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The Department of Defense (DOD) requested an advance decision regarding whether regulations defining monthly housing costs for members of the uniformed services permitted inclusion of personal loans and second mortgages for computation of variable housing allowances. GAO held that the regulations' definition of monthly housing costs included personal loans and second mortgages obtained specifically for repairing, renovating, or enlarging a residence. Accordingly, DOD should include applicable personal loans and second mortgages in computing the allowance.

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