AF Form 4386: Utility Sales Agreement for Privatized Housing

AF Form 4386: Utility Sales Agreement for Privatized Housing – If you’re an Air Force member or family moving into privatized military housing, you may encounter AF Form 4386. This official document formalizes the sale of utilities between the U.S. Air Force (or Department of the Air Force) and the private developer or property owner managing your housing community.

Privatized military family housing, developed under the Military Housing Privatization Initiative (MHPI), shifts ownership, management, and maintenance of on-base homes to private partners. These partners receive your Basic Allowance for Housing (BAH) in exchange for providing quality housing. Utilities often represent a key part of the financial and operational relationship, and AF Form 4386 ensures clear, reimbursable terms for utility services provided by the installation.

What Is AF Form 4386?

AF Form 4386, titled Utility Sales Agreement for Privatized Military Family Housing, is an official Air Force form used to establish a written agreement for the sale of utilities (such as electricity, natural gas, water, sewer, or other services) to privatized housing projects.

  • Purpose: It authorizes the Air Force to sell utility commodities and related services to the privatized housing provider on a reimbursable basis, as permitted by law (including 10 USC §2872a for housing privatization projects).
  • Who uses it: Primarily the installation commander (or designee), Base Civil Engineer (BCE), energy manager, and the privatized housing developer/owner. Residents (military families) do not typically sign this form themselves—it operates at the project-owner level.
  • Legal basis: Governed by Department of the Air Force guidance, including DAFMAN 32-1061 (Providing Utilities to DAF Installations and Agencies), which references AF Form 4386 specifically for privatized family housing.

The form helps ensure utilities are provided consistently while protecting government resources and maintaining accountability for costs.

Why Does AF Form 4386 Matter in Privatized Housing?

Under MHPI, private companies build, renovate, and manage family housing. Residents sign a lease with the private partner and typically pay rent via BAH allotment.

Utility arrangements vary:

  • In many communities, rent initially bundles utilities.
  • Once individual meters are installed for electricity and natural gas, the setup often shifts to a utility allowance model. The allowance (often set at 110% of average usage for the home type) is subtracted from BAH, with residents billed directly for actual consumption (or receiving credits/refunds for under-usage in some programs).

AF Form 4386 supports the backend relationship between the installation and the housing provider. It ensures the provider reimburses the government for utilities the installation supplies (e.g., when the base provides central services or bulk commodities). This prevents disputes and complies with federal reimbursement rules.

The installation energy manager or BCE typically uses this form (along with related documents like AF Form 3556 for customer classification) to document the agreement.

Key Elements Typically Covered in AF Form 4386

While the exact layout is in the official PDF, standard utility sales agreements like this include:

  • Parties involved: The Department of the Air Force (seller) and the privatized housing project owner/developer (purchaser).
  • Utilities covered: Specific commodities such as electricity, natural gas, water, wastewater/sewer, steam, chilled water, or others available at the installation.
  • Rates and billing: Reimbursement terms, often based on established customer classification rates or metered usage.
  • Terms and conditions: Duration of the agreement, payment responsibilities, dispute resolution, and compliance with energy resilience and outage reporting requirements.
  • Signatures: Approval by the installation commander or authorized designee.

The form attaches to the broader housing privatization project agreements or leases. All utility services agreements must be in writing and properly documented for audit and reimbursement purposes.

Download the official AF Form 4386 here:
https://static.e-publishing.af.mil/production/1/af_a4/form/af4386/af4386.pdf

Always use the latest version from the official Air Force e-Publishing site for compliance.

How Privatized Housing Utilities Work for Residents?

As a resident in Air Force privatized housing:

  1. You sign a lease with the private management company (not the Air Force directly).
  2. Your BAH covers rent plus a utility component.
  3. Many communities have moved toward individual metering and the Air Force Utility Allowance Program. This encourages energy conservation—residents may receive credits for usage below the allowance or pay the difference if over.
  4. The housing provider handles maintenance, trash, and often water/sewer, while you manage and pay for metered utilities like electricity and gas.

Local Military Housing Office (MHO) or the privatized housing office can explain your specific community’s setup, including whether a utility allowance applies and how billing works. Programs like the Resident Energy Conservation Program may offer incentives for efficient usage.

  • AF Form 3556: Utility Service Agreement (used for customer classification and rates).
  • DAFMAN 32-1061: Provides overarching policy on utility sales, including the Sole Benefit Test for reimbursable services in privatized housing.
  • AF Form 3557: Utility Service Annual Review.
  • Housing privatization project-specific agreements and your individual lease.

For the most current policy, check the official e-Publishing site or consult your installation’s Civil Engineer Squadron and Housing Office.

Tips for Air Force Families in Privatized Housing

  • Understand your lease: Review utility responsibilities before signing.
  • Track usage: Monitor meters and conserve energy to stay within or below your allowance.
  • Report issues: Contact the privatized housing management company first for maintenance; escalate to the MHO if needed.
  • PCS move-in/out: Document utility readings and home condition to avoid disputes.
  • Questions? Reach out to your base Housing Office or the privatized partner’s resident services team. They provide briefings for new residents.

Privatized housing aims to deliver modern, well-maintained homes with better amenities than traditional government-owned housing, while the Air Force retains oversight through agreements like AF Form 4386.

Need the form or more help?
Download AF Form 4386 directly from the official source linked above. For installation-specific guidance, visit your local Military Housing Office or the Air Force Housing website (housing.af.mil).

This article reflects current Department of the Air Force policies as of 2025–2026 guidance on utilities and privatized housing. Policies can evolve, so verify details with official sources for your base.