Questions concerning this policy chapter should be directed to:

• VHA:   Travel Policy, VAFSC
• VBA:   Home | Salesforce or for emergency only OPERATIONS.VBACO@va.gov 
• NCA:   NCA Budget Service  
• OIT:     VACO IT Travel / Travel Card Support  
• All Others: 
  • FSC PCS Travel Division
  • FSC Travel Policy

0801  Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding the reimbursement of authorized relocation expenses for permanent change of station (PCS) and temporary change of station (TCS).

Key points covered in this chapter:

• Human Resource Administration, Office of the Chief Human Capital Officer (OCHO) Bulletin, February 17, 2023, established it is the responsibility of the VA ‘authorizing official’ (e.g., hiring official) to approve PCS relocation allowances for a recruitment action;
• FTR § 302-3.503 requires an executed Continuing Service Agreement (CSA) to be eligible for reimbursement of relocation allowances, except when a Senior Executive Service (SES) employee is authorized “last move home” benefits, for a TCS, or when returning an employee and immediate family CONUS after completing an OCONUS CSA;
• Approving Officials (AOs) will only authorize discretionary temporary quarters subsistence expense (TQSE) allowance when it will minimize or avoid other relocation expenses such as prolonged temporary storage of household goods (HHG);
• VA will not authorize TQSE if the distance between the old and new official stations is less than 50 miles (FTR § 302-6.4); and
• VA will not authorize a temporary change of station (TCS) for durations less than 6 months or more than 30 months.

Under 5 U.S.C. § 406 (Inspector General Act of 1978 – Public Law 95-452), VA Office of Inspector General (VA OIG) employees shall adhere to travel Directives, policies, procedures, and guidance provided by the VA OIG.

Union rights and privileges related to travel expenses, as defined in Union agreements, do not supersede the regulations contained in FTR Chapters 300-304.

0802 Revisions

Section	Revision	Requesting Office	Reason for Change	Effective Date
Various	Incorporated previous appendices into policy where appropriate	OFP	Reorganized chapter layout	August 2024
Various	Updated direct references to VA Form 3918 and PCS Travel Portal	OFP	To address process changes from launch of new PCS system	August 2024
Various	Reformatted to new policy format and completed full update	OFP	Reorganized chapter layout	August 2024
Various	Added language per GSA bulletin on clean energy	GSA	GSA Bulletin M-24-05	August 2024
080515	Added newly released TQSE-Lodgings Plus	GSA	GSA Update released May 2024	August 2024

For a complete list of revisions, see Appendix A.

0803 Definitions

Actual Expense Method – Reimbursement in which the Government assumes the responsibility for arranging and paying for the actual expenses of shipping the employee’s HHG.

Amended Value Sale – Type of home sale transaction that occurs when the relocating employee receives a bona fide offer from a qualified buyer before the employee has accepted an appraised value offer from the relocation services company (RSC). The RSC amends its offer to match the outside sale price.

Appraised Value Offer (AVO) Program – Discretionary allowance homesale program in which a contractor will make the employee an offer based on relocation appraisals. This program was formerly referred to as the Guaranteed Home Buyout Option Program, and it is only available to the employee if advertised in the job announcement.

Approving Official (AO) – A VA travel system role with the authority to approve travel documents.

Buyer Value Option Program (BVO) – A discretionary allowance homesale program with procedures the same as the AVO program, except that the RSC does not initially appraise the employee’s home or make a guaranteed buy-out offer. The buy-out offer from the contractor is based on a bona fide offer received by the employee from a qualified buyer after marketing by the employee. Once a bona fide offer is received by the employee, the contractor offers to buy the home from the employee at a price based on the outside sale price.

Continuing Service Agreement (CSA) – A written agreement between VA and the employee, signed by the employee, stating that the employee will remain in the service of the Federal Government for a specified period of time (FTR § 302-2.13).

Direct Reimbursement for Sale of Residence at Departure Duty Station – Reimbursement for reasonable and customary seller’s closing costs in accordance with the regulation of up to a maximum of 10 percent of the actual sale price of the employee’s property.

Discretionary Allowances – Relocation allowances that VA has discretionary authority to pay or reimburse employees when authorized by the delegated AO.

Entitlements – Relocation allowances that VA must pay or reimburse employees.

Immediate Family – Members of the employee’s household at the time the employee reports for duty at the new permanent duty station or performs other authorized travel involving family members, as defined by FTR § 300-3.1.

Medical Credentialing – The process of obtaining, verifying, and assessing the qualifications of a health care provider to provide care or services in or for the VA health care system.

Relocation Services Company (RSC) – A third-party supplier under contract with an agency to assist a transferred employee in relocating to the new official station. Services may include: Homesale programs, home inspection, home marketing assistance, home finding assistance, property management services, shipment and storage of household goods (HHG), voucher review and payment, relocation counseling, and similar items.

Special Properties – Eligible properties determined by the contractor and VA to be especially difficult to sell or where the property value is especially difficult to determine, in accordance with the relocation services contract. VA is required to pay a higher fee to the contractor for special handling fees.

Temporary Change of Station (TCS) –Relocation to a new official station for a temporary period while performing a long-term assignment, and subsequent return to the previous official station upon completion of that assignment.

Tour Renewal Agreement Travel – Overseas travel of the employee and their immediate family members returning to their home in CONUS, Alaska, or Hawaii between overseas tours of duty.

0804 Roles and Responsibilities

Secretary of Veterans Affairs (SECVA) or designee, is responsible for approving Homesale Program listing extension requests beyond the required 90-day period, for all eligible SES and SES Equivalent Title 38 employees. Refer to the Delegations of Authority Summary (Appendix B) for travel actions and approvals.

Deputy Secretary, Under Secretaries, Assistant Secretaries, and Other Key Officials are responsible for ensuring compliance with the policies outlined in this chapter and have been delegated the authority from SECVA to authorize and approve travel actions and discretionary travel expenses with redelegations as established in Appendix B Delegations of Authority Summary.

Assistant Secretary of Human Resources Administration/Operations, Security, and Preparedness (HRA/OSP) is responsible for establishing policy guidelines to determine who may authorize PCS, TCS, and the discretionary AVO allowance as being in the best interest of the government for all non-SES, and for SES, and SES Equivalent Title 38 positions.

Hiring Officials have been delegated the authority by HRA/OSP to authorize and approve all PCS relocation allowances, and AVO in accordance with applicable policies. In addition, they are responsible for:

• Providing all approval documentation to their respective HR Staff office when initiating all recruitment efforts;
• Ensuring funds are available for authorized PCS and TCS allowance expenses; and
• Providing all re-delegated approval memorandums to the FSC PCS Travel Division by email promptly to facilitate TA approval and prevent delays in the employee’s reporting date.

Servicing Human Resource (HR) Office for the gaining station or a staff office’s Servicing HR office are responsible for verifying the required approval level for PCS relocation allowances (and AVO when authorized) is obtained from the hiring official before commencing all recruitment actions. The office must also initiate and submit a complete relocation package and enter vendor information on behalf of the new employee.

VA Financial Service Center (FSC) PCS Travel Division is responsible for assisting local administrators and travelers in coordinating and processing relocation packages, maintaining proper documentation, and assigned reporting requirements. Responsibilities include but are not limited to:

• Ensuring relocation requests contain the proper supporting documentation;
• Ensuring AOs have delegated authority for approval actions;
• Preparing the relocation employee’s travel authorization (TA);
• Assisting travelers in completing PCS travel claims for reimbursement, and auditing and reimbursing PCS travel claims in accordance with FTR, U.S. General Services Administration decisions, General Accountability Office Comptroller General decisions, and this chapter;
• Administration and oversight of VA’s PCS relocation services contract including contract negotiation, Contract Officer Representative (COR) monitoring, annual reviews of the homesale program data, and notification to contractor to schedule shipment/storage of HHG;
• Processing bills of collection to travelers and performing obligation reviews to ensure funds are liquidated timely.

Office of Acquisitions and Logistics and Construction (OALC) is responsible for the transportation Memorandum of Understanding with an RSC, which includes the requirement to use international shipping companies, and completes required pre-payment audits through and in compliance with the General Services Administration (GSA).

Travel Approving Officials (AOs) are authorized to approve relocation discretionary allowances other than AVO and are responsible for ensuring that relocation travel is authorized, documented, and processed in accordance with VA policy and Federal regulations.

Travelers will be knowledgeable of and comply with the FTR, VA Travel and Charge Card policies and FSC PCS Travel Division guidance relating to relocation travel expenses, extension requests, and reimbursement. Travelers will ensure their travel authorization is approved prior to incurring any expenses related to relocation, minimize costs, complete all PCS system actions and travel claims promptly, participate in RSC counseling when BVO is elected or when AVO is authorized (FTR § 302.12-.3), and obtain tax exemptions on hotel accommodations when applicable.

0805 Policies

080501 General Policies

1. Relocation allowances for Federal civilian employees authorized to relocate at Government expense are covered in Federal Travel Regulation (FTR) Chapters 300, 301 and 302. New appointees may be authorized allowances in accordance with FTR § 302-3.2.
2. The officials delegated the authority to approve PCS, TCS, relocation allowance, discretionary expenses, and other actions are identified in Appendix B – Delegations of Authority Summary.
3. VA will pay for entitlements and may provide discretionary allowances based on the applicable relocation type and in accordance with FTR § 302-3.101.
4. VA will reimburse employees for miscellaneous expenses (MEA) in accordance with FTR § 302-16. If miscellaneous expenses exceed established limits, supporting documents must be attached in the PCS system, and VA will reimburse in accordance with FTR § 302-16.103.
5. A relocating employee may use their Government Travel Charge Card Individually Billed Account (IBA) for authorized househunting (HH) and en route travel expenses only. For en route travel, the following also apply:
   • In advance of en route travel, the relocating employee must coordinate and confirm with their losing and gaining station’s or staff office’s A/OPCs that their travel card has been transferred under their new duty station within the contracted bank’s system and their card’s credit limit has been raised to the authorized amount; and
   • The employee is required to provide the gaining station’s or staff office’s A/OPC a copy of their approved en route travel authorization. Reference Volume XVI, Chapter 2A – Government Travel Card Individually Billed Accounts for guidance on appropriate use of the travel card and required receipts.
6. Travel advances requested on an SF 1038 – Advance of Funds Application and Account can only be authorized if an employee is exempt from the use of a Government Travel Card. An approved SF 1038 must be attached in the employee’s folder in the PCS system. Appendix C – Advance of Funds, provides information on relocation allowances that are eligible for travel fund advances.
7. Employees may use their own property management services company for a residence not in use due to a transfer in the interest of the Government. However, reimbursement to the employee will not exceed the contracted negotiated rate with the third-party vendor VA has contracted with to perform these services. (FTR § 302–15.70(b)).
8. Relocation packages must show evidence of approval by an official who has been properly delegated the authority to authorize relocation allowances for the position. When authority associated with PCS activities is re-delegated, memorandum substantiating the re-delegated authority must be provided to the FSC PCS Travel Division by the gaining station or staff office’s HR.
9. VA will take actions pursuant with 28 U.S.C. 2514 on any employee who attempts to defraud the government under any part of the relocation process, in accordance with FTR § 302-2.7.
10. VA will retain relocation files for six years in accordance with the National Archive and Records Administration (NARA) guidelines. Supporting documents and certifications must be maintained in the appropriate PCS Travel System.
11. Annually, FSC will conduct a review of VA’s Homesale Program historical data prior to exercising any homesale contract options or procuring relocation services for new contract awards. The data analyzed will include:
    • Examining the number of employees who participated in each program;
    • Homesale transaction costs;
    • Median homesale values; and
    • Contract requirements in the Statement of Work.

080502 Authorizing Allowances

1. VA may authorize permanent change of station (PCS) and temporary change of station (TCS) relocation allowances, entitlements, and the discretionary Appraised Value Offer Program (AVO) in accordance with Human Resources Administration (HRA) policy.
2. HRA’s Office of The Chief Human Capital Officer (OCHO) Bulletin, February 17, 2023, established: “It is the responsibility of the VA ‘authorizing official’ (e.g., the hiring official) to approve PCS/relocation allowances for a recruitment action when it is in the best interest of the government. HRA policy identifying factors to consider when making decisions in the best interest of the government and other guidelines can be found in OCHO Bulletin dated February 17, 2023, VA Directive 5005, Staffing for Non-SES positions, and VA Directive 5027, Senior Executive Service Handbook for SES, and SES Equivalent Title 38 positions.
3. PCS relocation allowance entitlements and AVO Program discretionary allowances must be authorized in advance of recruitment actions; and when authorized must be stated in all applicable job opportunity announcements or recruitment notices for the position.
4. VA may approve allowances as specified in FTR § 302-3 Subpart A and FTR § 302-3 Subpart B when an employee is both authorized and eligible for:
   • Entitlements (e.g., home buy and sell expenses, storage of household goods, etc.); and
   • Discretionary allowances (e.g., shipment of POV, house hunting per diem, etc.).
5. Relocation allowances for a political appointee are determined based on their status as a new employee or current employee at the time of their appointment.
6. Relocation allowances are subject to Relocation Withholding and Income Tax Withholding allowances.

080503 Employee Eligibility Requirements

1. Employees are found eligible for relocation expense allowances in accordance with FTR § 302-1.1, and for residence transactions in accordance with FTR § 302-11.2 (eligible) and FTR § 302-11.4 (not eligible).
2. The term ‘employee’ may refer to a new appointee (FTR 302-3 Subpart A – New Appointee) or a transferred employee (FTR 302-3 Subpart B – Transferred Employee).
3. VA will determine relocation eligibility based on existing regulatory provisions in effect at the time an employee reports to their new official station.
4. In accordance with Internal Revenue Service (IRS) Publication 521 and FTR § 302-2.6, VA will apply the 50-mile distance test to determine whether an employee meets the distance requirements for relocation expense entitlement. For example, if the old official station is 3 miles from the current residence, then the new official station must be at least 53 miles from that same residence in order to receive relocation expenses for residence transactions.
5. Remote employees who are transferred to another VA station in which the role continues to be remote cannot be authorized to be reimbursed for a PCS move.
6. When a traveler’s TDY location becomes their permanent duty location, the traveler will return to their original duty station for administrative out-processing prior to officially transferring to the new permanent duty station. The traveler will be reimbursed at the TDY rate while returning to the old official station, and at the relocation rate (Permanent Change of Station (PCS)) while en route to the new official station.
7. Accepting a new position, while performing the new position duties on TDY, can affect per diem entitlement. The hiring official and employee should consult their local Office of General Counsel representative for guidance on per diem entitlement.

080504 Continuing Service Agreement

1. A Continuing Service Agreement (CSA) must be executed prior to the beginning of any PCS relocation travel, except when the PCS is for an SES employee authorized “last move home” benefits, for a TCS, or when returning an employee and immediate family CONUS after completing an OCONUS CSA.
2. VA will not pay a relocation allowance to an employee who has not signed an agency CSA (FTR § 302-3.503), except in the case of an SES employee who is authorized for “last move home” benefits or for TCS. FTR § 302-2.14 identifies the types of relocation travel requiring an CSA.
3. VA requires a 36-month CSA commencing with the effective date of transfer or reassignment for SES and SES Equivalent Title 38 positions authorized AVO (FTR § 302-2.14).
4. In accordance with FTR § 302-2.14, VA requires a 12-month CSA for all non-SES CONUS, OCONUS and renewal agreement travel.
5. The duration of a CSA must be consistent across all documents (e.g., relocation request, CSA, and TA).
6. A CSA will consist of, at a minimum:
   1. Employee Name, including additional employee data as reflected in the relocation request;
   2. Releasing Official station with location (city and state) or departure home (city and state) if a new appointee;
   3. Receiving Official station with location (city and state);
   4. A minimum period of service with the Federal Government for Continental United States (CONUS), Outside of Continental United States (OCONUS), and renewal agreement travel. Reference FTR § 302-2.14 for minimum periods required;
   5. Duplicate Reimbursement Disclosure Statement, which states the employee, and their immediate family has not accepted, and will not accept, duplicate reimbursement for relocation expenses. Refer to FTR § 302-2.21 and FTR § 302-2.22 for additional information;
   6. Signature of employee; and
   7. Date of execution.
7. Employees must reimburse the Government for all costs reimbursed by the employee’s agency, including the Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA), if a violation of a CSA occurs that is within the employee’s control. See Volume XII, Chapter 3 – Employee Debt Chapter for further information.
8. A new CSA cannot void an existing CSA that is already in effect. While a relocation allowance CSA is transferable within the Federal Government, the relocation allowance is specific to the receiving agency. Each CSA is in effect for the period specified in the agreement.
9. The employee must notify the transferring agency of the timeframes remaining on any previous and or current CSA. The subsequent agency has the ultimate responsibility for recording the timeframe requirements associated with the employee’s prior CSA.
10. An employee relocating to an OCONUS location is required to provide the VA HR point of contact with their stateside place of residence immediately upon notification of the assignment. This information must be documented in the CSA.

080505 Employee’s Effective Reporting Date

1. All employees who accept positions requiring them to relocate to new duty stations must physically report to the new official station on the reporting date.
2. The reporting date will be specified in the relocation package submitted by the gaining HR office. The effective transfer or appointment date will not always coincide with the reporting date. For example, the effective transfer or appointment date at the official station may be Sunday, March 1, 20XX, yet the physical reporting date may be Monday, March 2, 20XX.
3. The reporting date assigned must be no later than 90 days from the tentative notification date of the appointment, or no later than 90 days from the date the credentialing is signed by the field facility Director for positions requiring credentialing.
4. The receiving station’s supervisor may authorize a transferring employee to remain a temporary virtual employee for up to 90 days due to documented verifiable delays related to the sale or purchase of their residences at their current official stations or due to delays related to family situations (e.g., school, work, or illness).

080506 Relocation Requests

1. Relocation requests must be submitted to the FSC PCS Travel Division to initiate a relocation. The completed forms should be submitted no later than two business days from the date the candidate accepts the final offer, or for positions requiring VA medical credentialing, from the date the credentialing is signed by the field facility Director. Refer to the FSC Direct – PCS Homepage for information to support employee relocation services, submission requirements, and PCS Travel System use.
2. FSC PCS Travel Division must contact the relocating employee within two business days of receiving a completed relocation request to schedule the employee’s PCS Allowance Counseling meeting.
3. FSC PCS Travel Division will not conduct counseling sessions while an employee is driving a vehicle for safety reasons and in accordance with Executive Order 13513 dated October 1, 2009.
4. Prior to processing a relocation request, FSC PCS Travel Division will ensure the authorizing documents for PCS allowances, and AVO when applicable, have been attached to the request. The absence of an authorizing document may delay the employee’s ability to relocate and result in a change to the report date. Absence of a signed AVO memorandum will limit the selected candidate’s real estate options to Direct Reimbursement or BVO.
5. FSC PCS Travel Division will notify the servicing HR of any missing documents and will not process a relocation request until proper documentation is attached.
6. Once a complete relocation request is submitted, each step of the relocation package process must be completed within two business days to facilitate completion of the TA prior to the report date (Appendix D – Steps for Authorization of PCS Relocation).

080507 Travel Authorization (TA) and Travel Claim Submission

1. TA’s will include mandatory entitlements for which the employee is eligible; however, they may also include authorized discretionary allowances, advance of funds, TQSE or other relevant items.
2. Only allowances authorized on an employee’s TA will be reimbursed.
3. Relocation expenses may not be incurred until the designated travel AO has approved the employee’s TA (FTR § 302-2.1).
4. In the event a TA is not approved in advance of the report date, the AO must contact HR to initiate a change in the report date, which cannot exceed 90 days beyond the original notification date.
5. Employees must submit a travel claim within five business days after completion of each PCS allowance activity (e.g., HH trip, en route travel, sale or purchase of residence) for official relocation travel.
6. Reimbursable funds from a travel claim will be applied first to outstanding travel advances until liquidated, then any balance remaining will be paid to the traveler or claimant.

080508 Relocation Time Limits, Extensions and Waiver Requests

1. Employees must complete all authorized relocation activities and incur related expenses for their relocations within one year from the effective date of the tranfser or appointment (FTR § 302-2 Subpart A – Time Limits). AOs may allow exceptions in accordance with FTR § 302-2.10 and FTR § 302-2.11 (e.g., active military service and shipping restrictions).
2. In accordance with FTR § 302-11.22 and FTR § 302-11.23, VA may grant an extension to incur relocation expenses for up to one additional year. The AO may consider submitting for approval of an extension request if an employee can demonstrate they are actively marketing their home, experienced delays related to the sale or purchase of their residence at the official duty stations, or delays due to family situations such as school, work or illness (FTR § 302-11.421).
3. Any request submitted after the 30-day time limit established in FTR § 302-11.23 requires an approval waiver request.
4. The AO may submit a request for a waiver of the 50-mile distance requirement (FTR § 302-2.6(b)) if they can justify against the appearance of impropriety to the public when the distance between the old and new duty station is also less than 50-miles.
5. The Delegation of Authority Summary (Appendix B) identifies approval level required to waive the FTR 50-mile distance test requirement, VA’s 90-day reporting requirement, and the 30-day time limit for submitting a one-year extension request for completing all relocation transactions.
6. All waiver requests must be submitted in the form of a memorandum citing the applicable extenuating circumstances with relevant documentation, background materials, and additional support information attached. For a waiver/extension of the 90-day reporting requirement, the memo must include the new report date.
7. Waiver requests will be submitted to the respective Administration or Staff Office via email to obtain the required level of approval.
8. When an extension is authorized, the total relocation timeframe cannot exceed two years from the reporting date.

080509 Allowances for En Route Travel Subsistence and Transportation

1. Employees will use the standard Continental United States (CONUS) per diem rates for en route relocation travel between the old and new official stations. Employees will be reimbursed in accordance with FTR § 302-4.100 and Volume XIV, Chapter 2 – Travel Per Diem.
2. Per diem reimbursement is based on the number of days used to complete the trip, not to exceed the established authorized travel days. Per diem will not be paid unless the travel period to the new official station is 12 hours or more. When authorized POV, the number of authorized travel days will be based on an average minimum driving distance of 300 miles per calendar day, except for delays noted in FTR § 302-4.704. Travel is to be continuous via the authorized mode of travel and the most direct usually traveled route.
3. VA will not authorize per diem for employee’s immediate family members if employees are new appointees or assigned to posts of duty OCONUS and are returning to the place of their original residence for separation (last move home) (FTR § 302-3.101).
4. Per diem amounts for en route relocation travel of eligible family members within CONUS will be authorized in accordance with FTR § 302–4.203-206. A spouse or domestic partner, for per diem purposes, is considered to be “accompanied by an employee” when traveling on the same day(s) along the same general route, even if the two parties are driving separate POVs (FTR 302-4.205).
5. VA will authorize the mode of transportation as determined necessary for en route travel in accordance with the TDY rules in FTR § 301-10 Transportation Expenses.

080510 POVs: Shipment or Travel Within CONUS

1. In accordance with FTR § 302-9.301, AOs may authorize the transport of a POV within CONUS as a discretionary allowance not an entitlement. A maximum of two POVs may be authorized depending on the number of people on the travel orders who are licensed drivers when it is advantageous and cost effective to the government (FTR § 302-9.302).
2. AOs will consider the following when authorizing the shipment of a POV:
   • The POV is in operating order and legally titled and tagged for driving; and
   • The distance the POV is to be shipped is greater than 600 miles from old to new duty station.
3. POV ground travel mileage is determined based on the place of origin.
   • For new employees, the place of residence at origin to the new official station will be utilized in determining mileage.
   • For transferring employees, the old and new official stations will be utilized.
   • For overseas tour renewal travel, no POV ground mileage is authorized (FTR § 302-4.301).
4. Acceptable evidence for POV ground mileage includes actual odometer readings of distance traveled or the results from an online distance calculation tool. Should a difference of more than 5 percent exist between the traveler’s calculated mileage and the AO’s calculated mileage (rounded up to the nearest mile), the employee must attach justification to the travel claim to support the difference in the reimbursement request. VA may consider exceptions in accordance with FTR § 302-4.401.
5. When a Federal or State Government declares a national or local emergency with required evacuation, the AO may authorize storage of a POV which has been shipped at the expense of the Federal Government.

080511 Shipment of Household Goods (HHG)

1. When an employee is eligible per FTR § 302-7.1, then in accordance with FTR § 302-7.2 VA may authorize shipment and storage of employee HHG up to 18,000 pounds of net weight plus a 2,000 pound allowance for uncrated or van line shipments.
2. VA will ship HHG via the actual expense method (Government ship). FSC PCS Travel Division will initiate a Bill of Lading with VA’s contracted commercial carrier. VA will pay the commercial carrier directly and the employee will not incur any associated upfront costs. The commercial carrier will contact the employee once the Bill of Lading has been received and processed and the commercial carrier will pack, ship, store, deliver, and unpack the HHG in one lot.
3. If the employee lives in a remote location that the commercial carrier is unable to access by truck, VA will pay the commercial carrier for additional costs incurred to reach the residence.
4. In addition to the costs listed in FTR § 302-7.401(b), VA may also reimburse the following costs:
   • Truck rental or expenses for other types of vehicles when deemed appropriate to accomplish a smaller self-shipment move (e.g., SUV or trailer) not exceeding the reasonable constructive cost of a truck rental;
   • Fuel;
   • Packaging materials;
   • Toll charges;
   • Weight tickets; and
   • Insurance on HHG.
5. Employees will not charge any HHG shipment expenses to their Government Travel Card. Instead, employees will prepare a claim for reimbursement for all expenses within the appropriate PCS Travel System. Employees will attach the following documents to their travel claims:
   • Weight certificates from the nearest weighing station before and after loading the vehicle. If hauling goods in multiple trips, before and after loading weight certificates must be provided for each trip. If there were two trips; then two separate certificates must be provided for both before loading and after loading. The same before and after loading certificate cannot be utilized for more than one trip;
   • Copy of the travel authorization limiting the reimbursement of the commuted method to the cost of the shipment by the Commercial Carrier Method;
   • Inventory of goods being shipped; and
   • All associated paid-in-full receipts for which reimbursement is requested.
6. The employee is responsible for contacting the commercial carrier if there is a question as to what owned items may be included for shipment as part of HHG. In addition to those listed in FTR § 300-3.1, the following items will not be included in the shipment of HHG:
   • Airplanes or gliders;
   • Major vehicle parts (e.g., engines); and
   • Alcoholic beverages.
7. If total HHG weight is above the 18,000 pound limit and Professional Books, Papers & Equipment (PBP&E) items are included in HHG, then AOs will review, certify, and approve PBP&E to be packed and shipped separately from HHG by the commercial carrier (FTR §§ 302-7.4 and 302-7.5). A written inventory of PBP&E goods to be shipped must be approved by the employee’s new supervisor prior to shipping. The Bill of Lading will contain separate weight readings and costs associated with the employee’s professional items, and PBP&E will be reimbursed as an administrative expense of the station or staff office separate from relocation funds. Proper documentation of PBP&E includes:
   • Separating into three categories (Professional Books, Papers, Equipment);
   • Listing individually, but may be grouped if appropriate (e.g., encyclopedia set);
   • Providing an estimate of the number of items contained in any group listing (e.g., encyclopedia set of 10 books); and
   • Providing a justification in support of the need for the goods included under each category.
8. The term “mobile home” refers to traditional trailer homes as well as boats. Employees will be permitted to transport a mobile home provided they certify that it is being used as the current residence and will be used as the permanent residence at the new official station. Refer to FTR Part 302-10 and Appendix E – Shipment of Mobile Homes, for reimbursement guidance.
9. Unaccompanied air baggage (UAB) shipment may be authorized only in connection with OCONUS PCS and in accordance with FTR § 302-7.3.
10. VA will issue a bill of collection for payment of charges for shipping and storage in excess of the allowable limits.
11. Employees may pursue other methods for transportation of HHG and PBP&E in accordance with FTR § 302-7.401(b); however, the reimbursement is limited to the actual cost incurred by the Government, not to exceed the method selected by the relocation services company (RSC) vendor (FTR § 302-7.16).
12. The Government’s liability for loss or damage to HHG is determined by VA in accordance with FTR § 302-7.12. VA Handbook 7240 Transportation and Traffic Management 710-2 addresses processing claims against carriers for loss or damage in shipments of HHG.

080512 Storage of HHG

1. VA will approve temporary storage of HHG, when eligible, in accordance with FTR § 302-7.9. Storage of goods in excess of 30 calendar days is treated as taxable income to the employee and will be included as gross income.
2. Employees may request to extend temporary storage, when eligible, in accordance with guidelines in FTR § 302-7.9, and authorization is processed as an amendment to the TA. Circumstances beyond the employee’s immediate control that could justify additional storage time may include those listed in FTR § 302-7.10.
3. Extended storage may be approved by AOs if the extension applies to the employee’s transfer and for a period not to exceed 90 days beyond the initial temporary storage 60-day period under the following documented circumstances (FTR § 302-8.102):
   1. Employee is assigned to an isolated official station within CONUS (FTR § 302-8 Subpart B); or
   2. Employee is assigned to an OCONUS official station and VA determines extended storage is cost effective (FTR § 302-8 Subpart C); or
   3. Employee is assigned to an overseas location where VA limits the amount of HHG the employee may transport to that location; or
   4. It is necessary for a Temporary Change of Station (TCS).
4. VA will provide extended storage at either of the following as determined by the RSC vendor:
   1. Available Government-owned storage space; or
   2. Suitable commercial storage space if Government-owned space is not available or commercial storage space is more economical or suitable because of location, transportation costs, or for other reasons.
5. When a tour of duty is terminated, the employee’s storage costs will be paid by the Government until the end of the month in which the tour was terminated.
6. Employees may pursue other methods for temporary storage of HHG and PBP&E in accordance with FTR § 302-7.401; however, reimbursement is limited to the actual cost incurred by the Government, not to exceed the method selected by the RSC vendor (FTR § 302-7.16).

080513 Temporary Quarters Subsistence Expense (TQSE)

1. Temporary quarters (TQ) refers to lodging obtained from a private or commercial source for the purpose of temporary occupancy. TQSE is a discretionary allowance intended to reimburse employees (and/or their immediate family) for some of the costs incurred for meals, lodging, and other necessities (not including transportation expenses) while occupying temporary quarters.
2. VA may authorize TQSE in accordance with FTR PART 302-6.
3. TQSE will not be authorized retroactively.
4. VA may at any time request proof that TQ were occupied, even if not for the full length of time on which the lump sum calculation was based. In the absence of sufficient proof of TQSE occupancy, VA may demand repayment of the TQSE Lump Sum (LS) payment in accordance with FTR § 302-6.305.
5. TQSE reimbursement will stop, and the quarters will be considered permanent under the following conditions:
   • TQ leases signed longer than 6 months when employees do not have a contract to purchase a permanent residence by lease end; and
   • Full delivery of the employee’s HHG, regardless of the duration of a lease.

080514 Reimbursement of TQSE

1. Reimbursement eligibility for TQSE will begin on the date the AO authorizes occupancy of temporary quarters. Reference Appendix F, Temporary Quarters Subsistence Allowances for reimbursement calculation guidance.
2. During the PCS Allowance Counseling Session, the employee is offered up to three reimbursement methods to choose from on the Discretionary Request Form: TQSE-Lodgings Plus (LP), TQSE-Lump Sum (LS), or TQSE-Actual Expense (AE). There is no obligation to accept LS or LP if offered. Factors to consider in authorizing the request include:
   • If an employee has already entered temporary quarters or incurred TQSE expenses, only the AE method can be authorized and effective the date it is approved.
   • Once an employee elects a TQSE type, the decision is final and cannot be changed.
3. For TQSE-LP (FTR Rule 89 FR 37975):
   1. The traveler is reimbursed actual lodging expenses up to a maximum by local area, as supported by receipts, and a meals and incidental expense (M&IE) allowance which may be paid without itemization.
   2. TQSE-LP is the GSA preferred method of reimbursement, when authorized.
   3. TQSE-LP may include a per diem allowance, reimbursement for actual and necessary expenses, or a combination of both (5 U.S.C. 5702) by utilizing the TDY Lodgings-plus per diem methodology (Vol XIV, Ch 02).
4. For TQSE-LS (FTR § 302-6 Subpart C):
   1. The traveler is reimbursed a lump sum for each day authorized up to a maximum of 30 days.
      • During review and approval of TQSE-LS, AOs must consider several factors:
      • Employee certification of the number of immediate family members occupying the quarters;
      • Possible TDY travel the employee may be directed to perform while occupying temporary quarters;
      • If there are family members who will not be occupying the temporary quarters for the entire period (LS will only be calculated based on the actual number of immediate family members that will occupy the temporary quarters);
   2. If it is cost advantageous for VA.
   3. TQSE-LS authorization cannot include days when permanent quarters are known to be available.
   4. The TQSE-LS amount will be based on the applicable official station’s locality rate in effect when the LS offer is accepted by the employee and is paid in a lump-sum payment. Refer to Appendix F, Temporary Quarters Subsistence Allowances, for the per diem rates used for calculation. Taxes are withheld, and a RITA may be filed on this payment in the following year.
   5. For TQSE-LS, the employee will complete a travel claim requesting LS payment, and receipts are not required. VA will issue a one-time LS payment to the employee, as close as reasonably possible to the time that the employee will begin occupancy of the temporary quarters, and no other payments will be authorized (FTR § 302-6.26).
5. For TQSE-AE (FTR § 302-6 Subpart B):
   1. The traveler is reimbursed for authorized actual expenses for a limited time period, provided they are reasonable and do not exceed the maximum allowable amount as calculated per FTR § 302-6.100.
   2. VA may authorize reimbursement of AE for a period up to midnight of the day prior to occupying permanent quarters, but no later than midnight of the third business day after the closing date on a purchase of permanent quarters or lease effective date (FTR § 302-6.108).
   3. Separate allowances for TQ lodging and M&IE may be combined to produce a single maximum daily amount (FTR Rule 89 FR 37975).
   4. An AO may extend TQSE-AE authorization beyond 60 days, up to an additional consecutive 60 days (FTR § 302-6.29), if one of the compelling reasons identified in FTR § 302-6.31 applies (e.g., delivery of HHG is delayed due to availability of service provides or employee cannot occupy the new permanent residence due to short-term delay in construction).
   5. VA AO’s will not authorize reimbursement of AE beyond the established authorized period for the employee to remain in temporary quarters for the purpose of renovations, delays in furniture or HHG delivery within the employee’s control, or for any other reason resulting out of personal preference (FTR §§ 302-6.300 and 302-6.307).
   6. TQSE-AE travel claims will be submitted by the employee in 30-day increments unless their total duration in temporary quarters is less than 30 days. If waiting the 30-day period to submit for reimbursement is a hardship, the employee can contact the FSC PCS Travel Division to request approval to submit reimbursement requests biweekly or a travel advance (Appendix C, Advance of Funds).
   7. In accordance with FTR § 301-11.306, TQSE-AE travel claims will include:
      1. Itemized expenses, including meals;
      2. Expenses averaged over the number of days of authorized AE for those that do not accrue daily (e.g., laundry expenses, etc.); and
      3. Receipts for lodging, regardless of amount, and for any individual meal or other individual expense when the cost exceeds $75.
   8. VA will review the itemized TQSE-AE expenses and receipts provided and exclude from the employee’s reimbursement any non-reimbursable expenses (e.g., alcohol, or entertainment expenses), making a notation of the exclusion on the itemized document or receipt for audit purposes.

080515 Allowances for Househunting (HH) Trip Expenses

1. HH is a discretionary allowance that can only be incurred by the employee and/or spouse while seeking a permanent residence, if authorized HH cannot exceed 10 calendar days. Reference FTR PART 302-5 Subpart A, for further guidelines and reimbursement information.
2. During the PCS Allowance Counseling session on HH, the employee may complete a Discretionary Request Form to request the type of TQSE they want to receive. Aos will make the determination whether per diem or lump sum method is offered to the employee for HH (FTR § 302-5.13).
3. The duration authorized for HH will not exceed 10 calendar days (FTR § 302-5.11).
4. When cost advantageous to the Government, HH may be authorized in lieu of all or part of authorized TQSE (FTR § 302-5.101). For example, if 30 days of TQSE was authorized and then 10 days of HH were authorized and used, then the remaining authorized TQSE at the new station is 20 days.
5. In accordance with FTR § 302-5.14, for HH trips less than 250-miles, VA considers POV to be most advantageous method of transportation.
6. Alternative methods to POV for HH trips less than 250 may be considered when warranted. Acceptable reasons include but are not limited to:
   • Traveler is physically impaired;
   • Traveler does not own or lease a POV;
   • A completed cost comparison attached to the TA indicates that an alternative method results in cost savings to the government;
   • Traveler has only one POV that is used for family transportation;
   • Impact on the route and efficiency when traveler’s POV is an AFV (FTR Case 2022-03); or
   • Traveler’s POV is not roadworthy for such a trip.
7. Employees may begin their HH travel as soon as their travel authorization is approved.

080516 Eligibility for Residence Transaction Allowances: Direct, AVO, BVO

1. There are three types of reimbursements for which an employee may be eligible: Direct, Buyer Value Option (BVO), and Appraised Value Offer (AVO).
   1. Direct Reimbursement is a mandatory entitlement in which the employee may be eligible for reimbursement for reasonable and customary seller’s closing costs for up to a maximum of 10 percent of the actual sale price of their property. An employee’s decision to use Direct Reimbursement for the sale of their residence is irrevocable.
   2. BVO is a discretionary allowance for which the employee has a vested option. If an employee elects BVO and subsequently decides to opt out of the program, they will be limited to Direct Reimbursement.
   3. AVO is a discretionary allowance that must be authorized in advance, approved by the AO, and clearly stated in the Job Announcement. The employee also must participate in a Relocation Services Program (Appendix G).
2. To be eligible for benefits for sale of a residence at the departure official station one of the following must apply:
   1. The dwelling must be the employee’s actual residence from which he or she commuted to and from work at the time of official notification of transfer (FTR § 302-11.100);
   2. The employee or member of the Immediate Family must have acquired title interest in the dwelling, consistent with time requirements in FTR § 302-11.104; or
   3. The title of the residence must comply with FTR §§ 302-11.101 to 302-11.103, or in absence of a title due to interest in a cooperatively owned dwelling then a valid document must be provided to support calculation of pro rata ownership basis.
3. To be eligible for reimbursement of sale expenses at the old official station, the employee must:
   1. Pay reasonable and customary closing costs;
   2. Submit for reimbursement, not to exceed 10% of the purchase price; and
   3. Complete settlement on the property within one (1) year of their effective reporting date unless granted an extension for up to one additional year (FTR § 302-11.21-22).
4. To be eligible for reimbursement of purchase at the destination official station, the employee must:
   1. Complete settlement on their property within one (1) year of their effective reporting date unless granted an extension for up to one additional year;
   2. Commute daily to/from work in order to be authorized for reimbursement; and
   3. Comply with title requirements in FTR § 302-11, Subpart B, or if the title requirements are not met, the employee will be reimbursed on a pro rata basis to the extent of their verified title interest not to exceed five percent of the actual new home purchase price.
5. Employees who elect BVO or authorized for AVO are required to participate in homesale counseling provided by the RSC and must not list their homes until their travel authorization is approved (FTR § 302-12.109).
6. VA employees enrolled in AVO or BVO must list their homes for sale within 90-days from the date of initiation with the RSC. Only SES and SES Equivalent Title 38 employees are eligible to seek an extension to the 90-day deadline. Employees must submit their extension requests of this listing requirement with adequate justification to the SECVA, or designee, for approval.
7. An employee approved for AVO must market their home for at least 60 days before accepting an appraised value offer.
8. Upon approval of enrollment in AVO or BVO, participation in the program is dependent upon the employee meeting eligibility requirements in the Relocation Services Contract, and reimbursement must be in accordance with FTR Chapter 302 Appendix G, Relocation Services Contract, provides additional information on these programs. If found ineligible during the process, the employee is limited to Direct Reimbursement.
9. VA employees enrolled in AVO who have successfully found qualified buyers for their residences (referred to as the ‘amended sale’) may qualify for the Home Marketing Incentive Program (HMIP), which provides a cash incentive award of 2 percent of the selling price of their homes, not to exceed $8,000. Only employees who sell homes that are not considered Special Properties while enrolled in AVO are eligible for HMIP. Reference Appendix H – Home Marketing Incentive Program for further information.

080517 Reimbursement of Residence Transactions

1. Real estate expenses for both the sale and purchase of a residence are mandatory entitlements for transferring employees, and VA will reimburse expenses that are considered allowable in FTR § 302-11.200.
2. VA will only reimburse sale or purchase of residence transactions paid by the employee or a member of their immediate family (FTR § 302-11.303).
3. VA will adhere to the receipt requirements for sale or purchase of residence transactions as specified in FTR § 302-11.302.
4. In accordance with FTR § 302-11.202, VA will not reimburse employees for certain expenses in connection with residence transactions (e.g., cost of litigation; funding fees; down payments).
5. In accordance with FTR § 302-11.103, if full title requirements are not met, the employee will be reimbursed on a pro rata basis to the extent of their verified title interest. Refer to FTR 302-11, Subpart B, Title Requirements, for additional information on eligibility for this benefit.
   1. All land and buildings must be reasonably related to the residence site. Non-residential property is ineligible.
   2. For relocation services, additional eligibility requirements will be determined by the contractor in accordance with contract guidelines.

080518 Direct Reimbursement of Lease Expenses

1. VA will reimburse employees for fees associated with settlement of an unexpired lease (e.g., release fees) in accordance with FTR § 302-11.7. Lease termination transactions must occur no later than 1 year after the day of reporting to duty at the new official station, unless an extension is authorized (FTR §§ 302-11.21 and 302-11.22)
2. To be eligible for reimbursement of lease expenses, the employee’s name must be on the lease. Reimbursement on a shared lease is limited to pro rata basis for that portion of the lease for which the employee is responsible (FTR § 302-11.321).
3. Employees will submit an itemized expense claim (travel claim) in the appropriate PCS Travel System that includes:
   1. Receipts showing the settlement of unexpired lease expenses are paid in full;
   2. A copy of the signed lease agreement;
   3. Letter notifying termination of lease; and
   4. Documents identifying any penalty for lease termination are also required.
4. Lease expenses can be submitted as a lump sum payment or on a monthly basis depending on the terms of the lease settlement agreement with the rental agency or lessor.

080519 OCONUS Relocations

1. VA may authorize relocation allowances for OCONUS relocations in accordance with FTR § 302-3.101, FTR § 302-4.2, and the Department of State Standardized Regulations (DSSR).
2. VA may authorize Temporary Quarters Subsistence Expenses (TQSE) for Foreign Relocations (FTR §§ 302-3.101 and 302-6.6):
   • Prior to CONUS departure;
   • Upon arrival at foreign location; and
   • Upon return from foreign location.
3. VA AOs may authorize extended storage of HHG for the duration of the assignment, including up to 30 days before the tour begins and up to 60 days after the tour has been completed. Extensions may be authorized for subsequent service or tours of duty at OCONUS locations but only if requests for the extension are submitted prior to the end date of the authorized initial time period.
4. Once the OCONUS assignment has been completed, VA will pay for relocation costs stateside to the place of residence identified in the CSA (FTR § 302-3.101).

080520  Senior Executive Service Separation Relocation Allowance

1. Senior Executive Service (SES) employees must meet conditions as defined in FTR 302-3, Subpart D – Relocation Separation to be eligible for separation relocation allowance (also known as “last move home”).
2. Last move home benefits may be accomplished no more than 6 months prior to separation, and, in accordance with FTR § 302-3.314, no later than 6 months after the date of separation or the date of death of an employee who died before separation.
3. The SES employee must have originally resided in a geographical area at least 50-miles from their last official station.
4. GSA granted VA a waiver to the 50-mile rule due to hardships caused for some VA employees. This waiver remains in effect from December 19, 2003 (effective date) until either a permanent citation is made in Federal regulations or until the GSA’s Office of Government-wide Policy rescinds the waiver. To qualify under the waiver for reimbursement of HHG moving expenses, SES members must:
   • Reside in Government-furnished housing on VA facility grounds;
   • Be required to vacate Government-furnished housing upon separation from Federal service; and
   • Meet the qualifications for SES ‘last move home’ benefits.
5. Before receiving reimbursement for moving expenses, employees must submit a request to VA for authorization and approval of their moving expenses with tentative moving dates, origin, and destination location of the employee’s planned move. All travel and transportation of HHG must begin no later than six months after the employee’s date of separation.
6. VA will pay separation relocation allowances in accordance with FTR § 302-3.101, Table G.
7. Extended storage of HHG is not permitted for a career SES employee eligible for last move home benefits.

080521 Temporary Change of Station Allowances

1. VA will authorize TCS in accordance with FTR §§ 302-3.403 and 302-3.404, and the distance test guidelines in FTR § 302-2.6 (FTR § 302-3.409). A CSA is not required for TCS travel.
2. As described in B-213520, 64 Comptroller General 45 ruling, TCS is one assignment with one TA requiring funding to be obligated for the entire relocation as the transfer is a bona fide need in the year in which the transfer was ordered. Therefore, VA will fully fund both TCS and return expenses at the time the employee is issued a TCS authorization.
3. In accordance with FTR § 302-3.406-408, TCS will not be shorter than 6 months’ duration nor last longer than 30 months; however, if the assignment is cut short of 6 months for reasons other than separation, TCS expenses will be reimbursed. If the TCS lasts longer than 30 months, VA will:
   1. Permanently assign the employee to the temporary official station or pay the expenses of returning the employee, their immediate family members, and HHG to the previous official station;
   2. Not pay for extended storage or property management services past the thirtieth month.
4. VA will pay for expenses in connection with an employee’s departure and return to their official station in accordance with FTR § 302-3.412, including:
   • Travel, including per diem, for employees and their immediate families;
   • Transportation and temporary storage of HHG;
   • Transportation of a mobile home instead of transportation of HHG; and
   • TQSE if the distance between stations is greater than 50 miles.
5. In accordance with FTR 302-3.413, VA has discretionary authority to pay for other expenses associated with TCS assignments, including:
   • HH trip expenses,
   • TQSE,
   • Property management expenses, not to exceed the VA’s contracted negotiated rate with the third-party vendor (FTR § 302–15.70(b), and Appendix I – Property Management Services), and
   • Storing or providing for storage without charge of one POV.
6. VA will authorize expenses in accordance with FTR § 302-3.427 if employees are permanently assigned to TCS official stations. Some acceptable expenses include:
   • Travel, including per diem, for one round trip between the temporary official station and the previous official station, for employees and members of their immediate family who relocated to the temporary official station. VA may also pay the same expenses for a one-way trip from the previous official station to the new permanent official station for any immediate family member who did not accompany the employee to the temporary official station;
   • Residence transaction expenses;
   • Relocation services;
   • Temporary quarters subsistence expenses (TQSE);
   • Transportation of HHG not previously transported to the temporary official station;
   • Transportation of a privately-owned vehicle(s) not previously transported to the temporary official station; and
   • If the employee changes his or her residence as a result of the permanent assignment to the temporary official station, VA may pay for transporting the HHG, subject to the weight limit per FTR, between the residence the employee occupied during the temporary assignment and the new residence.

080522 Withholding Tax Allowance and Relocation Income Tax Allowance

1. The Withholding Tax Allowance (WTA) and the Relocation Income Tax Allowance (RITA) assist employees with the additional Federal, State, or local income tax liability incurred as a result of a move (FTR § 302-17.3). GSA developed the allowances in conjunction with IRS assuming that relocated employees will itemize their deductions rather than take the standard deductions on their income tax returns.
   • WTA is a good faith estimate of the Federal withholding taxes due prior to completion of a move (see FTR § 302-17, Subpart B);
   • RITA uses actual expenses provided by the employee to determine the Federal, State, and local tax effects from the move within 2 years of move completion (FTR § 302-17 Subpart C); and
   • Both WTA and RITA are considered taxable income and are subject to tax withholding, reportable on the W-2 as wages, tips and other compensation in the year in which reimbursement was paid (FTR § 302-17.2).
2. Relocating employees are eligible for WTA and RITA when the circumstances under FTR § 302-17.5 are met.
3. In accordance with FTR § 302-17.6, employees who violate their 12-month CSA will not be paid WTA or RITA and must repay any relocation benefits paid prior to the violation.
4. WTA only covers the estimated Federal withholding tax amount. The reimbursement amount the employee will receive does not cover non-reimbursable items and the estimated amounts for State taxes, OASDI, and Medicare (FTR § 302-17.20). VA employees should review FTR PART 302-17 and IRS publications including 463, 521, 525, and 553 associated with relocation expenses, and consider seeking professional tax advice to determine how their relocation affects their personal tax situation.
5. In accordance with FTR § 302-17.61, WTA is optional for the employee. WTA is an advance estimate of RITA intended to defray an employee’s out-of-pocket expense. Lists of taxable reimbursements and non-taxable expenses are provided in FTR §§ 302-17.21-22.
6. When an employee elects WTA, FSC will reimburse taxable relocation expenses by adding a WTA allowance, in accordance with FTR § 302-17.24, to the employee’s travel claim.
7. When a relocating employee does not elect to receive WTA reimbursements, reference the procedures under FTR §§ 302-17.62-302-17.69.
8. VA pays employees a RITA when the reimbursement to employees for any taxes owed were not adequately reimbursed by the WTA (FTR § 302-17.30).
9. VA uses the two-year process for RITA (FTR §§ 302-17.32 and 302-17.66), such that employees will submit a RITA travel claim the year after the employee receives payment of covered taxable moving expenses.
10. To file a RITA claim, the employee must:
    • Submit the FSC RITA Questionnaire Form ‘Statement of Income and Filing Status’ to FSC or via the appropriate PCS Travel System; and
    • Include copies of all taxable income forms received to complete the employee’s IRS Tax Return, such as W-2, 1099s, and SE-1040 for the employee (and for spouse, if filing jointly).
11. WTA recipients are required to file a RITA claim in accordance with the annual deadline established by the FSC Travel Office. FSC PCS Travel Division will notify affected employees by email of the deadline for filing each year in May, June or July. And employees who do not file in a timely manner will receive a final email warning that VA will declare any WTA paid on their behalf forfeited and due as a debt to the Government if the ‘Statement of Income and Tax Filing Status’ is not filed nor amended within 60 days (FTR § 302-17.102(b)).
12. If a WTA recipient fails to file the ‘Statement of Income and Tax Filing Status’ or RITA claim by the deadline:
    • The WTA recipient must pay VA back for the amount of WTA paid on the employee’s behalf (FTR § 302-17.65); and
    • VA will close the file without paying the RITA.
13. VA will withhold taxes directly from travel claim payments, and FSC will report tax data to the IRS and other tax authorities. Any taxable payments that are made to a third-party service on the employee’s behalf are still considered taxable income and could impact the income reported on the employee’s W-2 (FTR §§ 302-17.23 and 302-17.24).
14. In accordance with FTR § 302-17.33, an employee may request a recalculation of their RITA when:
    • They filed their ‘Statement of Income and Tax Filing Status’ or RITA claim and amended it, if necessary, in a timely manner, and
    • They have completed all Federal, state, and local tax returns.
15. If the employee has been reimbursed more WTA than the RITA allowed, the employee will receive a bill of collection for the overpayment of the WTA. If the employee did not receive enough WTA for the moving expenses, the employee will receive a payment to make up the difference.

0806 Authority and References

• United States Code (U.S.C.)
  • 5 U.S.C. § 406, Authority of Inspector General (Public Law 95-452)
  • 5 U.S.C. § 4109, Government Employees Training Act
  • 5 U.S.C. § 5702, Per diem, employees traveling on official business
  • 5 U.S.C. § 5707, Travel, Transportation and Subsistence
  • 5 U.S.C. § 5724, Travel and Transportation Expenses of Employees Transferred; Advancement of Funds; Reimbursement on Commuted Basis
  • 5 U.S.C. § 5753, Recruitment and Relocation Bonuses
  • 10 U.S.C. § 2631, The Cargo Preference Act of 1904
  • 46 U.S.C. § 55302: Transportation of United States Government personnel, The Cargo Preference Act of 1954
• Federal Travel Regulations
  • 41 Code of Federal Travel Regulations – Chapters 300 – 304
  • FTR Case 2022-03, Alternative Fuel Vehicle Usage During Relocations
  • FTR Rule 89 FT 37975: TQSE- Lodgings Plus
• B-213530, 64 Comptroller General. 45: Bona Fide Need of Relocation Expenses
• Department of State Standardized Regulations (DSSR)
• Executive Order 13513 – Federal Leadership on Reducing Text Messaging While Driving
• Volume XVI, Chapter 2A – Government Travel Card Individually Billed Accounts
• GSA Per Diem Rates
• IRS Publications
• National Archives and Records Administration (NARA), General Records Schedule 1.1: Financial Management and Reporting Records
• Office Of the Chief Human Capital Officer (OCHCO) Bulletin, February 17, 2023
• FSC Direct – PCS Homepage
• VA Directives
  • VA Directive 5005, Staffing
  • VA Directive 5017, Employee Recognition and Awards
  • VA Directive 5027, Senior Executive Service Handbook
• VA Handbook 7240 – Transportation and Traffic Management
• VA Forms
  • VA Form 3036c, Travel Authority for Permanent Duty
  • VA Form 3918, Intra-Agency Transfer Request
  • VA Form 4659, Incentive Awards Recommendation
  • VA Form SF 1038, Advance of Funds Application and Account

0807 Rescissions

Volume XIV Chapter 8, Relocation Packages, May 2024.

Appendix A: Revision History

Section	Revision	Office	Reason for Change	Effective Date
Various	Updated references to Volume XVI, Chapter 2 to reflect 2A, and added link.	OFP	General Update.	May 2024
0808	Removed section.	OFP	Leadership directed.	May 2024
Various	Corrected formatting and removed hyperlinks throughout chapter with links available in Section 0806. Converted tables less than 4 columns to text.	OFP	General Update. Formatting Requirements.	September 2023
0801	Removed HR previous guidance on approval of PCS relocation allowances. and added key points.	OFP	OCHO Bulletin, published February 17, 2023.	September 2023
0804	Updated Hiring Official and Servicing Human Resource (HR) Office to reflect bulletin guidance and made grammar corrections.	OFP	General Update. OCHO Bulletin, published February 17, 2023.	September 2023
080501	Changed section title and added current HR OCHO Bulletin guidance on approval of PCS relocation allowances.	OFP	OCHO Bulletin, published February 17, 2023.	September 2023
0806	Added link to OCHO Bulletin. Updated Authorities & References section. Reorganized list per writing procedures.	OFP	General Update.	September 2023
080502.01	Reorganization of section when converting per diem table to text	OFP (047G)	Formatting Requirement	September 2023
0808	Changed section name from Questions to Policy Approval and updated.	OFP	Leadership Directed.	September 2023
Appendix E	Placed table in an excel spreadsheet and provided link.	OFP	Formatting Updates.	September 2023
0804  Roles and Responsibilities	Added Secretary of Veterans Affairs (SECVA) delegation of authority.	OFP	SECVA Memorandum, “Delegation of Authority for Travel and Conferences”.	October 2021
Appendix D  Delegation of Authority	Added waive the Federal Travel Regulations within the Continental United States; authorize shipment of POV; authorize property management services.	OFP (047G)	SECVA Memorandum, “Delegation of Authority for Travel and Conferences”.	October 2021
Various	Removed all references to Public Law 114-113.	OFP (047G)	Public Law 114-113 statute expired.	January 2018
Various	Removed Appendix A, Chief of Staff Memorandum, “Appraised Value Offer Program” and all references, replacing with HRA HRML 05-17-01 (with link), as interim guidance on PCS and AVO approval level and determination requirements.	OFP (047G)	Publication of HRA HRML 05-17-01, January 27, 2017.	January 2018
080501	Clarified residence transaction eligibility in accordance with FTR § 302-11.4	OFP (047G)	General Policy Update	January 2018
Appendices	Re-alphabetized all Appendices and links throughout the chapter with the removal of Chief of Staff Memorandum, “Appraised Value Offer Program”, previously published under Appendix A.	OFP (047G)	Publication of HRA HRML 05-17-01, January 27, 2017.	January 2018
0801	Modified FTR and Union agreement statement.	OFP (047G)	Provide clarity that regulations supersedes an agreement.	August 2017
080501.04	Replaced per diem entitlement related to TDY at new position with link to Vol. XIV Ch. 2, Travel Per Diem for guidance.	OFP (047G)	Added link to reduce duplication of policy.	August 2017
Various	Reformatted to new policy format and completed 5 year review	OFP (047G)	Reorganized chapter layout.	December 2016
0801	Revised this chapter to focus on financial reimbursement processes. Referenced VA Directives 5005 and 5027, and Chief of Staff memorandum, “Appraised Value Offer Program” for policy on PCS, TCS, and AVO authorization.   Added: FTR supersedes Union agreement statement; authority for OIG employees to follow OIG directives, policy, and guidance.	OFP (047G)	OIG Report 15-02997-526 9/28/15; Office of Internal Controls (OIC) PCS Report; General Policy Update	December 2016
0803	Added: definitions for Appointing Official; Commuted Rate; Relocation Service Company.   Updated Immediate Family incorporating Domestic Partner with FTR link for accessing current definitions.   Removed: definitions not referenced in the chapter and others deemed not necessary.	OFP (047G)	FTR Amendment 2015-02; General Policy Update	December 2016
0804	Added roles and responsibilities for: SECVA, Human Resources Admin. (HRA), Hiring Official, Servicing Human Resource (HR) Office, Financial Service Center (FSC) Permanent Change of Station (PCS) Travel Division, Office of Acquisition, Logistics, and Construction (OALC).   Updated Approving Official and Traveler.   Consolidated roles and responsibilities.	OFP (047G)	OIG Report 15-02997-526; OIC PCS Report	December 2016
0805	Reorganized subsections	OFP (047G)	General Policy Update	December 2016
080501	Added: subsections and reorganized guidance; reference to VA Directive 5005 and 5027 for approval of PCS relocation allowance entitlements ; reference to COSVA Memorandum for approval of AVO; Gaining Station, HR, and FSC approval for relocation, AVO, and Home Marketing Incentive (HMI) Award; documentation requirements; travel authorization and travel advance guidance; regulation on fraud during a relocation.   Clarified time limits, reporting dates, waiver approvals, and extensions.	OFP (047G)	FTR 2014-01; OIG Report 15-02997-526; OIC PCS Report	December 2016
080502	Improved guidance on Temporary Quarters Subsistence Expenses (TQSE) request, approval, time limit and extensions, and reimbursement requirements	OFP (047G)	OIG Report 15-02997-526 General Policy Update	December 2016
080503	Added: FSC restrictions on initiating HMI award for SES, and SES Equivalent, Title 38 employees unless specifically authorized in AVO memorandum; requirements for assessing homesale programs.   Removed AVO approval guidance.	OFP (047G)	OIG Report 15-02997-526 9/28/15; OIC PCS Report; General Policy Update	December 2016
080504	Added miscellaneous expense requirements for flat fees.	OFP (047G)	General Policy Update	December 2016
080505	Added policy on household good prepayments; use of ships for international shipping; HHG shipment pre-paid audit requirements; household good and shipping limitations; approving extended storage; determining storage locations; and unaccompanied air baggage shipping.	OFP (047G)	OIC PCS Report	December 2016
080506	Added Property Management Services contracted negotiated rate requirements.	OFP (047G)	OIC PCS Report	December 2016
080508	Added Property Management Services contracted negotiated rate requirements.	OFP (047G)	OIC PCS Report	December 2016
080509	Updated relocation withholding and income tax requirements.	OFP (047G)	FTR Amendment 2014-01	December 2016
0806	Updated references and links removed outdated links.	OFP (047G)	General Policy Update	December 2016
0808	Updated Point of Contact information.	OFP (047G)	General Policy Update	December 2016
Appendices	Reorganized based on order of occurrence in Chapter.   Removed previous Appendices N and O, on transfers and other Outside of the Continental United States allowances.	OFP (047G)	General Policy Update	December 2016
Appendix A	Added Chief of Staff Memorandum, “Appraised Value Offer Program”, dated November 10, 2016.	OFP (047G)	OIG Report 15-02997-526	December 2016
Appendix B	Added HR and FSC relocation allowance and AVO documentation requirements.   Removed procedures on accessing the PCS Travel Portal, provided link to FSC guidance.	OFP (047G)	OIC PCS Report; General Policy Update	December 2016
Appendix C	Added Property Management Services contracted negotiated rate requirements.	OFP (047G)	OIC PCS Report	December 2016
Appendix E	Added: delegation authority for 50-mile distance waiver, 90 day reporting, 30 day waiver for second year extension; extensions of HHG storage; and unaccompanied air baggage.   Removed relocation approvals.	OFP	General Policy Update; OIC PCS Report	December 2016
Appendix F	Added guidance on travel advances.	OFP	OIC PCS Report	December 2016
Appendix G	Updated privately-owned vehicle mileage rate and effective date.	OFP	General Policy Update	December 2016
Appendix H	Updated TQSE maximum daily allowable amounts.	OFP	General Policy Update	December 2016
Appendix I	Added COSVA authorization requirement to initiate reimbursement of HMI Award to SES, and SES Equivalent, Title 38 employees.	OFP	Public Law 114 – 113	December 2016

Appendix B: Delegations of Authority Summary

1. The following activities have been delegated to Deputy Secretary; Chief of Staff; Deputy Chief of Staff; Under Secretaries; Assistant Secretaries; Deputy Assistant Secretaries; VA Network Directors; VBA Area Directors; NCA Network Directors; Field Facility Directors; Medical Directors or Written Re-delegation of Authority**:
   1. Making a determination of place of actual residence in connection with tours of duty OCONUS;
   2. Making a determination on round trip travel to new official station to seek permanent residence quarters;
   3. Making a determination on allowance of subsistence expenses while occupying temporary quarters, and extensions in certain cases, as provided in FTR;
   4. Transportation of immediate family;
   5. Making a determination whether transportation of HHG will be accomplished by Government bill of lading or the commuted rate system;
   6. Transportation of privately owned motor vehicles at Government expense;
   7. Transportation of mobile home used as a residence;
   8. Making a determination in cases of violations of continuing service agreements, whether or not separation was beyond the employee’s control;
   9. Making a determination with respect to delays or other considerations where minimum average mileage distance is not met;
   10. Extension of up to 90 additional days for CONUS temporary storage of HHG, and OCONUS extensions of HHG;
   11. Unaccompanied air baggage;
   12. Extension of one additional year for completion of real estate transactions;
   13. Temporary Change of Station;
   14. Authorize shipment of POV;
   15. Authorize property management services; and
   16. Authorize househunting.
2. The following activities have been delegated to Deputy Secretary; Under Secretaries; Assistant Secretaries; and Other Key Officials:
   1. Waiver of the 50-mile distance test requirement; and
   2. Waiver of the Federal Travel Regulations within CONUS associated with employee relocation to/from a remote/isolated location, following FTR § 302-2.106.
3. The following activities have been delegated to Under Secretaries; Assistant Secretaries; and Other Key Officials*:
   1. Waiver for reporting after 90 days from the notification date; and
   2. Waiver on extension of one additional year for completion of real estate transactions, requested after 30-day allowable time frame.
4. SES Last Move Home Allowances have been delegated to Deputy Secretary; Chief of Staff; Deputy Chief of Staff; Under Secretaries; Assistant Secretaries; Deputy Assistant Secretaries or Written Re-delegation of Authority**.
5. Emergency storage of privately owned motor vehicles at Government expense has been delegated to Deputy Secretary; Chief of Staff; Deputy Chief of Staff; Under Secretaries; Assistant Secretaries; Deputy Assistant Secretaries; VHA Network Directors; VBA Area Directors; NCA Network Directors or Written Re-delegation of Authority**.

*This authority may be re-delegated to no lower than an SES or SES equivalent level.

**Written re-delegation of authority must be provided to FSC PCS Travel Division by email at vafsc.pcstravelportalinquiry@va.gov (Directive 0000, Delegation of Authority, effective September 9, 2009)

Appendix C: Advance of Funds

1. Requests for an advance are to be submitted on an SF 1038 – Advance of Funds Application and Account. If the employee has the use of a Government Travel Card, then an advance will not be authorized. Authorized advance of funds must be stated on the TA. The AO may authorize an advance of funds, not to exceed 75%, for the following expenses (FTR § 302-2.24):
   1. For a househunting trip, VA may advance funds not to exceed the anticipated sum of transportation costs and either the maximum per diem allowable for duration of the trip or lump sum amount payment, whichever is applicable (FTR § 302-5.16);
   2. For subsistence and transportation, VA may authorize an advance of funds for per diem and mileage allowances for en route travel, except for overseas tour renewal agreement travel. (FTR § 302-4.600);
   3. For TQSE, VA may advance funds necessary to cover estimated TQSE for up to 30 days. If deemed necessary, VA may authorize advance of funds for 30 additional days (FTR § 302-6.15);
   4. For transportation of mobile home and boats used as a primary residence, VA may authorize advance of funds for employees responsible for arranging and paying commercial carriers to transport their mobile homes and boats. Advance may not exceed the estimated amount allowed (FTR § 302-10.300);
   5. For transportation and temporary storage of HHG, VA may authorize an advance of funds when the transportation of HHG and temporary storage is authorized under the commuted rate method (FTR § 302-7.105); and
   6. For shipping and emergency storage of a POV, VA will limit advances to the estimated amount of the expenses authorized for transportation and emergency or temporary storage of the POV (FTR § 302-9.12).
2. VA will not authorize an advance of funds for the following expenses:
   • MEA (FTR § 302-16.101);
   • Extended storage of HHG (FTR § 302-8.4);
   • Residence transaction expenses (FTR § 302-11.307); or
   • RITA (FTR § 302-17.12).

Appendix D: Steps for Authorization of PCS Relocation

The following list outlines the various statuses that exist within the relocation travel authority process. The status will reflect the current step for the PCS move from the initial submission of the relocation request through the approval of the TA. Generally, 2 business days are allotted for each step.

1. Relocation Request – Gaining station’s or staff office’s servicing HR office with submit paid relocation request within two business days from final job offer date.
2. VA Form 3918 – Awaiting Traveler Signature – The traveler will receive a welcome email from the PCS Travel Portal with their username and instructions to access the portal, change their password, and complete and electronically sign the VA Form 3918, Part 2, and continuing service agreement. (PCS Travel Portal Only)
3. VA Form 3918 – Awaiting Releasing Station HR Approval Signature – Releasing station (if current VA employee) will receive notification to complete and electronically sign the VA Form 3918, Part 3. (PCS Travel Portal Only)
4. FSC – Upon submission of VA Relocation documents, FSC will verify documentation for processing requirements signatures and accuracy, in accordance with policy within two business days of receiving documentation. (During surge periods, allow up to three business days for processing)
5. FSC – FSC PCS Travel Division will make initial contact with the employee within 2 business days of receiving correct documentation. Upon contact with employee, a counsel call will be scheduled with an assigned Travel Specialist
6. FSC – Awaiting Completion of Counseling – FSC PCS Travel Specialist will provide counseling to employee and facilitate requests for discretionary items.
7. Awaiting Approval Discretionary Items – AO will approve or deny discretionary requests. (PCS Travel Portal Only)
8. Funding Approval – Awaiting Approval Funds from Funding Station – Budget Official will provide funding information.
9. Awaiting FSC Review – FSC PCS Travel Auditor or designee will review Travel Authorization for accuracy and either reject back to Travel Specialist for corrections or route to AO for approval.
10. Awaiting Signature of AO – AO will review the travel authorization, verify the relocation allowance approval documentation is in folder as required, and electronically sign the Travel Authorization.
11. VA Form 3036c – Awaiting Release of Obligation to VA’s account system, FSC PCS Travel Specialist will receive notification of approved Travel Authorization and send obligation to VA’s accounting system.
12. VA Form 3036c – Awaiting Review of Obligation – The following day, the FSC PCS Travel Specialist will confirm funds are obligated correctly in VA’s accounting system and electronically sign the Travel Authorization. If obligation not successful, Counselor will first work with station to resolve rejects prior to signing. (Financial Management System only)
13. Travel Authorization is now complete/published, and traveler can submit claims for current obligation.

Appendix E: Shipment of Mobile Home

1. The term ‘mobile home’ refers to traditional trailer homes and boats. Employees are permitted to transport a mobile home if they certify that it is being used as their current residence and will be used as the permanent residence at the new official station.
2. FSC PCS Travel Division is responsible for obtaining a GSA cost comparison. The GSA cost comparison will be calculated based on the estimated cost of moving 18,000 pounds of HHG and temporarily storing the goods for 90 calendar days. The employee will not be reimbursed for any costs associated with moving the mobile home that exceed the amount of the GSA cost comparison.
3. If an employee selects a commercial carrier to move their mobile home, reimbursement will be the incurred expense for the following items, not to exceed the GSA cost comparison amount:
   • Carrier’s charge for transporting the mobile home;
   • Ferry fares, and bridge, road, and tunnel tolls;
   • Taxes, charges, and fees charged by the State or another Government authority for transporting the mobile home in or through its jurisdiction;
   • Charges for flag car or escort service (when required by state or local law);
   • Carrier’s service charge for obtaining permits; and
   • Costs of preparing the mobile home for movement.
4. The following expenses will not be reimbursed:
   • Maintenance;
   • Repairs;
   • Storage;
   • Insurance for homes above carrier’s maximum liability; and
   • Charges designated in the tariffs as ‘Special Service.’
5. If an employee tows or drives their mobile home on their own, they will be reimbursed $0.11 per mile in addition to the current privately owned vehicle reimbursement rate (for CONUS transit), plus any ferry fares and bridge, road and tunnel tolls.

Appendix F: Temporary Quarters Subsistence Allowance

1. Temporary Quarters Subsistence Expense (TQSE) Actual Expense (AE) Method sample of a maximum daily allowable amount:

FISCAL YEAR 2024RATES	EMPLOYEE AND OR UNACCOMPANIED SPOUSE OR DOMESTIC PARTNER	EMPLOYEE’S ACCOMPANIED SPOUSE, DOMESTIC PARTNER OR IMMEDIATE FAMILY MEMBERS 12 YEARS OR OLDER	IMMEDIATE FAMILY MEMBERS UNDER 12 YEARS OF AGE
First 30 days of temporary quarters	Standard CONUS rate (e.g., $166.00)	0.75 times standard CONUS rate; $124.50	0.50 times standard CONUS rate; $83.00
Any additional days of temporary quarters	0.75 times standard CONUS rate; $125.50	0.50 times standard CONUS rate; $83.00	0.40 times standard CONUS rate; $66.40

1. The maximum allowable amount is the “maximum daily amount” multiplied by the number of days an employee incurs TQSE.
2. Rates will change after the first 30 days in temporary quarters.
3. The “maximum daily amount” is determined by adding the rates in the table for the employee and or spouse or domestic partner and each immediate family member authorized to occupy temporary quarters.
4. If a spouse or domestic partner occupies temporary quarters in lieu of the employee, or in a location separate from the employee, temporary quarters must be taken concurrently.
5. On the day TQSE begins and ends, meals and incidental expenses (M&IE) will be 75 percent of the applicable M&IE allowance.
6. For OCONUS, the applicable per diem rate is the locality rate established by the Secretary of State under FTR § 301-11.6.

2. Per diem rates are subject to change based on GSA guidelines. Current CONUS per diem rates are available at GSA Per Diem Rates.
3. TQSE-LS is based on the new official station locality rate in effect when the LS offer is accepted by the employee and is paid in a lump sum. LS may be authorized for the number of days determined necessary, up to 30 days, with no extensions under any circumstances. If offered, the employee must choose between LS and AE methods, but is under no obligation to accept the LS option. Once the TQSE method is selected, it may not be changed. Payment of LS is based on the total number of individuals actually moving to the new permanent duty station, who will occupy temporary quarters (FTR § 302-6.10). The maximum daily rate the employee may be paid is 75 percent of the maximum per diem rate, whereas the maximum the immediate family members may be paid is 25 percent of the maximum per diem rate.
4. The following is an example of LS for the first 30 days of temporary quarters, based on a family consisting of the employee, spouse or domestic partner, one child over 12 years of age, and one child under 12 years of age moving to a new locality with a per diem rate of $131 per day. No further days will be authorized, and no receipts are required.

FAMILY MEMBER	NUMBER OF DAYS	FACTOR	FIXED AMOUNT (Days x Adj. Rate)
Employee	30	0.75 times Locality Rate = $98.25	$2,947.50
Spouse or domestic partner	30	0.25 times Locality Rate = $32.75	$982.50
Child Over 12	30	0.25 times Locality Rate = $32.75	$982.50
Child Under 12	30	0.25 times Locality Rate = $32.75	$982.50
Total Entitlement	–	–	$5,895.00

Appendix G: Relocation Services Contract

1. This appendix is not applicable to new appointees and employees assigned under the Government Employees Training Act as they are not authorized the use of a relocation services contract. Relocation services are services provided by a private company under a contract to assist the employee in relocating to a new official station. Government contracted relocation companies provide assistance to employees by:
   • Making the employee an offer based on the appraised value of the home via the Appraised Value Offer Program (AVO);
   • Providing marketing assistance at reduced rates through the Buyer Value Option Program (BVO) or AVO; and
   • Offering some services at the new station for renters or buyers at no cost to the employee or the agency.

There are two programs associated with relocation services for the sale of a residence at the departure official station:

1. If the employee is authorized to participate in AVO and is unable to find a qualified buyer for his or her home, the contractor will make the employee an appraised value offer based on relocation appraisals. The employee has 60 calendar days after contractor notification of the appraised value offer to accept or decline the contractor’s offer if no third-party offer is received from an outside buyer. The employee must meet mandatory marketing and inspection requirements in order to accept the appraised value offer. If the employee chooses to accept the contractor’s offer, VA will pay an increased fee based on the home’s sale price for the service. The contractor maintains the home in its inventory and pays carrying costs until a qualified buyer is found.
   
   It is in VA’s best interest to encourage employees to find a qualified buyer for the home because of the higher fee associated with AVO. If the employee receives a bona fide offer from a qualified buyer while participating in AVO, the contractor will amend the appraised value offer amount to the negotiated sale price from the buyer. The contractor will purchase the home, close the transaction with the buyer, and pay the applicable reasonable and customary seller’s closing costs (inclusive of the real estate commission). VA will be billed the applicable fee for an amended value sale. Employees are not required to be at the closing. Employees are responsible for expenses related to their residences until the contractor has acquired the home and the employee has vacated the property. An employee is eligible for a Home Marketing Incentive if an offer from a buyer is obtained, and the contractor successfully closes with the buyer. If an employee opts out of AVO their decision is final, they cannot re-enter the program later or be authorized for BVO.
   
2. If the employee is not authorized to participate in AVO, they may use the services of BVO in lieu of direct reimbursement. Relocation appraisals are not completed when using BVO, and efforts are concentrated on the contractor providing ongoing marketing assistance to help employees receive fair market value for their homes. When a bona fide buyer is found, the contractor purchases the home and then closes the sale with the buyer, paying the applicable reasonable and customary seller’s closing costs (inclusive of the real estate commission). Employees are not required to be at the closing. Employees are responsible for expenses related to their residences until the contractor has acquired the home and the employee has vacated the property. There is no appraised offer or guaranteed buyout associated with BVO. The Home Marketing Incentive is not applicable under BVO. If an employee opts out of BVO, they cannot re-enter the program later or be authorized for AVO.

2. In order to be eligible, the employee’s home must be the residence owned and occupied by the employee at the time they were first informed of the transfer. The residence must be the place from which the employee regularly commuted to/from work when the employee received the official notice to relocate. Relocation services are available to transferring employees who are eligible for reimbursement of real estate expenses and have been authorized the use of relocation third-party services program. Qualification and acceptance into the program are not guaranteed.
   
   The FSC PCS Travel Division will advise on available services through the relocation services provider and will include the applicable service on the employee’s TA. Once the TA is approved and funded, the employee will be connected with the relocation services contractor. The relocation services contractor will confirm that the employee is aware of the requirement to market the home independently by listing the home with a network real estate broker in order to be eligible for the homesale service portion of the contract.
   
   The employee has the right to cancel the request for relocation services or to reject an offer received from the contractor any time prior to offer acceptance. If services are canceled or rejected, the contractor will be paid by the Government for all inspection fees, title search costs, and appraisal costs that were incurred up to the point of cancellation or rejection, up to a maximum defined in the contract. The employee is entitled to copies of any document(s) paid for by the Government that would be usable by the employee in selling the home on a reimbursement basis.
   
   If the employee receives an offer from an outside party that is equal to or more than the Government-contracted company’s offer during the appraisal process or the 60-day appraised value offer period under AVO, the employee should not enter into a contract or sign any agreement document with the potential outside buyer. The contractor will review the terms and conditions of the offer to ensure it is bona fide. If the employee chooses not to work with the contractor and enters into their own agreement with the third-party buyer by signing the contract offer, then participation in the program is automatically cancelled. The employee will not be reimbursed for any fees already incurred and billed by the relocation services contractor.
   
3. Marketing strategies, recommendations, and advice furnished by the contractor will be provided in writing upon the employee’s request. The contractor will advise the employee that any listing agreement must contain the following exclusion clause: “The seller(s) hereby reserve the right to sell the Property directly to (Contractor Name) at any time and, in such event, to cancel this listing agreement with no obligation for commission or continuation of listing hereafter and to turn over an acceptable written offer hereunder to (Contractor Name) for closing and payment of commission which will be deemed earned and payable only upon closing to title”.
   
   An employee can delay the start of the authorized homesale program for up to 90 days from the date of initiation with the contractor. This applies to both AVO and BVO. If approved for AVO, appraisals may be delayed an additional 30 days from the listing date. Extensions may be approved only for SES and SES equivalent employees. Employees are required to list their home with a network real estate agent, and their list price must be within the contract specified guidelines. If the employee decides to use the relocation services but delays initiation, and in the meantime sells the house through a real estate agent without going back to the relocation contractor, the employee will not be eligible for the homesale incentive program. In the case of the above situation, the Contracting Officer Representative (COR) should be notified in order to cancel the order with the relocation contractor and de-obligate the funds.
   
   Following is a brief summary of the relocation services eligibilities and processes. This is a complex area, therefore the scenarios below are not comprehensive. The employee should contact the FSC PCS Travel Division with any questions.
   
4. Properties not eligible for the Relocation Services Program include (as defined in the contract with the RSC):
   • Mobile homes;
   • Cooperative Units;
   • Houseboats;
   • Non-insurable homes;
   • Homes that cannot be financed (Federal or conventional);
   • Homes on which construction has not been completed;
   • Homes that do not comply with State and local codes;
   • Contaminated homes – Urea foam formaldehyde insulation, radon, etc.;
   • Homes without foundations;
   • Employee owned rental properties;
   • Homes located outside the United States and its territories; and
   • Homes that cannot be valued through the relocation appraisal process, such as homes in remote and inaccessible locations that lack comparable sales or are otherwise deemed unmarketable. The determination of such a home is at the discretion of the contractor. Contractor may refer to such homes as “Special Properties”.
5. Special properties are eligible properties which are determined by the contractor and VA to be especially difficult to sell or where the property value is especially difficult to determine, in accordance with the relocation services contract. VA is required to pay a higher fee to the contractor for special handling fees. Special Property designation requires higher level approval, pursuant to the guidelines stipulated for AVO approval. Properties referred as special under BVO will be deemed ineligible and cancelled from the homesale program (the employee would be eligible to sell their home under the Direct Reimbursement option).
6. Title requirements for properties eligible for the Relocation Services Program:
   1. The title is solely in the employee’s name; or
   2. The title is jointly in the employee’s name with one or more members of his or her immediate family; or
   3. The title is solely in the name of one or more members of the employee’s immediate family; or
   4. The employee must demonstrate “equitable title interest” (Reference FTR § 302-11.105 for requirements on various types of title scenarios); or
   5. If the title does not meet one of the identified requirements above, reimbursement may be prorated based on the percentage of ownership of the property being bought or sold. Employees subject to pro rata will not be eligible for homesale services unless they can demonstrate, to VA and the RSC, their willingness and ability to pay the proportional share of the contractual costs directly to the RSC.
7. If the employee’s residence is a duplex or other type of multiple occupancy dwelling and is only partially occupied by the employee, the employee is subject to a prorated reimbursement based on percentage of the residence occupied as the primary residence. This restriction is not applicable when an employee owns a condominium unit. Duplexes and multi-family dwellings are considered Special Properties and are deemed ineligible for the BVO program.
8. Excess acreage is land that does not reasonably relate to the residence site as determined by the relocation company. Sale of excess acreage is at the employee’s expense; only the land reasonable and typical for the residence site is eligible.

Appendix H: Home Marketing Incentives Program (HMIP)

1. The purpose of HMIP is to encourage employees to find a qualified buyer for their home while enrolled in the AVO program. This program rewards Federal employees who, through their own initiative, save the agency money by finding a qualified buyer for their homes while enrolled in AVO, and when relocating in the interest of the Government. VA’s AVO provides employees with assistance in selling their homes at their old official stations when transferring for the benefit of the Government and when authorized PCS allowances.
2. Employees participating in AVO may sell their homes in one of two ways:
   1. If the employee is authorized to participate in AVO and finds a qualified buyer for the home, the Relocation Services Contractor (hereafter referred to as Contractor) will purchase the home from the employee for the negotiated sale price from the third-party buyer. The contractor will close the transaction with the buyer and pay the applicable reasonable and customary seller’s closing costs (inclusive of the real estate commission). VA will be billed the appropriate fee for an amended value sale. The closing with the buyer must be successfully completed for the employee to qualify for the HMI. For this service, VA pays a reduced fee on the home’s sale price.
   2. If the employee is authorized to participate in AVO and is unable to find a qualified buyer for the home, the contractor will make the employee an offer based on relocation appraisals. The employee has 60 calendar days after contractor notification of the appraised value offer to accept or decline the contractor’s offer. The employee must meet mandatory marketing and inspection requirements in order to accept the appraised value offer. If the employee chooses to accept the contractor’s offer, VA will pay an increased fee on the home’s sale price for the service. The contractor maintains the home in its inventory and pays carrying costs until a qualified buyer is found. It is in VA’s best interest to encourage employees to find a qualified buyer for the home because of the higher fee associated with AVO.
3. When AVO is authorized in accordance with HR policy and an employee elects AVO, the employee must decide whether to participate in the HMIP.
   1. The amount of the award is limited to 2 percent of the selling price of the residence, not to exceed $8,000.
   2. The HMI Award will be paid from the savings achieved by the lower fees incurred. The employee’s new official station may fund the award to approved and qualifying expenses.
   3. Stations will review the results of the HMIP annually to determine if the program continues to result in a cost savings to the Department. If it is determined that the continuation of the program is not cost effective, the Department will provide a notice 30 days prior to discontinuing the program.
4. Procedures:
   1. To participate in the HMIP, the employee must:
      1. Meet the requirements identified in paragraph B above;
      2. Elect to use AVO;
      3. List their residence with a network broker that participates in the Contractor’s Relocation Services Program;
      4. Find a qualified buyer for the home while enrolled in AVO; and
      5. Have the sale of their home closed by the Relocation Services Contractor.
   2. The following employees are not eligible for the HMIP:
      • New hires or appointees;
      • Employees not approved to use AVO;
      • Employees who elect to sell their residences without enrolling in the Department’s Relocation Services Program;
      • Employees whose homes do not qualify for AVO portion of the Relocation Services Program;
      • Cases where the buyer fails to close on the purchase of the home, and the Contractor provides an appraised value buy-out offer to employees for their homes;
      • Employees whose homes are classified as a Special Property; or
      • Employees participating in the Buyer Value Option Program (BVO).
   3. Employees are eligible for an award of two percent of the selling price of the home, not to exceed $8,000.
   4. Awards made under the HMIP constitute taxable income to the employee, and taxes will be withheld from the award.
   5. Processing the Award:
      1. FSC PCS Travel Division will initiate and complete the HMI Award Worksheet and Justification, and then ensure that the eligible employee signs the certification on the HMI Award Worksheet and Justification document. Then, the counselor will forward the signed document to the servicing HR staff office for completion and submission to the employee’s AO for approval (i.e., the official who authorized the employee’s official change of station). FSC will maintain a copy of the worksheet in the employee’s relocation file.
      2. Upon receipt of the HMI Award Worksheet and Justification, the authorizing official will complete the VA Form 4659, Incentive Awards Recommendation. For guidance on processing VA Form 4659 reference VA Directive 5017, Employee Recognition and Awards. The authorizing official must sign the VA Form 4659 and submit it along with the supporting documentation through the station’s HR office.
   6. The gaining station or staff office will fund the HMI Award.

Appendix I: Property Management Services

1. ‘Property Management Services’ are programs provided by private companies for a fee, which help an employee to manage his or 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.
2. Property management services are discretionary expenses which the VA may offer to eligible employees. Reimbursement to the employee for property management services will not exceed VA’s contracted negotiated rate with the third-party vendor (FTR § 302–15.70(b)). Eligible employees include:
   • Transfers to locations outside the United States, and
   • Employees under a TCS assignment.
3. Employees and/or a member(s) of the employee’s immediate family must hold title to a residence which the employee is eligible to sell at Government expense.
4. Employees have the option to either utilize the property management services program facilitated by the relocation services contractor, or to secure their own property management company and pay for any applicable fees to the company of their choice. An employee is not obligated to use an authorized property management services allowance. The employee may choose to sell his or her residence at their own expense instead of retaining the property.
   1. VA will pay property management services for the duration of the foreign post assignment until the employee has transferred back to an official station in the United States for the duration of the TCS assignment or until separated from Government service.
   2. If participating in the relocation services contractor property management program, the contractor will bill VA for the contracted service fees. The employee will not need to seek reimbursement for property management fees.
5. Employees opting not to use the property management program with the contractor will be required to pay for all fees for property management and seek reimbursement for customary and reasonable fees related to property management services and allowable under regulation. The fees should be clearly specified in the contract with the property manager. The employee will submit an expense form accompanied by all paid-in-full receipts and the property management contract to the FSC for review and reimbursement.
6. When VA reimburses the employee directly for property management services, the employee will be taxed on the amount of expenses that VA pays for property management services, whether VA reimburses the employee director or whether VA pays an RSC to manage the employee’s residence. VA must pay the employee a relocation income tax allowance (RITA) for the additional Federal, State, and local income taxes the employee incurs on property management expenses for which VA reimburses the employee or pays on the employee’s behalf.