department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
Section 2801) and includes a series of authorities that allow the Department to work with
the private sector to renovate and build military family housing. The MHPI accelerates the
construction of new housing built to market standards, and leverages private sector capital.
One of the goals of the Department is to obtain private sector capital to leverage
government dollars. The Department provides protection to the private sector partner
against specific risks, such as base closure or member deployment.
Armament Retooling and Manufacturing Support Initiative
The ARMS Initiative, Title 10 United States Code 4551-4555, is a loan guarantee program
designed to encourage commercial use of the Army’s inactive ammunition plants through
incentives for businesses willing to locate to a government ammunition production facility.
The production capacity of these facilities is greater than current military requirements;
however, this capacity may be needed by the military in the future. Revenues from property
rentals are used to help offset the overhead costs for the operation, maintenance and
environmental cleanup at the facilities.
In an effort to preclude any additional loan liability, the Army instituted an ARMS loan
guarantee moratorium in FY 2004. The Army continues to operate under the moratorium
and does not anticipate new loans.
Summary of Direct Loans and Loan Guarantees Dollars in Millions
2012 2011
Loans Receivable
Direct Loans:
Military Housing Privatization Initiative 957.5 814.4
Total Direct Loans
Defaulted Loan Guarantees:
$ 957.5 $ 814.4
Military Housing Privatization Initiative 0.0 0.0
Armament Retooling & Manufacturing Support Initiative
Total Default Loan Guarantees
0.0 0.0
Total Loans Receivable
Loan Guarantee Liability
$ 957.5 $ 814.4
Military Housing Privatization Initiative 11.7 13.7
Armament Retooling & Manufacturing Support Initiative 1.0 0.2
Total Loan Guarantee Liability $ 12.7 $ 13.9
Direct Loans Obligated Dollars in Millions
2012 2011
Direct Loans Obligated After FY 1991
(Present Value Method):
Military Housing Privatization Initiative
Loans Receivable Gross $ 1,119.6 $ 953.8
Interest Receivable 0.0 0.0
Foreclosed Property 0.0 0.0
Allowance for Subsidy Cost (Present Value) (162.1) (139.4)
Value of Assets Related to Direct Loans 957.5 814.4
Total Direct Loans Receivable $ 957.5 $ 814.4
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Financial Information