Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405





                          _____________



                          June 17, 2004

                          _____________





                         GSBCA 16394-RELO





                In the Matter of JEANETTE H. WALSH





     Jeanette H. Walsh, Chesapeake, VA, Claimant.



     Maj. Michael G. Vecera, Office of the Staff Judge Advocate, Air Force Reserve

Command, Department of the Air Force, Dobbins Air Reserve Base, GA, appearing for

Department of the Air Force.



DeGRAFF, Board Judge.



     The agency decided to deny the employee's claim for reimbursement of an amount she

paid to fund a down payment assistance program when she sold her house at her old duty

station.  The agency also denied the employee's claim for reimbursement of an amount she

paid for owner's title insurance when she sold her house.  As explained below, we agree with

the agency's decision.   



                            Background



     In 2003, the Department of Defense (DoD) transferred Jeanette H. Walsh from

Georgia to Virginia, where she reported for duty on November 16.  In connection with the

transfer, DoD authorized Ms. Walsh to incur reimbursable real estate sales transaction

expenses.  Ms. Walsh sold her house in Georgia, and DoD reimbursed her for many of her

sales transaction expenses.  DoD did not reimburse her, however, for expenses labeled

"Home Ownership Providers" on her settlement statement.  Information provided to us by

Ms. Walsh explains these expenses consist of a contribution she made to a charitable

organization that made a gift to the purchaser of Ms. Walsh's house equal to the amount of

Ms. Walsh's contribution to the fund, plus a processing fee she paid to the fund.  Also,

Ms. Walsh paid for owner's title insurance when she sold her house, and DoD did not

reimburse her for this expense.  Ms. Walsh asks us to review DoD's decision to deny

reimbursement of these expenses.  



     According to Ms. Walsh's real estate agent, programs such as Home Ownership

Providers are designed to assist potential purchasers who, due to low interest rates, can make

the required monthly payments on a mortgage, but lack the money for a down payment or

closing costs.  She says it is "commonplace" in the Atlanta, Georgia, area to expect a

purchaser to ask for such assistance and notes the market in Atlanta at this time favors

purchasers.  DoD says it has no record of paying such expenses in the past, so it doubts such

payments are customary in the Atlanta area.  Regarding the owner's title insurance, DoD says

it cannot reimburse this expense because Ms. Walsh has not established the expense was a

prerequisite to financing or transfer of the property, or inseparable from other insurance

which was a prerequisite to financing or transfer of the property.  



                            Discussion



     The resolution of Ms. Walsh's claim is governed by the Federal Travel Regulation

(FTR), which applies to civilian employees of the Federal Government, and the Joint Travel

Regulations (JTR), which supplement the FTR for civilian employees of DoD.  The

regulations contain a list of the types of real estate transaction expenses which agencies can

reimburse, so long as the expenses are customarily paid by the seller.  41 CFR 302-11.200

(2003); JTR C14002.  



     In Monica Alexander, GSBCA 15615-RELO, 01-2 BCA   31,606, we decided

payments made to an organization similar to Home Ownership Providers were not

reimbursable expenses, according to the regulations.  We reach the same conclusion here. 

The contribution made by Ms. Walsh and the processing fee she paid to Home Ownership

Providers are not included in the list of reimbursable expenses set out in the regulations.  The

regulations do not allow agencies to reimburse employees for making charitable

contributions and for paying processing fees associated with making such contributions.  In

addition, like DoD, we do not believe Ms. Walsh has provided persuasive evidence that the

expenses of making such a contribution and paying the associated processing fee were

customarily paid by sellers in the Atlanta area.  Although Ms. Walsh's real estate agent says

it is commonplace for sellers to incur such expenses, this seems from the agent's statement

to be true only when interest rates are low and when the market favors purchasers.  In DoD's

experience, such expenses are not customarily incurred by sellers.  Even if it is common for

sellers to incur an expense during particular market conditions, this does not establish

payment of such expenses is customary.  James E. Miller, GSBCA 16123-RELO, 04-1 BCA 

 32,450 (2003).  The amounts Ms. Walsh paid to Home Ownership Providers are not

reimbursable because they are not among the expenses listed as reimbursable in the

regulations and because the expenses she incurred are not customarily paid by sellers in the

Atlanta area.  



     According to the regulations, the amount Ms. Walsh paid for owner's title insurance

is not reimbursable unless it is customary for sellers in the Atlanta area to pay for such

insurance, and the payment is a prerequisite to financing or transfer of the property, or the

cost of the insurance is inseparable from the cost of other insurance which is a prerequisite

to financing or transfer of the property.  41 CFR 302-11.200(f)(9); JTR C14002-A4a(9).  The

amount Ms. Walsh paid for owner's title insurance is not reimbursable because she has not

established the insurance she purchased meets these requirements.



     The claim is denied.









                                   ___________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge