B-241483, Feb 28, 1991

B-241483: Feb 28, 1991

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While neither the statute nor the regulations specifically state that the downpayment is not a reimbursable expense. The downpayment was payment of a part of the purchase price of the house. Secrest's equity in the house. have held that such a payment is not an expense of purchasing a residence for which the statute and regulations authorize reimbursement. Secrest is not entitled to be reimbursed for the downpayment he made in purchasing his residence. /1/The agency has authorized reimbursement to Mr. They are not at issue here.

B-241483, Feb 28, 1991

CIVILIAN PERSONNEL - Relocation - Residence transaction expenses - Downpayments - Reimbursement DIGEST: An employee's downpayment on the purchase price of a house may not be reimbursed in connection with residence transactions due to the employee's transfer.

Walter Secrest:

The Chief, Labor and Employment Management Relations Section, Civilian Personnel Branch, for the Wright-Patterson Air Force Base, requests a decision whether Mr. Walter Secrest may be reimbursed the downpayment of $4,942.98 that he paid on the purchase price of his house when he transferred from Madison, Florida, to Fort Thomas, Kentucky. /1/ We conclude that he may not.

Pursuant to the statutory authority in 5 U.S.C. Sec. 5724a (1988), the Federal Travel Regulations, 41 C.F.R. Sec. 302-6.2 (1990), authorize reimbursement of certain expenses incurred in connection with the purchase of a residence at a new official station. While neither the statute nor the regulations specifically state that the downpayment is not a reimbursable expense, neither do they include it. However, the downpayment was payment of a part of the purchase price of the house, and as the agency points out, forms a part of Mr. Secrest's equity in the house. have held that such a payment is not an expense of purchasing a residence for which the statute and regulations authorize reimbursement. Nathaniel E. Green, 61 Comp.Gen. 352, 357 (1982).

Accordingly, Mr. Secrest is not entitled to be reimbursed for the downpayment he made in purchasing his residence.

/1/The agency has authorized reimbursement to Mr. Secrest on other allowable expenses of the purchase, and they are not at issue here.