Pentagon housing scandal exposes lead, mold and fraud in privatized military homes

A Senate report released on July 8 by Sen. Jon Ossoff documented serious health hazards in privatized military housing at Fort Benning and Fort Stewart, including lead exposure in a newborn, mold‑related emergency‑room visits and a cockroach infestation inside a family’s oven. The report says the Pentagon’s Military Housing Privatization Initiative, created in 1996, outsourced the duty of care to private landlords while retaining oversight that was never staffed.

Fort Stewart’s housing is managed by Balfour Beatty Communities, which pleaded guilty in December 2021 to a major fraud count, agreeing to pay more than $65 million in fines and restitution. Deputy Attorney General Lisa Monaco described the misconduct as “a consequence of BBC’s broken corporate culture.” A Senate investigation found that the company’s misconduct continued after its guilty plea, with falsified maintenance records and destroyed resident comment cards used to collect incentive fees it had not earned. The findings highlight systemic failures in the oversight of privatized military housing and the resulting risks to service‑members and their families.