B-165879, FEB. 7, 1969

B-165879: Feb 7, 1969

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APPARENTLY FEELS THAT BECAUSE THE WATER AND SEWER HOOKUP COSTS WERE NOT INCLUDED IN THE CONSTRUCTION CONTRACT FOR HIS HOME HE IS ENTITLED TO REIMBURSEMENT THEREOF AS AN EXPENSE INCURRED IN THE PURCHASE OF A RESIDENCE. WE HAVE HELD THAT SINCE 5 U.S.C. 5724A (A) (4) ONLY AUTHORIZES REIMBURSEMENT OF EXPENSES INCURRED IN CONNECTION WITH THE PURCHASE OF A HOUSE. REGARDLESS OF THE FACT THAT THE HOOKUP COSTS WERE NOT INCLUDED IN THE CONSTRUCTION CONTRACT. OUR VIEW IS THAT SUCH COSTS ARE STILL A PART OF THE COST OF THE CONSTRUCTION OF THE HOUSE SINCE THE HOUSE COULD NOT BE UTILIZED OTHERWISE. THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.

B-165879, FEB. 7, 1969

TO MRS. NEDRA A. BLACKWELL:

YOUR LETTER OF DECEMBER 24, 1968, REFERENCE 360, IN EFFECT, REQUESTS OUR DECISION WHETHER YOU MAY CERTIFY FOR PAYMENT A VOUCHER FOR $398.80 IN FAVOR OF MR. WILLIAM R. MCCORMICK. THE AMOUNT CLAIMED REPRESENTS COSTS INCURRED FOR HOOKUP TO THE CITY WATER AND SEWER IN CONNECTION WITH THE CONSTRUCTION OF A NEW HOME INCIDENT TO MR. MCCORMICK'S PERMANENT CHANGE OF STATION.

YOU SAY THAT MR. MCCORMICK HAD PREVIOUSLY BEEN REIMBURSED FOR ALL OTHER REAL ESTATE COSTS ASSOCIATED WITH THE PURCHASE OF HIS HOME, BUT APPARENTLY FEELS THAT BECAUSE THE WATER AND SEWER HOOKUP COSTS WERE NOT INCLUDED IN THE CONSTRUCTION CONTRACT FOR HIS HOME HE IS ENTITLED TO REIMBURSEMENT THEREOF AS AN EXPENSE INCURRED IN THE PURCHASE OF A RESIDENCE.

WE HAVE HELD THAT SINCE 5 U.S.C. 5724A (A) (4) ONLY AUTHORIZES REIMBURSEMENT OF EXPENSES INCURRED IN CONNECTION WITH THE PURCHASE OF A HOUSE, ANY EXPENSES PECULIARLY APPLICABLE TO THE CONSTRUCTION OF A HOUSE MAY NOT BE ALLOWED. SEE B-164938, AUGUST 26, 1968, COPY HEREWITH. MOREOVER, REGARDLESS OF THE FACT THAT THE HOOKUP COSTS WERE NOT INCLUDED IN THE CONSTRUCTION CONTRACT, OUR VIEW IS THAT SUCH COSTS ARE STILL A PART OF THE COST OF THE CONSTRUCTION OF THE HOUSE SINCE THE HOUSE COULD NOT BE UTILIZED OTHERWISE. THE STATUTE AND REGULATIONS PRECLUDE ANY REIMBURSEMENT FOR ANY PART OF THE PURCHASE PRICE (OR CONSTRUCTION PRICE) OF A HOUSE. FOR THE SAME REASON SUCH HOOKUP COSTS MAY NOT BE CONSIDERED AS A MISCELLANEOUS EXPENSE UNDER SECTION 3.1 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56.

ACCORDINGLY, THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.