Sec. 604. Reform of basic allowance for housing
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Chapter 7 of title 37, United States Code, is amended by inserting after section 403 the following new section: Except as otherwise provided by law, a member of the uniformed services covered by this section who is entitled to basic pay is entitled to a basic allowance for housing at the monthly rate prescribed under this section or another provision of law with regard to the applicable component of the basic allowance for housing. The maximum amount of the basic allowance for housing for a member will vary according to the pay grade in which the member is assigned or distributed for basic pay purposes and the geographic location of the member.
The basic allowance for housing may be paid in advance. The monthly rate of basic allowance for housing payable under this section to a member of the uniformed services covered by this section who is assigned to duty in the United States shall be the rate prescribed by the Secretary of Defense for purposes of this section. Subject to the provisions of this subsection, the rates of basic allowance for housing payable under this subsection shall meet the following requirements:
A maximum amount of the allowance shall be established for each military housing area, based on the costs of adequate housing in such area, for each pay grade. The amount of the allowance payable to a member may not exceed the lesser of— the actual monthly cost of housing of the member; or the maximum amount determined under subparagraph
(A)for members in the member's pay grade. In the event two or more members occupy the same housing, the amount of the allowance payable to such a member may not exceed— the amount of the allowance otherwise payable to such member pursuant to subparagraph (B); divided by the total number of members occupying such housing. So long as a member on retains uninterrupted eligibility to receive the allowance and the actual monthly cost of housing for the member is not reduced, the monthly amount of the allowance may not be reduced as a result of changes in housing costs in the area or the promotion of the member. In the case of a member authorized payment of an allowance under this subsection, the Secretary concerned may make a lump-sum payment to the member for required deposits and advance rent, and for expenses relating thereto, that are— incurred by the member in occupying private housing; and authorized or approved under regulations prescribed by the Secretary concerned. The Secretary concerned shall recoup the full amount of any deposit or advance rent payments made by the Secretary under subparagraph (A). The monthly rate of basic allowance for housing payable under this section to a member of the uniformed services covered by this section who is assigned to duty outside in the United States shall be the rate prescribed by the Secretary of Defense for purposes of this section. Subject to the provisions of this subsection, the rates of basic allowance for housing payable under this subsection shall meet the following requirements: The rates shall be based on the housing costs in the overseas area in which the member is assigned and shall be determined in the manner specified in subparagraphs
(A)and
(B)of subsection (b)(2). In the event two or more members occupy the same housing, the amount of the allowance payable to such a member may not exceed— the amount of the allowance otherwise payable to such member pursuant to subparagraph (A); divided by the total number of members occupying such housing. So long as a member retains uninterrupted eligibility to receive the allowance in an overseas area and the actual monthly cost of housing for the member is not reduced, the monthly amount of the allowance in the area may not be reduced as a result of changes in housing costs in the area or the promotion of the member. The monthly amount of the allowance may be adjusted to reflect changes in currency rates. In the case of a member authorized payment of an allowance under this subsection, the Secretary concerned may make a lump-sum payment to the member for required deposits and advance rent, and for expenses relating thereto, that are— incurred by the member in occupying private housing outside of the United States; and authorized or approved under regulations prescribed by the Secretary concerned. Expenses for which a member may be reimbursed under this paragraph may include losses relating to housing that are sustained by the member as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located. The Secretary concerned shall recoup the full amount of any deposit or advance rent payments made by the Secretary under subparagraph (A), including any gain resulting from currency fluctuations between the time of payment and the time of recoupment. A member of a reserve component described in paragraph
(2)is entitled to a basic allowance for housing determined in accordance with this section during the time the member is on active duty as described in that paragraph. A member of a reserve component described in this paragraph is a member as follows: A member of a reserve component of the uniformed services covered by this section without dependents who is called or ordered to active duty to attend accession training, in support of a contingency operation, or for a period of more than 30 days. A retired member of the uniformed services covered by this section without dependents who is ordered to active duty under section 688(a) of title 10 in support of a contingency operation or for a period of more than 30 days. A member of the uniformed services covered by this section with dependents who is on permanent duty at a location described in paragraph
(2)may be paid a family separation basic allowance for housing under this subsection at a monthly rate equal to the rate of the basic allowance for housing established under subsection
(b)or the overseas basic allowance for housing established under subsection (c), whichever applies to that location, for members in the same grade at that location without dependents. A permanent duty location described in this paragraph is a location— to which the movement of the member's dependents is not authorized at the expense of the United States under section 476 of this title, and the member's dependents do not reside at or near the location; and at which quarters of the United States are not available for assignment to the member. If a member with dependents is assigned to duty in an area that is different from the area in which the member's dependents reside, the member is entitled to a basic allowance for housing as provided in subsection
(b)or (c), whichever applies to the member, subject to the following: If the member's assignment to duty in that area, or the circumstances of that assignment, require the member's dependents to reside in a different area, as determined by the Secretary concerned, the amount of the basic allowance for housing for the member shall be based on the area in which the dependents reside or the member's last duty station, whichever the Secretary concerned determines to be most equitable. If the member's assignment to duty in that area is under the conditions of a low-cost or no-cost permanent change of station or permanent change of assignment, the amount of the basic allowance for housing for the member shall be based on the member's last duty station if the Secretary concerned determines that it would be inequitable to base the allowance on the cost of housing in the area to which the member is reassigned. If the member is reassigned for a permanent change of station or permanent change of assignment from a duty station in the United States to another duty station in the United States for a period of not more than one year for the purpose of participating in professional military education or training classes, the amount of the basic allowance for housing for the member may be based on whichever of the following areas the Secretary concerned determines will provide the more equitable basis for the allowance: The area of the duty station to which the member is reassigned. The area in which the dependents reside, but only if the dependents reside in that area when the member departs for the duty station to which the member is reassigned and only for the period during which the dependents reside in that area. The area of the former duty station of the member, if different than the area in which the dependents reside. A family separation basic allowance for housing paid to a member under this subsection is in addition to any other allowance or per diem that the member receives under this title. A member may receive a basic allowance for housing under both paragraphs
(1)and (3). Except as otherwise provided by law, a member of the uniformed services covered by this section who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service appropriate to the grade, rank, or rating of the member and adequate for the member and dependents of the member, if with dependents, is not entitled to a basic allowance for housing. A member of the uniformed services covered by this section without dependents who makes a permanent change of station for assignment to a unit conducting field operations is not entitled to a basic allowance for housing while on that initial field duty unless the commanding officer of the member certifies that the member was necessarily required to procure quarters at the member's expense. A member of the uniformed services covered by this section without dependents who is in a pay grade below pay grade E–6 is not entitled to a basic allowance for housing while the member is on sea duty. The Secretary of Defense, and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, shall prescribe regulations defining the terms field duty and sea duty for purposes of this subsection. A member of the uniformed services covered by this section is entitled to a temporary basic allowance for housing (at a rate determined by the Secretary of Defense) while the member is in a travel or leave status between permanent duty stations, including time granted as delay en route or proceed time, when the member is not assigned to quarters of the United States. The Secretary of Defense, or the Secretary of Homeland Security in the case of the Coast Guard when not operating as a service in the Navy, may allow the dependents of a member of the armed forces covered by this section who dies on active duty and whose dependents are occupying family housing provided by the Department of Defense, or by the Department of Homeland Security in the case of the Coast Guard, other than on a rental basis, on the date of the member's death to continue to occupy such housing without charge for a period of 365 days. The Secretary concerned may pay a basic allowance for housing (at the rate otherwise payable to the deceased member on the date of death) to the dependents of a member of the uniformed services covered by this section who dies while on active duty and whose dependents— are not occupying a housing facility under the jurisdiction of a uniformed service on the date of death; are occupying such housing on a rental basis on such date; or vacate such housing sooner than 365 days after the date of death. The payment of the allowance under paragraph
(2)shall terminate 365 days after the date of death of the member concerned. A member of the uniformed services covered by this section with dependents may not be paid a basic allowance for housing at the with dependents rate solely by reason of the payment of child support by the member if— the member is assigned to a housing facility under the jurisdiction of a uniformed service; or the member is assigned to sea duty, and elects not to occupy assigned quarters for unaccompanied personnel, unless the member is in a pay grade above pay grade E–3. In the case of a member of the uniformed services covered by this section who is assigned to duty at a location or under circumstances that make it necessary for the member to be reassigned under the conditions of low-cost or no-cost permanent change of station or permanent change of assignment, the member may be treated for the purposes of this section as if the member were not reassigned if the Secretary concerned determines that it would be inequitable to base the member's entitlement to, and amount of, a basic allowance for housing on the cost of housing in the area to which the member is reassigned. This section shall be administering in accordance with such regulations as the Secretary of Defense shall prescribe for purposes of this section. In this section, the term member covered by this section , with respect to a member of the uniformed services, a member or retired member of the armed forces, or a member of a reserve component of the armed forces, as applicable, means the following: A member who first becomes entitled to basic pay on or after January 1, 2018. In the case of a member of a reserve component or retired member described in subsection (d), a member who is not entitled to basic allowance for housing as of December 31, 2017, and who becomes entitled to basic allowance for housing after that date pursuant to active duty described in that subsection. A member who— is entitled to basic allowance for housing under section 403 of this title as of December 31, 2017, within a particular housing or overseas area; and after that date, loses uninterrupted eligibility to receive a basic allowance for housing within an area of the United States or an area outside the United States, as applicable. . The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 403 the following new item: 403a. Basic allowance for housing: members first entitled after January 1, 2018; members entitled before January 1, 2018, with interruption in eligibility after that date. . Section 403 of title 37, United States Code, is amended by adding at the end the following new subsection: This section does not apply to members of the uniformed services who are covered by section 403a of this title. In general, such coverage begins on and after January 1, 2018. For provisions applicable to the payment of basic allowance for housing for members of the uniformed services covered by that section after that date, see section 403a of this title. . Not later than March 31, 2017, the Secretary of Defense shall submit to the congressional defense committees the regulations the Secretary purposes to prescribe under subsection
(l)of section 403a of title 37, United States Code (as added by subsection (a)), to administer basic allowances for housing pursuant to that section.