Board of Contract Appeals

                    General Services Administration

                         Washington, D.C. 20405

 

                           _________________

 

                             July 24, 2000

                           __________________

 

 

                            GSBCA 15315-RELO

 

 

                    In the Matter of SARA HANDBERRY

 

 

        Sara Handberry, Baltimore, MD, Claimant.

 

        Linda  Tragakis,  Real  Estate  Officer,  Defense   Contract

   Management  Agency,  Boston,  MA,  appearing  for  Department  of

   Defense.

 

   HYATT, Board Judge.

 

        Pursuant  to a travel  authorization issued on  November 20,

   1996,  claimant, Sara  Handberry,  a  civilian  employee  of  the

   Defense Contract  Management Agency (DCMA),  relocated from  Long

   Island,  New  York  to  Baltimore, Maryland.    She  reported  to

   Baltimore on January 10, 1997.  Under the applicable regulations,

   she had  two years to complete real  estate transactions incident

   to  the transfer  in order  to be  eligible for  reimbursement of

   associated  expenses.   On  February  2,  1999, as  permitted  by

   regulation,  DCMA   extended  the   time  limit   for  completing

   claimant's new  home purchase by  one year, or until  January 10,

   2000. 

 

        Ms. Handberry  was unable  to complete  the purchase  of her

   home  until January  14, 2000,  however.   She explains  that the

   closing was originally scheduled for December 30, 1999, but,  due

   to  inclement  weather  conditions,  the  seller  was  unable  to

   complete repairs required by the Federal Housing Authority (FHA),

   and   the  settlement  was  rescheduled  for  January  10,  2000.

   Subsequent inspections  by  FHA's  appraiser  revealed  that  the

   repairs were  not satisfactory.   The FHA  would not  grant final

   approval of  the loan so  as to proceed  to settlement until  the

   work was redone.   This resulted in a further postponement of the

   settlement date to January 14, 2000.

 

        Under the  Federal Travel Regulation (FTR), reimbursement of

   real  estate  transaction  expenses  is  available  only  if  the

   settlement date of the sale or  purchase of a residence occurs no

   later than  two years  after the date  the employee  reported for

   duty at the new official station, or three years after  that date

   in the  event a  one-year extension of  this limitation  has been

   approved by the head of the agency (or  a designee).  41 CFR 302-

   6.1(e) (1996).  The Joint Travel Regulations (JTR), which  govern

   relocations of  civilian  employees of  the  Defense  Department,

   contain a similar provision.  JTR C14000-B.

 

        Three years is the maximum  time limit for recovery of these

   expenses.   The Board  has previously explained  with respect  to

   this rule  that the FTR has  the force and  effect of law  and is

   binding on agencies and tribunals.  Consequently, "the three-year

   limit is invariable." 

   Nanette  O. Locke,  GSBCA 15144-RELO, 00-1  BCA    30,706 (1999);

   accord  John  E.  White, GSBCA  15215-RELO,  00-1  BCA    30,902;

   Robert R. Goulka, GSBCA 15145-RELO, 00-1 BCA   30,813.   

 

        The   claimants  in  Locke,  White,  and  Goulka,  like  Ms.

   Handberry, had good  reasons for missing the  three-year deadline

   applicable  to  recovery  of  real  estate transaction  expenses.

   Nonetheless, neither the  agency nor the Board  has the authority

   to waive this requirement.  Claimant cannot  recover the expenses

   associated with the purchase of her residence in Baltimore.

 

 

 

   _________________________________

                                      CATHERINE B. HYATT

                                      Board Judge