B-164938, AUG. 26, 1968

B-164938: Aug 26, 1968

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R. KELLIHER: THIS IS IN REPLY TO YOUR UNDATED LETTER. STINGER WAS CHARGED A $681.25 FEE ON HIS CONSTRUCTION PERMANENT LOAN WHICH COVERED THE LENDING INSTITUTION'S USUAL LOAN ORIGINATION FEE OF 1 PERCENT AND ITS 1-1/2 PERCENT FEE FOR MAKING INSPECTIONS AND DISBURSEMENTS DURING THE PERIOD OF CONSTRUCTION. WHILE THE USUAL LOAN ORIGINATION FEE OF $272.50 WAS ALLOWED AND PAID. REIMBURSEMENT IS AUTHORIZED BY 5 U.S.C. 5724A (A) (4) FOR COSTS INVOLVED IN THE PURCHASE OF A RESIDENCE. CHARGES INCIDENT TO THE CONSTRUCTION OF A RESIDENCE ARE NOT EXPENSES INVOLVED IN THE PURCHASE OF A RESIDENCE WHICH ARE REIMBURSABLE.

B-164938, AUG. 26, 1968

TO LIEUTENANT COLONEL J. R. KELLIHER:

THIS IS IN REPLY TO YOUR UNDATED LETTER, REFERENCE CF, REQUESTING OUR DECISION AS TO WHETHER YOU MAY PAY A VOUCHER FOR $408.75 IN FAVOR OF MR. DALE W. STINGER. THE AMOUNT CLAIMED REPRESENTS AN ITEM OF EXPENSE INCURRED IN CONNECTION WITH THE PURCHASE OF A RESIDENCE INCIDENT TO MR. STINGER'S PERMANENT CHANGE OF STATION FROM DCASR-SF, BURLINGAME, CALIFORNIA, TO AFCMD, AFPRO MARTIN MARIETTA CORP., DENVER DIVISION, ON OCTOBER 6, 1967.

MR. STINGER WAS CHARGED A $681.25 FEE ON HIS CONSTRUCTION PERMANENT LOAN WHICH COVERED THE LENDING INSTITUTION'S USUAL LOAN ORIGINATION FEE OF 1 PERCENT AND ITS 1-1/2 PERCENT FEE FOR MAKING INSPECTIONS AND DISBURSEMENTS DURING THE PERIOD OF CONSTRUCTION. WHILE THE USUAL LOAN ORIGINATION FEE OF $272.50 WAS ALLOWED AND PAID, YOU QUESTION WHETHER THE BALANCE OF THE FEE, $408.75, MAY BE PAID.

REIMBURSEMENT IS AUTHORIZED BY 5 U.S.C. 5724A (A) (4) FOR COSTS INVOLVED IN THE PURCHASE OF A RESIDENCE. HOWEVER, CHARGES INCIDENT TO THE CONSTRUCTION OF A RESIDENCE ARE NOT EXPENSES INVOLVED IN THE PURCHASE OF A RESIDENCE WHICH ARE REIMBURSABLE. B-164452, JULY 2, 1968, COPY ENCLOSED.