Claims for Increased Housing Allowances

GAO was asked whether a station housing allowance authorized for U.S. military members assigned to a Royal Air Force Base in England could be retroactively increased. The personnel, who are occupying rental housing, are eligible to receive an overseas station housing allowance to assist in defraying the average excess housing costs incurred while on assignment outside the United States. These housing allowances are computed annually based on housing costs submitted by various overseas stations. Occupants of the station housing were notified that their rents would be increased retroactively. These retroactive rent increases were included in the increased rental costs used to compute the new station housing allowances. However, due to the administrative time required to compute and issue regulations pertaining to the new allowance, the new allowances did not take effect until more than 2 months after the effective date of the rent increase. GAO was asked if the new allowance rates could be made retroactive to the date that the new rental rates went into effect. When regulations are properly issued, the rights thereunder become fixed and may not be amended retroactively except to correct obvious errors. In this case, the original rates were apparently properly computed, and there was no error in setting the new rates. Accordingly, the housing allowances in question could not be made retroactively effective.