Agreement between the Department of Housing and Urban Development and the Army Corps of Engineers on Flood Insurance Studies

The Secretary of the Army requested an opinion on whether an agreement entered into by the Department of Housing and Urban Development (HUD) and the Army Corps of Engineers for the performance of flood insurance studies is exempted from the requirements of the Economy Act so that funds transferred from HUD to the Corps remain available to finance performance of such studies beyond the end of the fiscal year for which the funds were appropriated. Under this agreement, HUD appropriations are obligated and remain fully payable from appropriations initially charged for order regardless of when performance occurs. Agreement for flood insurance studies is authorized by statutory provisions other than the Economy Act and is, therefore, not subject to the unique obligation treatment applicable to Economy Act transactions.