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B-179079 1 (1973-11-13)

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    Hr,.Donald K. Huldoon
    Director9 Accounting Division
    Department of Housing and Urban
      Cevelopment
    450 Golden Gate Avenue
 . PoO. Dcx 36003
~,~,4a Franciseo, California   94102


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Dear Hr. Huldoon;

       Further reference is sMade to your Ice:tte., of jutie 28,
 1973, refezence 9AF   and enclosurea, iu which you request our
 decision as to whither, incident to his permanent change of
 station on ay 14, 1972, expenses Incurred by Ur Uiliam J,
 Forneca, an employee of your agenry, in negotiating a lease
 of his residence at his old duty station are reimbursable.

      .Xouastate-thet-you were advised by Mr. Forweca that he
 was unable to sell his residence during the allottedt statutory
 period due to a deptes3ed real estate mar'iet.  I'a utxnitted
'.copies of contracts litting his residence for nale LI prices
rwInig from 439,500 to $36*,500 bnoi'd on recorwencdattons by
realtors negotiating, the sale of his home. Due to the expire-
tin of the time limitation for sale of an old residence and
purehase of a new oue at h13 new duty. station, Hr. ineca
retained a real estate broker to negotiate a leae of hia old
residence for a period of one year for * fee .of $210.00 which
* represent'd 5 percent oi the first year'a rental Incoma of
44,200.
    IAuthdrity for reimbursing an employce for expenses incurred
in disposing of or relinquishing a former residence at the old
duty station Incident to a change of official station is rone
taised iu 5 U.S.C.'5724a(a)(4) and implementing regulatins
promulgated by the Office of Hanageeeut and Budget, Circu',kar
flo. A-5 revised Auguit 17, 3971, section 4.2h (vow Feder'al
Property Hanagement Regulations, May 1 1973, pau'egraph 2s62h),,
The statute and regulations authorize reimbursement ofepiunses
incurred for settling an unexpired lepse on residence cuart:era
oceupied by the employee at the oh afflciol statto;Peahd may
include broker's fees for obtainliq, a sublease or charges for


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