B-69940, DECEMBER 29, 1947, 27 COMP. GEN. 352

B-69940: Dec 29, 1947

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MONEYS RECEIVED IN REIMBURSEMENT FOR DAMAGE OR LOSS TO HOUSING FACILITIES WHICH ARE PAID DIRECTLY BY THOSE RESPONSIBLE FOR THE DAMAGE OR LOSS MAY BE USED FOR THE REPAIR OR REPLACEMENT OF DAMAGED OR DESTROYED FACILITIES. 1947: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 25. YOU REQUEST A DECISION AS TO WHETHER MONEYS RECEIVED IN REIMBURSEMENT FOR DAMAGE OR LOSS TO PROPERTY OPERATED BY YOUR AGENCY UNDER THE LANHAM ACT WHICH ARE PAID DIRECTLY BY THOSE RESPONSIBLE FOR THE DAMAGE OR LOSS. - ARE AVAILABLE FOR USE IN THE REPAIR OR REPLACEMENT OF THE DAMAGED OR DESTROYED PROPERTY. WHEREIN IT WAS HELD THAT INSURANCE PROCEEDS MAY BE USED FOR SUCH PURPOSE AND NEED NOT BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3617.

B-69940, DECEMBER 29, 1947, 27 COMP. GEN. 352

REPARATION PAYMENTS FOR DAMAGES TO GOVERNMENT PROPERTY - USE OF PROCEEDS FOR REPAIR OR REPLACEMENT OF DAMAGED OR DESTROYED PROPERTY SINCE THE PROVISIONS OF SECTION 303 OF THE ACT OF OCTOBER 14, 1940, AS AMENDED--- EXEMPTING THE INCOME RECEIVED FROM RENTALS OR OPERATIONS OF THE HOUSING PROGRAM FROM THE MISCELLANEOUS RECEIPTS DEPOSITING REQUIREMENT OF SECTION 3617, REVISED STATUTES, AND MAKING SUCH INCOME AVAILABLE FOR OPERATION AND MAINTENANCE--- EVINCE AN INTENT THAT THE HOUSING PROGRAM SHOULD BE AS SELF-SUSTAINING AS POSSIBLE, MONEYS RECEIVED IN REIMBURSEMENT FOR DAMAGE OR LOSS TO HOUSING FACILITIES WHICH ARE PAID DIRECTLY BY THOSE RESPONSIBLE FOR THE DAMAGE OR LOSS MAY BE USED FOR THE REPAIR OR REPLACEMENT OF DAMAGED OR DESTROYED FACILITIES.

COMPTROLLER GENERAL WARREN TO THE HOUSING AND HOME FINANCE ADMINISTRATOR, DECEMBER 29, 1947:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 25, 1947, RELATIVE TO SECTION 303 (A) OF THE LANHAM ACT, WHICH, AS AMENDED (42 U.S.C. 1543, SUPP. V), PROVIDES AS FOLLOWS:

MONEYS DERIVED FROM RENTAL OR OPERATION OF PROPERTY ACQUIRED OR CONSTRUCTED UNDER THE PROVISIONS OF SUBCHAPTERS II-V OF THIS CHAPTER, OF PUBLIC LAWS NUMBERED 9 ( ACT MARCH 1, 1941, CH. 9, 55 STAT. 14), 73 ( ACT MAY 24, 1941, CH. 132, 55 STAT. 197), AND 353 ( ACT DEC. 17, 1941, CH. 591, 55 STAT. 810), SEVENTY-SEVENTH CONGRESS, AND OF SECTION 201 OF THE SECOND SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATIONS ACT, 1941, AS AMENDED ( ACT SEPT. 9, 1940, CH. 717, 54 STAT. 883), SHALL BE AVAILABLE FOR EXPENSES OF OPERATIONS AND MAINTENANCE AND EXPENSES FOUND NECESSARY IN THE DISPOSITION OF ANY SUCH PROPERTY OR THE REMOVAL OF TEMPORARY HOUSING BY THE ADMINISTRATOR, INCLUDING THE ESTABLISHMENT OF NECESSARY RESERVES THEREFOR AND ADMINISTRATIVE EXPENSES IN CONNECTION THEREWITH: PROVIDED, THAT MONEYS DERIVED BY THE ADMINISTRATOR FROM THE RENTAL OR OPERATION OF ANY SUCH PROPERTY MAY BE DEPOSITED IN A COMMON FUND ACCOUNT OR ACCOUNTS IN THE TREASURY: AND PROVIDED FURTHER, THAT EXCEPT FOR NECESSARY RESERVES AUTHORIZED BY SUBCHAPTERS II-V OF THIS CHAPTER OR BY SECTION 201 OF THE SECOND SUPPLEMENTAL NATIONAL DEFENSE APPROPRIATION ACT, 1941, AS AMENDED ( ACT SEPT. 9, 1940, CH. 717, 54 STAT. 1127; RENUMBERED SEC. 303, JUNE 28, 1941, CH. 260, SEC. 4 (B), 55 STAT. 363; JULY 7, 1943, CH. 196, SEC. 3, 57 STAT. 388.)

YOU REQUEST A DECISION AS TO WHETHER MONEYS RECEIVED IN REIMBURSEMENT FOR DAMAGE OR LOSS TO PROPERTY OPERATED BY YOUR AGENCY UNDER THE LANHAM ACT WHICH ARE PAID DIRECTLY BY THOSE RESPONSIBLE FOR THE DAMAGE OR LOSS--- AS DISTINGUISHED FROM MONEYS RECEIVED UNDER INSURANCE POLICIES--- ARE AVAILABLE FOR USE IN THE REPAIR OR REPLACEMENT OF THE DAMAGED OR DESTROYED PROPERTY. YOU REFER TO OFFICE DECISION OF JUNE 26, 1943, TO THE FEDERAL WORKS ADMINISTRATOR, 22 COMP. GEN. 1133, WHEREIN IT WAS HELD THAT INSURANCE PROCEEDS MAY BE USED FOR SUCH PURPOSE AND NEED NOT BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3617, REVISED STATUTES.

AS POINTED OUT IN YOUR LETTER, THE CONCLUSION REACHED IN THE DECISION OF JUNE 26, 1943, WAS PREDICATED PRIMARILY ON THE FACT THAT THE TERMS OF SECTION 303 OF THE LANHAM ACT, ABOVE QUOTED--- EXEMPTING THE INCOME RECEIVED FROM AUTHORIZED DEALINGS WITH THE PROPERTY FROM THE REQUIREMENTS OF SECTION 3618, REVISED STATUTES, AND MAKING SUCH INCOME AVAILABLE FOR OPERATION AND MAINTENANCE--- DISCLOSE A LEGISLATIVE INTENTION THAT THE PROGRAM, ONCE LAUNCHED WITH AN APPROPRIATION, SHOULD BE CARRIED ON WITH THE LEAST POSSIBLE NECESSITY FOR ADDITIONAL APPROPRIATIONS, AND THAT THE PROJECT OR PROGRAM SHOULD BE, INSOFAR AS POSSIBLE, SELF-SUPPORTING OR SELF -SUSTAINING. NO REASON IS PERCEIVED WHY THE PRINCIPLE OF SAID DECISION SHOULD NOT BE CONTROLLING HERE. ASIDE FROM THE IMMATERIAL CIRCUMSTANCES THAT THE TWO TYPES OF PROCEEDS INVOLVED DIFFER ONLY IN RESPECT TO THE SOURCE FROM WHICH DERIVED--- THE FUNDS IN THE CITED DECISION BEING PAID BY INSURANCE, WHEREAS THE MONEYS RECEIVED IN THE INSTANT CASE ARE PAID BY PRIVATE PARTIES RESPONSIBLE FOR THE LOSS OR DAMAGE--- THE FACT REMAINS THAT THE INHERENT NATURE OF BOTH FUNDS IS SUBSTANTIALLY IDENTICAL IN THAT EACH REPRESENTS REPARATION PAYMENTS FOR DAMAGES TO GOVERNMENT PROPERTY. FOR THAT REASON, THE PROPOSED USE OF THE MONEYS REFERRED TO IN YOUR LETTER IN THE REPAIR OR REPLACEMENT OF DAMAGED OR DESTROYED FACILITIES WOULD APPEAR TO BE CONSISTENT WITH THE EXPRESSION OF CONGRESSIONAL PURPOSE TO MAKE THE PROGRAM AS SELF-SUSTAINING AS POSSIBLE, AND THIS OFFICE WILL NOT BE REQUIRED TO OBJECT FURTHER THERETO.