The Military Family Act, Public Law 99-145, "DoD Authorization Act, "November 8, 1985, Section 806, "Employment Opportunities for Military Spouses," focused attention on the important role played by Military Families in the Department of Defense. Military spouse satisfaction, which greatly affects the retention rate of military members, depends to a large degree on finding the right work situation at a new duty station.

Many military spouses have found self-employment in a home-based business to be a good solution to the challenge of frequent moves. In the past, military spouses living in private housing could operate a home-based business, but if they lived in military housing, they were specifically prohibited from conducting any commercial activities by some of the Services.

New guidance has changed this situation and commands have been directed to foster and encourage private commercial activities in military housing. The guidance for the four Services follows.

Webmaster's Note: The policies that govern your situation will be those of the host installation, which may be different from your military partner's branch of service; For example, if you are an Air Force family member living at an Army installation, the Army's policies would apply.

ARMY

Subject: Family Member Employment From Government Housing

1. The Department of Defense has directed that we foster and encourage the use of family quarters for certain limited commercial activities. It is recognized that we are now allowing certain limited commercial enterprises, such as handicrafts, child care, and sale of products to be conducted by occupants of government quarters.

2. Commands should continue to allow these practices and each commander should follow regulatory guidance in place for commercial solicitation. In addition, commanders should request that persons wishing to engage in commercial activities in family quarters submit a written request for authorization to do so. Such requests should be granted where feasible. Issues such as local government licensing requirements, potential government liability, overseas Status of Forces Agreements, host country business practices, and prospective advertising practices should be considered for each request. Commanders may not authorize a commercial enterprise at the expense of military community tranquillity, harmony among neighbors or safety.

3. When practical and feasible, commanders may authorize occupants to make minor modifications to housing units. Costs for modification and restoration, if required, will be at the occupant's expense. All minor modification requests and approvals will be processed under existing regulations which govern projects in family housing. Utility costs associated with some enterprises should be recouped when such collections are cost effective.

4. Compliance with the provisions of AR 600-50, Standards of Conduct, which prohibit solicited sales to subordinates must be a condition for granting approval to conduct commercial activities in family quarters. Sales of merchandise not available through the Army and Air Force Exchange should not be construed to be competing with an installation's officially sanctioned commerce.

(HQDA Message DAPE-ZA 04220OZ FEB 87)

NAVY

Subject: Family Member Employment For Government Quarters

A. OPNAVINST 1101.13H

1. In support of the intent of Section 806 of Public Law 99-145 (DoD Authorization Act, 1986) to increase employment opportunities for military spouses, private commercial enterprises are permitted in military family housing (MFH) within the guidelines of Ref. A.

2. Application to operate private commercial enterprises (such as tailoring/dressmaking, tax form preparation, etc.) in MFH must be made in writing to the installation commander or designee, via the Housing Authority (HA). The request must be approved in advance of starting the operation. The HA will ensure that occupants are aware of all requirements to be met prior to the conduct of any enterprise.

A. Local government licensing requirements, potential government liability, overseas Status of Forces Agreements, host country business practices, and prospective advertising practices should be taken into account as each request is considered. Legal advice must be sought if doubt exists concerning these issues. In no case will activities be authorized or continued at the expense of military community tranquillity or safety.

B. When feasible, the HA should allow occupants to make minor modifications to housing units at the occupant's personal expense. Any requests to perform minor modifications, and any actual modification approved, should be processed per existing regulations which govern self-help in MFH. External alterations and external advertising of such enterprises are prohibited. Utility costs associated with home enterprises should be recouped when cost effective.

C. Authorization of family member employment in MFH should be conditioned upon agreement by the family member to comply with the provisions in DODINST 5500.7 and SECNAVINST 5370.2H prohibiting solicited sales to subordinates.

D. Sales of specific brand name merchandise not available to exchange patrons through the military exchanges should not be construed to be competing with an installation's officially sanctioned commerce.

3. Commanding officers are encouraged to permit private commercial enterprises in MFH within established guidelines. This effort enhances the QOL of our families by recognizing the abilities and talents of members and spouses and supports the efforts of spouses who remain at home to supplement family income.

(A CNO 012258Z MAY 87)

AIR FORCE

Commercial Activities From Family Housing (Housing Manual Chapter 15)

15-1. Basic Concept. It is Air Force policy to promote and encourage limited commercial activities which may be properly carried out from military family quarters. Commercial activities are defined as business enterprises conducted for profit by a family member(s) assigned to the dwelling unit.

a. Activities may involve direct sales of products; offering of minor repair service on small items, or incidental services; limited manufacture of items, or tutoring services.

b. Sales of specific brand name merchandise not available to exchange patrons through the military exchanges should not be construed to be competing with an installation's officially sanctioned commerce.

15-2. Applicability. This regulation applies to all personnel, civilian or military, assigned to military family housing, including family members of the assigned sponsor.

15-3. Procedures. Requests for permission to conduct commercial activities in assigned family housing must be in writing and have the prior written approval of the installation commander or designee. Requests should be addressed to the commander through the individual's organization and the Family Housing Management Branch. Applicants will be given written notice of denials.

15-4. Limitations.

a. In no case will commercial activities be authorized or continued at the expense of community tranquillity, safety or the installation mission.

b. Issues of local government licensing requirements, agreement, host country business practices and prospective advertising-will be taken into account as each request is considered. Obtaining necessary licenses, etc., will be the responsibility of the applicant.

c. Child care from family quarters is a separate matter and governed by AFR 215-27.

d. Minor modifications to family quarters to permit commercial activates may be requested. If approved, modifications will be at occupant expense and must follow self-help guidelines in chapter 21, and must comply with electrical and fire safety codes.

15-5. Charges. Utility costs associated with home enterprises will be recouped when such collections are cost effective. Cost effectiveness will be determined by the local base civil engineer.

15-6. Solicitation and Liability:

a. Solicitations. The provisions of DOD Directive 5500.7, Standards of Conduct, concerning solicited sales to personnel junior in rank or grade apply. Authorization of family member employment in government quarters should be conditioned upon agreement by the family member to comply with the provisions of DOD Directive 5500.7 and Service regulations prohibiting solicited sales to subordinates.

b. Prohibition. The prohibition of DOD Directive 1344.7, Personal Commercial Solicitation on DOD Installations, section F, paragraph 4m, against door-to-door solicitation (in person or via printed material ) also applies.

c. Liability. Personal liability is a definite possibility when conducting a private business. Accordingly, applicants should consider obtaining personal liability insurance which will apply to legal actions brought by customers as well as covering the applicant for damage to government property.

(AFR 90-1(CI) 27 February 1987)

MARINE CORPS

Subject: MCBUL IIIOI. Family Member Employment from Government Quarters

A. MCO 11101.61A

B. MCOPIIOOO.15A

1. Paragraph 5D (6) of Reference (A) stipulates that no commercial activities will be conducted from public quarters. This message changes that policy.

2. Effective immediately family member employment from government quarters will be allowed with the following provisions.

a. Requests for permission to conduct a home enterprise such as child care, tailoring, tax preparation, dressmaking, etc., in military family housing should be made in writing to the installation commander or designee who should ensure that each request is expeditiously answered in writing. Such issues as local government licensing requirements, potential government liability, overseas Status of Forces Agreements, host country business practices, and prospective advertising practices should be taken into account as each request is considered. In no case will activities be authorized or continued at the expense of military community tranquillity or safety.

b. When practicable and feasible, commanders should allow occupants to make minor modifications to housing units at the occupant's personal expense. Any request to perform minor modifications must be approved by the installation commander. The occupant should be advised that they will be required to return the house to its original condition prior to vacating quarters. Utility costs associated with home enterprises should be recouped then such collections are cost effective.

c. The provisions of current directives for standard of conduct concerning solicited sales to personnel junior in rank or grade apply. Authorization of family member employment in government quarters should be conditioned upon agreement by the family member to comply with these provisions and regulations prohibiting solicited sales to subordinates. Home businesses should be restricted to the sale of merchandise and the provision of service that is not normally available in a commercial retail environment, i.e., Avon, Mary Kay, Amway, and other personalized services. In other words home businesses should not duplicate the sale of merchandise and service readily available through the installation's officially sanctioned commerce.

d. It is the responsibility of the occupant of government family housing to have an approved request before soliciting within a family housing area or conducting a private business to include children day care activities in a family housing unit or area. In all cases, the conduct of a private business in government family housing units or areas must be in strict compliance with applicable federal, state, and local ordinances.

(CMC Message ALMAR 115/87 200125Z MAY 87)

Advertising

Changes to DoD Directive 1344.7 issued in April 1987, permit advertising addresses or telephone numbers of commercial sales activities conducted in military housing. Consult installation commanding officers and housing manuals for regulations pertaining to commercial solicitations.

EXAMPLES OF HOME-BASED BUSINESSES:
(Regulations vary by location as to what is allowable-- This list is intended to provide some starting ideas.)

Is a Home-Based Business the Choice for You?

A home-based business could be just what you are looking for. Working from your home is well-suited to the military life style. It can provide flexibility, independence and when the orders come, portability. The new guidance greatly reduces the obstacles to running your home-based business while living in military housing. Asking yourself some question will help you to decide if a home-based business is a good choice for you.

Am I self-starter?

Can I take responsibility and follow through?

Can I make decisions?

Can I get along with most people?

Am I a good worker?

Can I separate my home and work environments?

Am I a good organizer?

What Kind of Business is Best for You?

Home-based business can be anything from childcare to word processing. There are excellent resources available to answer all your questions from how to get started, to paying taxes; but, before you get the right answers, you have to ask the right questions.

What are your goals: money, personal satisfaction, experience, contact with other people, fun, or availability to your family?

What are your special talents and abilities?

Do you want to sell your own product or service, or someone else's?

How much demand is there for your product or service?

What can your afford to invest? How much time can you give to your business without compromising the quality of your family life?

What are you permitted to do within your installation's regulations and local zoning and licensing requirements?

How much space is available to make your product or provide our service?

How will you advertise and sell your product or service?

How portable is your business?

Some of these questions only you can answer, while some can be answered only by your installation and local government agencies.

Once you have decided on your home-based business, the next step is to contact your installation's commanding officer or housing office for assistance in complying with the Service's regulations and the specific requirements of your installation.

Your installation's legal assistance office is a good source of general information, especially about liability and taxes. However, legal assistance officers are not authorized to provide specific detailed assistance for private commercial enterprises.

To find out what your state and local requirements are, look in the blue pages of your telephone book for state, city and county headings. There will be listings for business licenses, taxes and zoning offices.

RESOURCES

By now many questions have been asked and answered except for the all-important one: how do you make your home-based business happen? There are many resources available to you.

A good place to start is to send for STARTING AND MANAGING A BUSINESS FROM YOUR HOME, available for $1.75 from Department 146R, Consumer Information Center, Pueblo, CO 81009.

Contact the employment assistance counselor at your local Family Readiness Center.

Your installation or public library lists references in the card catalog under such heading as Business, Home-Based Businesses, Self-employed, and Small business-Management. BOOKS IN PRINT lists all books in print by subject, author, year and title, and gives all information necessary to order books. THE READER'S GUIDE TO PERIODICAL LITERATURE and BUSINESS INDEX can help identify articles on the subject of home-based businesses. The reference librarian can help you widen your search and direct you to any computerized information that would be helpful.

Public schools and local community colleges offer courses and workshops in setting up businesses. The Cooperative Extension Service, located in every county, has excellent resources available for the home-based worker. They can be found in the blue section of your telephone book under your county heading.

The U.S. Small Business Administration (SBA) can help the home-based business owner in several ways. They publish a free DIRECTORY OF BUSINESS DEVELOPMENT PUBLICATIONS (SBA 115A) available from the U.S. Small Business Administration, P.O. Box 15434, Fort Worth TX 76119. They operate a toll-free answer line to respond to your questions: l 800-368-5855. (Inquiries from outside the United States should be sent to the U.S. Small Business Administration, Office of Women's Business Ownership, 1441 L. St. N.W., Washington, DC 20416. The SBA has regional offices throughout the country that conduct classes relating to small business development. Regional offices are listed in the blue pages under United States Government.

The Internal Revenue Service (IRS) is an essential contact to make in establishing a home-based business, The SOLE PROPRIETOR'S KIT, is free of charge and contains both information and the necessary tax forms (available by phone at 1-800 424-1040, or by mail from EADC, P.O. Box 27322, Richmond, VA 23261). The GUIDE TO FREE TAX SERVICES, lists other IRS services (available from the Publications Order Branch, Stop SSOP, U.S. Government Printing Office, Washington, DC 20402). The IRS has regional offices listed in the blue pages under United States Government.

GOOD LUCK!!!

(This information was adapted from a publication by the Military Family Resource Center, Office of Family Policy and Support, 4015 Wilson Blvd., Suite 903, Arlington, VA 22203-5190, DSN: 226-4555, COMM: (202) 696-4555)