ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES

• Citation: 41 CFR Part 302-15
• Sections: 9

§ 302-15.1 Purpose of property management services.

“Property management services” are programs provided by private companies for a fee, which help an employee to manage a residence at the old official station as a rental property.

§ 302-15.2 Eligibility for property management services.

If authorized by the agency, employees are eligible for payment for property management services only for their residence at the last official station in the United States from which they regularly commuted to and from work on a daily basis, which was their residence at the time they were officially notified by competent authority to transfer to a new official station, and when the employee and/or a member(s) of their immediate family hold(s) title to a residence which they are eligible to receive a property management allowance for.

§ 302-15.3 Circumstances in which an agency may authorize payment under this part.

(a) For a relocation to an official station in the United States or between official stations in the CONUS, agencies may authorize payment under this part when:

(1) The employee is being returned from a foreign area post of duty to a different official station than the one from which they were transferred for their foreign tour of duty;

(2) The agency has determined that property management services is more advantageous and cost effective for the Government than having to sell the residence;

(3) If the employee is on a TCS, the agency has determined that property management services is in the Government's interest;

(4) The employee has signed a service agreement; and

(5) The employee meets any additional conditions that their agency has established.

(b) For relocations to official stations outside the United States, agencies may authorize payment under this part when the employee meets conditions set forth in paragraphs (a)(4) and (5) of this section.

§ 302-15.4 Obligation to use property management services or to repay expenses an agency has paid if an employee elects to sell a former residence.

(a) Employees are not obligated to use the authorized property management services allowance. Employees have the option of choosing to sell their residence at Government expense or to use the property management services allowance. In the case of a TCS where home sale is not authorized, employees have the option to not use the property management services.

(b) Employees are not required to repay any property management expenses paid by the agency if the employee elects to sell their former residence in the United States when transferred from their post of duty to an official station in the United States different from the official station from which they were transferred when assigned to the post of duty.

§ 302-15.5 Time limitation for payment of property management services.

The length of time an agency may pay for property management services under this part depends on the type of transfer.

(a) If an employee transfers within the United States, agencies may pay for a period not to exceed one year from the employee's effective date of transfer, with up to a 1-year extension, under the same conditions required in § 302-11.4 of this subchapter.

(b) If an employee transfers to a foreign area post of duty, including successive foreign area tours of duty for which they signed a new service agreement, agencies may pay from the employee's effective date of transfer until they return to the last official station in the United States from which they transferred.

(c) If an employee transfers from a foreign area post of duty, including successive foreign area tours of duty for which they signed a new service agreement, to a different official station in the United States than the one from which they were transferred from for their foreign area tour of duty, agencies may pay for a period not to exceed one year from the employee's effective date of transfer to the United States, with up to a 1-year extension, under the same conditions required in § 302-11.4 of this subchapter.

(d) If an employee transfers to a foreign area post of duty, completes their service agreement, and remains there without signing a new service agreement, agencies may pay from the effective date of the employee's transfer to when the service agreement is completed.

(e) If an employee transfers to a foreign area post of duty and separates from Government service before completing their service agreement, agencies may pay from the effective date of the employee's transfer to the date of their separation.

(f) If an employee transfers within the United States or from a foreign area post of duty to a different official station in the United States than the one from which they were transferred for their foreign area tour of duty, and the employee separates from Government service before the time periods stated in paragraphs (a) and (c) of this section, agencies may pay from the effective date of the employee's transfer to the date of their separation.

§ 302-15.6 Transition from property management services to selling a residence.

When an employee has been authorized to receive property management services for a transfer within CONUS, from CONUS to an OCONUS non-foreign area, or from an OCONUS non-foreign area to CONUS, the employee may change their selection from receiving property management expenses to selling their residence at Government expense provided:

(a) Their agency allows them to change their election of payment from property management expenses to the sale of the residence at Government expense; and

(b) Payment for sale of the residence at Government expense is offset in accordance with the agency's policy established under § 302-15.70(d) and (e).

§ 302-15.7 Service agreement requirements.

If an agency is paying for property management services under this part and the employee's service agreement expires, the employee must sign a new service agreement to continue to receive this benefit.

§ 302-15.8 Income tax consequences.

When an agency pays for property management services, the employee will be taxed on the amount of expenses the agency pays for property management services whether it reimburses the employee directly or whether it pays a relocation services company to manage the residence. Agencies must pay a relocation income tax allowance (RITA) for the additional Federal, State, and local income taxes the employee incurs on property management expenses the agency reimburses.

§ 302-15.70 Governing policies agencies must establish for the allowance for property management services.

Agencies must establish policies and procedures governing:

(a) When the agency will authorize payment for property management services for an employee who transfers in the interest of the Government;

(b) When it is appropriate to authorize this service on a reimbursable basis to the employee, rather than paying the property management company directly, as long as any reimbursement is equal to or less than the agency negotiated rate for this service (agencies may require that employees hire only licensed and/or certified property managers);

(c) Who will determine, for relocations to official duty stations in the United States, whether payment for property management services is more advantageous and cost effective than sale of an employee's residence at Government expense;

(d) If and when the agency will allow an employee who was offered and accepted payment for property management services to sell the residence at Government expense in accordance with paragraph (e) of this section; and

(e) How the agency will offset expenses they have paid for property management services against payable expenses for sale of the residence when an eligible employee who elected payment for property management services later changes their mind and elects instead to sell the residence at Government expense.