Balfour Beatty Sued by Military Families Over Housing Conditions
Balfour Beatty Communities (BBC) is a private entity responsible for military housing in public/private agreements with the DoD and stateside military bases. The company’s official site describes itself as “a leading national residential real estate investment and management company.“
The official site once described Balfour Beatty Communities as “one of the nation’s largest providers of military family housing” at some 55 military bases.
However, according to one published report, Balfour Beatty Communities pleaded guilty in federal district court for “defrauding the armed forces by falsifying housing repair records from 2013 to 2019 in order to receive higher performance awards.”
In 2025, Balfour Beatty is under scrutiny for allegedly unacceptable living conditions in base housing, where it is responsible for maintaining that housing, thanks to a lawsuit brought by military families in Florida.
>>Deals and discounts for military, veterans, and their families. Sign up to receive military discounts direct to your inbox.
Why is Balfour Beatty Communities facing legal action from dozens of families at Naval Air Station Key West?
Dozens of families are suing Balfour Beatty Communities, alleging toxic living conditions and accusing the company of “shoddy maintenance practices and corporate indifference or ineptitude” at its privatized military housing community at Naval Air Station Key West, Florida.
It’s not the first time Balfour Beatty has been accused of breaking trust with the military community.
According to Defense.gov, in 2021, the Justice Department published a press release titled, “Justice Department Announces Global Resolution of Criminal and Civil Investigations with Privatized Military Housing Contractor for Defrauding U.S. Military.”
The subhead for this press release? “Balfour Beatty Communities Pleads Guilty and Agrees to Pay Over $65 Million in Fines and Restitution for Fraud Scheme”
The press release states, “According to court documents, from around 2013 to around 2019, (Balfour Beatty) employees…falsified information so that (Balfour Beatty) incentive fee requests falsely reflected that BBC had met performance objectives.”
Balfour Beatty “did not meet those objectives in many of the quarters during that time. These objectives primarily related to maintenance and resident satisfaction at various military housing projects.”
The press release also says Balfour Beatty employees “altered or manipulated data in property management software and destroyed and falsified resident comment cards to falsely inflate these metrics and, ultimately, to fraudulently induce the service branches to pay performance incentive fees which BBC had not earned...”
Many likely wonder why Balfour Beatty was permitted to continue doing business with the federal government following these incidents. Air Force Times reports Balfour Beatty has previously come under scrutiny for “subpar living conditions in military housing.” In 2021, the company pleaded guilty to committing fraud against the U.S. and was ordered to pay $65 million in fines and restitution.
Air Force Times notes Balfour Beatty also agreed to pay $35 million to resolve a False Claims Act civil suit brought by the government.
Who are the plaintiffs in this lawsuit?
Air Force Times reports the lawsuit involves 56 families, 44 of which are military families and the remaining civilian families who were permitted to live in the community when space was available. Many children are among the 192 current and former residents named in the lawsuit.
What types of issues did the families report in their housing?
Families reported issues such as collapsing ceilings caused by water damage, mold, structural defects, HVAC and plumbing problems, lead paint, and asbestos.
What does the lawsuit allege Balfour Beatty did regarding the living conditions?
The lawsuit alleges that Balfour Beatty concealed the horrific conditions from unsuspecting service members and their families. It further claims that when these conditions were discovered and reported, Balfour systematically failed to address problems in military family housing adequately and allegedly misled families into believing repairs were made.
What kind of harm do the families claim to have suffered?
The lawsuit alleges the families suffered harm due to the condition of the houses and Balfour’s actions. They also claim to have experienced exposure-related medical problems such as asthma, respiratory issues, sinusitis, migraines, memory loss, brain fog, blurred vision, compromised immune systems, and rashes.
How many housing units does Balfour Beatty manage at NAS Key West and other military installations?
At press time, Balfour Beatty leases and manages more than 43,000 homes across 55 Army, Navy, and Air Force installations, including 700 housing units at NAS Key West.
What kind of harm do the families claim to have suffered?
The lawsuit alleges the families suffered from severe physical, emotional, and financial harm due to the condition of the houses and Balfour’s actions. They also claim to have experienced exposure-related medical problems:
- Asthma
- Respiratory issues
- Sinusitis
- Migraines
- Memory loss
- Blurred vision
- Compromised immune systems
Were there indications of alleged negligence by Balfour Beatty?
According to one source, an employee working for Balfour Beatty as a service center coordinator, recognized “alarming patterns of negligence in housing maintenance.” Balfour management allegedly tried to blame “dog hair” and “excessive pasta boiling” in at least one case.
What fraudulent practices did some Balfour Beatty employees allegedly witness?
According to a report by Air Force Times, some who worked for Balfour Beatty alleged they witnessed company employees being “instructed to lie to Navy housing inspectors, block visible damage, and select only ‘perfect’ files for audits.”
The same Air Force Times article alleges that when Representative Debbie Wasserman Schultz asked Master Chief Petty Officer of the Navy James Honea about the allegations, that questioning included claims that Balfour Beatty officials blocked Navy personnel from inspecting houses.
How do I report issues with military housing?
One of the most important things to do is to try to resolve the issue at the lowest possible level. If you have a problem with your housing unit, such as maintenance issues, safety concerns, or lease disputes, your initial contact should be with the base housing office, property manager, or the private company that manages your housing.
Keep detailed records of all communication with your housing provider. This includes dates, times, names of individuals you spoke with, and the specifics of your complaint. Take photos or videos of the problem, if applicable. Inform your chain of command that you are experiencing housing issues if you can’t get resolution to your problems.
>>Deals and discounts for military, veterans, and their families. Sign up to receive military discounts direct to your inbox.
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
