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[1] The duplicate reimbursement disclosure 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.

080501.06 VA Form 3918, Intra-Agency Transfer Request

1. VA Form 3918 initiates the relocation request to the PCS Travel Division for processing. The completed form is required to be submitted within two business days from the date the candidate accepts the tentative notification of appointment offer, or for positions requiring credentialing, from the date the credentialing is signed by the field facility Director. Reference Appendix B, Permanent Change of Station Travel Portal for specific procedures on processing VA Form 3918.
2. Prior to submitting VA Form 3918, the gaining station’s or staff office’s servicing HR office is required to attach a PDF of all relocation allowance approval documentation for PCS, and AVO when authorized, in the selected candidate’s PCS Travel Portal folder. The FSC PCS Travel Division will ensure the authorizing documents for PCS allowances, and AVO when applicable, have been attached before processing the VA Form 3918. The absence of an authorizing document may delay the employee’s ability to relocate, resulting in a change required to the Report Date. Absence of a signed AVO memorandum will limit the selected candidate’s real estate options to Direct Reimbursement or BVO, unless the required AVO approval documentation is subsequently provided.
3. Appendix E, Delegation of Authority Table, identifies the officials delegated the authority to approve PCS and TCS, relocation allowance discretionary expenses, and other actions. When approval functions are re-delegated to another position, the re-delegation memorandum must be provided by email to the FSC PCS Travel Division at vafsc.pcstravelportalinquiry@va.gov before submitting VA Form 3918.

080501.07 Travel Authorization (TA)

1. Relocation expenses may not be incurred until the employee has an approved electronic TA (Form 3036) by the designated travel AO (FTR § 302-2.1). Appendix B, Permanent Change of Station Travel Portal, identifies the required actions for a TA by the servicing HR staff offices, AOs, employees, and the FSC PCS Travel Division. Once VA Form 3918, Intra-Agency Transfer Request is submitted, each action is required to be completed within one business day. Completing these actions in the required time frame will ensure the travel authorization is completed prior to the report date. In the event a travel authorization 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. Reference Section 080501.04, for specific information on the 90-day reporting requirement.
2. The travel authorization will include, but is not limited to:
   1. Mandatory entitlements for which the employee is eligible;
   2. Authorized discretionary allowances; and
   3. Advance of Funds.
      Note: 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 Charge Card. An approved SF 1038 must be attached in the employee’s folder in the PCS Travel Portal. Appendix F, Advance of Funds, provides information on relocation allowances that are eligible for travel fund advances.
3. Relocation allowances are subject to Relocation Withholding and Income Tax Withholding allowances. Reference Section 080509 for specific guidance.

080501.08 Time Limits and Extensions

1. Time Limit. Employees must complete all aspects of their relocations within one year of their reporting date. However, AOs will allow the following exceptions cited in FTR § 302-2.10 and FTR § 302-2.11. In these two exceptions, the one-year period is exclusive of time spent on active military service and the time lost due to shipping restrictions.
2. Extensions. An extension to incur all relocation expenses may be granted up to one additional year if the employee submits an extension request to their AO no later than 30 calendar days after the expiration date of the initial one-year period (FTR § 302-11.22 and FTR § 302-11.23) The AO may authorize an extension beyond the initial one-year, on a case-by-case basis, 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(a)). Any request submitted after the 30-day time limit requires an approval waiver request of the 30-day time limit (FTR § 302-11.23). Reference Section 080501.09 for guidance on submitting waiver requests for approval.
3. When an extension is authorized, the total relocation timeframe cannot exceed two years from the reporting date. The AO must verify an approved waiver and all supporting documentation are uploaded into the employee’s folder in the PCS Travel Portal, prior to approving the amended travel authorization.

080501.09 Waiver Requests

1. The delegated 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 can be referenced in Appendix E, Delegation of Authority Table. A memorandum substantiating a re-delegated authority must be provided to the FSC PCS Travel Division with the approved waiver request if not previously provided.
2. All waiver requests must be submitted in the form of a memorandum including the applicable extenuating circumstances and attaching all relevant documentation, background materials, and any additional information as evidence to support the extenuating circumstances. Waiver requests will be submitted to the respective Administration or Staff Office in VA’s document processing system to obtain the required level of approval. The travel AO is required to verify the approved waiver memorandum and all supporting documentation is uploaded into the transferring employee’s folder in the PCS Travel Portal to meet the six-year record retention requirement, prior to approving the travel authorization.

080501.10 Use of Government Travel Charge Card for PCS and TCS Travel

1. A relocating employee may use their Government Travel Charge Card for authorized househunting (HH) and en route travel expenses only.
2. Prior to using their travel card for HH travel expenses, an employee must provide their current station’s Travel Card Agency/Organizational Program Coordinator (A/OPC) with a copy of their approved HH travel authorization.
3. In advance of their 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 and their credit limit has been raised to the contracted bank designated amount. 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 2, Government Travel Charge Card Program for guidance on appropriate use of the travel card and required receipts.
4. An employee may only be issued a travel advance for HH and en route travel expenses if they do not have the use of a Government Travel Charge Card. Reference Appendix F, Advance of Funds, in this chapter.

080501.11 Travel Vouchers

Employees must submit a travel voucher (FTR § 300-3.1) within five business days after completion of each benefit (e.g., HH trip, en route travel, sale or purchase of residence) for official relocation travel. Any claim for reimbursement will be applied to outstanding travel advances, until reconciled. Temporary quarters subsistence expense (TQSE) claims should be filed in accordance with Section 080502.03. Attach or fax all supporting documents and certifications as outlined in this chapter into their folder in the PCS Travel Portal prior to submitting a travel voucher. Receipt requirements for sale or purchase of residence transactions are specified in FTR § 302-11.302. 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).

080501.12 Defrauding the Government

FTR § 302-2.7 identifies VA’s actions for any employee who attempts to defraud the government under any part of the relocation process.

080501.13 File Retention

VA will retain all relocation files for six years in accordance with the National Archive and Records Administration (NARA) guidelines, which set forth the governing provisions of file retention for executive agencies.

080502 Permanent Change of Station Allowances For Subsistence and Transportation Expenses

080502.01 Allowances for En Route Travel Subsistence and Transportation

1. Per Diem.
   1. Employees will use the standard Continental United States (CONUS) per diem rates for en route relocation travel between the old and new official duty stations. Employees will be reimbursed in accordance with FTR § 302-4.100 and Volume XIV, Chapter 2, Travel Per Diem (see 4. below).
   2. Per diem reimbursement is based on the actual number of days used to complete the trip, not to exceed the established authorized travel days. When authorized POV, the number of authorized travel days will be based on an average minimum driving distance of 300 miles per calendar day. Travel is to be continuous via the authorized mode of travel, and the most direct usually traveled route. Per diem will not be paid unless the travel period to the new official duty station is 12 hours or more.
   3. VA will not authorize per diem for employees’ immediate family members if employees are:
      1. New appointees;
      2. Assigned to posts of duty OCONUS returning to places of their actual residence for separation; or
      3. Being relocated under GETA (allows per diem payment for employee only).
   4. In accordance with  FTR PART 302–4,Subpart C – Per Diem, eligible family members will be authorized the following per diem amounts for en route relocation travel within CONUS:
      • A spouse or domestic partner who is accompanied by employee will receive 75 percent of employee’s daily rate (FTR 302-4.203);
      • A spouse or domestic partner who travels separately (not accompanied by employee) will receive the same rate as an employee (FTR 302-4.204);
      • A family member 12 years or older will receive 75 percent of employee’s daily rate (FTR 302-4.206); and
      • Children under 12 years will receive 50 percent of employee’s daily rate (FTR 302-4.206).
   5. 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).
2. Transportation.
   1. The mode of transportation will be authorized as determined necessary for the en route travel, in accordance with the TDY rules in FTR § 301-10 Transportation Expenses (FTR § 302-4.100).
   2. POV mileage is determined based on the actual place of origin. For new employees, the place of residence at origin to the new official duty station will be utilized in determining mileage. For transferring employees, the old and new official duty stations will be utilized. Acceptable evidence for POV ground mileage will include odometer readings of actual and necessary distance traveled for conducting official business. A comparison of actual mileage will be made against the number of miles calculated using MapQuest® used by VA as the principal standard for determining approved reimbursement. Other similar standards (e.g., Rand McNally, Yahoo) may be used if data is not available in Mapquest.com®. When the deviation exceeds 5 percent between the actual and standard (rounded up to the nearest mile), justification must be provided to the authorizing official. VA may consider exceptions (FTR § 302-4.401) for extreme circumstances involving:
      1. Delays beyond the employees’ control (e.g., illness en route, road construction, vehicle repairs);
      2. Delays due to an act of God;
      3. Restrictions by Government officials; or
      4. Employees who have been certified as being physically handicapped.
   3. VA will allow reimbursement to employees for the driving of more than one POV if the AO determines it is advantageous to the Government. Authorization for one additional POV for the employee’s immediate family may be reimbursed if approved for separate travel, or if justified for driving at the same time due to the number of immediate family members and necessary luggage causing one POV not to suffice. The use of more than one POV must be requested by the employee and authorized in writing by the AO. Appendix G, Privately-Owned Vehicle Mileage Rates, provides information on rates.

080502.02 Allowances for Househunting (HH) Trip Expenses (Discretionary)

1. HH can only be incurred by the employee and/or spouse to seek a permanent residence, if authorized. New appointees and employees assigned under the Government Employees Training Act (5 U.S.C. 4109) are not eligible for a HH allowance (FTR § 302-5.4). Reference FTR Subpart A—Employee’s Allowance for Househunting Trip Expenses, for further guidance.
2. VA may authorize HH to expedite the process of finding a permanent residence. The duration authorized for HH must be reduced from the duration authorized for Temporary Quarters Subsistence Expense (TQSE). The criteria are:
   1. Employee’s old and new official duty stations are located within the United States, including OCONUS non-foreign locations;
   2. Employee’s old and new official duty stations are 75 or more miles apart. Distance must be measured by map distance and travel must be by a usually traveled surface route; and
   3. Employee is not assigned to Government or other prearranged housing at their new official duty station.
3. Refer to Appendix E, Delegation of Authority Table for approval level required.
4. VA will only authorize one round trip for an employee and his or her spouse in connection with a specific transfer. If an employee and spouse travel separately for a HH trip, reimbursement will be limited to the cost that would have been incurred if the employee and spouse had traveled together as one round trip.
5. VA may authorize up to 10 calendar days, which includes the trip duration in the travel authorization. Employees may begin travel as soon as their travel authorization is approved for a HH trip.
6. During the PCS Allowance Counseling session on HH, the employee is provided the opportunity to request the type of TQSE they will receive via a Discretionary Request Form submitted to the AO. AOs will make the determination whether the per diem or lump sum method is offered to the employee for HH. In the event the AO offers the lump sum option, the employee must make their final election of either per diem or lump sum method.
7. In accordance with FTR § 302-5.13, VA may reimburse (discretionary expense) eligible employees a HH trip per diem and transportation allowances as follows:
   1. Transportation expenses based on the actual costs incurred by employee and or spouse.
   2. A per diem subsistence expense allowance for an employee and or a spouse based on one of the following:
      • At the standard CONUS rate (see GSA Per Diem Rates) for the employee and or spouse if you travel separately, or if you both travel together, the standard CONUS rate multiplied by 1.75), for the 10 days or less that your agency authorizes for you; or
      • When offered by VA, and chosen by the employee, a Lump Sum, as follows:
        • If you perform an HH trip and your spouse does not, or if your spouse performs an HH trip and you do not, multiply the applicable locality per diem rate by 5.00 (see GSA Per Diem Rates); or
        • If you and your spouse both perform an HH trip together or separately, multiply the applicable locality per diem rate by 6.25 (see GSA Per Diem Rates).
8. Transportation Mode(s). VA will authorize employees to travel by the transportation mode(s) determined to be most advantageous to the Government. Reimbursement will be paid based on the authorized mode(s). A cost comparison must be prepared to determine the costs for alternative modes of transportation unless authorized to use a specific mode of transportation for medical reasons. For trips less than 250-miles, VA considers POV to be most advantageous method of transportation unless there are reasons for not using a POV that are acceptable to the AO (e.g.,traveler is physically impaired, does not own or lease a POV, has only one POV that is used for family transportation, or the POV is not roadworthy for such a trip).

080502.03 Allowances for TQSE

1. Temporary quarters (TQ) refers to lodging obtained for the purpose of temporary occupancy from a private or commercial source. TQSE is a discretionary allowance intended to reimburse employees for some of the costs incurred for meals, lodging, and other necessities while occupying temporary quarters, when it is determined to be in the best interest of the government. Temporary quarters may be authorized at the old and new duty station in accordance with FTR § 302-6.10. New appointees, employees assigned under GETA, or employees returning from an overseas assignment for the purposes of separation are not eligible for TQSE (FTR § 302-6.5).
2. An AO may authorize the TQSE allowance only when it will minimize or avoid other relocation expenses such as prolonged temporary storage (FTR § 300-3.1) of household goods (HHG). A determination must be made on the number of days TQSE will be authorized, and the number of days should be limited to only a necessary period of time (FTR § 302-6.3), subject to time limitations, until the employee and or their immediate family can secure and occupy permanent residence quarters. TQSE for the employee and his or her immediate family member is contingent upon establishing occupancy of the temporary quarters. TQSE does not include transportation expenses, such as rental car reimbursement.
3. VA will not authorize TQSE if the distance between the old and new official duty stations is less than 50-miles (FTR § 302-6.4). Factors used to determine whether quarters are temporary include:
   1. Duration of the lease (see note below);
   2. Movement of HHG into the quarters;
   3. Type of quarters;
   4. Attempts to secure a permanent dwelling; and
   5. Length of time the employee occupies the quarters.
      Note: TQ leases signed for more than 6 months when employees do not have a contract to purchase a permanent residence after the 6 month lease, will be considered by VA to be permanent housing. Authorization for temporary quarters ceases when the employee takes full delivery of their HHG regardless of the duration of a lease.
4. 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 LS, the decision is final and cannot be changed. The AO may authorize the reimbursement option of LS only if they determine it is more advantageous to the government than AE. Reimbursement of TQSE will commence based on the date authorized by the delegated AO to occupy temporary quarters. TQSE must be authorized in advance of occupancy and may not be approved retroactively. Any days the employee occupies temporary quarters prior to approval will not be authorized. Appendix H, Temporary Quarters Subsistence Allowances, provides the per diem rates used for calculation.
   1. TQSE AE. AOs may authorize AE for a limited time period. 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). For example, when an employee completes closing on a home purchase or secures a rental for residency and occupies the residence on day 25 in a 30 day approved AE period, the last day TQSE will be reimbursed is day 24. If an employee does not occupy the secured residence on day 25 of a 30 day approved AE period, reimbursement of AE will end no later than midnight of the third business day from the date the residence was secured.
      
      VA AOs 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 § 302-6.7).
      
      An AO may authorize AE in increments of 30 days or less, as he or she determines the number of days necessary for a permanent residence to be secured, but not to exceed 60 consecutive days initially. An AO may extend authorization of TQSE beyond 60 days, up to an additional consecutive 60 days (FTR § 302-6.104), if one of the compelling reasons identified in FTR § 302-6.105 applies.
      
      All AE extension requests must be submitted in a timely manner in order to obtain extension approval prior to the expiration date of the originally authorized period. Under no circumstances will VA authorize AE reimbursement for more than a total of 120 consecutive days (FTR § 302-6.105).
      
      Reference Appendix H, Temporary Quarters Subsistence Allowances, for maximum daily AE reimbursement guidance.
      
      
   2. TQSE LS. The employee is required to certify he or she, and the number of immediate family members that will occupy temporary quarters when requesting LS. When LS is requested, the AO is required to consider possible temporary duty travel the employee may be directed to perform while occupying temporary quarters, and if there are family members who will not be occupying the temporary quarters for the entire period. If authorized by the AO, LS will only be calculated based on the actual number of immediate family members that will occupy the temporary quarters. The AO must weigh the advantage to the VA when considering approval of LS over AE.
      
      LS may be authorized for the number of days determined necessary, up to a maximum of 30 days with no extensions under any circumstances. Requests for approval of LS cannot be authorized to include days when permanent quarters are known to be available. The AO will limit the number of days LS is authorized when the employee has secured a permanent residence in less than 30 days.
      
      LS will be based on the applicable official duty 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 H, Temporary Quarters Subsistence Allowances, for the per diem rates used for calculation.
      
      
5. Travel vouchers for TQSE will be submitted as follows:
   1. AE: An employee will submit travel voucher claim for TQSE in 30 day increments unless the employee’s 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 their FSC PCS Travel Counselor to request an advance (Appendix F, Advance of Funds). All expenses must be itemized, including meals. Expenses that do not accrue daily (e.g., laundry expenses, etc.) may be averaged over the number of days your agency authorizes AE. Receipts are only required for lodging and dry cleaning (not coin operated dry cleaning), regardless of amount, and for any individual meal or other individual expense when the cost exceeds $75. All other meal expenses do not require receipts (FTR § 301-11.306). VA will review the itemized 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.
   2. LS: Payment for LS will be issued to the employee in the form of a settlement, not an advance. The employee will complete a travel voucher requesting LS payment. VA will make the LS payment as close as is reasonably possible to the time that the employee will begin occupancy of the temporary quarters. Receipts or settlement travel vouchers are not required for LS payments. VA may at any time request proof that you actually occupied TQ, 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 payment in accordance with FTR § 302-6.305.
      
      Note: Taxes are withheld, and a RITA may be filed on this payment in the following year.
      

080503 Residence Transaction Allowances

080503.01 General Conditions and Limitations for Eligibility

1. Service Agreement (SA). A SA must be in place to be eligible for all relocation allowances. Reference Section 080501.05 for specific guidance on SAs.
2. Eligible Employees. Eligible employees include all VA employees and other Federal Government employees who join the VA without a break in service and who are transferring for the benefit of the Government, subject to FTR § 302-11.2 (eligible) and FTR § 302-11.4 (not eligible).
3. Eligibility for Benefits for Sale of a Residence at the Departure Official Duty Station. To be eligible for benefits for sale of a residence at the departure official duty station on 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. One of the three FTR § 302-11.101 situations applies to the title of the residence (or the interest in a cooperatively owned dwelling on a pro rata basis).
4. The VA will determine who holds title to the property based on FTR § 302-11.102. The employee must demonstrate “equitable title interest” on various types of title scenarios in accordance with FTR § 302-11.105.
5. If the above title requirements are not fully met, the employee will be reimbursed on a pro rata basis to the extent of their verified title interest. Refer to FTR 302, Subpart B, Title Requirements, for additional information on eligibility for this benefit.
   NOTE:
   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.

080503.02 Direct Reimbursement or Buyer Value Option Program (BVO)

An employee authorized sale and purchase residence transaction allowances has the option to select Direct Reimbursement or BVO for reimbursement. Direct Reimbursement is an entitlement, where BVO is a discretionary allowance option the VA has vested with the employee to elect under the Homesale Program. Employees are required to participate in homesale counseling provided by the RSC if BVO is elected.

080503.03 Direct Reimbursement of Real Estate Expenses

1. Real Estate expenses for both the sale and purchase of a residence are mandatory entitlements for transferring employees. For direct reimbursement on the sale or purchase of primary residences at the departure and destination official duty stations, VA will reimburse expenses that are considered allowable in FTR § 302-11.200. Additional clarification on reimbursable FTR §302-11.200 expenses are provided:
   • The maximum rate for a broker’s fee or real estate commission is currently six percent of the sale price of your house;
   • Escrow settlement fee or agent’s fee for closing a real estate transaction;
   • Power of Attorney (trustee fee);
   • Release fee; and
   • Title insurance binder (in lieu of title search).
2. Non-Reimbursable Expenses. VA will not reimburse employees for the expenses in connection with residence transactions listed in FTR § 302-11.202 including:
   • Cost of litigation;
   • Funding fees (e.g., VA funding fee); and
   • Down payments.
3. Expired Leases.
   1. VA will reimburse employees for certain expenses associated with the settlement of an unexpired lease if the dwelling was the actual residence the employee commuted to and from work at the time he or she was officially notified of the transfer, and one of the following three situations applies to the lease agreement:
      1. The lease is solely in the employee’s name; or
      2. The lease is jointly in the employee’s name with one or more members of their immediate family; or
      3. The lease is solely in the name of one or more members of the employee’s immediate family.
         If the above title requirements are not met, the employee will be reimbursed on a pro rata basis.
   2. VA will reimburse expenses, including broker’s fees, for obtaining a sublease or charges for advertising an unexpired lease, when the following additional conditions are met:
      1. Terms of the lease provide payment of settlement expenses that cannot be avoided by sublease or other arrangement;
      2. Expenses were not incurred due to failure to give timely lease termination notice after the employee had definite knowledge of their transfer; and
      3. Broker’s fees or advertising charges are not in excess of those customarily charged for comparable services in the locality.
   3. Employees will submit a completed expense claim (travel voucher) in the PCS Travel Portal and itemize each expense associated with the settlement of the unexpired lease. In addition, receipts will be included for all expenses claimed showing paid in full. A copy of the signed lease agreement, letter notifying termination of lease, and document identifying any penalty for lease termination are also required. All required receipts and documents can either be faxed into or attached to the completed travel voucher. The 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.

080503.04 Direct Reimbursement for Sale of Residence at Departure Official Duty Station

1. When an employee elects Direct Reimbursement, the employee may be eligible for reimbursement for reasonable and customary seller’s closing costs in accordance with FTR § 302-11.200(a), for up to a maximum of 10 percent of the actual sale price of his or her property. If the employee elects Direct Reimbursement for the sale of his or her residence, that decision is irrevocable. The employee cannot convert to AVO if originally offered, or BVO.
2. The employee will attend closing (either in person or virtually), will pay out-of-pocket for closing costs, and will submit for reimbursement. Under this program, the employee must sell and close on the property within one (1) year of his or her effective reporting date unless granted an extension for up to one additional year. The Home Marketing Incentive (HMI) Award is not applicable under Direct Reimbursement.

080503.05 BVO for Sale of Residence at Departure Official Duty Station

1. BVO is a discretionary allowance when relocation expenses have been authorized. Reimbursement of BVO is an employee vested option when authorized PCS, but is dependent upon the employee meeting eligibility requirements in Section 080503.01, and reimbursement must be in accordance with FTR Chapter 302 – Relocation Allowances and the policy in this chapter. If an employee elects BVO and subsequently decides to opt out of the program, they will be limited to Direct Reimbursement. Employees are required to participate in the BVO homesale counseling provided by the RSC. Refer to Appendix D, Relocation Services Contract, for information on BVO.
2. All properties entering BVO must meet the terms of the current relocation services contract. Properties found ineligible will not be transacted through this contract. If found ineligible, the employee is limited to Direct Reimbursement.
3. Employees must meet the time limit for listing their home for sale under Section 080503.08.

080503.06 Direct Reimbursement for Purchase of Residence at Destination Official Duty Station

To be eligible for reimbursement, employees must purchase and close on their property within one (1) year of his or her effective reporting date unless granted an extension for up to one additional year. The new home must be the home that the employee commutes to and from work on a daily basis in order to be authorized for reimbursement and meet title requirements specified under Section 080503.01C. If the title requirements are not met, the employee will be reimbursed on a pro rata basis. The employee will be reimbursed reasonable and customary buyer’s closing costs not to exceed 5 percent of the actual new home purchase price.

080503.07 Authorized AVO (Discretionary)

1. When AVO has been authorized, participation in the program is dependent upon the employee meeting eligibility requirements in Section 080503.01, and reimbursement must be in accordance with FTR Chapter 302 – Relocation Allowances and the policy in this chapter. For a description of the features of AVO reference Appendix D, Relocation Services Contract.
2. Employees not authorized, or authorized but ineligible for AVO, will be limited to reimbursement under Direct Reimbursement or BVO.
3. Employees are required to participate in the AVO homesale counseling provided by the RSC.
4. All properties entering AVO must meet the terms of the current relocation services contract. Properties found ineligible will not be transacted through this contract.
5. Employees must meet the time limit for listing their home for sale under Section 080503.08.
6. An employee approved for AVO must market his or her home for at least 60 days before accepting an appraised value offer.
7. Reference Section 080503.09 below for guidance on the Home Marketing Incentive Program allowance.

080503.08 Sale of Residence Listing Requirement

VA employees enrolled in AVO and BVO must list their homes for sale within 90-days from the date of initiation with the relocation services contractor. 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.

080503.09 Home Marketing Incentive Program (HMIP)

1. The HMIP provides a cash incentive award of 2 percent of the selling price of their homes, not to exceed $8,000, to VA employees enrolled in AVO only and who have successfully found qualified buyers for their residences (referred to as the “amended sale”). Employees who sell their homes and are not enrolled in AVO are not eligible for HMIP. Employees enrolled in BVO and employees enrolled in AVO with homes considered Special Properties are not eligible for HMIP.
2. Reference Appendix I, Home Marketing Incentive Program for further information.

080503.10  Review of Homesale Program

1. The FSC will conduct an annual review of historical data related to VA’s Homesale Program prior to exercising any homesale contract options or procuring relocation services for new contract awards. The data analyzed will examine the number of employees who participated in each program, homesale transaction costs, and median homesale values.
2. Contract requirements in the Statement of Work will be reviewed for cost avoidance and program efficiencies contributing to employees quickly achieving sales on their properties resulting in lower program costs. Throughout the contract year, the designated Contracting Officer Representative will monitor the contract for compliance and analyze all data related to the Homesale Program.

080504 Miscellaneous Expense Allowances

1. VA will reimburse employees who have no immediate family member(s) a $650 flat amount, or if the expenses are itemized, an amount up to one week basic compensation, whichever is the lesser amount.
2. VA will reimburse employees who have one or more immediate family member(s) a $1,300 flat amount, or if the expenses are itemized, an amount up to two weeks basic compensation, whichever is the lesser amount.
3. When miscellaneous expenses exceed A or B above, supporting documentation of miscellaneous expenses must be attached in the PCS Travel Portal (FTR § 302-16.103). The maximum miscellaneous expense allowance authorized must not exceed the highest basic salary for a GS-13, step 10 provided in 5 U.S.C. 5332, at the time the employee reported for duty at his or her new official station.
4. Refer to Appendix J, Miscellaneous Expense Allowance Guidelines, for additional information.

080505 Transportation and Storage of Property

080505.01 HHG Shipment

1. Reference FTR § 300-3.1 for a definition of HHG. An employee may elect shipment by commercial carrier or self-shipment methods for the shipment of HHG within CONUS. Employees transferring to, from, and within OCONUS areas are required to use shipment of HHG by the commercial carrier method.
2. Shipment by Commercial Carrier Method. Under this method, the FSC PCS Travel Counselor will initiate a Bill of Ladingwith VA’s contracted commercial carrier, who will contact the employee once the Bill of Ladinghas been received and processed. The commercial carrier will pack, ship, store, deliver, and unpack your goods in one lot. Under this method, VA will pay the commercial carrier directly and the employee will not incur any associated upfront costs. 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 in order to reach the residence, as long as the 18,000-pound limit is not exceeded, and up to an additional 2,000 pounds if the additional weight was as a result of uncrated packing materials.
3. VA will ensure the RSC utilized is a GSA qualified pre-payment auditor for VA household goods (HHG) shipments and conducts pre-payment audits prior to making payment to transportation providers. The RSC will send monthly pre-payment audit reports to GSA post audits, Washington, DC to ensure VA is following audit requirements.
4. VA will ensure vendor contracts for international HHG shipping by water require the use of ships registered under the laws of the United States whenever such ships are available (The Cargo Preference Act of 1904, 10 U.S.C. 2631, and The Cargo Preference Act of 1954, 46 U.S.C. 55302).
5. Self-Shipment Method. Under this method, employees will itemize the costs associated with moving their HHG on the travel voucher. If an employee elects to move his or her goods using this method, approval must be obtained from the Approving Official and documented on the travel authorization. Self-shipment reimbursement is limited to the actual cost incurred, not to exceed what the Government would have incurred under the method selected by VA (FTR § 302-7.16). Reimbursable costs under the self-shipment method may include the following items:
   • Truck rental (Expenses for other types of vehicles may be reimbursed when deemed appropriate to accomplish a smaller self-shipment move of HHG (e.g., SUV or trailer). Reimbursement will not exceed the reasonable constructive cost of a truck rental, and will be in accordance with self-shipment requirements in this chapter,
   • Fuel;
   • Packaging materials;
   • Toll charges;
   • Weight tickets; and
   • Insurance on HHG.
6. Employees will not charge any expenses under the self-shipment method to their Government Travel Charge Card if the expenses are associated with moving their HHG. Instead, employees will prepare a claim for reimbursement for all expenses within the PCS Travel Portal. Employees will attach the following documents to their travel vouchers:
   • Weight certificates from the nearest weighing station before and after loading the vehicle. [Note: 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. Reference paragraph C3 below for separate weight certificates required for professional items];
   • Copy of the travel authorization limiting the reimbursement of the self-shipment 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.

Refer to Appendix K, Items Allowed and Not Allowed To Be Shipped With Household Goods.

080505.02 Shipment of POVs Within CONUS

1. AOs may authorize the shipment of a POV within CONUS (FTR § 300-3.1), a discretionary allowance not an entitlement. VA will generally limit the authorization to one POV per employee. Under extenuating circumstances, however, AOs may authorize one additional POV for shipment, when shipment is more cost effective to VA (FTR § 302-9.301). 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.
2. VA may authorize employees to transport only the number of POVs equal to the number of people on the relocation travel orders, who are licensed drivers, not to exceed two, while relocating within CONUS at Government expense.

080505.03 Shipping Professional Books, Papers, and Equipment (PBPE)

1. VA may authorize shipment of PBPE if the weight will not exceed the maximum weight of 18,000 pounds. PBPE includes professional or specialized items owned by employees, but used to perform their jobs (e.g., periodicals, magazines, reference materials, specialized clothing, technician and mechanic tools or instruments). When authorized, shipping PBPE is considered an administrative cost to VA. However, for ease of administration in calculating this allowance, PBPE should be included as part of the HHG shipment, if possible.
2. AOs will review, certify, and approve the shipment of these professional items. A written inventory of goods to be shipped will be reviewed by the employee’s new supervisor. The inventory of goods should be separated into the following three categories:
   • Professional Books;
   • Papers; and
   • Equipment.
3. Items should generally be listed individually, but may be grouped if appropriate (e.g., encyclopedia set). For goods listed as a group, the employee will provide an estimate of the number of items contained in the group (e.g., encyclopedia set of 10 books). A justification will also be provided in support of the need for the goods included under each category. If items are deemed necessary and authorized for shipment, the commercial carrier will pack the professional items listed on the employee’s approved inventory separately from your HHG. The Bill of Lading will contain separate weight readings and costs associated with the employee’s professional items in order to be fully reimbursed as an administrative expense of the station or staff office separate from the relocation funds.

080505.04 Temporary Storage of HHG

1. VA will provide up to 60 calendar days temporary storage (FTR § 300-3.1) of HHG for shipments within CONUS and up to 90 calendar days for shipments that include an OCONUS origin or destination. 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 of their goods beyond the applicable 60 or 90 day original period in 30 calendar day increments, but not to exceed a maximum of 90 additional calendar days (FTR § 302-7.9), by submitting a memorandum to their AOs and the FSC PCS Travel Counselor. All requests for extensions must be submitted prior to the expiration of the original applicable 60 or 90 day period. If the extension is approved, the authorization must be documented as an amendment to the travel authorization and the AO must verify the signed memorandum is uploaded into the transferring employee’s folder in the PCS Travel Portal before approving the amendment. Circumstances beyond the employee’s immediate control that could justify additional storage time may include those listed in FTR § 302-7.10.
3. Under no circumstances may goods be stored in temporary storage for a period of more than 150 calendar days total (60 days initial authorization plus up to 90 days extended storage if authorized) for shipments from CONUS to CONUS locations, or more than 180 calendar days total (90 days initial authorization plus up to 90 days extension) for shipments that include OCONUS origin or destination.

080505.05 Extended Storage of HHG

1. AOs may approve a period necessary for extended storage (refer to FTR § 300-3.1 for definition of extended storage), not to exceed 90 days beyond the initial temporary storage 60 days period, under the following documented circumstances if the extensions apply to the employee’s transfer (FTR § 302-8.102).
   1. Employee is assigned to an isolated official duty station within CONUS; or
   2. Employee is assigned to an OCONUS official duty station and VA determines extended storage is cost effective; 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 TCS.
2. Extended storage of HHG is not permitted for a career SES employee eligible for last move home benefits. The AO will verify the supporting documentation is uploaded to the transferring employee’s folder in the PCS Travel Portal before approving the extension.
3. An official duty station must meet one of the following two criteria to be classified as an isolated station:
   1. The quarters to be occupied at the new official duty station will not accommodate the HHG; or
   2. Quarters that would accommodate the HHG are not available within 50-miles of the new official duty station.
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:
      1. Government-owned space is not available; or
      2. Commercial storage space is more economical or suitable because of location, transportation costs, or for other reasons.

080505.06 Limitation on Shipment and Storage of HHG

1. AOs may approve a period necessary for extended storage, not to exceed 90 days beyond the initial temporary storage 60 days period, under the following documented circumstances if the extensions apply to the employee’s transfer (FTR § 302-8.102).
2. Government’s Liability. The Government’s liability for loss of damage to HHG is determined by VA under title 31 U.S.C. 3721 and 3723 and VA implementing rules and regulations issued pursuant to the law, (FTR § 302-7.12).
3. Reimbursement Limitation. Employees may pursue other methods for transportation and temporary storage of HHG and PBPE in accordance with FTR § 302-7.401; however, your 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).

080505.07 Insurance Coverage on Shipment and Storage of HHG

1. Full Value Protection Method. VA will provide full value protection of HHG at no cost to the employee when using the contracted commercial carrier. Full value protection insures HHG at the full replacement value for individual items not to exceed the maximum of $5 per pound for the entire shipment weight. For example, an employee ships 10,000 pounds of HHG to his or her new official duty station. If the moving truck transporting the goods is involved in an accident that results in the loss of all of the employee’s HHG, the employee will receive a maximum of $50,000 to replace his or her belongings.
2. Excess Full Value Protection Method. Employees may elect the excess full value protection to insure their HHG based on the dollar valuation of their belongings being shipped. Employees should select this method if they want to ensure full coverage of their goods in the event of damage or loss of the shipment. If this method is selected, the employee will be billed for the additional cost to VA.

080505.08 Weight Allowances and Unaccompanied Air Baggage (UAB)

1. VA will authorize shipment and storage of employee household goods (HHG) up to the maximum weight allowance of 18,000 pounds (FTR § 302-7.2(a)), and may establish a lower net weight allowance and a lower allowance for packing materials in special circumstances, such as transferring an employee into government-furnished quarters (FTR § 302-7.2(b)). For uncrated or van line shipments, a 2,000 pound allowance is added to the 18,000 pounds net weight allowance to cover packing materials for the shipment. In no case may a shipment weigh over 20,000 gross pounds (the 18,000 pounds net weight of the uncrated HHG plus the 2,000 pound allowance for packing materials). The employee is responsible for payment of any shipping in excess of the 18,000 pounds uncrated or 20,000 pounds for uncrated and packing materials, and temporary storage (FTR § 300-3.1) charges in excess of the 18,000-pound maximum weight allowance. VA will issue a bill of collection for payment of charges for shipping and storage in excess of the allowable limits.
2. An AO may authorize a UAB shipment in accordance with FTR § 302-7.300. UAB for CONUS to CONUS shipments is not allowed under the FTR.
3. The travel AO may authorize UAB shipment when deemed necessary, or may authorize the shipment of UAB by expedited means in accordance with FTR § 302-7.303.
4. The UAB shipment is part of, not in addition to, the 18,000 pounds net weight allowance for HHG. Reference FTR § 302-7.302 for the maximum weight allowance for a UAB shipment.

080505.09 Mobile Homes

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 duty station. Refer to FTR Part 302-10 and Appendix L, Shipment Of Mobile Homes, for reimbursement guidance.

080505.10 Emergency Storage of POV

The AO may authorize storage of a POV which has been shipped at the expense of the Federal Government when the Federal Government or a specific State declares a national or local emergency, respectively, and evacuation is required.

080506 Outside of Continental United States Relocations

For a definition of OCONUS Foreign and Non-Foreign areas reference FTR § 300-3.1.

080506.01 Outside of Continental United States (OCONUS) Foreign Relocations

1. VA may authorize the following relocation allowances for OCONUS Foreign relocations:
   1. Transportation of employee and family;
   2. Shipment of POV;
   3. Property Management Services, not to exceed VA’s contracted negotiated rate with the third party vendor (refer to Appendix M, Property Management Services);
   4. Extended Storage of HHG (FTR § 302-8.200) when:
      1. The official station is one to which you are not authorized to take, or at which you are unable to use, your HHG; or
      2. Your AO authorizes it as being in the public interest; or
      3. Your AO determines the estimated cost of storage would be less than the cost of round-trip transportation (including temporary storage) of the HHG to your new official station.
   5. Temporary Quarters Subsistence Expenses (TQSE):
      1. Prior to CONUS departure, or
      2. Upon arrival at OCONUS location; or
   6. TQSE (upon return from OCONUS assignment).
2. Refer to the Department of State Standardized Regulations (DSSR) for additional allowances that VA may authorize for foreign OCONUS relocations. Refer to Volume XIV, Chapter 6, International Travel, for Passport and Visa information needed for travel to foreign countries.

080506.02 OCONUS, Non-Foreign Relocations

1. VA may authorize the following relocation allowances for OCONUS non-foreign locations:
   1. Transportation of employee and family;
   2. Shipment of POV;
   3. TQSE;
   4. Relocation Services Program; or
   5. Allowances for expenses incurred in connection with residence transactions.
2. Employees are eligible for an allowance for expenses incurred in connection with residence transactions when authorized relocation expenses. Authorized expenses may include the following:
   1. Sale of employee’s residence at the old official duty station from which the employee commutes daily, and or the purchase of a residence at the employee’s new official duty station in the United States;
   2. Residence or mobile home lot, considered as the employee’s permanent residence at the old official duty station; or
   3. Purchase of a new residence in the United States after completion of an overseas tour of duty. The return move is to a different official duty station in the United States. The new official duty station must be at least 50-miles from the previous official duty station in the United States.
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. When a tour of duty is terminated, the employee’s storage costs will be paid at the Government’s expense until the end of the month. The following example demonstrates time limitations for extended storage of HHG for OCONUS tours of duty:
   • Before Tour – 30 days
   • During Tour – Not to exceed tour duration (12-36 months)
   • After Tour – 60 days
5. Once the OCONUS assignment has been completed, VA will pay for relocation costs back to actual stateside place of residence as indicated on the SA. If the employee accepts a position with no relocation entitlements or accepts a position at another Government agency with relocation entitlements at a location other than the place of residence on the SA, VA will pay for relocation costs back to the actual stateside place of residence, as indicated on the SA. The employee or receiving Federal agency is responsible for any additional relocation costs.

080507 Senior Executive Service Separation Relocation Allowance

1. Senior Executive Service (SES) employees must meet the conditions as defined in FTR Subpart D – Relocation Separation to be eligible for separation relocation allowance (also known as “last move home”). The employee must reside in a different geographical area which is at least 50-miles from his or her last official duty station. GSA granted VA a waiver, effective December 19, 2003, to the “50-mile rule” due to hardships caused for some VA employees. This waiver remains in effect from the 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.
2. Before receiving reimbursement for moving expenses, the employee must submit a request to VA for authorization and approval of his or her moving expenses with the tentative moving dates and the 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.
3. In accordance with FTR § 302-3.101, Table G, VA must pay the following separation relocation allowances:
   • Transportation for employee and immediate family member(s) (FTR Part 302-4);
   • Per diem for employee only (FTR Part 302–4);
   • Transportation and temporary storage of household goods (FTR Part 302–7);
   • Transportation of a mobile home or boat used as a primary residence in lieu of the transportation of household goods (FTR Part 302–10); and
   • Relocation income tax allowance (RITA) (FTR Part 302–17).
4. In accordance with FTR § 302-3.101, Table G, the following separation relocation allowances are discretionary expenses VA may or may not be authorized:
   • Shipment of privately owned vehicle (POV) (FTR part 302–9, Subpart B); and or
   • Use of a relocation services company (FTR Part 302–12).

080508 Temporary Change of Station Allowances

1. VA will authorize a Temporary Change of Station (TCS) in accordance with FTR § 302-3.404. An employee must meet the distance requirement of 50-miles or more, as prescribed in Section 080501.01B. A service agreement is not required for TCS travel.
2. Duration of a TCS. A TCS will not be shorter in duration than 6 months nor last longer than 30 months.
   1. If the assignment is cut short of the 6 months for reasons other than separation, TCS expenses will be reimbursed.
   2. If the TCS lasts longer than 30 months, VA:
      1. Must permanently assign the employee to the temporary official duty station or return the employee to the previous official duty station.
      2. May not pay for extended storage or property management services past the 30^th month.
      3. Must pay the expenses of returning the employee, his or her immediate family members, and the HHG to the previous official duty station unless permanently assigned to the temporary official duty station.
3. VA will pay for the following expenses in connection with the employee’s departure and return to the official duty station:
   • Travel, including per diem, for employees’ and their immediate families (refer to Section 080502);
   • Transportation and temporary storage of HHG (refer to Section 080505.01);
   • Transportation of a mobile home instead of transportation of HHG (refer to Section 08050509);
   • TQSE (refer to Section 080502.03);
   • Miscellaneous expense allowances (refer to Section 080504);
   • Property management expenses, not to exceed the VA’s contracted negotiated rate with the third party vendor (FTR § 302–15.70(b), and reference Appendix M, Property Management Services);
   • Transportation of a POV (refer to Section 080505.02);
   • Lease break at permanent official duty station location and lease break after completion of TCS at TCS location (if applicable); and
   • A relocation income tax allowance for additional income taxes incurred on payments (refer to Section 080509).
4. VA will authorize the following expenses if employees are permanently assigned to TCS official duty stations:
   1. Travel, including per diem, for one round trip between the temporary official duty station and the previous official duty station, for employees and members of their immediate family who relocated to the temporary official duty station. VA may also pay the same expenses for a one-way trip from the previous official duty station to the new permanent official duty station for any immediate family member who did not accompany the employee to the temporary official duty station;
   2. Residence transaction expenses;
   3. Relocation services;
   4. Temporary quarters subsistence expenses (TQSE);
   5. Transportation of HHG not previously transported to the temporary official duty station;
   6. Transportation of a privately-owned vehicle(s) not previously transported to the temporary official duty station; and
   7. If the employee changes his or her residence as a result of the permanent assignment to the temporary official duty 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.
5. The following individuals are not eligible for a TCS:
   • A new appointee;
   • An individual employed intermittently in the Government service as a consultant or expert and paid on a daily when-actually-employed (WAE) basis;
   • An individual serving without pay or at $1 a year; or
   • An employee assigned under GETA.
6. Refer to Appendix N, Temporary Change of Station Allowances, for additional information.

080509 Withholding Tax Allowance and Relocation Income Tax Allowance

1. Purpose of Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA). The WTA and the RITA assist employees with the additional Federal, State, or local income tax liability incurred as a result of a move. The allowances are developed by GSA in conjunction with IRS. These allowances assume that relocated employees will itemize their deductions, rather than take the standard deductions on their income tax returns. VA employees should review IRS publications in Appendix O, Internal Revenue Service Publications Associated With Relocation Expenses, and FTR § 302-17 (Taxes on Relocation Expenses) and consider seeking professional tax advice to determine how their relocation affects their personal tax situation.
2. Employees Eligible for WTA and RITA. VA Employees are eligible for the WTA and RITA when the VA transfers the employee from one permanent duty station to another, in the best interest of the Government, and VA reimburses the employee for relocation expenses resulting in the employee being liable for additional taxes (FTR § 302-17.5).
   Note: If a VA employee violates the 12-month SA under which they were relocated, VA will not pay WTA or the RITA, and the employee must repay any relocation benefits paid prior to the violation.
3. Employees Ineligible for WTA and RITA. FTR § 302-17.6 identifies which relocating employees are not eligible for WTA and RITA.
4. Limitations on WTA and RITA. Both the employee and VA must know the limitations on which reimbursements and direct payments to vendors are taxable and which are nontaxable in the employee’s specific circumstances (FTR § 302-17.8 thru FTR § 302-17.13).
   Note: The tax calculations involve potential Federal, state, and local income taxes that may be incurred as a result of a relocation and is considered a good faith effort to reimburse substantially all additional income taxes the employee may incur (FTR § 302-17.4).
   1. Taxable Expense Types. For the purpose of determining WTA, FTR § 302-17.21 provides a list of reimbursements considered taxable when paid to the employee. Reimbursement for all of the listed expenses are included in the gross income reported on an employee‘s W-2 for the tax year in which reimbursement is paid, including WTA and RITA reimbursements.
   2. Non-Taxable Expense Types. The following are not considered taxable reimbursements. A complete list can be found in FTR § 302-17.22.
5. Withholding Tax Allowance (WTA). VA will reimburse and add a WTA allowance to travel vouchers to defray an employee‘s out-of-pocket expenses if the employee selects to apply WTA. WTA is optional for the employee. The WTA is actually an advance estimate of the RITA.
   1. Each time covered taxable moving expenses are paid to the employee, the FSC will determine the amount of the WTA in accordance with FTR § 302-17.24 and add it to the travel voucher.
   2. The WTA only covers the estimated Federal withholding tax amount. The reimbursement amount the employee will receive will be the amount claimed less deductions for non-reimbursable items and the estimated amounts withheld for State taxes, OASDI, and Medicare (FTR § 302-17.20).
   3. The WTA is considered taxable income and is subject to tax withholding (FTR § 302-17.2). The total amount of an employee’s WTA paid during a calendar year, as well as the total of all other allowable moving expenses, is included on the W-2 as wages, tips, and other compensation.
6. Relocation Income Tax Allowance (RITA).
   1. 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).
   2. VA uses the two-year process for RITA (FTR § 302-17.32). Employees will submit a RITA travel voucher the year following in which the employee receives payment of covered taxable moving expenses.
      1. The difference between the WTA and the RITA is that the WTA is an estimate of the Federal withholding taxes due, and the RITA uses actual figures provided by the employee to determine the Federal, State, and local tax effects from the move.
      2. The RITA is calculated the year after the reimbursements involving taxable moving expenses along with a WTA, are received.
      3. The RITA uses actual figures provided by the employee to calculate the proper amounts that should have been reimbursed for Federal, State, and local taxes.
   3. To file a RITA claim, the employee must submit to the FSC or log into the PCS Travel Portal and fill out the FSC RITA Questionnaire form (“Statement of Income and Tax Filing Status”). Copies of all taxable income forms received to complete the employee’s IRS Tax Return are required. Forms include but are not limited to W-2 forms and SE 1040 self-employment forms (if applicable) for the employee (and for spouse, if filing jointly). Forms 1099 are not applicable since the RITA is based only on earned income, except for 1099R forms for military retirement pay.
   4. The WTA is an advance on your income tax expenses, thus if you don’t file the “Statement of Income and Tax Filing Status”, or RITA claim in a timely manner, your agency will require you to repay the entire amount of the withholding and WTA (if any) that the agency has paid on your behalf (FTR § 302-17.65). Employees are required to file a RITA claim in accordance with the annual deadline established by the PSC Travel Office. Failure to file the RITA claim by the deadline allows VA to close the file without paying the RITA (FTR § 302-17.66). The FSC PCS Travel Division will notify affected employees by email of the deadline for filing. Employees who fail to file in a timely manner will receive a final written warning by email to file within 60 days or amend their “Statement of Income and Tax Filing Status”, or VA will declare the WTA already paid on his/her behalf forfeited and due as a debt to the Government (FTR § 302-17.102(b)).
   5. 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. Like the WTA, the RITA is considered taxable income and is subject to tax withholding, reportable to the IRS on the W-2. Employees who are relocating should be aware that the IRS considers certain expenses and allowances to be reported as income. Those that are not taxable generally may be deducted when filing the annual tax return. Refer to Appendix O, Internal Revenue Service Publications Associated with Relocation Expenses, for publications that may be helpful to the relocating employee.
7. VA will withhold taxes directly from travel voucher payments. 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.
8. An employee may request a recalculation of their RITA, provided he or she filed their “Statement of Income and Tax Filing Status”, or RITA claim and amended it, if necessary, in a timely manner. Once he or she has completed all Federal, state, and local tax returns, and believes the RITA should have been significantly different from the RITA VA has calculated, he or she may ask VA to recalculate the RITA (FTR § 302-17.33).

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. 5332, The General Schedule
  • 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
  • 18 U.S.C. 287, False, fictitious or fraudulent claims
  • 28 U.S.C. 2514, Forfeiture of fraudulent claims
  • 31 U.S.C. 3721, Claims of personnel of agencies and the District of Columbia government for personal property damage or loss
  • 31 U.S.C. 3723, Small claims for privately owned property damage or loss
  • 46 USC 55302: Transportation of United States Government personnel, The Cargo Preference Act of 1954
• 41 Code of Federal Travel Regulations – Chapters 300 – 304
• Delegations of Authority Table
• Department of State Standardized Regulations (DSSR)
• FTR Amendment 2014-01
• FTR Amendment 2015-02
• GSA Per Diem Rates
• National Archives and Records Administration (NARA), General Records Schedule 1.1: Financial Management and Reporting Records
• OCHO Bulletin, February 17, 2023
• Office Of The Chief Human Capital Officer (OCHCO) Bulletin, February 17, 2023
• PCS Travel Portal
• VA Form 3036c, Travel Authority for Permanent Duty
• VA Form 3918, Intra-Agency Transfer Request
• VA Form 4659, Incentive Awards Recommendation
• VA Directive 5005, Staffing
• VA Directive 5017, Employee Recognition and Awards
• VA Directive 5027, Senior Executive Service Handbook

0807 Rescissions

VA Financial Policy, Volume XIV Chapter 8, Relocation Packages, October 2021.

0808 Policy Approval

This policy was approved by the VA Chief Financial Officers’ Council on September 6, 2023.

Appendix A: Revision History

See changelog.

Appendix B: Permanent Change of Station Travel Portal

1. Overview.
   1. The Financial Services Center (FSC) developed the Permanent Change of Station (PCS) Travel Portal to streamline the process for initiating and approving documents required by relocating employees authorized PCS relocation allowance reimbursements. This application automates the process to prepare and submit a, VA Form 3918, Intra-Agency Transfer Request; discretionary requests and approvals; budget requests; and a Travel Authorization for Permanent Duty (TA), VA Form 3036c, for the traveler. This process applies to transferring employees and new appointees.
   2. Effective December 31, 2010, all VA Form 3918(s) for relocation including reimbursements must be initiated and completed through the PCS Travel Portal. Relocations involving no reimbursement may be processed on a VA Form 3918 in the PCS Travel Portal or may be processed using a manual VA Form 3918.
2. Defining Station Users for PCS Travel Portal.
   1. Each station will assign points of contact to serve as primary or alternate for each required function. These individuals will be responsible for accessing the application, completing their function, and signing the document using their digital signature (use the PCS Travel Portal). Once authenticated, the document will flow automatically to the appropriate designated point of contact to perform the next step in the process.
   2. The following is a list of the station POCs and their roles:
      • HR Office personnel: complete VA Form 3918, and attach a PDF of the supporting signed approval documentation for PCS relocation allowances, and Appraised Value Offer Program (AVO) when authorized, in the PCS Travel Portal, prior to submitting VA Form 3918;
      • Budget Officer: provides budget information;
      • Approving Official: approves discretionary requests, travel authorizations (TA), electronic requests to add or delete station users from the PCS Travel Portal, and verifies all required documentation is attached in the PCS Travel Portal prior to approving the TA;
      • Traveler (employee): completes VA Form 3918, Part 2, service agreement, and if requesting Temporary Quarters Subsistence Expense (TQSE) lump sum method must provide certification of family members occupancy for the entire period if authorized;
      • FSC PCS Travel Division Staff: ensures the servicing HR office has attached the required approval documentation in the employee’s folder for PCS, and AVO when authorized, in accordance with Section 080501.06B, prior to processing; provides PCS Allowance Counseling; coordinates discretionary and budget requests, the travel authorization, travel authorization amendments; updates user information in the PCS Travel Portal; and VA Form 10091, FSC Vendor File Request Form is submitted; and
      • Super User: HR or Budget contact that will facilitate electronic requests for additions or deletions of station users.
3. Process Steps (Status) in the PCS Travel Portal.
   The following list outlines the various statuses that exist within the PCS Travel Portal. The status will reflect the current step for the PCS move from the creation of the VA Form 3918 in the PCS Travel Portal through the approval of the Travel Authorization.
   
   NOTE: Steps 1 – 5 below must be completed within two business days from the date the employee is offered and accepts the position. All subsequent steps below have a one business day completion requirement.
   
   1. VA Form 3918 Creation – Gaining station’s or staff office’s servicing HR office creates and completes Part 1.
   2. VA Form 3918 – Awaiting HR office Approval Signature – HR signer will access the VA form and sign Part 1 as the Appointing Official. HR will attach a PDF of the supporting signed approval documentation for PCS, TCS, and AVO when authorized in the employee’s folder in the PCS Travel Portal, prior to submitting VA Form 3918.
   3. FSC – Awaiting Review User information – FSC PCS Travel Division staff will receive an email from the PCS Travel Portal to validate that the traveler does not already have an existing PCS Travel Portal profile. If the user already exists, the existing user profile will be updated to reflect the new information.
   4. 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 service agreement.
   5. 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.
   6. FSC – When VA Form 3918 is submitted, FSC will verify the servicing HR office has attached the PCS and AVO approval documentation in the employee’s PCS Travel Portal Folder, in accordance with Section 080501.06B, prior to processing.
   7. FSC – Awaiting Set Initial Contact with Traveler – FSC PCS Travel Division will make initial contact with the employee within 24 hours of receiving notification.
   8. FSC – Awaiting FSC PCS Travel Counselor Assignment – Upon contact with employee, a counsel call will be scheduled with an assigned Counselor.
   9. FSC – Awaiting Completion of Counseling – FSC PCS Travel Counselor will provide counseling to employee and facilitate requests for discretionary items.
   10. VA Form 3036c – Awaiting Approval Discretionary Items – AO will approve or deny discretionary requests.
   11. VA Form 3036c – Awaiting Completion of Counseling – FSC PCS Travel Counselor will update PCS information based on discretionary approvals and submit request for budget information.
   12. VA Form 3036c – Awaiting Approval Funds from Funding Station – Budget Official will provide funding information through the PCS Travel Portal.
   13. VA Form 3036c – Awaiting travel authorization Completion – FSC PCS Travel Counselor will make final updates to information in PCS Travel Portal and submit request for Travel Authorization approval.
   14. VA Form 3036c – Awaiting Supervisory Review – FSC PCS Travel Counselor Supervisor will review Travel Authorization for accuracy and either reject back to Counselor for corrections or route to AO for approval.
   15. VA Form 3036c – Awaiting Traveler Signature – If relocation services have been requested, the traveler will be prompted to sign the Relocation Services Authorization form.
   16. 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.
   17. VA Form 3036c – Awaiting Release of Obligation to VA’s account system, FSC PCS Travel Counselor will receive notification of approved Travel Authorization and send obligation to VA’s accounting system.
   18. VA Form 3036c – Awaiting Review of Obligation – The following day, the FSC PCS Travel Counselor 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.
   19. VA Form 3036c – Awaiting Completion of Claims – Travel Authorization is now complete, and this status will remain unless an amendment is made to the Travel Authorization. If an amendment is created, the status will revert to VA Form 3036c – FSC – Awaiting Travel Authorization Completion; follow the status steps involved through VA Form 3036c – Awaiting Completion of Claims.
       

Appendix C: Relocation Entitlements and Discretionary Allowances

1. In accordance with FTR § 302-3.101, refer to the following list of tables that provide the entitlements VA will pay, and the discretionary allowances VA may or may not pay, based on the applicable type of relocation:
   • Table A—Transfer Between Official Stations in the Continental United States (CONUS);
   • Table B—Transfer From CONUS to an Official Station Outside the Continental United States (OCONUS);
   • Table C—Transfer From OCONUS Official Station to an Official Station in CONUS;
   • Table D—Transfer Between OCONUS Official Stations;
   • Table E—Tour Renewal Agreement Travel;
   • Table F—Return From OCONUS Official Station to Place of Actual Residence for Separation;
   • Table G—Last Move Home for SES Career Appointees Upon Separation from Government Service;
   • Table H—Temporary Change of Station (TCS); and
   • Table I—Assignment Under the Government Employees Training Act.
2. New appointees are authorized allowances in accordance with FTR § 302-3.2.
3. Relocation entitlements are based on the “type of transfer” and not subject to negotiation.
4. For HMIP eligibility reference Section 080503.09.
5. 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)).
6. All employees have the option to participate in the Buyer Value Option Program, if eligible. Appraised Value Offer Program remains a discretionary allowance requiring advance approval (reference Section 0801).

Appendix D: Relocation Services Contract

1. Relocation Services. 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 duty 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 duty station:
     
     1. AVO. 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. 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. BVO. 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. Owned and Occupied Residence. In order to be eligible, the employee‘s home must be the actual residence owned and occupied by the employee at the time he or she was first informed of the transfer. The residence must be the place from which the employee regularly commuted to and 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. All homes may not qualify or be accepted into the program.
   
   The FSC PCS Travel Counselor will advise on available services through the relocation services provider and will include the applicable service on the employee’s travel authorization. Once the travel authorization is approved and funded, the employee will be initiated with the relocation services contractor. The relocation services contractor will confirm that the employee is aware that he or she will be required 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.
   
   An employee has the right to cancel the request for relocation services or to reject an offer received from the contractor at any time prior to acceptance of the offer. If the 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 during the appraisal process or the 60-day appraised value offer period under AVO, the employee receives an offer from an outside party that is equal to or more than the Government-contracted company‘s offer, 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 (signs the contract offer), this will automatically cancel participation in the program. The employee will not be reimbursed for any fees already incurred and billed by the relocation services contractor.
   
3. Contractor-Provided Services. Marketing strategies, recommendations, and advice furnished by the contractor will be provided in writing upon request of the employee. 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 clearly a complex area and not all scenarios may be addressed. The employee should contact their FSC PCS Travel Counselor with any questions.
   
4. Ineligible Property. 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. 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. Eligible Properties. Properties eligible for the Relocation Services Program:
   1. Must be the primary residence owned and occupied by employee at the time of the initial official notification of transfer.
   2. Must be the place from which transferee commutes to and from work on a daily basis.
   3. Title requirements:
      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).
         Note: 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.
   4. 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 would be subject to a prorated reimbursement based on percentage of the residence occupied as the primary residence. [NOTE: This restriction is not applicable to a case where an employee owns a condominium unit.] Duplexes and multi-family dwellings are considered Special Properties and as such are deemed ineligible for the BVO program.
   5. Excess acreage is land that does not reasonably relate to the residence site, as determined by the relocation company. Sale of excess acreage will be at the employee‘s expense; only the land reasonable and typical for the residence site will be eligible.
7. Pre-Decision Counseling. The RSC offers a comprehensive pre-decision assistance service for employees applying for a position with VA when a PCS move is authorized. With real estate markets still facing unprecedented challenges, this optional counseling provides valuable information about the market conditions and estimated home values at the departure and destination duty stations. The RSC will assign realtors to complete two Broker Market Analyses of the employee’s current residence so the RSC can conduct an analysis of the real estate conditions to pinpoint market data. This detailed information allows the employee to complete a financial and life-style assessment prior to accepting a PCS move. This service can also be utilized post acceptance of the position but must be requested prior to completion of the travel authorization Pre-decision counseling gives an employee the opportunity to make an informed decision, considering the economic impact a move could potentially cause.

NOTE: Refer to Appendix M,Property Management Services, for additional information.

Appendix E: Delegations of Authority Table

Delegations of authority to authorize relocation allowances and approve reimbursement originates with the SECVA (FTR § 302-2.102). SECVA has delegated the authority to the ASM/CFO, who has further delegated certain positions with this authority. Reference the following link for the Delegations of Authority Table.

Appendix F: 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 Charge Card, then an advance will not be authorized. Authorized advance of funds must be stated on the travel authorization. The AO may or 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).
   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 your 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 G: Privately Owned Vehicle Mileage Rates

1. The Monetary Allowance in Lieu of Transportation (MALT), as of January 1, 2017, is a $0.17 mileage rate payment for official PCS travel performed by an eligible traveler (employee only or spouse or domestic partner and immediate family members if traveling separate from the employee). It is based on the official distance between authorized locations. The number of travelers in the POV has no bearing on the amount paid under MALT.
2. POV mileage will not be authorized for overseas tour renewal travel (FTR § 302-4.301).
3. The PCS Travel Portal main page provides the current MALT rate. The PCS Travel Portal will automatically apply the current MALT mileage rate.

Appendix H: Temporary Quarters Subsistence Allowances

A. Temporary Quarters Subsistence Expense (TQSE) Actual Expense (AE) Method. A sample¹ of a maximum daily allowable amount is:

FISCAL YEAR 2016 RATES	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., $140.00)	0.75 times standard CONUS rate; $105.00	0.50 times standard CONUS rate; $70.00
Any additional days of temporary quarters	0.75 times standard CONUS rate; $105.00	0.50 times standard CONUS rate; $70.00	0.40 times standard CONUS rate; $56.00

NOTES:

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.

B. Per diem rates are subject to change based on GSA guidelines. Current CONUS per diem rates are available at GSA Per Diem Rates.

C. TQSE Lump Sum (LS) Method. LS is based on the new official duty 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.

D. The following is an example of LS for the first 30 days of temporary quarters, based on a family consisting of the employee, spouse, 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

E. Per diem rates are subject to change based on GSA guidelines. Current CONUS per diem rates are available at GSA Per Diem Rates.

Appendix I: Home Marketing Incentive Program

1. The purpose of HMIP is to encourage employees to find a qualified buyer for their home while enrolled in the Appraised Value Offer Program (AVO). 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 duty stations when transferring for the benefit of the Government and when authorized PCS allowances.
2. Homesale Options. Employees participating in AVO may sell their homes in one of two ways:
   1. Amended Value Sale. 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. Appraised Value Sale. 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. Requirements. When AVO is authorized in accordance with HR policy and an employee elects AVO, the employee must choose whether to participate or not to participate in 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 duty station may fund the award to approved and qualifying employees.
   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 his or her 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 his or her home closed by the Relocation Services Contractor.
   2. Exclusions. 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. Award Limitation. Employees are eligible for an award of two percent of the selling price of the home, not to exceed $8,000.
   4. Tax Implications. Awards made under the HMIP constitute taxable income to the employee and taxes will be withheld from the award.
   5. Processing the Award:
      1. The employee’s FSC PCS Travel Counselor will initiate and complete the HMI Award Worksheet and Justification. The Counselor will have the eligible employee sign the certification on the HMI Award Worksheet and Justification document. Once signed, the Counselor will forward to the servicing HR staff office for completion and submission to the employee’s authorizing official for approval (i.e., the official who authorized the employee’s official change of station). The Counselor will maintain the 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. Funding the Award. The gaining station or staff office will fund the HMI Award.

Appendix J: Miscellaneous Expense Allowance Guidelines

The Miscellaneous Expense Allowance (MEA) is to help defray some of the costs incurred due to relocating. The MEA is related to expenses that are common to living quarters, furnishings and household appliances, and to other general types of costs inherent in relocation of a place of residence. MEA can be used to cover expenses that cannot be easily categorized, such as carpet cleaning, replacement of window treatments, painting, automobile registration fees, connecting and disconnecting appliances, non-refundable utility fees and deposits, etc. Allowable expenses include, but are not limited to, the items listed below:

GENERAL EXPENSES	FEES AND DEPOSITS	LOSSES
Appliances	For connecting and disconnecting appliances, equipment, utilities or conversion of appliances for operation on available utilities.	–
Rugs, draperies, and curtains	For cutting and fitting such items, moved from one residence quarters to another.	–
Utilities (See FTR § 302-10.204 for mobile homes)	Fees and deposits not offset by eventual refunds.	–
Medical, dental, and food locker contracts	–	Losses that cannot be recovered by transfer or refund and are incurred due to early termination of a contract.
Private Institutional care contracts (such as that provided for handicapped or invalid dependents only)	–	Losses that cannot be recovered by transfer or refund and are incurred due to early termination of a contract.
Privately-owned automobiles	Registration, Driver’s License, and use taxes imposed when bringing vehicles into certain jurisdictions.	–
Transportation of pets	Only costs associated with dogs, cats, and other house pets, as well as costs due to stringent air carrier rules are included. Other animals (horses, fish, birds, various rodents, etc.) are excluded because of their size, exotic nature, or restrictions on shipping, host-country restrictions, and special handling difficulties. Not included are inoculations, examinations, boarding quarantine, or other costs in the moving process.	–

Appendix K: Items Allowed, and Not Allowed To Be Shipped With Household Goods

1. Property Transportable Unless Prohibited. The following items may be included in the shipment of household goods (HHG), unless the commercial carrier prohibits such inclusion:
   • All-Terrain Vehicles;
   • Riding lawn mowers;
   • Jet skis;
   • Golf carts;
   • Boats that easily fit into the commercial carrier’s moving van; or
   • Pianos.
     
     Note: If any of these items are included in the shipment of HHG, their weight will be factored into the 18,000-pound limit. The employee should indicate their intention to ship any of the above items on their pre-inventory so that the commercial carrier can plan accordingly.
     
2. Property Not Transportable at Government Expense. The following items will not be included in the shipment of HHG:
   • Automobiles, trucks, vans, and similar motor vehicles;
   • Boats that do not easily fit into the commercial carrier’s moving van;
   • Airplanes or gliders;
   • Farm vehicles;
   • Major vehicle parts (e.g., engines);
   • Live animals (e.g., birds, fowl, insects, reptiles);
   • Cord wood and building materials;
   • Alcoholic beverages;
   • Property for resale or commercial use; or
   • Flammable and or explosive materials (e.g., fireworks).
     
     Note: The employee should contact the commercial carrier regarding any items owned that he or she is not sure whether to include for shipment as part of HHG.
     

Appendix L: Shipment of Mobile Homes

1. 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 duty station.
2. The FSC PCS Travel Counselor will be contacted to obtain a GSA cost comparison. The GSA cost comparison will be calculated based on the estimated cost of moving 18,000 pounds of household goods (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 employees select a commercial carrier to move their mobile homes, reimbursement will be the incurred expense for the following items, but 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 employees tow or drive their mobile homes 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 M: 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 duty 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. These 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. Title. 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. Employee Options. 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 duty 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. Election of Employee to Secure Their Own Property Management Company. 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. Reimbursement and Taxes. 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 directly or whether VA pays a relocation services company 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.

Appendix N: Temporary Change of Station Allowances

1. VA must authorize and reimburse the following TCS relocation allowances:
   • Transportation and per diem for employee and immediate family member(s);
   • Miscellaneous expense allowances;
   • Transportation and temporary storage of HHG;
   • Transportation of a mobile home or boat used as a primary residence in lieu of the transportation of HHG;
   • Transportation of a POV;
   • Property management services;
   • Lease break expenses; and
   • RITA.
2. VA has discretionary authority to pay for HH trip expenses and TQSE.
3. VA will fully fund both the initial relocation and subsequent return associated with a TCS at the time the employee is issued a TCS authorization.
4. The TCS refers to the relocation to a new official duty station and subsequent return. As it is one assignment, and one set of orders, funding needs to be obligated for the entire relocation.
5. In a 1984 Comptroller General decision (64 Comp. Gen. 45) regarding properly obligating funds for relocation, the Comptroller General ruled that the transfer of the employee is a bona fide need of the year in which he is ordered to transfer, and the expenses must be charged against funds current in that year.

Appendix O: Internal Revenue Service Publications Associated With Relocation

Publication 463 – Travel, Entertainment, and Gift Expenses

Publication 521 – Moving Expenses

Publication 525 – Taxable and Nontaxable Changes

Publication 553 – Highlights of Current Tax Changes