[Decision Concerning Army Employee's Entitlement to Real Estate Expenses]

The Army requested a decision regarding whether it should reimburse a transferred employee for his real estate expenses incident to construction of a new home. GAO held that the employee was: (1) entitled to reimbursement for those expenses associated with or comparable to the purchase of an existing residence; and (2) not entitled to reimbursement for any expenses uniquely associated with the construction of his new residence. Accordingly, the Army should reimburse the employee for his real estate expenses comparable to those allowed under the Federal Travel Regulations for the purchase of an existing residence.