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B-201809 1 (1981-05-08)

handle is hein.gao/gaobadvhx0001 and id is 1 raw text is: 

ETHE COMPTROLLER.-•                           GE NERL L
DECISIONI d.              OF .THEUNITE- 0      TATEB
                          .  SHINGTON. 0C. 20548



 FILE:   B'201809              DATE:. May 8, 1981

 MATTER QF:-                       RelocationExpenses -
              Membership-Fee, Cooperative. Home    .

 DIGEST: Employee may not be- reimbursed a cooperative
           home membership-fee'required on purchase of
           home at new duty.station. *Such fees are
           personal and. outside the scope.o.f costs o-r
           expenses allowable as relocation expenses
           Under the Federal Travel. Regulations.

     .The-issue presented in this case. upon, a request
 of .an authorized certifying officer of the Department
 of Agriculture,.is whether .a membership fee required to
 be paid on the purchase of a home in.a cooperative home
.development is reimbursable, as a relocation expense.
The answer is no.,

                             an employee .of.the. Depart-
 ment of Agriculture's Soil.Conservation*Service, was
 authorized a permanent change of station from'Portland,
 Oregon, to Washington,.D.C. In connection with his
 transfer he purchased a cooperative home for which-he
 was required to-pay a membership fee of -$300 to the
 developer at the time of.purchase. This membership fee
 ig a one-time fee, nonrefundable and nontransfer-able if.
 and when            sells his interest in the property..

      Pursuant to 5. U.S.C..§ 5724a '.1976), paragraph
 2-6.2 f the Federal Travel Regulations.(FPMR 101-7,
 May 1973) provides for-reimbursement of certain expenses.
 incurred by employees in connection with residence.:
 transactions. Membership fees such as.paid
 are not-included-as reimbursable expenses under those
 regulations. Instead, membership fees in condominium
 or cooperatively owned homes or apartments are regarded
 as items of added value continuing to benefit the pur-
 chaser. As such, they.are considered a part of the
 .purchase price and not a part of the cost or expenses
 of purchasing. In the circumstances where a membership
 fee is transferable, we have held that the' expenses of
 selling such membership is reimbursable. -See B3-83812, .
 May 4, 1976. However, the cost of a'membership is
 considered a personal ex pense of the employee and not.
 reimbursa;1e. B-200082,KFebruary 25, 1981. Compare
 B-171808,\March 21, 1971, for membership.fees in non-
 real.estate type organizations.
                                     pUB•SHED DECISION
                                     60.Comp. .n

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