Claim for Reimbursement of Incidental Real Estate Expenses

An authorized certifying officer of the Department of Housing and Urban Development (HUD) requested an advance decision regarding certification for payment of a reclaim voucher for $268 submitted by a HUD employee. The employee claimed reimbursement for expenses incurred in connection with the sale of his home incident to a transfer from Columbus, Ohio, to Washington, D.C., but the voucher items, a premium for a 1-year Homegard Home Maintenance Contract and a gas line inspection fee, were disallowed by HUD. The expenses were claimed by the employee under a Federal Travel Regulation authorizing payment of "required" incidental real estate expenses. Although the employee stated that a municipal ordinance required the gas line inspection, the Columbus City Attorney's Office stated that there was no such statute; thus, the cost of the inspection could not be allowed. As for the Homegard Service Contract, the employee cited a survey of Columbus area realtors to the effect that over 70 percent of single-family dwelling sales in the area included such a contract, and contended that the purchaser of his property demanded the contract as a condition of sale. Examination of the sales contract showed that the employee agreed to furnish the contract to the buyer, but no evidence was presented to corroborate the statement that the purchase was contingent upon its provision. Since Federal Travel Regulations do not authorize reimbursement for expenses established merely by custom, nor for any real estate-related insurance other than a mortgage title policy, the reclaim voucher could not be certified for payment.