Lt. Cmdr. Nestor Nazario and his wife Ivonne yesterday were handed the keys to the first new home built at McGrew Point — one of five Navy community developments that will include 1,952 new or renovated homes.

"It's so amazing, no words can describe it," Ivonne Nazario said as she toured her new two-story, four-bedroom home with her daughter Nicole.

In a ceremony yesterday at McGrew Point, Hawai'i Military Communities, LLC — a private group contracted to build and maintain homes for Navy families — opened the first of 23 new homes. The rest are set to be completed by the end of August.

"We are proud the Nazario family will have a safe and sturdy home to live in," said Thomas Henneberry, president of HMC.

Henneberry said that while building new homes is one of HMC's priorities, the group is also dedicated to supporting military families.

The Nazarios are among hundreds of military families in Hawai'i who will move into new or renovated homes built or managed by private developers and property managers. The project is part of the Department of Defense's $2.2 billion efforts to partner with private developers and property managers who will overhaul military homes on O'ahu and manage them for 50 years.

Privatization contracts include demolition and replacement of housing, renovation of livable housing, continued replacement and maintenance of housing communities over the next 50 years, said Karen Spangler, Navy housing spokeswoman.

The Nazarios lived for five years at McGrew Point on Lahiki Circle, but Ivonne Nazario said her old home was nothing like the new one her family moved into today.

"It's so beautiful in here; there isn't a thing I would change," she said.

"This house represents the elevation of the quality of life for Navy families," said Rear Adm. Michael Vitale.

The first phase of the $358 million development project covers more than 900 new homes and the renovation of 1,040 existing homes over the next four years in the Navy communities of McGrew Point, Hokulani, Moanalua Terrace, Halsey Terrace and Radford Terrace, according to Spangler.

By the end of August, 23 new homes will have been built at McGrew Point, 72 at Radford Terrace by the end of September and 106 at Halsey Terrace by March 2006.

Recently renovated homes in the communities of Hokulani and Moanalua Terrace are being managed by HMC, Spangler said.

The Navy is not the only branch in partnership with private companies to provide housing to military families.

Actus Lend Lease is in a multi-billion dollar partnership with the Army and the Air Force to build and maintain military homes for 50 years, said Bennette Evangalista of Actus.

Actus has not built any new homes for the Army but construction and demolition in Army neighborhoods could begin as early as this week, she said.

Contractually, Actus does not need to have any homes finished until July 2006, but in the meantime it is managing approximately 8,000 homes at Schofield Barracks, Helemano Military reservations, Fort Shafter, Aliamanu Military Reservations and Wheeler Army Airfield, Evangalista said.

Over the next 10 years, Actus is planning for 5,388 new homes and 2,506 renovations. Of the new homes, 5,300 of them are replacements for those to be demolished, Evangalista said.

Air Force families could have 24 new housing units (approximately six buildings) by the end of the year, she said.

Actus subsidiary Hickam Community Housing LLC manages approximately 1,300 housing units, most of which are on Hickam Air Force Base, according to Evangalista. Over the next four years, more than 800 homes are expected to be built and more than 500 will be renovated, she said.

"We're on track to meet those goals," Evangalista said yesterday.

Housing on Ford Island, which includes 40 historic housing units and 100 homes built just last year, is still under Navy management and are not a part of the public-private venture, said Agnes Tauyan of Navy public affairs.

At the Navy housing ceremony yesterday, Rep. Neil Abercrombie, D-Hawai'i, said the private partnerships are important in order to create and maintain the quality of housing that military personnel deserve.

"We knew that Hawai'i had been particularly criticized, about the time I came into Congress, for having housing that was far below par in all of the service," Abercrombie said.

But with these new homes, that will change, he said.

The new homes have central air conditioning, three to four bedrooms, laundry rooms, modern kitchens and alarm systems.

Yesterday, Nestor Nazario said he was honored to be able to move into the first of many homes to come that represent a higher standard of living for military families.

"It's so overwhelming. Our family is getting such an incredible honor," he said.