BNUMBER:  B-271242
DATE:  September 12, 1996
TITLE:  Joselito L. Lomasang--Real Estate Expenses

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Matter of:Joselito L. Lomasang--Real Estate Expenses

File:     B-271242

Date:September 12, 1996

DIGEST

A transferred employee may not be reimbursed for an impact fee and 
interim service fee, imposed by local government bodies on newly 
constructed residences, and included in the closing costs for a newly 
constructed residence the employee purchased at his new duty station.  
Under the Federal Travel Regulations, 41 C.F.R.  sec.  302-6(d), real 
estate expenses resulting from the construction of a new residence are 
not reimbursable unless they are comparable to expenses allowable in 
connection with the purchase of an existing residence, and the record 
indicates that the employee would not have paid comparable fees if he 
had purchased an existing residence.

DECISION

This is in response to a request from the Federal Aviation 
Administration (FAA) for an advance decision regarding Mr. Joselito L. 
Lomasang's request for reimbursement for certain real estate expenses 
he incurred incident to his transfer to a new official duty station.  
Reimbursement is not authorized.

Mr. Lomasang moved from San Angelo, Texas, to Miami, Florida, pursuant 
to a permanent change-of-station move under Travel Authorization 
Number 420-3-033 dated March 30, 1993.  He incurred various expenses, 
including an Impact Fee of $948 and an Interim Service Fee of $220, in 
purchasing a newly built home in Pembroke Pines, Broward County, 
Florida.

The provisions governing reimbursement for real estate expenses 
incident to a transfer of duty station are contained in 5 U.S.C.  sec.  
5724a and regulations issued pursuant thereto.  Those regulations are 
contained in the Federal Travel Regulations, (FTR), 41 C.F.R.  sec.  302-6.  
Under FTR  sec.  302-6.2(d) certain expenses customarily paid by a 
purchaser of a residence at the new official station are reimbursable.  
However,  sec.  302-6.2(d), specifically provides that real estate expenses 
that result from construction of a residence are not reimbursable 
unless they are comparable to expenses that are reimbursed in 
connection with purchase of an existing residence.

The information provided in the record shows that the impact fee and 
interim service fee paid by Mr. Lomasang at closing are fees imposed 
by Broward County and the city of Pembroke Pines due to the cost of 
providing new schools, parks, and other public services in 
fast-growing communities.  Those fees are customarily charged on newly 
constructed homes, and are not charged on purchases of existing homes.

In a similar situation we denied reimbursement to a transferred 
employee who paid an impact fee in purchasing a new home in Broward 
County.  We noted that such fees are assessed on the developer, 
incident to approval of a building permit, who then passes the cost on 
to the purchaser, and there is no indication that the employee would 
have incurred a comparable expense if he had purchased an existing 
residence.  Therefore, we concluded that the FTR prohibited 
reimbursement for the fee.  Gregory Scheer, B-232720, Sept. 13, 1989.  
See also Carl Trueblood, 65 Comp. Gen. 557 (1986); and Clyde Treat, 
B-181795, Nov. 11, 1974.  

Mr. Lomasang's situation is similar to that in Gregory Scheer, supra.  
Therefore, the impact fee and interim service fee, charged to those 
who purchase newly constructed residences, are construction-related 
expenses not comparable to expenses reimbursed in connection with 
purchases of existing residences.  Accordingly, reimbursement of these 
two fees is prohibited by the FTR,  sec.  302-6.2(d).

/s/Seymour Efros
for Robert P. Murphy
General Counsel