[Title 41 CFR 302]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 41 - PUBLIC CONTRACTS AND PROPERTY MANAGEMENT]
[Subtitle F - Federal Travel Regulation System]
[Chapter 302 - RELOCATION ALLOWANCES]
[Subchapter E - RESIDENCE TRANSACTION ALLOWANCES]
[Part 302 - 15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES]
[From the U.S. Government Printing Office]
41PUBLIC CONTRACTS AND PROPERTY MANAGEMENT42002-07-012002-07-01false15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES302PART 302PUBLIC CONTRACTS AND PROPERTY MANAGEMENTFederal Travel Regulation SystemRELOCATION ALLOWANCESRESIDENCE TRANSACTION ALLOWANCES
PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES--Table of Contents
Subpart A--General Rules for the Employee
Sec.
302-15.1 What are property management services?
302-15.2 What are the purposes of the allowance for property
management services?
302-15.3 Am I eligible for payment for property management services
under this part?
302-15.4 Who is not eligible for payment for property management
services?
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302-15.5 Is my agency required to authorize payment for property
management services?
302-15.6 Under what circumstances may my agency authorize payment
under this part?
302-15.7 For what property may my agency authorize payment under this
part?
302-15.8 When my agency authorizes payment for me under this part, am
I obligated to use such services, or may I elect instead to
sell my residence at Government expense?
302-15.9 Must I repay property management expenses my agency paid
under this part if I elect to sell my former residence in the
United States at Government expense when I am transferred from
my current foreign post of duty to an official station in the
United States other than the one I left?
302-15.10 How long may my agency pay under this part?
302-15.11 If my agency authorized, and I elected to receive, payment
for property management expenses, may I later elect to sell my
residence at Government expense?
302-15.12 If my agency is paying for property management services
under this part and my service agreement expires, what must I
do to ensure that payment for property management services
continues?
302-15.13 What are the income tax consequences when my agency pays for
my property management services?
Subpart B--Agency Responsibilities
302-15.70 What governing policies must we establish for the allowance
for property management services?
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 13747,
3 CFR, 1971-1975 Comp., p. 586.
Source: FTR Amdt. 98, 66 FR 58196, Nov. 20, 2001, unless otherwise
noted.
Subpart A--General Rules For The Employee
Note to subpart A: Use of pronouns ``I'', ``you'', and their
variants throughout this subpart refers to the employee.
Sec. 302-15.1 What are property management services?
``Property management services'' are programs provided by private
companies for a fee, which help an employee to manage his/her residence
at the old official station as a rental property. These services
typically include, but are not limited to, obtaining a tenant,
negotiating the lease, inspecting the property regularly, managing
repairs and maintenance, enforcing lease terms, collecting the rent,
paying the mortgage and other carrying expenses from rental proceeds
and/or funds of the employee, and accounting for the transactions and
providing periodic reports to the employee.
Sec. 302-15.2 What are the purposes of the allowance for property management services?
The purpose of the allowance for property management services is
reduce overall Government relocation costs when used instead of sale of
the employee's residence at Government expense. When authorized in
connection with an employee's transfer to a foreign area post of duty,
relieve the employee of the costs of maintaining a home in the United
States while stationed at a foreign area post of duty.
Sec. 302-15.3 Am I eligible for payment for property management services under this part?
Yes, you are eligbile for payment for property management services
when:
(a) You transfer in the interest of the Government; and
(b) You and/or a member(s) of your immediate family hold(s) title to
a residence which you are eligible to sell at Government expense under
part 302-11 or part 302-12 of this chapter.
Sec. 302-15.4 Who is not eligible for payment for property management services?
New appointees, employees assigned under the Government Employees
Training Act (5 U.S.C. 4109), and employees transferring wholly outside
the United States are not eligible for payment for property management
services. However, relocations wholly outside the United States do not
affect previously authorized property management services as long as the
employee continues to meet the requirements of Sec. 302-15.6 and any
other conditions established by the agency.
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Sec. 302-15.5 Is my agency required to authorize payment for property management services?
No, your agency is not required to authorize payment for property
management services. However, your agency determines:
(a) When you meet the conditions set forth in Sec. 302-15.3;
(b) When to authorize payment for these services; and
(c) What procedures you must follow when it authorizes such payment.
Sec. 302-15.6 Under what circumstances may my agency authorize payment under this part?
(a) For a relocation to an official station in the United States,
your agency may authorize payment under this part when:
(1) You are being returned from a foreign area post of duty to a
different official station than the one from which you were transferred
for your foreign tour of duty;
(2) Your agency has determined that property management services is
more advantageous and cost effective for the Government than having to
sell your residence;
(3) You have signed a service agreements; and
(4) You meet any additional conditions that your agency has
established.
(b) For relocations to official stations outside the United States,
your agency will authorize payment under this part when you meet
conditions set forth in paragraphs (a)(3) and (4) of this section.
Sec. 302-15.7 For what property may my agency authorize payment under this part?
Under this part, payment may be authorized only for your residence
at the last official station in the United States from which you
transferred.
Sec. 302-15.8 When my agency authorizes payment for me under this part, am I obligated to use such services, or may I elect instead to sell my residence at
Government expense?
You are not obligated to use your authorized property management
services allowance. You have the option of choosing to sell your
residence at Government expense or to use the property management
services allowance.
Sec. 302-15.9 Must I repay property management expenses my agency paid
under this part if I elect to sell my former residence in the United States at
Government expense when I am transferred from my current
foreign post of duty to an official station in the United
States other than the one I left?
No, you are not required to repay any property management expenses
paid by your agency if you elect to sell your former residence in the
United States when transferred from your post of duty to an official
station in the United States. The authority for your agency to pay for
property management services under this part when you are transferred to
a foreign post of duty arises from your transfer to the foreign post of
duty. It is separate from, and in addition to, the authority to sell
your residence at Government expense when you are transferred to an
official station in the United States other than the official station
from which you were transferred to the foreign post of duty.
Sec. 302-15.10 How long may my agency pay under this part?
Your agency may pay:
(a) For transfers within the United States for a period not to
exceed 2 years from your effective date of transfer, with up to a 2-year
extension, under the same conditions required in Sec. 302-11.21 of this
chapter; or
(b) From the time you transfer to a foreign area post of duty until
you:
(1) Transfer back to an official station in the United States; or
(2) Complete a service agreement at your post of duty and remain
there, but do not sign a new service agreement; or
(3) Separate from Government service.
Sec. 302-15.11 If my agency authorized, and I elected to receive, payment for property management expenses, may I later elect to sell my residence at
Government expense?
Yes, you may change your selection from receiving property
management expenses to selling your residence at Government expense
provided:
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(a) Your agency allows you to change your election of payment from
property management expenses to the sale of your residence at Government
expense; and
(b) Payment for sale of your residence at Government expense is
offset in accordance with your agency's policy established under
Sec. 302-15.70(d).
Sec. 302-15.12 If my agency is paying for property management services under this part, and my service agreement expires, what must I do to ensure that payment
for property management services continues?
You must sign a new service agreement (see Sec. 302-2.13 of this
chapter) to continue to this benefit.
Sec. 302-15.13 What are the income tax consequences when my agency pays for my property management services?
When your agency pays for your property management services, you
will be taxed on the amount of expenses your agency pays for property
management services whether it reimburses you directly or whether it
pays a relocation service company to manage your residence. Your agency
must pay you a relocation income tax (RIT) allowance for the additional
Federal, State and local income taxes you incur on property management
expenses it reimburses you or pays on your behalf.
Note to Sec. 302-15.13: You may wish to consult with a tax advisor
to determine whether you will incur any additional tax liability,
unrelated to your agency's payment of your property management expenses,
as a result of maintaining your residence as a rental property.
Subpart B--Agency Responsibilities
Note to subpart B: Use of pronouns ``we'', ``you'', and their
variants throughout this subpart refers to the agency.
Sec. 302-15.70 What governing policies must we establish for the allowance for property management services?
You must establish policies and procedures governing:
(a) When you will authorize payment for property management services
for an employee who transfers in the interest of the Government;
(b) Who will determine, for relocations to official 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;
(c) If and when you will allow an employee who was offered and
accepted payment for property management services to change his/her mind
and elect instead to sell his/her residence at Government expense in
accordance with paragraph (d) of this section; and
(d) How you will offset expenses you have paid for property
management services against payable expenses for sale of the employee's
residence when an eligible employee who elected payment for property
management services later changes his/her mind and elects instead to
sell his/her residence at Government expense.
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