Kelley Drye Represents Fort Drum Mountain Community Homes in Financing Army Housing
June 25, 2008
Kelley Drye represented Fort Drum Mountain Community Homes LLC (FDMCH) in a project with Actus Lend Lease (Actus) and the United States Army, financing the development, construction and management of an additional 554 single family, duplex homes on the Fort Drum New York Army base. The financing closed on June 11, 2008. FDMCH construction was extended by 22 months, with completion of a total of 845 homes anticipated in July 2011. Approximately $184 million, including $75 million in additional federal government equity contributions granted by Congress, was raised for this project in response to a projected deficit in Army housing.

The new homes are an extension of the Military Housing Privatization Initiative community development at Fort Drum, and are considered a critical component in the effort to foster a better quality of life for U.S. soldiers and their families. The additional 554 homes provide lower ranking soldiers with high quality, energy efficient residences.

All of the FDMCH homes under construction comply with the Department of the Army's initiative to reduce energy consumption. They are designed to meet stringent New York Energy Research and Development Authority standards and to pass ENERGY STAR® certification requirements. ENERGY STAR® certified homes reportedly use approximately 30% less energy than conventionally built homes.

"Fort Drum Mountain Community Homes is a 50-year partner with Fort Drum, the Army and the North Country. The FDMCH partnership has spent over $140 million with local and small businesses. In keeping with our commitment to supporting the Northern New York economy and development, this new construction provides approximately $71 million in local spending. The financial closing of an additional 554 homes marks another achievement in improving the quality of life for our neighbors and our residents, the soldiers and families of Fort Drum," said FDMCH Project Director Joseph McLaughlin.

FDMCH is a partnership created between the Department of the Army and Actus through the Military Housing Privatization Initiative. FDMCH involves the development of 845 new three, four and five bedroom homes in two master planned communities, community centers and the renovation of all 2,272 existing homes. In addition, the development plan has been expanded to include a 192 one and two-bedroom apartment community constructed for unaccompanied senior enlisted solders and officers, scheduled for occupancy in 2009. Actus works with institutional owners and with more than 35,000 homes in its portfolio, Actus has created and built sustainable, integrated communities on some of the nation's largest military bases.