Request for Station Housing and Cost-of-Living Allowances

A request for an advanced decision was made concerning whether a member of the Army was entitled to station allowances at the with-dependents rate following his permanent change of station from the island of Oahu to Hawaii, when his dependents continued to reside in Oahu. While stationed on Oahu, he received station allowances at the with-dependent rate applicable to Oahu. He had been informed that his pay would not decrease if he accepted the assignment on Hawaii. He was entitled to move his family at Government expense to Hawaii; however, they remained on Oahu. Shortly after he moved, the Army discontinued his station allowances. The member believed that he was entitled to station allowances at the with-dependent rate since his family resided in the vicinity of his permanent duty station. The Army challenged this interpretation, pointing out that vicinity does not encompass situations involving separate areas and separate households. The Army contended that there were no restrictions to preclude him from moving his family to Hawaii at Government expense, and maintenance of the family residence on Oahu was a personal choice. GAO held that the various islands composing the State of Hawaii should be considered as the vicinity of Hawaii. Station allowances may be authorized if the dependents reside in the vicinity of the member's duty station regardless of whether separate residences are maintained. The member was entitled to station allowances at the with-dependent rate which applies to the allowance rate for Hawaii.