Hunt Military Communities, the largest private landlord on U.S. military bases, has been sued repeatedly since 2019 by service members and their families alleging mold, sewage, pest infestations, lead paint, and fraudulent maintenance records at Texas Air Force bases, and separately settled a federal whistleblower fraud case tied to Dover Air Force Base. The lawsuits against Hunt Military Communities have produced one jury verdict, one federal settlement, and a 2025 appellate ruling that sharply narrows what military tenants can recover.
The 2019 Texas Lawsuits
On October 29, 2019, eight military families filed a federal lawsuit in San Antonio against Hunt Military Communities, AETC II Privatized Housing LLC, and AETC II Property Managers LLC, alleging the company knowingly leased uninhabitable homes at Randolph and Laughlin Air Force Bases in Texas.1MOAA. Cockroaches, Mold, Raw Sewage: Eight Military Families Sue Privatized Housing Company
The complaint described pervasive mold, cockroach infestations, raw sewage pooling beneath homes from disconnected plumbing, leaking roofs, crumbling foundations, asbestos, and lead-based paint. Families reported respiratory illnesses, contaminated belongings, and paying full Basic Allowance for Housing for homes they considered dangerous. One family at Randolph evacuated after finding eight inches of standing raw sewage in the crawlspace.2Project On Government Oversight. Inside the Fight for Safe Military Housing The plaintiffs accused Hunt of misdiagnosing maintenance problems, hiring unqualified workers, misleading families about repairs, and retaliating against those who complained.1MOAA. Cockroaches, Mold, Raw Sewage: Eight Military Families Sue Privatized Housing Company
Hunt denied the allegations at the time, calling the lawsuit “without merit.”1MOAA. Cockroaches, Mold, Raw Sewage: Eight Military Families Sue Privatized Housing Company Between 2019 and 2022, roughly 20 military families filed four separate suits in Texas federal courts against Hunt, covering housing at Randolph, Laughlin, Goodfellow Air Force Base, and Fort Sam Houston.2Project On Government Oversight. Inside the Fight for Safe Military Housing
The Vinales Verdict: $91,654
The first case to reach a jury was brought by Lt. Col. Shane Vinales and his wife Becky, who alleged Hunt failed to maintain their Randolph home and cited mold, a recurring water leak, broken fixtures, and an ant infestation. After a three-week trial, a seven-member federal jury in the Western District of Texas returned a verdict on June 22, 2023, awarding the family $91,654.3Stars and Stripes. Military Housing Lawsuit Mold
The award broke down to $31,654 for diminution in rental value and $60,000 for personal property loss.4CaseMine. Fifth Circuit Clarifies the Limits of State Law in Federal Enclaves The jury excluded rent for the final four months of occupancy, finding Hunt had attempted repairs in that period.3Stars and Stripes. Military Housing Lawsuit Mold The trial did not address health effects of mold exposure. The judge had confined the case to a breach-of-contract claim under the federal enclave doctrine, and that doctrine went on to shape everything that followed.
Why the Federal Enclave Doctrine Keeps Winning
Hunt’s most effective defense has been jurisdictional. Because military bases sit on land ceded to the federal government, the federal enclave doctrine holds that only the state laws in effect at the time of cession continue to apply. For Randolph, that transfer happened in 1951. Texas’s implied warranty of habitability (1978) and implied warranty of good and workmanlike repairs (1987) both post-date it and therefore, according to the courts, do not reach families living on the base.2Project On Government Oversight. Inside the Fight for Safe Military Housing
On June 27, 2025, the U.S. Fifth Circuit Court of Appeals affirmed the lower court’s Vinales judgment in every respect. In a per curiam opinion, a panel of Chief Judge Elrod and Circuit Judges King and Graves rejected the argument that current state laws should apply as long as they don’t conflict with federal jurisdiction, holding that post-cession state law simply does not apply on the enclave. The panel also found that a federal statute allowing state law to govern personal-injury claims on enclaves did not help the plaintiffs, because their Texas Deceptive Trade Practices Act claims were economic rather than personal-injury claims under Texas law. And it dismissed the argument that Hunt’s lease language promising compliance with “all applicable federal, state and local laws” was a choice-of-law provision that could override the doctrine.5FindLaw. Vinales v. AETC II ELP
In earlier filings, Hunt’s lawyers argued that military family members had “no rights” as tenants because they were not signatories on the leases, citing an 1903 law regarding “master and servant” obligations.2Project On Government Oversight. Inside the Fight for Safe Military Housing
The Vinales family petitioned the U.S. Supreme Court for review, and the Project On Government Oversight filed an amicus brief in December 2025 challenging the doctrine’s application to privatized housing. On January 12, 2026, the Court denied certiorari, leaving the Fifth Circuit’s ruling intact.6U.S. Supreme Court. Vinales v. AETC II Privatized Housing, No. 25-615 The practical effect: within the Fifth Circuit, military tenants on federal enclaves have far fewer legal tools than civilian renters just outside the base gates.
New Lawsuits in 2026
Filings continued after the Supreme Court’s denial. On February 11, 2026, nine military families sued Hunt in the Western District of Texas over housing at Randolph and Laughlin, again alleging pervasive mold, pest infestations, failing foundations, and lead paint. One home reportedly tested at 71 times the acceptable standard for cleanliness. Families said Hunt painted over mold rather than remediating it, declined to authorize mold testing, entered homes without permission, changed locks on tenants, and left properties unsecured during repairs. Some plaintiffs alleged Hunt threatened the military careers of service members who reported problems.7Mortgage Professional America. Nine Families Sue Hunt Military Communities Over Toxic Base Housing
On March 13, 2026, three more families filed a separate federal suit in the same court. Retired Master Sgt. Michael and Angela Kellar, retired Staff Sgt. Leroy and Shelvella Holmes, and Senior Master Sgt. Matthew and Ashley Eller alleged “deplorable” conditions at Randolph between 2017 and 2025, including sewage seepage, non-functional toilets, mold, asbestos, lead paint, and infestations of roaches, spiders, raccoons, and possums entering through unsecured crawlspaces.8Stars and Stripes. Military Families Lawsuit Housing Randolph AFB The families reported asthma, bronchitis, skin rashes, nosebleeds, and gastrointestinal issues that worsened during their tenancy and improved when they were away.9San Antonio Express-News. Lawsuit Housing Randolph Rodents Mold Air Force
Attorney Ryan Reed, who filed the March 2026 suit, represents about 150 military families at seven Texas bases with similar claims against private housing companies.9San Antonio Express-News. Lawsuit Housing Randolph Rodents Mold Air Force
The Dover Whistleblower Settlement
A separate track produced a different result. In January 2020, Christine Kibler, a former community director for Hunt at Dover Air Force Base in Delaware, filed a False Claims Act whistleblower suit alleging that employees lied about completing repairs to secure performance-based bonuses from the government. Kibler also reported observing mold, fire safety problems, ventilation failures, and water leaks, and alleged she was fired shortly after raising these concerns.10PR Newswire. Hoyer Law Group Whistleblower Client Helps Uncover $500,000 Military Housing Fraud
The government’s allegations covered January 2013 through June 2019, during which Hunt allegedly submitted false work order data to inflate quarterly performance incentive fees.11U.S. Department of Justice. Hunt Companies Pay $500,000 to Resolve Fraud Allegations at Dover Air Force Base On January 6, 2022, Hunt agreed to pay $500,000 to resolve the claims. The settlement included no admission of liability, and Hunt expressly denied the allegations.12Military Times. Hunt Companies Settles Housing Fraud Claim at Dover Air Force Base Hunt said afterward that it had “strengthened compliance, verification, and oversight” and adopted a zero-tolerance policy for the conduct alleged.2Project On Government Oversight. Inside the Fight for Safe Military Housing
The Employee Wage Class Action
Hunt also faced a suit from its own workforce. In 2021, hundreds of Hunt Military Communities maintenance workers filed a class action alleging the company illegally withheld pay for on-call hours. In August 2023, Hunt settled for approximately $1.06 million. The company subsequently stopped requiring maintenance staff to be on-call for emergencies, making those hours voluntary, while maintaining that its prior on-call policy had been “fully compliant” with overtime rules.2Project On Government Oversight. Inside the Fight for Safe Military Housing
Where the Cases Stand
With the Supreme Court’s denial in Vinales, the federal enclave doctrine remains in force in the Fifth Circuit, blocking military families from invoking modern Texas tenant protections. The 15 remaining cases from the original Texas lawsuits had been on hold pending that outcome, and jury trials for three of those families are scheduled for the summer of 2026.13San Antonio Express-News. Mold, Pests, Judgment: Fifth Circuit Ruling Claims in the February and March 2026 filings remain at early stages.8Stars and Stripes. Military Families Lawsuit Housing Randolph AFB
Hunt spokesperson Carolyn Baker has said the company is committed to providing high-quality housing and has “rigorous processes in place” to address maintenance issues.8Stars and Stripes. Military Families Lawsuit Housing Randolph AFB The proposed fiscal year 2026 National Defense Authorization Act includes provisions that would mandate mold mitigation standards, limit application of the federal enclave doctrine to restore legal rights for military families, and prohibit landlords from requiring non-disclosure agreements from tenants.14Project On Government Oversight. Fact Sheet: How Housing Conditions Are Failing Military Families Whether that language survives into final law will do more to shape future Hunt litigation than any single verdict.