How a 50-year lease on two Air Force bases allegedly became a property nightmare
Nine military families say a major privatized housing operator let mold take over their homes on two Texas Air Force bases.
A complaint filed on February 11, 2026, in the United States District Court for the Western District of Texas accuses AETC II Privatized Housing, LLC, AETC II Property Managers, LLC, and Hunt ELP, Ltd., doing business as Hunt Military Communities, of years of neglect across housing units at Randolph Air Force Base and Laughlin Air Force Base.
The story behind the lawsuit starts in 1996, when Congress created the Military Housing Privatization Initiative to bring private-sector management into military base housing. By 2007, the Air Force had handed Hunt a 50-year lease and quitclaim deed covering the residential portions of both bases. In exchange, Hunt took on the job of maintaining, repairing, and managing the housing communities. According to the complaint, what followed was anything but professional property management.
The plaintiffs allege that Hunt systematically under-maintained the properties, with Randolph alone home to more than 300 residences. They describe pervasive mold, pest infestations, failing foundations, and lead paint across multiple units. When tenants filed maintenance requests, the complaint alleges Hunt would misdiagnose problems, send unqualified workers, and mislead families about what had actually been done. One recurring allegation stands out: that Hunt's go-to fix for mold was to paint over it.
For anyone in the property management business, the allegations read like a cautionary tale. The complaint claims Hunt collected the full Base Allowance for Housing from each tenant family while allegedly delivering housing that fell well below habitability standards. Independent testing at one home allegedly found contamination at 71 times the standard for cleanliness.
The complaint goes further. It alleges Hunt declined to authorize mold testing even when remediation was needed, did not offer prospective tenants pre-lease walkthroughs, entered homes without permission, changed locks on tenants still under lease, and left properties unsecured during repairs. Some plaintiffs allege Hunt threatened the military careers of service-members who spoke up.
Families allege they suffered respiratory problems, asthma diagnoses in children, and significant mental distress. Several say they had to throw away most of their belongings because of mold contamination when they moved out.
The case, brought under federal enclave jurisdiction, is still in its early stages. Everything described above remains an allegation. No court has issued a ruling or judgment.
Still, if even a fraction of these claims holds up, the case could sharpen the spotlight on how privatized housing operators manage government-backed portfolios, and what accountability looks like when property management falls short on a large scale.
