B-161180, JAN. 5, 1970

B-161180, JAN. 5, 1970

MILITARY--OVERSEAS HOUSING ALLOWANCES DECISION TO OFFICER IN THE MILITARY SERVICE CONCERNING OVERSEAS HOUSING ALLOWANCE COMPUTATION. THE PRESENT METHOD OF COMPUTATION WAS PERMITTED TO BE CONTINUED ON THE BASIS OF ADVICE THAT CONGRESS INTENDS TO SCHEDULE HEARINGS ON BILL TO CHANGE BASIS FOR PAYMENTS. THEREFORE PAYMENTS PRIOR TO APRIL 1, 1970 ON THE PRESENT FORMULA BASIS WILL NOT BE QUESTIONED.

TO MAJOR ANTHONY P. DIBENEDETTO:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 28, 1969, REGARDING A DECISION OF THIS OFFICE WHICH YOU SAY REQUIRES AN ADJUSTMENT IN OVERSEAS HOUSING ALLOWANCES. THE HONORABLE J. CALEB BOGGS, UNITED STATES SENATE, HAS ALSO WRITTEN US IN YOUR BEHALF REGARDING THIS MATTER. YOU DO NOT IDENTIFY THE DECISION INVOLVED. HOWEVER, YOU APPEAR TO HAVE REFERENCE TO A DECISION RENDERED NOVEMBER 13, 1969, B 161180, COPY ENCLOSED.

YOU SAY IN YOUR LETTER THAT YOU AND YOUR DEPENDENTS WILL BE GOING TO THAILAND IN JANUARY 1970, AND THAT HOUSING THERE IS VERY EXPENSIVE, AVERAGING $265 TO $320 A MONTH FOR A THREE BEDROOM HOUSE OR APARTMENT. ALSO, YOU SAY THAT, AS A MEMBER WITH FOUR DEPENDENTS YOUR BASIC ALLOWANCE FOR QUARTERS IS $145.05 PER MONTH AND THAT UNDER PRESENTLY AUTHORIZED STATION ALLOWANCES YOU WOULD RECEIVE $1.35 PER DAY AS COST OF-LIVING ALLOWANCE AND $7 PER DAY AS A HOUSING ALLOWANCE. YOU ASK HOW THE DECISION WILL AFFECT YOUR FAMILY.

THE DECISION OF NOVEMBER 13, 1969, IS THE THIRD DECISION RENDERED BY THIS OFFICE ON THE SUBJECT OF THE OVERSEAS HOUSING ALLOWANCE. IT SIMPLY ADVISED THE SECRETARY OF DEFENSE THAT IN THE ABSENCE OF SOME FAVORABLE CONGRESSIONAL ACTION, THIS OFFICE COULD NO LONGER DEFER THE IMPLEMENTATION OF THE CONCLUSION REACHED IN DECISION OF DECEMBER 11, 1967, B-161180, 47 COMP. GEN. 333, COPY ENCLOSED, THAT THE BASIS USED FOR DETERMINING AND COMPUTING THE OVERSEAS STATION ALLOWANCES WAS NOT CONSISTENT WITH THE LANGUAGE OR PURPOSE OF THE STATUTORY PROVISION CONCERNED.

THIS OFFICE DOES NOT PRESCRIBE THE AMOUNT OF THE ALLOWANCE. THIS IS DONE BY THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE, LOCATED IN THE DEPARTMENT OF DEFENSE, AND WE RECOGNIZED THAT A NEW FORMULA WOULD HAVE TO BE DEVELOPED FOR PURPOSES OF COMPUTING THE HOUSING ALLOWANCE. CONSEQUENTLY, WE CONCLUDED IN THE DECISION OF DECEMBER 11, 1967, THAT UNTIL SUCH TIME AS THE FORMULA FOR COMPUTING THE ALLOWANCE COULD BE REVISED AND PROPER RATES PROMULGATED ON AN ORDERLY BASIS WE WOULD NOT OBJECT TO COMPUTATION AND PAYMENT OF THE ALLOWANCE ON THE BASIS OF THE FORMULA THEN IN EFFECT. FOR THE REASON STATED IN THE DECISION OF NOVEMBER 13, 1969, WE CONCLUDED THAT WE COULD NO LONGER SANCTION ANY FURTHER DELAY IN THE IMPLEMENTATION OF THE DECISION OF DECEMBER 11, 1967.

ON DECEMBER 16, 1969, THE CHAIRMAN, COMMITTEE ON ARMED SERVICES, HOUSE OF REPRESENTATIVES, ADVISED US THAT HE INTENDS TO SCHEDULE HEARINGS ON THIS PROBLEM AND H.R. 14322, A BILL RELATING THERETO, EARLY IN THE NEXT SESSION OF CONGRESS AND REQUESTED THAT THE DEPARTMENT OF DEFENSE BE PERMITTED TO CONTINUE THE CURRENT METHOD OF COMPUTING THE ALLOWANCES PENDING FINAL RESOLUTION OF THE MATTER BY THE 91ST CONGRESS. BY LETTER B-161180 OF DECEMBER 30, 1969, WE ADVISED THE CHAIRMAN THAT IN VIEW OF HIS STATEMENT THAT HE INTENDS TO SCHEDULE HEARINGS ON THE PROBLEM AND THE BILL EARLY IN THE NEXT SESSION OF CONGRESS WE WILL NOT QUESTION OVERSEAS ALLOWANCE PAYMENTS MADE PRIOR TO APRIL 1, 1970, ON THE BASIS PRESENTLY BEING USED FOR SUCH PAYMENTS.

AS POINTED OUT IN THE DECISION OF DECEMBER 11, 1967, THE PRESENT HOUSING ALLOWANCE RATES NOT ONLY REIMBURSE THE MEMBERS FOR INCREASED OVERSEAS HOUSING COSTS BUT ALSO OPERATE TO REIMBURSE THE MEMBERS FOR THE DIFFERENCE BETWEEN THE BASIC ALLOWANCE FOR QUARTERS AND THE RENTAL COSTS OF HOUSING IN THE UNITED STATES, A REIMBURSEMENT NOT AUTHORIZED OR CONTEMPLATED BY LAW. IN THIS RESPECT, IT MAY BE NOTED THAT THE COMBINED TOTAL MONTHLY PAYMENT TO YOU UNDER THE PRESENT RATES FOR HOUSING $355.05 ($145.05 BASIC ALLOWANCE FOR QUARTERS PLUS $210 HOUSING ALLOWANCE (30 DAYS AT $7)), IS APPROXIMATELY $35 IN EXCESS OF THE MAXIMUM MONTHLY HOUSING COST OF $320 STATED IN YOUR LETTER.