Claim for Reimbursement of Relocation Costs

A Federal employee claimed relocation expenses for costs which were necessitated by the construction of a residence at his new location. His agency denied the claim, but because the employee disputed the denial, the agency asked GAO for a decision on the matter. The employee stated that similar items were allowed for payment under Federal Travel Regulations (FTR) in the purchase of a new home. He contended that he was entitled to reimbursement since he would not have incurred the expenses had it not been for the requirements placed upon him by local financial institutions and local and State laws. The applicable FTR specifically refers to costs associated with the sale or purchase of residences. Expenses which result from construction are not reimbursable. Although necessary to meet legal requirements, the disputed items were for construction of a residence and not costs associated with the purchase of a residence. Therefore, the disputed items could not be considered reimbursable miscellaneous expenses. Accordingly, the claim was denied.