354th CPTS addresses Icemen's concerns of rising home costs due to fuel price increase

  • Published
  • By Capt. Tammy Colvin
  • 354th Comptroller Squadron
EIELSON AIR FORCE BASE, Alaska --  Eielson Teammates--this is the second in a series of Polar Press articles written by your 354th Comptroller Squadron designed to explain the Basic Allowance of Housing program.

We are publishing these articles in response to widespread and understandable concerns by those who live off-base about the cost of home heating oil as we enter another Interior Alaska winter.

The purpose of the BAH program is to provide fair housing allowance to service members. Utility costs, such as heating fuel, are reflected in BAH rates. The Department of Defense's Per Diem, Travel and Transportation Committee (PDTATAC) manages the rate setting process and reviews BAH rates on an annual basis. Currently, PDTATAC is in the process of calculating updated BAH rates which will become effective Jan. 1, 2009.

BAH rates are calculated using three separate components: rent, utilities and renter's insurance. Rental housing rate data is collected annually from approximately 400 military family housing areas in the Unites States, including Alaska. Data collection from numerous sources occurs in the summer when housing markets are most active.

Utility rates are collected through the Bureau of the Census. The Bureau conducts an annual American Community Survey that collects data from every county in the United States. All data is sensitive to local housing conditions, geography, climate, residential consumption patterns and utility company rates. Heating oil costs are accounted for in this process.

The renter's insurance portion of BAH covers the value of household contents. These values are correlated with selected incomes and dwelling types.

The computation of BAH rates is a complex equation which factors in the three components and the ACS data. This ensures the BAH rates for localities with extreme climates, such as Eielson AFB, properly reflect correct, appropriate, and current utility rates.

It is important to understand BAH rate changes are constrained by law. BAH rates can only be changed in conjunction with a pay raise; typically new pay rates are released on Jan. 1, of each year. There are only two situations in which out-of-cycle adjustments can be made: a major disaster or a sudden increase in troop levels to a locality.

Equally important to realize is that BAH rates can decrease. Volatile housing markets and rental unit availability fluctuations impact rental rates. Sometimes the result is a negative impact on BAH. However, a service member is protected as long as the status of the individual remains unchanged. This means the service member is entitled to the new BAH rate published Jan. 1, or the amount of the previous housing allowance he or she received as of Dec. 31, whichever is greater. Rate protection continues unless the status of the service member changes due to PCS, reduction in pay grade or change in dependent status.

Wing leadership continues to be intimately involved and is directly supporting the BAH rate review process which has been elevated by 11th Air Force and the Alaska Command Joint Staff to PDTATAC. Lt. Gen. Dana Atkins, 11th AF commander, is personally involved with these efforts.

Additionally, every effort is being made to ensure PDTATAC properly accounts for the significant rise in heating fuel costs and ensuring the data is accurately reflected when capturing utility rates.

If you have questions about BAH or other military pay issues please contact our customer service line at 377-1851 or send an e-mail to 354cpts.customerservice@eielson.af.mil.