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B-205394 1 (1982-04-26)

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B-205394


DATE;


April 26, 1982


MATTER OF;

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Kentit-th 0, Dudley


Payment for temporary quarters subsis..
tence expenses is denied for the period
the employee rented a home he had con-
tracted to purchase. Although ultimiately,
he did not purchase the house because he
could not obtain the required finan.dng,
the house was his permanent residence
due to his intent to purchase at the
time he moved in,


     The Accounting and Finance Officer, Defense Contract
Administration Services Region# Atlanta, Defense Logistics
Agency, has requested an advance decision on the propriety
of paying temporary quarters subsiitence expenses claimed
by Mr, Kenneth O. Dudley, an agency employne, for the
period of time that he and his wite occupied a home on
a rental basis subsequent to entering into a contract
to purchase the home. This request wac assigned Control
Number 81-30 by the Per Diem,, Travel and Transportation
Allowance Coaut.ttee and forwarded to us by endorsement.
For the reasons set forth below, Mr. Dudley is not en-
titled to temporary quarters subsistence expenses since
at the time he and his wife occupied the home he intended
to occupy the residence on a permanent basis.

     Mr. Dudley transferrd from Pascagoula, Mississippi,
to the Kennedy Space Center, Florida, in June 1981,. In
connection with the transfer his travel order authorized
reimbursement for temporary quarters subsistence expenses
for up to 24 days. On June 2, 1981, during an authorized
ouse hunting trip he entered into a contract to purchase
a home in Cocoa Beach, Florida. Later that same day he
was advised that his income was not sufficient to qualify
for the necessary hc.rme loan and that he would be unable
to purchase the ho't. unless his wife obtained a position
in her field as a school teacher.

     On June 3, Mr. Dudley signed a 40-day lease on the
home on which he had executed the sales contract.  The
lease, an addendum to the sales contract, provided that
the rental period would be from June 8, 1981, until


FILE;


THE COMIPTROLLrR cENERA
OF THE UNITED UTATEU
,ASHINGITON0N, DC, 2O t4B

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