about how important it is to be fulfilled in your work and how much you value quality of life. While not mutually exclusive, a high-paying job sometimes comes at the expense of your quality of life and the time you have with your family. Be sure to know what’s important to you and weigh the pros and cons as you entertain new employment opportunities. That leads me to my next piece of advice.

Yes, the job matters but place matters too

What do I mean by that? Well, I’ve lived in 14 different duty stations, but I’ve never lived in a more welcoming and supportive community than the Greater Fort Knox Region. The connection between the post and the community is so close it’s hard to put it into words. That was important to my wife and me. It was also a matter of dollars and cents. This is a place where our dollar goes further, and there is still great quality of place. That needs to go into your planning, too. Prepare a budget that includes cost of living expenses based on where you want to live and know how much you need to make to maintain the lifestyle you have or want.

Expect it to be stressful

Let me close by saying that no matter how much you plan as you prepare to transition and after you leave the military; it is a stressful time not only for you, but also for your family. Your routine may be changing, but be sure to respect your family’s likely long-established way of doing things. Acknowledge that you are all going from the familiar to the unfamiliar, and that’s stressful no matter how prepared you are. I’m blessed to be doing work I believe in for a community and an installation for which I have a great affinity. I hope my words of advice in some small way can help you and your family navigate this next phase of your life.

KRDA Hosts Annual Meeting

February 4, 2021 By krda

Thank you to everyone who attended the virtual annual meeting.

Fort Knox Update

Maj. Gen. John Evans shared an update on Fort Knox. With the activation of V Corps in October, the community's support was evident in welcoming over 1,650 Soldiers and family members. Evans touted that V Corps activation speaks to Fort Knox’s value.

The Commanding General of the U.S. Army Cadet Command and Fort Knox also highlighted three additional assessment programs, Battalion Command Assessment Program (BCAP), Cornel Command Assessment Program (CCAP) and Sergeant Major Assessment Program (SMAP), held at Fort Knox in 2020 bringing hundreds of leaders to the region. According to Evans, Fort Knox will remain on the shortlist when it comes to discussions on standing up missions on an Army installation.

In 2020, Cadet Summer Training (CST), the Army’s single largest training event, did not take place solely on Fort Knox due to the pandemic. Evans announced that CST will be back at Fort Knox this summer, safely bringing over seven thousand cadets to the region.

Evan also gave an update on the construction of Yano Range. Once complete it will be the only Digital Air/Ground Integration Range east of the Rockies. Evans mentioned units are already wanting to sign up for training once the new range is complete in the summer of 2023.

KRDA Report

During the annual meeting, KRDA Chairman Ray Springsteen and President and CEO Brig. Gen. (Ret) Jim Iacocca highlighted KRDA’s work to promote and protect Fort Knox and grow defense-related business in the region. Despite COVID-19, our region realized new missions on post, local defense contractor job creation and Fort Knox’s growing strategic value.

With a $2.6 billion annual economic impact, Fort Knox's importance to our regional economy can't be overstated. KRDA’s work to increase Fort Knox’s economic impact is only possible thanks to support of a generous community.

Download KRDA 2020 Annual Report

Workforce Development Vital To Economic Growth

January 7, 2021 By krda

With an annual economic impact of $2.6 billion, Fort Knox fuels our regional economy. The Knox Regional Development Alliance's (KRDA) mission is to promote and protect Fort Knox to maximize its economic impact. We make sure the community is as supportive as possible to Soldiers, their families and all who work on and off post in support of Fort Knox missions, and that includes focusing on workforce development. Here’s why:

In order to grow Fort Knox missions or defense-related business, we must have the available workforce to fill Army civilian and contractor positions.
An Army spouse’s ability to find employment impacts the Army family and that in turn impacts Army readiness.
Employers often covet veteran talent but struggle to easily connect with them.

Workforce development: focuses on activities, policies and programs that help create, sustain and retain a viable workforce.

While I was in Army Human Resource Management for nearly all of my 30 years of service, I was admittedly unaware of the vast ecosystem of workforce development professionals and volunteers who are critical to a community’s economic success. That’s where KRDA’s vice president, Beth Avey, lends her expertise. As a former small business owner, she is plugged into the workforce development community and knows how to maximize partnerships for Fort Knox’s benefit. Two great examples are the Greater Knox Coding Academy and our region’s new military spouse employment initiative.

Greater Knox Coding Academy

In early 2019, I met with leaders at the Pentagon to talk about potential opportunities for Fort Knox. From their vantage point, we had a workforce challenge when it came to information technology (IT) professionals that could make us less competitive for new missions. Further conversations with Fort Knox leaders and area defense contractors confirmed it was difficult to locally source certified IT professionals.

We started working with a local training provider, Elizabethtown Community and Technical College (ECTC), and defense contractors to come up with a solution. In less than seven months the college identified the need for certified java developers, developed the curriculum, found an instructor, secured funding and recruited a class of students including several from area high schools. In spite of the pandemic, 24 students graduated from the inaugural Greater Knox Coding Academy. Many have moved into high-paying IT jobs with area defense contractors.

Taking Spouse Employment Support To A New Level

With the February 2020 announcement that Fort Knox would be home to the Army’s new corps headquarters, V Corps, we realized there would be a surge of Army families moving to our community. We knew there were great agencies on and off post available to help spouses find employment, but this larger influx of families gave us the opportunity to take a deeper dive and ask how can we do more.

On post, we met with Fort Knox Army Community Service, garrison leadership and Army Human Resources Command. Off post, we met with the local workforce board director who oversees the U.S. Department of Labor funded programs and sought the advice and insight of local business leaders. In the end, these meetings led to a more fully integrated and streamlined process between the post and the community to include a virtual destination (greaterfortknox.com/jobs) that would allow military spouses to connect with resources even before they arrived. Additionally, military spouses will be matched with a community leader who volunteers to help them grow their professional network in the region. We’re pleased to report spouses are already taking advantage of this first-of-its-kind model.

Veteran Employment

While not directly in our wheelhouse, I would be remiss if I didn’t mention that we are also in regular conversations with the various agencies and companies who offer employment services and training opportunities for transitioning service members, hundreds of whom exit the Army at Fort Knox. Anything we can do to advance efforts for veterans to find employment and employers to hire veteran talent is definitely a win-win for our region and it connects back to our work to support Soldiers and their families.

Partnerships Are Key

None of this work would be possible without great partners. Not only are these workforce and education professionals experts in their fields, but they are also as passionate as we are about supporting Fort Knox and making our community stronger. I recommend tapping into the workforce development ecosystem. You will be better for it.

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

Uncategorized

Tackling Housing Market Challenges for Military Families

Leadership Message

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

Choosing A Post-Military Home And Career

KRDA Hosts Annual Meeting

Workforce Development Vital To Economic Growth

Get The Newsletter

Uncategorized

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

Get The Newsletter