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B-228860,B-229281 1 (1988-08-19)

handle is hein.gao/gaobadneh0001 and id is 1 raw text is: 

The Comptroller General
of the United States
Washington, D.C. 20548

Decision


          Variable Housing Allowance - Allowable Expenses
Matterof- for Offset

File:     B-228860, B-229281

Date:     August 19, 1988

DIGEST

1. A service member married a woman who owned a house with
a first and second mortgage on it, and it became their
family residence. She had been previously married, and she
had taken the second mortgage to pay her former husband an
amount due him in their community property settlement
whereby she retained the house after their divorce. The
regulation defining monthly housing costs for purposes of
computing a uniformed service member's variable housing
allowance (VHA) excludes the cost of a second mortgage taken
for other than repairing, renovating or enlarging a resi-
dence since VHA is an allowance to help a member pay for
housing in a high-cost area, not to satisfy a community
property settlement. Neither may the second mortgage in
these circumstances be considered a mortgage taken for the
initial purchase of a residence.

2. The definition of monthly housing costs for purposes of
computing a variable housing allowance (VHA) may not include
a cost for the interest or other return on investment a
service member loses for the money he puts down upon pur-
chasing his residence (a so-called opportunity cost). In
promulgating the VHA regulations, the services chose not to
include opportunity costs, and it was within their latitude
under the law to do so.

DECISION

This case concerns two separate but related requests for
advance decisions forwarded to us by the Per Diem, Travel
and Transportation Allowance Committee regarding whether
certain expenses may be included in the member's housing
costs in computing variable housing allowances (VHA) author-
ized members of the uniformed services to help defray their









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