Temporary Quarters Subsistence Expense (TQSE)

TQSE is not an entitlement and should only be authorized when necessary. It is a discretionary allowance that should be based on employee need.

TQSE is meant to be authorized for a need basis, not for an employee to save personal funds for other purposes. Agencies utilizing a Third Party Relocation Program should be cognizant of the fact employees have had the opportunity to have either accepted the guaranteed offer or have received their equity from an amended sale and therefore have no mortgage payments. An employee that has agreed to participate in the Third Party Relocation Program and then does not accept the guaranteed offer has made a personal decision. Renters would not be obligated for rental payments either.

The Federal Travel Regulation allows authorization of up to 60 days of TQSE with an additional 60 days when compelling reasons warrant. When developing your relocation policy for temporary quarters you should keep in mind that TQSE should be used to minimize or avoid other relocation expenses such as prolonged temporary storage of household goods.

Agency management objectives should be to ensure that:

· TQSE is necessary.

· The employee has adequate comfortable temporary quarters while in transition to his/her new residence.

· The number of days of TQSE are kept to a minimum.

· Taxpayer dollars are used wisely.

Before authorizing TQSE, it is recommended that you:

· Ensure that the employee's residence at the old duty station is substantially distant from the new duty station.

· Remember that a renter's needs and a homeowner's needs for TQSE may not be the same. You may find that the number of days of TQSE needed can be greatly reduced or even eliminated once it is determined if the employee is a:

1. Renter with no lease obligations at the old duty station;

2. Homeowner and the home was sold prior to reporting to the new duty station; or

3. Homeowner who took an equity advance.

The Federal Travel Regulation (FTR) allows for the authorization of an HHT expense for a reasonable period of time, not to exceed 10 calendar days, for the employee and his/her spouse. When developing your policy for the HHT expenses allowance, you must be aware that the HHT is intended to be used by the employee to seek a permanent residence, which will facilitate and expedite the employee's move and to lower the Government's overall cost for the employee's relocation, especially TQSE.

Before authorizing HHT, it is recommended:

· You consider that authorization of HHT's might be minimized or avoided when other satisfactory and more economical arrangements are available. For example, destination services are available from your relocation services provider at no or minimal cost. Destination services can provide the employee with information about the new duty station in advance of taking the HHT. Also, the employee might be familiar with the location of the new duty station.

· That you make sure the employee has accepted the transfer. A HHT should be authorized on an individual-case basis after the employee has accepted the transfer. The employee should always execute the employment agreement before your authorize any expenditure of funds. Never authorize a HHT to assist the employee in deciding whether or not to accept the transfer.

· That if the employee is a homeowner, you require the employee to have some form of written estimate of the value of the home they are selling (e.g., appraisal, market analyses, contract, etc.). This will help the employee determine an affordable price range of residences to consider at his/her new duty location.

When developing policy and/or authorizing HHT, it is recommended:

· That your policy allow for an average HHT of 6-7 days. Longer HHT (7-10 days) should be the exception and require justification by the employee. An example of an acceptable exception might be an employee with a physical challenge that may require special housing accommodations. These numbers reflect a recent Employee Relocation Council report on average days authorized for a HHT in the private sector.

· That you provide adequate counseling to the employee before HHT is taken to help ensure that the HHT is productive. Provide the employee with information about the new official duty station, such as housing marketing conditions, school locations, and potential living communities.

· That you authorize a HHT to include full weekends to allow an employee wishing to purchase a residence at the new duty station the opportunity to take advantage of open houses.

Fixed Amount Reimbursement:

· Consider that by offering the employee a fixed amount reimbursement for the HHT the employee is allowed more flexibility and the opportunity to budget his/her expenses.

Benefits of the fixed amount reimbursement method include:

· No voucher requirement;

· Immediate access to funds;

· No misunderstandings about HHT policy; and

· Ease of administration.