OMB Circular A-45 Rental and Construction of Government Quarters.txt

0:'circular no. a 45 revised october 20, 1993 office of the director to the heads of executive departments and establishments',
1:'subject: rental and construction of government quarters 1. purpose 2. background 3. rescission 4. authority 5. policy 6. definitions 7.',
2:'procedures for determining rents and other charges 8. construction of federallyowned housing 9. agency regulations 10. inquiries appendix: isolation adjustment',
3:'computation 1. purpose. this circular sets forth policies and administrative guidance to be used by executive agencies in establishing and',
4:'administering rental rates and other charges for government rental quarters and related facilities located within the fifty states, the district',
5:'of columbia, and the territories and possessions of the united states. it also sets forth policies and administrative guidance to',
6:'be used by executive agencies respecting construction of federallyowned housing exclusive of military barracks for civilian and military personnel, as',
7:'well as for employees of government contractors, whether provided on a rental basis or free of charge, both in the',
8:'united states and overseas. this circular does not deal with determinations of whether construction of housing is appropriate, for which',
9:'please see office of management and budget omb circular no. a11, preparation and submission of budget estimates, section 12.5n. 2.',
10:'background. the policies and procedures of this circular have been revised pursuant to section 9 of the 1984 version of',
11:'the circular. portions of omb circular no. a18, policies on construction of family housing rescinded august 26, 1992, have been',
12:'incorporated into section 8 of this circular. 3. rescission. this rescinds omb circular no. a45, dated march 28, 1984, as',
13:'amended, and incorporates portions of rescinded omb circular no. a18, policies on construction of family housing, october 18, 1957. 4.',
14:'authority. this circular is issued by virtue of the authority vested in the president by 5 u.s.c. section 5911f, and',
15:'delegated to the director of the office of management and budget by section 9 of executive order 11609 of july',
16:'22, 1971; by 31 u.s.c. section llll; and by section 2d of executive order 8248 of september 8, 1939, and',
17:'section 1 of executive order 11541 of july 1, 1970. 5. policy. a. reliance on private housing market. it is',
18:'the policy of the federal government to rely on the private housing market to provide housing for its civilian employees.',
19:'if there is no requirement of service or protection or if there is no lack of available housing, as discussed',
20:'in omb circular no. a11, preparation and submission of budget estimates, subsection 12.5n2 and 3, agencies must not acquire additional',
21:'rental quarters. b. determination of rents. agencies of the federal government must adhere to the following in determining rental rates',
22:'for government rental quarters: 1. reasonable value to employee. rental rates and charges for government quarters and related facilities will',
23:'be based upon their reasonable value . . . to the employee . . . in the circumstances under which',
24:'the quarters and facilities are provided, occupied or made available. 5 u.s.c. section 5911. as intended by the congress, reasonable',
25:'value to the employee or other occupant is determined by the rule of equivalence; namely, that charges for rent and',
26:'related facilities should be set at levels equal to those prevailing for comparable private housing located in the same area,',
27:'when practicable; and 2. subsidies, inducements prohibited. federal employees whose pay and allowances are fixed by statute or regulation may',
28:'not receive additional pay and allowances for any service or duty unless specifically authorized by law. 5 u.s.c. section 5536.',
29:'consequently, rents and other charges may not be set so as to provide a housing subsidy, serve as an inducement',
30:'in the recruitment or retention of employees, or encourage occupancy of existing government housing. 3. fairness, consistency. when properly determined',
31:'in accordance with the provisions of this circular, rental rates will be fair as between the government and the employee',
32:'or other authorized occupant and as between employees of different agencies living in the same installation in similar housing, or',
33:'employees living in government quarters at different installations. rents should not be set so as to serve as an inducement',
34:'to recruit or retain employees. moreover, rents should reflect a consistent local pattern for all federal quarters in a given',
35:'location. c. employee responsibilities. employees have a responsibility to inform themselves of all the conditions that prevail in and near',
36:'the quarters and duty stations to which they might be assigned before accepting transfer to or employment at such duty',
37:'stations. 6. definitions. a. agency. as defined in pub. l. 88459, 78 stat. 557 1964, the term agency means 1',
38:'each executive department of the government; 2 each agency or independent establishment in the executive branch of the government; 3',
39:'each corporation owned or controlled by the government, except the tennessee valley authority; and 4 the general accounting office. b.',
40:'air conditioning. the process of cooling air either through evaporation of water evaporative cooling or refrigeration mechanical or absorption, and',
41:'the distribution of such air. c. base rental rate. the base rental rate is the rental value of the quarters,',
42:'established in accordance with the provisions of this circular, before applying any administrative adjustments or charges for related facilities. d.',
43:'comparable housing. comparable housing is housing in the private sector that is generally equivalent in size to the rental quarters,',
44:'with the same number of bedrooms, and with generally equivalent amenities and related facilities. such housing is housing available on',
45:'a landlordtenant basis, with rental rates reflecting the fair market value of the accommodations. this is distinguished fromhousing rented on',
46:'an employeremployee basis or between friends and relatives, for which other considerations may have influenced the rental rates. in addition,',
47:'other government rental housing federal, state, or local and housing provided by churches or religious societies are excluded from this',
48:'definition of comparable housing. e. construction. construction includes conversions of structures for dwelling purposes. f. established community. an established community',
49:'is ordinarily the nearest population center metropolitan statistical area or an incorporated or unincorporated city or town having a yearround',
50:'population of 1,500 or more 5,000 or more in alaska, provided that it has minimum essential medical facilities i.e., at',
51:'least one physician and one dentist available to all occupants of government quarters on a nonemergency basis and a private',
52:'rental market with housing available to the general public. population determinations will be basedupon the most recently published decennial census',
53:'of the united states. g. net area. for purposes of construction of quarters, the net area of a dwelling is',
54:'the space inside exterior or party walls, excluding only attic, garage, and basement or service and storage space in lieu',
55:'of basement. h. reasonable value. reasonable value for rental quarters is to be measured by the test of equivalence, i.e.,',
56:'what the employee would pay for comparable housing in the open market. rental rates, including charges for related facilities when',
57:'appropriate, will be based upon prevailing rates for comparable private housing located in the same general area, after taking into',
58:'account those factors that reduce or increase the value of the housing to the tenant. i. related facilities. related facilities',
59:'are equipment, supplies and services made available in connection with the occupancy of quarters including, but not limited to, household',
60:'furniture and equipment, garage space, utilities, subsistence, and trash and laundry services. j. rental quarters. except as specifically excluded herein',
61:'or by statute, the term rental quarters, includes all furnished and unfurnished quarters supplied under specific government authority to government',
62:'employees, contractors, contractor employees, and all other persons to whom housing is provided as an incidental service in support of',
63:'government programs. it includes, but is not limited to, government owned or leased dwellings, apartments, bunkhouses, dormitories, trailer pads, cabins,',
64:'guard stations and lookouts, mobile homes, house trailers, and housekeeping as well as nonhousekeeping units. the term excludes tents, containers,',
65:'housing which due to extreme deterioration is unsuitable for occupancy except in exigent circumstances, and public quarters designated for occupancy',
66:'by members of the uniformed services with loss of allowances, but it includes quarters occupied by such personnel on a',
67:'rental basis under 37 u.s.c. section 403e, 42 u.s.c. subsection 1594af and 1594b, and other authorities. k. room. a room',
68:'is a living space such as a living room, bedroom, kitchen, finished attic or basement, or other suitable living space.',
69:'a half room is a small space used for living purposes, such as a dinette, breakfast nook, dressing room, or',
70:'reception room. no count is made of bathrooms, strip or pullman kitchens, halls or foyers, alcoves, pantries, laundries, storage or',
71:'utility rooms, or unfinished attics and basements. 7. procedures for determining rents and other charges. a. charges for quarters. the',
72:'determination of reasonable value of government rental quarters will be based upon an impartial study of comparable private rental housing.',
73:'there are two methods that may be employed to determine the base rental rate. the first, an appraisal, involves direct',
74:'comparison with individual private rental housing units. the second, the regional survey, creates a series of economic models based upon',
75:'a survey of comparable private rental housing throughout the region. while both methods are accurate, agencies are encouraged to utilize',
76:'the survey method, whenever possible, due to the costs and administrative burdens associated with conducting individual appraisals. both methods are',
77:'subject to the conditions and limitations set forth below. 1. appraisals. a urban and suburban locations. if government quarters are',
78:'located in or within five miles of an established community, in an urban or suburban location, the base rental rate',
79:'may be determined by either a staff or contract appraiser, applying recognized real estate valuation principles. none of the administrative',
80:'adjustments provided in subsection 7c will be made for isolation, site amenities, space devoted to official use, or excessive heating',
81:'or cooling costs when an appraisal is made in an urban or suburban location. these factors, if appropriate, will already',
82:'have been considered by the appraiser in the appraisal process. adjustments, suitably documented, may be made by agencies when an',
83:'appraiser has not considered or incorrectly calculated the effect of these factors. b rural areas. when the appraisal method is',
84:'used to determine the reasonable value of quarters that are not located in, or within five miles of, an established',
85:'community, it will be subject to thefollowing limitation: to ensure a uniform approach to valuation when conducting an appraisal in',
86:'such areas, the staff or contract appraiser will be limited to comparing the government rental quarters with housing in the',
87:'nearest established community. if the nearest established community does not contain sufficient comparables or is unduly affected by severe economic',
88:'conditions, the appraiser may select comparable rental units from the next closest established community that does have sufficient comparables or',
89:'does not have a severely deflated or inflated housing market. such comparison will be limited to adjustments for the physical',
90:'differences in the housing. the appraiser in such circumstances will not make adjustments for location isolation or for the absence',
91:'of site amenities. these adjustments, if applicable, will be made administratively in the same manner as authorized for regional surveys',
92:'in subsections 7c1 and 7c2. 2. regional surveys. regional surveys may be used in all locations where government quarters are',
93:'located. if the regional survey method is used, the base rental rates will be set by means of a series',
94:'of economic models that utilize typical rental rates for comparable private rental housing in the established communities nearest to the',
95:'sites in which the government quarters are located. if the nearest established community does not contain sufficient comparables or is',
96:'unduly affected by severe economic conditions, the survey may utilize comparable rental units from the next closest established community that',
97:'does have sufficient comparables or does not have a severely deflated or inflated housing market. the actual analysis of rental',
98:'data for the establishment of base rental rates may be accomplished using appropriate statistical techniques, such as stepwise multiple regression.',
99:'to avoid duplication and inconsistent rates, all agencies with quarters in a given location should coordinate their survey plans and',
100:'conduct a single survey applicable to all. the area selected for survey should be large enough to permit an adequate',
101:'sampling of comparable rental properties in several established communities and may encompass one or more states. ideally, the survey would',
102:'establish the rental rates for a large number of government quarters and thereby reduce the cost per unit surveyed. the',
103:'methods of analysis must be capable of recognizing both the physical characteristics and the differences in economic conditions, and reflecting',
104:'such differences in the base rental rates. private rental housing samples reflecting extremely high or low rental rates should be',
105:'excluded from the data base subjected to final analysis. appropriate adjustments may be made to the base rental rates established',
106:'for quarters in accordance with the provisions of subsection 7c. 3. agency review. regardless of the method used, results of',
107:'surveys and appraisals will be reviewed by the agency prior to implementation to assure that they are fair and reasonable,',
108:'and that they were developed in accordance with the provisions of this circular. in those communities where the rental rates',
109:'are extremely high or low, the rental housing market should be reviewed periodically between surveys to determine whether changes in',
110:'the private rental housing market warrant revision of the base rental rates for the quarters located near those communities. b.',
111:'charges for related facilities and costs. 1. utilities. it is government policy to minimize energy consumption. consumption has been found',
112:'to decrease when occupants of government rental quarters are required to pay for the actual cost of utilities used such',
113:'as electricity, oil, natural gas, propane, coal, telephone, cable television, water and sewer. utilities should be furnished by a private',
114:'company and billed directly to the occupant, wherever possible. when government furnished utilities are provided, they should be metered or',
115:'measured, where practicable. the rate for utilities furnished by the government will be the same as the residential rate for',
116:'these utilities in the nearest established community when the appraisal method is used or survey area when the survey method',
117:'is used used in determining the base rental rate. the consumed amount of government furnished utilities that are individually metered',
118:'or measured will be determined by actual readings. when government furnished utilities are not individually metered or measured, consumption will',
119:'be determined on the basis of an analysis of the average amounts of utilities used in comparable private rental housing',
120:'in the nearest established community when the appraisal method is used or survey area when the survey method is used.',
121:'such estimates are usually available from local utility companies. alternatively, consumption may be determined using engineering tables such as design',
122:'heat loss tables from the american society of heating and refrigeration engineers and meteorological records. normally, utility charges will be',
123:'clearly shown and separated from rent charges. utility charges may be combined, however, in one charge for nonhousekeeping rooms. where',
124:'it is impractical to shut off heat and electricity to unused rooms and the employee is otherwise entitled to the',
125:'reduction in section 7c5 for quarters of excessive size, a proportionate reduction in the utility charges based on the area',
126:'of the unused quarters may be made. 2. furnishings. if there is an inadequate market of comparably furnished housing for',
127:'purposes of comparison with furnished government quarters, the rents on otherwise comparable unfurnished private units may be used as the',
128:'base and adjusted by a reasonable charge for furnishings. this adjustment should be based on actual replacement costs allocated over',
129:'the useful life of the furnishings. 3. other services. charges for other services provided by the government including, but not',
130:'limited to, laundry, trash and garbage removal, lawn care and snow removal will be based upon prevailing rates for such',
131:'services in the nearest established community when the appraisal method is used or survey area when the survey method is',
132:'used. 4. adjustments to obtain base rental rate. where the rental charge for comparable housing includes the values of utilities,',
133:'furnishings, or other services, downward adjustments to obtain the base rental rate will be based on the prevailing rates for',
134:'such utilities, furnishings, and other services in the nearest established community when the appraisal method is used or the survey',
135:'area when the survey method is used. the value of furnishings and other services may be based upon national average',
136:'costs where such data are available. 5. excessive heating or cooling costs. a deduction from the rental rate is permissible',
137:'if quarters require an unreasonable additional expense to the employee for heating or cooling because of poor design, the lack',
138:'of allweather construction, or other related factors. the amount of the deduction will be determined as follows: if the rental',
139:'quarters in question require expenses to the occupant in excess of 25 percent for the heating or cooling season over',
140:'the average of heating or cooling for comparable housing in the same area and climate zone as determined by a',
141:'suitable survey or appraisal, the head of agency may determine that the excessive costs i.e., those in excess of 25',
142:'percent over the average may be deducted from the annual rental rates. c. administrative adjustments. additional adjustments in the form',
143:'of deductions from, the base rental rate are appropriate in the specific situations described below. the total amount deducted for',
144:'all reasons must not be excessive, resulting in a rental rate to the occupant that is less than the reasonable',
145:'value of the quarters, since this would constitute a supplementation of salary in contravention of law. the rental rate, after',
146:'all adjustments, must not be less than 50 percent of the base rental rate, unless an adjustment for isolation has',
147:'been made. in such instances, the rental rate may be set at not less than 40 percent of the base',
148:'rental rate. 1. isolated locations. in some cases, the government supplies quarters in locations where minimal community services are available',
149:'but only at some distance from the quarters. in addition, travel conditions or mode of transportation may serve further to',
150:'isolate some employees from minimal community services. in such situations, the agency shall grant a reasonable adjustment to ameliorate the',
151:'direct economic effects of the isolation, utilizing the procedure described below and in the appendix. the nearest established community will',
152:'be used as the community for calculating the deduction, even though that community may not serve as the location of',
153:'the comparable private rental housing used in establishing the base rental rates. the mileage used in computing the adjustment will',
154:'be the shortest route usually traveled from the rental quarters to the center of the nearest established community. if that',
155:'route is closed seasonally, a weighted average adjustment will be used for the entire year, based upon the number of',
156:'months each route would ordinarily be used. the adjustment is designed to recognize different categories of highways and modes of',
157:'transportation. because of the range of possible travel conditions and modes of transportation, point values have been assigned to each',
158:'category of transportation. these point values represent differences in time, cost, or both, associated with each mile of each category',
159:'of transportation from the quarters to the nearest established community. the point values are multiplied by the number of oneway',
160:'miles from the quarters to the nearest established community, to produce oneway points. when travel from the quarters to the',
161:'nearest established community involves more than one category of transportation, the oneway miles are distributed accordingly. when the category of',
162:'travel is category 4 or 5 on the isolation adjustment computation form in the appendix, 29 and 27 points are',
163:'added, respectively, to the product of columns a and b. the oneway points in each category are then added to',
164:'produce total oneway points, which must exceed 30, or there is no adjustment. finally, the total adjusted points for all',
165:'modes of transport are multiplied by an isolation adjustment factor based on the automobile mileage allowance determined by the general',
166:'services administration to produce the monthly dollar adjustment. 2. site amenities. living conditions at the locations of some government housing',
167:'are not always the same as those found in or immediately adjacent to the survey or appraisal communities. in such',
168:'communities, the amenities listed below are generally present and their contributory value included in the base rent. the lack of',
169:'availability of any of these items at the quarters location represents a generally less desirable condition that should be reflected',
170:'as a negative percentage adjustment to the base rental rate, as shown below. a reliability and adequacy of water supply.',
171:'the system should provide potable water free of significant discoloration or odor at adequate pressure at usual outlets. no more',
172:'than a 3 percent adjustment can be made for this category. b reliability and adequacy of electric service. service must',
173:'equal or exceed a 100ampere power system capable of providing 24hour service under normal conditions. occasional temporary outages are considered',
174:'normal. if an adequate backup generator is available, the amenity will be rated as present regardless of the reliability of',
175:'the primary power source. no more than a 3 percent adjustment can be made for this category. c reliability and',
176:'adequacy of fuel for heating, cooling and cooking. there should be sufficient fuel storage capacity to meet prevailing weather conditions',
177:'and cooking needs. where electricity is used to heat, cool, or cook, this adjustment is to be made only when',
178:'the deduction in b, above, applies. no more than a 3 percent adjustment can be made for this category. d',
179:'reliability and adequacy of police protection. law enforcement personnel, including government employees with law enforcement authority, should be available on',
180:'a 24hour basis. availability is defined as the ability to respond to emergencies as quickly as any officer in the',
181:'nearest established community. parttime officers are not necessarily unable to meet this test of availability. gaps in availability due to',
182:'temporary illness or injury, use of annual leave, temporary duties, training, or other short absences, do not render law enforcement',
183:'personnel unavailable at the government quarters. no more than a 3 percent adjustment can be made for this category. e',
184:'fire insurance availability or reliability and adequacy of fire protection. fire insurance should be available with the premium charge based',
185:'upon a rating equal to the rating available to comparable housing located in or adjacent to the nearest established community,',
186:'or, in the alternative, adequate equipment, adequate water or fire retardant chemical supply, and trained personnel should be available on',
187:'a 24hour basis to meet foreseeable emergencies. if either element is present, i.e., adequate insurance or an adequate fire fighting',
188:'capability, no adjustment may be made. no more than a 3 percent adjustment can be made for this category. f',
189:'reliability and adequacy of sanitation service. an adequately functioning sewage disposal system and a solid waste disposal system, whether community',
190:'or individually provided, should be available. individual sewage disposal systems septic, cesspool, or other will be considered adequate even though',
191:'they may require periodic maintenance, as long as they are usable during periods of occupancy. no more than a 3',
192:'percent adjustment can be made for this category. g reliability and adequacy of telephone service. twentyfourhour accessibility to commercial telephone',
193:'facilities should be available. a deduction of 3 percent is authorized if telephone service is unavailable both within the employees',
194:'quarters and within 100 yards of the quarters. a deduction of 2 percent is authorized if there is no telephone',
195:'service within the employees quarters, but telephone service either private or party line is available within 100 yards of the',
196:'quarters. a deduction of 1 percent is authorized if telephone service is available in the employees quarters, but is not',
197:'private line service and/or is not accessible on a 24 hour per day basis. h noise and odors. there should',
198:'be an absence of significant, frequent disturbing noises or offensive odors. no more than a 3 percent adjustment can be',
199:'made for this category. i miscellaneous improvements. one or more of the following improvements should be present: paved roads, sidewalks,',
200:'or street lights. no more than a 1 percent adjustment can be made for this category. 3. impositions on privacy',
201:'or living space. administrative adjustments in the base rental rate are allowed if the living space or privacy of the',
202:'occupant is restricted. in each such case, the agency will make a special determination of the specific conditions making certain',
203:'that the conditions have not already been reflected in establishing the base rental rate. a loss of privacy. if occupants',
204:'are subject to loss of privacy during nonduty hours by virtue of repeated public visits i.e., occurring several times daily',
205:'or inhibited from enjoying the full range of activities normally associated with rental occupancies such as where restrictions are imposed',
206:'on activities in quarters in or near national cemeteries or where quarters are within view of prison inmates, a deduction',
207:'not to exceed 10 percent of the base rental rate is allowable. proportional deductions will be made in situations of',
208:'less frequency or seriousness in their impact upon privacy or usage or to reflect seasonal variations. b space devoted to',
209:'official use. when the agency determines that the use of a portion of the quarters is required for official business',
210:'i.e., office, storage, etc., loss of living space should be reflected by an adjustment to the base rental rate, based',
211:'on the square footage occupied. 4. transient and temporary use of quarters for other than temporary duty assignments and uniformed',
212:'service members on permanent change of station. a transient quarters. charges for quarters occupied on a transient basis, that is,',
213:'normally for 90 days or less, will be assessed at rates equivalent to private transient housing of comparable type and',
214:'quality. these rates may be set on a nightly or weekly basis, or both. if comparable private transient housing does',
215:'not exist in the area, the rental may be established by determining the reasonable monthly rental rate for the quarters',
216:'through application of the other provisions of this circular, and adding to the monthly rate an additional charge of at',
217:'least 20 percent to cover necessary additional administrative and service charges. the total will be divided by 30 days for',
218:'the nightly rate or 41/3 weeks for the weekly rate. b temporary quarters. this adjustment will apply when an employee',
219:'occupies quarters for the convenience of the government on a temporary basis normally more than 60 days and does not',
220:'receive per diem. under these circumstances, if the employee maintains two households, the agency is authorized to adjust the rental',
221:'rate on the quarters unit so that the combined rent or rent and mortgage payment paid during the period of',
222:'occupancy is not excessively burdensome. the adjustment may not exceed 20 percent of the base rental rate of the quarters',
223:'unit, unless the agency determines that the circumstances fully justify a greater deduction. 5. quarters of excessive or inadequate size',
224:'or quality. if there is a lack of housing of appropriate size or quality, an employee may be provided government',
225:'quarters of a size or quality either excessive or inadequate to that which the prudent employee would have selected in',
226:'the private community. in these exceptional circumstances, the base rental rate will be reduced by up to 10 percent in',
227:'direct proportion to the degree of the excess or deficiency. this reduction will not continue beyond one month after the',
228:'availability of either appropriate government rental quarters or private rental housing, except when the agency determines that the reassignment of',
229:'quarters will not benefit the government. 6. changes in administrative adjustments. for specific quarter rental rates, agencies should implement new',
230:'administrative adjustments to reflect changes in any of the factors contained in subsection 7c as soon as possible after learning',
231:'of those changes, normally within 30 days. d. cyclical and annual adjustments; newly acquired quarters. charges for rental quarters and',
232:'related facilities shall be adjusted periodically in accordance with the following: a when the private rental market survey or appraisal',
233:'is made during the months of september through february, no cpi adjustment will be made on march 1 of the',
234:'following year, but will be deferred until the start of the first pay period that begins after march 1 of',
235:'the following year. rental adjustments based on the survey or appraisal will be put into effect in the usual manner.',
236:'example: if the survey month is october 1989, no cpi adjustment will be made in march 1990, but will be',
237:'deferred until march 1991. such cpi adjustments will be based on the changes in the cpi from the actual date',
238:'of the survey through september 1990. b when the private rental market survey or appraisal is made during the months',
239:'of march through august, no cpi adjustments will be made in march of that year, but will be deferred until',
240:'the start of the first pay period that begins after march 1 of the following year. rental adjustments based on',
241:'the survey will be put into effect in the usual manner. example: if the survey month is april 1989, no',
242:'cpi adjustment will be made in march 1989, but will be deferred until march 1, 1990. such cpi adjustment will',
243:'be based on the changes in the cpi from the actual date of the survey through september 1989. 1. adjustments',
244:'based on surveys or appraisal. base rental rates established for rental quarters shall be affirmed or adjusted by a survey',
245:'or appraisal of the private rental market, as follows: a at least every fifth year or when the base rental',
246:'rate for the quarters has been increased by 40 percent through application of the rent series of the u.s. city',
247:'average revised consumer price index for urban wage earners and clerical workers, rent series, whichever occurs first, or b any',
248:'year when changes in the private rental market in the nearby established community indicate a need to adjust base rental',
249:'rates on the basis of a survey or appraisal of the rental market. 2. adjustments based on changes in the',
250:'cpi. annual adjustments in the base rental rate shall be made by applying the percent change in the cpi rent',
251:'series from the month and year that the last regional survey or reappraisal of the private rental market was conducted.',
252:'the new rates shall be effective at the beginning of the first pay period that starts on or after march',
253:'1 of each year. though effective in march, the adjustment shall be based on the preceding september cpi data to',
254:'provide the required lead time. 3. annual adjustments for isolation. the isolation adjustment factor currently 1.9 will be recomputed each',
255:'year to reflect the government mileage allowance for automobiles published by the general services administration as of the last day',
256:'of september each year. the new isolation adjustment factor will be used to compute the monthly isolation adjustment applicable to',
257:'rents being charged starting with the first full pay period in march of each year. this is done to coincide',
258:'with the implementation of rental rates adjusted by the cpi rent series each year, as required in section 7d2 of',
259:'this circular. 4. annual adjustments of utilities, furnishings, and services. to ensure that rates for government furnished utilities, furnishings, and',
260:'services keep pace with current costs, they shall be adjusted annually. where appraisals are used, the rate will be the',
261:'average residential rate for the utility, furnishings, and services in the nearest established community as of the last day of',
262:'september. where surveys are used, utility costs will be adjusted by amounts coinciding with the changes in the appropriate components',
263:'of the september consumer price index for urban wage earners and clerical workers: nonfood expenditure categories, seasonally adjusted, u.s. city',
264:'average. the adjusted value of furnishings and other services may be based upon local or national average costs. the new',
265:'changes will be effective at the beginning of the first pay period that starts on or after march 1 of',
266:'each year. 5. periodic/cycle year adjustment. the cycle year and survey or appraisal month within the cycle year occurs at',
267:'different times for different employee quarters within an agency. therefore, since annual cpi adjustments effective in march are based on',
268:'the preceding september cpi data, cycle year adjustments for any particular quarters or facility shall be made as follows: a',
269:'when the initial survey or appraisal of the private rental market is made during the months of march through august,',
270:'the initial cpi adjustment will be made at the start of the first pay period that begins after march 1',
271:'of the following year. b when the initial survey or appraisal of the private rental market is made during the',
272:'months of september through february, the initial cpi adjustment will be made in accordance with the procedure set forth in',
273:'subparagraph 5 a, above.  newly acquired service. rates for newl acquired quarters shall be the same as those prevailing',
274:'for similar government rental quarters in the area. if there are no established rates, an initial survey or appraisal to',
275:'establish valid and realistic comparability with private rental housing shall be made upon acceptance of newly acquired quarters, and the',
276:'corresponding rental rates shall be made effective upon occupancy. the initial cpi adjustment in rental rates shall be made as',
277:'follows:  incremental adjustments. if new appraisals, surveys or cpi adjustments result in increases in rental rates of 25 percent',
278:'or more above the current rental rate, such increases may be imposed incrementally over a period not to exceed one',
279:'year, on the condition that they be applied in equal increments on at least a quarterly basis. e. qualifications and',
280:'extensions. the principle of comparability with private rental practice may be modified under the conditions described below: 1 extension of',
281:'comparability. for lack of available alternative quarters, employees must sometimes occupy space for use as quarters that is generally unsuitable',
282:'for that purpose. such space may be unsuitable, for example, because it was originally built for seasonal occupancy only, or',
283:'because it was not originally built for use as quarters. in other instances, quarters may be suitable only for particular',
284:'types of occupancy, such as rooming houses, bunkhouses, bachelor quarters, residence hoteltype structures, barrackstype structures, or guard stations and lookouts.',
285:'in all such cases, if no comparable rental data can be obtained or professional appraisals are not made, rental rates',
286:'will be determined by the square footage occupied, at a rate equivalent to onehalf the base rental rate per square',
287:'foot charged for the nearest adequate rental quarters of the same or any other federal agency. this rate will apply',
288:'only to the shelter rental, with additions thereto for all other related facilities at rates comparable to those in the',
289:'area. rental and other charges will be based upon desired capacity and, when so determined, will remain in effect for',
290:'each occupant without regard to fluctuations in the number of occupants from time to time either above or below designed',
291:'capacity. in buildings where space is assigned for occupancy of several persons or families, commonuse space in the building will',
292:'be distributed to all occupants in proportion to the space assigned for the sole occupancy of each, to detremine the',
293:'number of square feet chargeable to each. commonuse space includes, for example, washrooms, stairs, hallways, and storage, lobby, and lounge',
294:'areas. 2 quarters for uniformed service personnel. rental rates and other charges incident to the occupancy of quarters on a',
295:'rental basis by members of the uniformed services will be established in accordance with the provisions of this circular. those',
296:'quarters that have been designated inadequate public quarters or substandard pursuant to law and regulations of the surgeon general of',
297:'the public health service and the secretaries of defense and transportation require special treatment in one respect. the total of',
298:'the rental rate, plus charges for furniture and utilities except telephone, will be adjusted, if required, so as not to',
299:'exceed 75 percent of the members basic allowance for quarters. the rental rate, as used in the preceding sentence, is',
300:'the rate obtained after the additions or deductions required or authorized elsewhere in this circular have been applied to the',
301:'base rental rate, including that requirement contained in subsection 7c, that the rental rate, after adjustments, will not be less',
302:'than 50 percent of the base rental rate. 3 instances of hardship. in certain hardship cases where continued occupancy of',
303:'public quarters by former uniformed service members and dependents or by dependents of deceased service members is permitted, an amount',
304:'equivalent to the members full basic allowance for quarters and other housing allowances i.e., variable housing allowance, etc. may be',
305:'charged for such periods of time as may be properly allowed in each particular case. occupancy of quarters in such',
306:'instances will normally not exceed 60 days. similarly, former federal employees or other occupants and dependents, or dependents of deceased',
307:'federal employees or other occupants, may continue to occupy government rental quarters for a period normally not to exceed 60',
308:'days. such occupants will continue to pay the established rental rate for those quarters. 4 alternative requirements. the provisions of',
309:'this circular will not apply in the following instances: a when employees attend training programs at federal or private facilities',
310:'and the cost of housing is factored into the program cost to the agency or through other means, the valuation',
311:'rules of this circular need not be applied, so long as the per diem rate or actual per diem expense',
312:'rates paid the employee is set to reflect the fact that the housing is provided at no cost to the',
313:'employee. in other than training situations when employees are receiving per diem or actual per diem expense rates and occupying',
314:'government housing, the per diem paid the employees is set to reflect the fact that the housing is provided at',
315:'no cost to the employee. b when employees are receiving a remote worksite commuting allowance, in accordance with 5 u.s.c.',
316:'5942, and housing is provided at no cost to the employees, the allowance paid will consist of factors other than',
317:'the housing cost portion of the allowance. 5 exceptions. efforts have been made in the preparation of this circular to',
318:'allow for unusual circumstances that may exist with respect to rental quarters. exceptions to the requirements included in this circular',
319:'will be permitted, therefore, only upon written request and in those very unusual circumstances when it is demonstrated to the',
320:'office of management and budget that the application of the provisions of this circular will not result in a rental',
321:'rate equivalent to the reasonable value of the quarters to the occupant. if an exception is granted by the director',
322:'of the office of management and budget, the agency concerned will be notified in writing. 8. construction of federallyfunded housing.',
323:'unless otherwise provided by law e.g., 10 u.s.c. 2826, the following provides guidance to agencies on determining housing construction needs',
324:'and construction standards: a. determination of number of families to be housed and pattern of housing required. the agency should',
325:'determine the number of families to be housed under the particular circumstances and the probable pattern of family size and',
326:'composition by a statistical study of families and numbers of dependents within the service or agency adjusted for agency experience,',
327:'changes in staffing patterns, and national trends in family size. most frequently, the agency will be adding a limited number',
328:'of houses at a station where some housing already exists. under these circumstances, the agency should first make certain that',
329:'existing housing owned, leased, or otherwise available to the agency is properly assigned. after ascertaining that there is a proper',
330:'utilization of existing housing, the agency should determine what further construction, if any, is required to establish a proper pattern',
331:'of housing at the station. the determination must discount temporary and unusual peak numbers of employees at the station, but',
332:'not necessarily recurring requirements for seasonal employees who must be housed. three general situations with basically different housing requirements are',
333:'likely to occur: 1. small station. where only one to five government houses are to be supplied at a station,',
334:'it is likely that no stable family pattern can be predicted on a statistical basis. the most reasonable method of',
335:'meeting the housing requirement under these circumstances is to supply three threebedroom houses, one two bedroom house, and one fourbedroom',
336:'house. 2. medium station. where five to 25 government houses are to be supplied, the group is probably still too',
337:'small to expect a stable family pattern, but the group is too large to permit building all houses the same',
338:'size. under these circumstances, the agency should seek to develop a flexible housing supply, if possible. however, in view of',
339:'family size trends, it would be best to construct mostly threebedroom houses, with a smaller number of twobedroom houses, and',
340:'a few fourbedroom houses. 3. large station. where more than 25 government houses are to be supplied, it is reasonable',
341:'to expect that a fairly stable family pattern exists. under these circumstances, the agency should determine what this pattern is,',
342:'as described above, and, utilizing table 1, below, plan to provide the appropriate number and distribution of rooms. at military',
343:'installations the probable number of personnel entitled to family housing quarters by grade, rank, and position will determine the family',
344:'housing requirements. in the table of net floor areas given below, table 1, the normal construction limits will govern the',
345:'maximum areas of houses to be constructed, except that agencies may construct up to the statutory or maximum limitation for',
346:'housing for commanding officers and in unusual circumstances. the numbers of rooms will be governed by table 1, below, showing',
347:'the relation between number of bedrooms and net square footage areas. omb will consider exceptions under special circumstances only when',
348:'fully justified. number of rooms persons rooms to baths baths in household be provided bedrooms onestory twostory 23 4 2',
349:'1 1 or l&1/2 4 5, 5&1/2 or 6 3 1 or 1&1/2 2 or 2&1/2 5 5&1/2, 6 or',
350:'7 3 or 4 l&1/2 or 2 2 or 2&1/2 6 7 4 2 2 or 2&1/2 table 1 b.',
351:'types of family dwellings to be constructed. family dwellings similar in type to acceptable dwellings normally built in the local',
352:'area will be constructed whenever practicable, with full advantage being taken of the economy of construction and maintenance of multiplefamily',
353:'dwellingsapartment, row, or duplex. the construction of singlefamily dwellings may receive special consideration in locations where remoteness of the station',
354:'from other community facilities makes it undesirable from the standpoint of safety, employee morale, recruitment and retention of personnel, and',
355:'satisfactory living conditions under adverse circumstances to house employees in multiplefamily dwellings. c. prospective rental levels and their effect on',
356:'construction. the type of dwellings to be constructed will also be governed by the amount of rent that the occupants',
357:'can afford to pay public quarters excepted as determined in accordance with this circular. hence, care must be taken to',
358:'ensure that dwellings would rent at rates within the reach of employees to be housed. in cases where there are',
359:'large numbers of high salaried personnel who would normally rent larger houses than are usually provided on the station and',
360:'where the ability to hold such employees in government service may be dependent upon the housing available, agencies may construct',
361:'a limited number of larger houses upon securing specific advance approval from omb. d. determination of the number of rooms',
362:'to be provided in family housing. the number of rooms to be provided must be based on the size and',
363:'normal composition of families to be housed. consideration should be given to the trends in family size. it is permissible',
364:'to provide larger houses for civilian directors or military commanders of large stations, for military officers of general or flag',
365:'rank, chiefs of foreign service missions, foreign service officers with the rank of career minister, and to a limited extent,',
366:'for higher salaried personnel who can afford to and will pay commercially comparable rents for superior quarters. table 2, below,',
367:'indicates the number of rooms and bedrooms that should normally be planned for families of varying sizes. again, omb will',
368:'consider justified exceptions depending upon the remoteness of the small or medium station and the extent to which the family',
369:'is isolated from normal community facilities. maximum and minimum net floor area per dwelling unit 4 or more 1 bedroom',
370:'1/ 2 bedrooms 3 bedrooms bedrooms minimum 2/ 550 sq. ft. 750 3/ 960 3/ 1,190 3/ normal 4/ 730',
371:'1,000 1,415 1,670 maximum 810 1,250 5/ 1,670 5/ 2,100 6/ table 2 1/ for multifamily or apartment construction only.',
372:'no onebedroom houses should be built. 2/ any construction proposed to provide less square footage than these minimums must be',
373:'specifically approved by omb. 3/ applies to flats or multifamily construction. not recommended for single or duplex houses. 4/ budget',
374:'estimates will not be considered for construction beyond these normal limits unless accompanied by a specific determination of the agency',
375:'that up to the specified maximums are necessary. 5/ applies to single family houses without basements for higher salaried personnel',
376:'only. 6/ applies to singlefamily houses without basements for higher salaried personnel only. larger areas may be considered by omb',
377:'on special justification for heads of large stations, flag officers, or in unusual circumstances only. e. net area of houses.',
378:'the net areas shown below in table 2 may be increased 10 percent a if outside the continental united states,',
379:'b for commanding officers or civilian heads of large installations, or c under conditions of extreme isolation where the family',
380:'may be confined to the home for long periods due to weather conditions or lack of community facilities within reasonable',
381:'distance. the minimum floor areas below represent the limit below which it is not deemed advisable to go when building',
382:'permanent housing; such minimum areas should be used only for multiplefamily dwellings. maximum floor areas represent the limit above which',
383:'federal funds need not be invested to provide housing reasonably commensurate with income for all but the highest income groups.',
384:'although agencies cannot always determine the grades of the occupants, there is a normal range of grades for the personnel',
385:'who are required or permitted to occupy government housing on the station. the minimum size for the number of bedrooms',
386:'needed should be provided for those in the lowest grades in order that the housing may not be more expensive',
387:'than the occupants could be expected to rent if they were securing their own quarters commercially. larger quarters may be',
388:'provided for progressively higher grades up to the maximums for personnel at and above general schedule grade 14 and ranks',
389:'equivalent to the military rank of colonel. f. special features. special features may be provided to meet special work or',
390:'isolation conditions. these include: extra rooms with outside doors for the employee whose home is also his or her work',
391:'headquarters; special access to bath or shower rooms without going through the house where the employees work is particularly dirty',
392:'and shower facilities are not provided in work buildings; fireplaces in remote areas where wood is readily available and the',
393:'fireplaces would serve a practical purpose; extra storage space and facilities where distances to market are such as to necessitate',
394:'purchasing food and other supplies in quantity; and some space for recreation purposes where families may be confined to the',
395:'house for long periods of time during bad weather conditions. air conditioning may be installed in living quarters only in',
396:'locations where during the six warmest months of the year the dry bulb temperature is 80 f or higher for',
397:'over 650 hours or the wet bulb temperature is 67 f or higher for over 800 hours. air conditioning otherwise',
398:'permitted by the standards described above, should employ evaporative cooling when engineering studies indicate it is feasible and more economical',
399:'than refrigeration systems to install and operate. it is suggested that departments and agencies initiate a priority system for installing',
400:'air conditioning in existing personnel living quarters to ensure that the air conditioning of quarters in the warmest areas under',
401:'these criteria is completed first. g. design standards. agencies should consult the uniform building code or the codes developed by',
402:'the council of american building officials for guidance in planning construction of permanent family housing that is liveable, durable, safe,',
403:'sanitary, and not impose an unreasonable and uneconomical burden upon the government. h. compliance with design standards. agencies shall plan',
404:'new construction of family housing in accordance with this circular and nationally recognized design standards, such as those set forth',
405:'in the uniform building code or the codes developed by the council of american building officials. budget requests and apportionment',
406:'requests for this purpose shall be based upon compliance with the approved design standards and the provisions of this circular.',
407:'the squarefoot construction cost should not exceed that generally recognized as prevailing in the area for nonfederal dwellings of similar',
408:'size and type of occupancy. exceptions may be made by those agencies constructing housing outside the continental united states where',
409:'climatic conditions or local building codes and restrictions prevent compliance. any other exceptions should be plainly set forth in the',
410:'budget or apportionment request. i. budget and apportionment requests. consult omb circular no. a11, preparation and submission of budget estimates,',
411:'subsection 12.5n, for guidance respecting budget and apportionment requests. 9. agency regulations. the following guidelines must also be observed in',
412:'establishing charges for rental quarters and related facilities and in developing agency regulations and procedures implementing this circular: a. conflicts',
413:'of interest. to avoid potential conflicts of interest, agencies will not assign employee occupants of quarters or their subordinates to',
414:'perform appraisals or serve as members of regional survey teams used to recommend rents and other charges. b. consistent local',
415:'patterns; interagency committees. where several different federal agencies provide rental quarters in the same area, those agencies will take necessary',
416:'steps to ensure a consistent local pattern in rents and utility rates. in particular, such agencies are urged to establish',
417:'interagency committees to coordinate and oversee the establishment of consistent and uniform rental rates. c. agency records regarding recommendations and',
418:'adjustments. a full record of the findings and recommendations of the appraiser or survey team, as well as documentation to',
419:'justify administrative adjustments, will be kept by the agency concerned. d. agency central records and supervision. sufficient information will be',
420:'maintained centrally by the agency to allow agency management to be informed of, and to monitor, the status of administration',
421:'of the requirements of this circular. e. reconsideration, procedures for. agencies will provide a procedure for dealing with requests for',
422:'reconsideration of rental determinations and other charges. f. leave status, charges during. employees on leave will continue to be charged',
423:'for quarters and related facilities, unless the quarters are vacated and made available for reassignment. g. landlordtenant relationship. to aid',
424:'all agency administrative officials and employees in understanding how the circular is to be applied, agencies will make clear that',
425:'they assume the customary responsibilities of the landlord and that those who occupy rental quarters assume the customary responsibilities of',
426:'tenants. h. required occupancy. agency regulations will specify the conditions under which the agency head, or his or her designee,',
427:'will require occupancy of government rental quarters, in accordance with the limitations cited in 5 u.s.c. section 5911e, which provides',
428:'that employee or member occupancy of rental quarters may not be required unless the agency head determines that necessary service',
429:'cannot be rendered, or that property of the government cannot adequately be protected. i. safe and sanitary quarters. agency heads',
430:'will ensure that government rental quarters are safe and sanitary. although adjustments to the basic rental rate are permitted for',
431:'such circumstances as excessive heating and cooling costs, poor condition, and lack of potable water, such conditions should not be',
432:'permitted to continue any longer than absolutely necessary. j. agency housing officers. each federal agency that provides rental quarters shall',
433:'appoint a principal housing officer with responsibility to supervise the agencys implementation of the policies of this circular. 10. inquiries.',
434:'for information concerning this circular, contact the office of management and budget, office of federal procurement policy, 725 17th street,',
435:'nw, washington, dc 20503, telephone 2023956803. leon e. panetta director appendix isolation adjustment computation the monthly adjustment for isolation, as',
436:'described in section 7c1, is computed, as follows: step 1. determine the oneway distance in miles from the quarters to',
437:'the nearest established community for each affected category of transportation listed in figure 1. enter mileages in the appropriate blocks',
438:'under column b. step 2. multiply mileage figures entered in column b by point values listed in column a for',
439:'each affected category of transportation to produce oneway points for each category. add 29 points to the category 4 subtotal',
440:'and 27 points to the category 5 subtotal to reflect relative differences in cost or time by use of these',
441:'modes of travel. step 3. add all categories of oneway points in column c to produce total oneway points. the',
442:'total must exceed 30 points or there is no adjustment for isolation. figure 1 column a column b column c',
443:'category point oneway oneway of travel value miles points 1 paved road or rail 1.0 x = 2 unpaved but',
444:'improved road 1.5 x = 3 unimproved road 2.0 x = 4 water, snowmobile, pack 2.5 x = + 29',
445:'= animal, foot or other special purpose conveyance 5 air 4.0 x = + 27 = total oneway points step',
446:'4. calculate the isolation adjustment factor iaf using the following formula: multiply 2 to reflect roundtrip points by 4 to',
447:'reflect number of trips per month and then multiply by $x.xx gsas current automobile mileage allowance. for example, the gsa',
448:'mileage allowance, as of the date of this circular, is $0.25 per mile, resulting in a iaf of 2.0 rounded',
449:'to the nearest tenth. isolation adjustment factor = 2.0 step 5. multiply total adjusted points by the isolation adjustment factor',
450:'to produce the monthly adjustment for isolation rounded to the nearest whole dollar. monthly adjustment = return to top',