B-163816, MAY 3, 1968

B-163816, MAY 3, 1968

TO MAJOR DOUGLAS C. MORROW:

WE REFER TO YOUR LETTER OF MARCH 8, 1968, YOUR REFERENCE DCRA-FOAAP, BY WHICH YOU REQUEST OUR ADVANCE DECISION WHETHER YOU MAY PROPERLY PAY THE ENCLOSED VOUCHER OF MR. JAMES W. DUNKIN AN EMPLOYEE OF THE DEFENSE SUPPLY AGENCY TO REIMBURSE HIM COSTS INCURRED IN THE PURCHASE OF A RESIDENCE AT HIS NEW OFFICIAL STATION INCIDENT TO HIS TRANSFER FROM TAMPA, FLORIDA, TO BIRMINGHAM, ALABAMA, WHICH WAS EFFECTIVE IN JULY 1967.

THE ONLY QUESTION PRESENTED IS WHETHER UNDER THE PROVISIONS OF 5 U.S.C. 5724A (A) AND SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A 56, MR. DUNKIN MAY BE REIMBURSED COSTS INVOLVED IN THE PURCHASE OF HIS RESIDENCE WHICH WERE INCLUDED IN THE SALE PRICE OF THE RESIDENCE. IN THIS CASE THE AGREED SALE PRICE WAS $27,170 AND MR. DUNKIN PAID NO COST WHICH WOULD OTHERWISE BE ALLOWABLE UNDER SECTION 4 OF CIRCULAR NO. A-56 IN ADDITION TO THAT SALE PRICE.

WE ENCLOSE COPIES OF OUR DECISIONS B-161110, APRIL 13, 1967, AND B 162835, DECEMBER 21, 1967, IN WHICH WE HELD THAT THERE IS NO PROPER BASIS UNDER THE CONTROLLING LAW AND REGULATION FOR TREATING ANY PART OF THE STATED SELLING PRICE OF A RESIDENCE AS OTHER THAN THE PRICE OF THE REALTY, IRRESPECTIVE OF THE ELEMENTS WHICH MIGHT HAVE BEEN CONSIDERED IN ESTABLISHING THAT PRICE.

ACCORDINGLY, MR. DUNKIN IS NOT ENTITLED TO REIMBURSEMENT OF THE CLOSING COSTS WHICH WERE INCLUDED IN THE PURCHASE PRICE OF HIS RESIDENCE. THE VOUCHER WHICH MAY NOT PROPERLY BE PAID IS RETAINED IN OUR FILES.