B-165544, APR. 22, 1969

B-165544: Apr 22, 1969

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WHICH WAS EFFECTIVE ON OR ABOUT JULY 10. THE EXACT DATE OF FINAL SETTLEMENT ON THE COMPLETED RESIDENCE IS NOT SHOWN IN THE RECORD. IT APPEARS THAT THE RESIDENCE WAS NOT COMPLETED AND TURNED OVER TO MR. A-56 IS APPLICABLE ONLY WHEN SETTLEMENT IS NECESSARILY DELAYED BY LITIGATION. IT APPEARS IN THIS CASE THAT SETTLEMENT WAS DELAYED BY FAILURE OF THE BUILDER TO COMPLETE THE RESIDENCE BEFORE THE EXPIRATION OF THE PERIOD ALLOWED. FOR THE REASONS STATED THE VOUCHER WHICH IS RETAINED IN OUR FILES MAY NOT PROPERLY BE PAID.

B-165544, APR. 22, 1969

TO CAPTAIN J. E. DUNKLEY, USA:

WE REFER TO YOUR LETTER OF OCTOBER 22, 1968, YOUR REFERENCE DCRA FOAA, AS SUPPLEMENTED BY LETTER OF APRIL 8, 1969, BY WHICH YOU REQUEST OUR ADVANCE DECISION WHETHER YOU MAY PROPERLY PAY THE VOUCHER OF MR. RONALD G. JACKSON TO REIMBURSE HIM THE COSTS HE INCURRED IN CONNECTION WITH HIS PURCHASE OF A RESIDENCE AT HIS NEW OFFICIAL STATION INCIDENT TO HIS TRANSFER FROM SARASOTA, FLORIDA, TO ST. PETERSBURG, FLORIDA, WHICH WAS EFFECTIVE ON OR ABOUT JULY 10, 1967.

THE FACTS PRESENTED SHOW THAT MR. JACKSON CONTRACTED FOR THE CONSTRUCTION OF A RESIDENCE AND THAT HE OBTAINED CONSTRUCTION AND MORTGAGE LOAN COMMITMENTS ON APRIL 16, 1968. THE EXACT DATE OF FINAL SETTLEMENT ON THE COMPLETED RESIDENCE IS NOT SHOWN IN THE RECORD, HOWEVER, IT APPEARS THAT THE RESIDENCE WAS NOT COMPLETED AND TURNED OVER TO MR. JACKSON UNTIL MORE THAN 1 YEAR AFTER THE EFFECTIVE DATE OF HIS TRANSFER. ACCORDINGLY, UNDER THE DECISIONS B-165121, SEPTEMBER 18, 1968; B-164452, JULY 2, 1968, MR. JACKSON MAY NOT BE REIMBURSED THE COSTS HE INCURRED IN CONNECTION WITH THE PURCHASE OF THE RESIDENCE AT HIS NEW DUTY STATION.

WITH REGARD TO THE STATEMENT OF MR. JACKSON'S ATTORNEY TO THE EFFECT THAT LITIGATION MAY RESULT FROM THE PURCHASE TRANSACTION, WE NOTE THAT THE EXCEPTION TO THE 1-YEAR LIMITATION AS PROVIDED IN SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 IS APPLICABLE ONLY WHEN SETTLEMENT IS NECESSARILY DELAYED BY LITIGATION. IT APPEARS IN THIS CASE THAT SETTLEMENT WAS DELAYED BY FAILURE OF THE BUILDER TO COMPLETE THE RESIDENCE BEFORE THE EXPIRATION OF THE PERIOD ALLOWED. ADDITIONAL DELAY IN SETTLEMENT OF THE PURCHASE OF THE RESIDENCE AFTER ITS COMPLETION EVEN THOUGH CAUSED BY LITIGATION WOULD NOT BRING THE CASE WITHIN THE PURVIEW OF THE EXCEPTION TO THE 1-YEAR LIMITATION.

FOR THE REASONS STATED THE VOUCHER WHICH IS RETAINED IN OUR FILES MAY NOT PROPERLY BE PAID.