B-168392, DEC. 16, 1969

B-168392, DEC. 16, 1969

OFFICERS AND EMPLOYEES--TRANSFERS--RELOCATION EXPENSES--"SETTLEMENT DATE" LIMITATION ON PROPERTY TRANSACTIONS EMPLOYEE WHO ENTERED INTO CONTRACT TO PURCHASE HOME IN WASHINGTON, D.C; ON JULY 10, 1968, INCIDENT TO TRANSFER FROM PHILADELPHIA, PA; ON JULY 8, 1968, BUT WAS RELEASED FROM CONTRACT ON AUG. 16, 1968, AND CONTRACTED TO PURCHASE ANOTHER HOME ON JULY 14, 1969 WHICH WAS NOT SETTLED UNTIL AUG. 14, 1969, IS NOT ENTITLED TO REIMBURSEMENT OF REAL ESTATE EXPENSES INCURRED SINCE JUNE 26, 1969 REVISION TO SEC. 4.1E OF BUREAU OF BUDGET CIR. NO. A-56 WAS INTENTED TO AUTHORIZE EXTENSION OF 1 YEAR LIMITATION ONLY ON EXISTING CONTRACT OF PURCHASE ENTERED INTO DURING INITIAL 1 YEAR FOLLOWING TRANSFER AND SINCE SETTLEMENT WAS NOT MADE ON JULY 10, 1968 CONTRACT BUT ON CONTRACT DATED JULY 14, 1969, REAL ESTATE EXPENSES INCURRED DO NOT FALL WITHIN REVISED EXTENSION PROVISIONS.

TO MR. FLOYD P. HOUGH:

THIS REFERS TO YOUR LETTER OF NOVEMBER 14, 1969, REFERENCE F5023 NCRABF), WITH ENCLOSURES, REQUESTING A DECISION AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT A VOUCHER IN FAVOR OF MR. MEIR SOFAIR FOR REIMBURSEMENT OF REAL ESTATE EXPENSES INCURRED IN CONNECTION WITH THE PURCHASE OF A RESIDENCE AT HIS NEW DUTY STATION INCIDENT TO A TRANSFER FROM PHILADELPHIA, PENNSYLVANIA, TO ARLINGTON, VIRGINIA. A COPY OF THE VOUCHER WAS ENCLOSED WITH YOUR LETTER.

MR. SOFAIR REPORTED FOR DUTY AT HIS NEW DUTY STATION ON JULY 8, 1968. JULY 10, 1968, HE CONTRACTED FOR THE PURCHASE OF A NEW HOME. HOWEVER, DUE TO A FAMILY PROBLEM, MR. SOFAIR WAS COMPELLED TO REQUEST A RELEASE FROM THIS CONTRACT WHICH WAS GRANTED AUGUST 16, 1968. A WRITTEN OFFER TO PURCHASE A HOME WAS MADE BY MR. SOFAIR ON JULY 7, 1969. THIS WAS NOT ACCEPTABLE TO THE SELLER AND ANOTHER OFFER WAS ACCEPTED ON JULY 14, 1969, BY THE SELLER. SETTLEMENT WAS MADE ON AUGUST 14, 1969.

YOU REQUEST A DECISION AS TO WHETHER THE FIRST CONTRACT EXECUTED ON JULY 10, 1968, SATISFIES THE REQUIREMENTS OF SECTION 4.1E OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969. SECTION 4.1E PROVIDES IN PART AS FOLLOWS:

"THE SETTLEMENT DATES FOR THE * * * PURCHASE * * * TRANSACTIONS FOR WHICH REIMBURSEMENT IS REQUESTED ARE NOT LATER THAN ONE (INITIAL) YEAR AFTER THE DATE ON WHICH THE EMPLOYEE REPORTED FOR DUTY AT THE NEW OFFICIAL STATION, EXCEPT THAT * * * AN ADDITIONAL PERIOD OF TIME NOT IN EXCESS OF ONE YEAR MAY BE AUTHORIZED OR APPROVED BY THE HEAD OF THE AGENCY OR HIS DESIGNEE WHEN HE DETERMINES THAT CIRCUMSTANCES JUSTIFYING THE EXCEPTION EXIST WHICH PRECLUDED SETTLEMENT WITHIN THE INITIAL ONE YEAR PERIOD OF THE SALE/PURCHASE CONTRACTS * * * ENTERED INTO IN GOOD FAITH BY THE EMPLOYEE WITHIN THE INITIAL ONE-YEAR PERIOD. * * *"

UNDER THE ABOVE REGULATION IT IS APPARENT THAT IT WAS INTENDED TO AUTHORIZE EXTENSION OF THE ONE-YEAR LIMITATION FOR SETTLEMENT ONLY ON AN EXISTING CONTRACT OF PURCHASE ENTERED INTO DURING THE INITIAL ONE YEAR FOLLOWING TRANSFER.

SINCE IN THIS CASE SETTLEMENT WAS NOT MADE ON THE CONTRACT OF PURCHASE ENTERED INTO ON JULY 10, 1968, BUT SETTLEMENT WAS MADE ON THE CONTRACT OF PURCHASE DATED JULY 14, 1969, WHICH WAS ENTERED INTO MORE THAN ONE YEAR AFTER THE TRANSFER HAD TAKEN PLACE, THE EXPENSES INCURRED BY MR. SOFAIR INCIDENT TO THE PURCHASE OF HIS RESIDENCE AT HIS NEW DUTY STATION DO NOT FALL WITHIN THE EXTENSION PROVISIONS OF SECTION 4.1E OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969.