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[Claim for Real Estate Expenses Including Compliance Work Costs]

B-215410 Nov 14, 1984
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Highlights

A question was presented as to whether a transferred Veterans Administration (VA) employee was entitled to reimbursement for the costs of weatherizing his home prior to its sale as required by the lender in compliance with state law. The employee claimed that, since the weatherization was necessary to meet the requirements of the state VA loan program, they were reimbursable as incidental expenses in connection with the sale of the residence. While Federal Travel Regulations (FTR) provide for reimbursement of incidental expenses incurred in selling or purchasing a residence, they specify that operation or maintenance costs are not reimbursable. GAO has held that certain required inspection fees are reimbursable, but expenses for repairs or modifications to correct deficiencies are maintenance costs which are not reimbursable. GAO found that the claimant was entitled to reimbursement for the inspection fee since it was required by the lender consistent to state law; however, GAO held that he was not entitled to reimbursement for the weatherization expenses to make the property saleable since maintenance costs are specifically disallowed by FTR. Accordingly, the claim for compliance work costs may not be paid.

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