WASHINGTON. D.C. 20410-3000


MAR 3 2003








MEMORANDUM FOR: Carolyn Federoff, President, AFGE, National Council of HUD

Locals 222


FROM: Priscilla A. Lewis, Chief, Labor Relations Branch, ARHLL


SUBJECT: Relocation Allowance Policy


This amends the notification dated February 26, 2003, provided to you on the subject

relocation policy. Our notification of February 26, 2003 inadvertently contained the wrong

attachment. Please submit any preliminary proposals related to the impact of the implementation

of this policy within 10 calendar days after receipt of this amended notification.


If you have any questions or concerns, please contact Michael Hubbard, of my staff, at

(202) 708-1492.


cc:  Edward Eitches, Chairperson, Headquarters

Perry Casper, Portland, Oregon

Ann Taylor, Richmond, Virginia

Marinella Murillo, San Antonio, Texas

Lisa Lowery, Knoxville, Tennessee

John Noyes, Minneapolis, Minnesota











WASHINGTON, DC 20410-0050

1. Purpose

a. This Notice establishes Departmental policy for authorizing and approving relocation allowances for new appointees, HUD employees, and Federal employees who transfer from other agencies.

b. This Notice must be used in conjunction with the Federal Travel Regulation (FTR) to determine what travel and transportation expenses will be paid when relocation allowances are authorized.

2. Scope. Generally, the Department has the discretion to authorize or not authorize relocation allowances on a case-by-case basis. This Notice covers the predominant relocation situations, which include:

a. New appointee travel from the actual residence to the first official duty station to begin work;

b. Employee travel from one permanent duty station to another without a break in employment continuity with departments and agencies of the Federal Government where the transfer is in the best interest of the Government; and

c. Last move home for Senior Executive Service (SES) career appointees upon separation from Federal service for retirement. (FTR 302-3.304.)

The FTR should be consulted in those situations not described above.

3. New Appointee: First Official Duty Station

a.   A New Appointee is defined as an individual who is employed with the Federal Government for the very first time, an employee who is returning to the Government after a break in service, or a student trainee assigned to the Government upon completion of his/her college work. (FTR 302-3.1.)

b.   A New Appointee may be allowed relocation expenses to the first official duty station if authorized by a Principal Authorizing Official (P AO) designated in Section 6 subject to a determination that the payment of relocation allowances is in the best interest of the Government.

4. Employee: Permanent Change of Official Duty Station

a.   An employee is defined as someone who is employed by a Federal agency.  (FTR 300-3.1.)

b.   When it is determined to be in the best interest of the Government, relocation expenses will be paid to fill a position by moving a current Federal employee from one official duty station to another. The transfer to the new duty station must be at least 50 miles from the old duty station. (For exceptions, see FTR 302-2.6.)

c.   Guidelines for making a determination that a transfer is in the best interest of the Government include:

(1) Management Initiated.  If a HUD component requests a Federal employee transfer             (i.e., reduction in force, transfer of function, agency career development program, or agency directed placement), the transfer will be regarded as being in the best interest of the Government.

(2) Advertising: a Vacancy

(a) When a HUD component is preparing to recruit for a vacancy, the PAO designated in Section 6 must make a determination that payment of relocation allowances is in the best interest of the Government. The PAO must communicate one of the following determinations to the Offices of Human Resources prior to advertising the vacancy:      (1) Relocation allowances are authorized, (2) Relocation allowances may not be authorized, or (3) Relocation allowances not authorized. This determination will be stated on the vacancy announcement.  HUD components must confirm availability of funds for relocation. allowances with the CFO's Office of Budget prior to advertising a vacancy when (1) or (2) above, apply.

(b) In cases where a vacancy announcement has been issued stating "Relocation allowances not authorized," when the P AO makes a subsequent determination that authorization of the allowances is in the best interest of the Government, the Deputy Secretary must concur with the new determination. Written requests for approval will be based on factors such as cost effectiveness, or labor market conditions, or difficulty in filling the vacancy. HUD components must confirm availability of funds with the CFO's Office of Budget prior to the submission of the request to the Deputy Secretary.

(3) Moves Not in the Best Interest of the Government. If a vacancy has not been advertised and an employee actively pursues, solicits or requests a position change resulting in the geographic move of such employee from


one official duty station to another, such a transfer is primarily for the convenience and benefit of the employee, and is deemed not in the interest of the Government. The gaining HUD component must formally advise the employee at the time an offer is extended that the transfer is in the best interest of the employee and not in the best interest of the Government, and the Government shall not pay relocation expenses.

5.   SES: Last Move Home. An SES career appointee is eligible, upon separation from Federal service, for certain travel and transportation allowances if the individual meets the criteria set forth in the FTR. (FTR 302-3.304.)

6.  Authorizing Officials

a.   The Deputy Secretary will be the authorizing official for political appointee positions, i.e., Presidential and Schedule C appointees; Limited SES Term and Limited Emergency SES appointees; Non Career SES appointees.

b.   For other than political appointee relocations, the Principal Authorizing Official (P AO) for their respective areas of responsibility will be the:

(1) Chief of Staff

(2) General Counsel

(3) Assistant Secretaries

(4) President, GNMA

(5) Chief Financial Officer

(6) Assistant Deputy Secretary for Field Policy and Management

(7) Director, Office of Healthy Homes and Lead Hazard Control

(8) Director, Office of Departmental Operations and Coordination

(9) Director, Office of Departmental Equal Employment Opportunity

c.       In the event the PAO is otherwise unavailable, relocation allowances must be authorized by one of the following personnel, in the order provided:


(1) Deputy Secretary

(2) Chief of Staff

(3) Deputy Chief of Staff

d.      The Director, CFO Accounting Center/National Relocation Center will approve relocation travel vouchers and travel authorization amendments for non- discretionary entitlements.

7.   Availability of Funds.  The CFO's Office of Budget must confirm that funding is available prior to the authorization of relocation allowances.

8.   Effective Date. This policy is effective immediately.