|CHAPTER�9�-�STATION�ALLOWANCES
    PART�B1:�HOUSING,�COST-OF-LIVING,�AND�INTERIM�HOUSING�ALLOWANCES
        U9116��ADVANCE�PAYMENT�OF�OHA�AND�INTERIM�OHA
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| | U9116� ADVANCE PAYMENT OFOHAAND INTERIMOHA | 
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| | A.� Entitlement | 
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| | 1.Advance Rent of Less Than 4 Months, Security Deposits, and/or Initial Expenses. | 
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| | The Senior Officer in-country or the Senior Officer's designated representative, may authorize an advance payment ofOHAor the interimOHAto pay advance rent (see subpar 2. below), security deposits, and/or initial expenses incident to occupying non-Government housing.� This is in addition to anyBAH IIadvance provided.� For the purpose of advance rent (less than 4 months), advanceOHAor interimOHAmay be authorized only when local law, or customary and usual practice of the majority of local nationals, requires rent to be paid in advance upon execution of a private lease.� Personal preference isn't� grounds for authorizing advance rent payment. AdvanceOHAisn't authorized for lease arrangements wherein the member lives rent free after making a one-time payment to the landlord with the anticipation that the rental amount shall be either completely or substantially refunded at lease termination.� The advance may be made at any time during the member's tour.� It also may be authorized when a member has located housing incident toPCSorders. | 
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| | 2.Advance Rent 4 Months to One Year. | 
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| | Rental advances of 4 or more months may be made only for the locations authorized byPDTATAC.� Rental payments should be made on a month to month basis.� Requests for a rental advance of more than 4 or more months are considered for approval if the requirement for the advance rent exists due to: | 
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| | (a)� law, | 
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| | (b)� local custom for everyone, including local nationals, or | 
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| | (c)� economic (i.e., market) conditions preclude availability of secure housing, as confirmed by the U.S. Embassy. | 
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| | Requests for rental advances of 4 or more months must be authorized/approved by thePDTATAC.� Requests must be forwarded through the Country Senior Officer/Command in Appendix M and the Unified Commander to: | 
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| | Director 
Per Diem, Travel and Transportation 
Allowance Committee 
Hoffman Building #1, Room 836 
2461 Eisenhower Avenue 
Alexandria, VA� 22331-1300 | 
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| | B.� Amount.� | 
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| | The amount to be advanced shall be determined on the basis of housing expenses, including advance rent and a security deposit, and the authorizedOHA, or interimOHA.� Housing expenses shall be documented.� The member's ability to repay the advance must be considered in determining the amount of the advance. While the amount to be advanced shouldn't exceed the estimatedOHAtotal for 1 year, a larger amount may be authorized if needed to cover anticipated housing expenses.� In no case shall the advance payment exceed:� | 
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| | 1.the anticipated housing expenses, or�� | 
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| | 2.theOHAor interimOHAaccruable for the member's tour at thatPDS,� | 
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| | whichever is less.� Expenses identified by a member for purchase of real estate or living accommodations shall not be considered. | 
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| | C.� Liquidation.� | 
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| | Liquidating monthly installments should be at a rate of one-twelfth of the amount advanced for the next 12 months.� Repayment of that portion of the advance that was paid on security deposits exceeding $1,000 may be postponed by Service-designated official until the member vacates the housing on which the security deposit was made.� This should occur only if repayment during the member's tour would create an excessive financial burden on the member. Collection action should begin on the first day of the month after payment of the advance.� When justified by the member and authorized by a Service-designated official, the start of collection action may be postponed for up to 3 months after the advance.� Repayment may be spread over a period of more than 1 year, but not to exceed the member's anticipated tour at thePDS.� Action to recoup in a lump sum any advance made under this paragraph shall be taken immediately upon receipt of information that the member has vacated the housing for which the advance was made.� Any balance of an advance not returned by the landlord may be liquidated in monthly installments, if desired by the member, for a period over the balance of the months remaining on the member's existing loan repayment schedule.� Any loss due to currency fluctuations when liquidating advance security deposits shall be absorbed by the Service concerned.� Any gains due to currency fluctuations shall be collected from the member.� These currency protection procedures for security deposits apply without regard to the provisions for protection of rent advances in paragraph D.� In countries where rate protection for advance rent, per paragraph D, has not been implemented, the monthly rent entered in the respective pay system when a member has taken an advance for rent should be entered in dollars. | 
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| | D.� Advance Rent Currency Rate Protection.� | 
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| | Rate protection may be provided for certain countries that have undergone a significant currency fluctuation.� The protection is� for losses incurred on or after July 1, 1997.�PDTATAChas announced previously the countries receiving advance rent currency exchange rate protection for the period July 1, 1997 through November 16, 1997.� Protection is accomplished by comparing theOHArate with the exchange rate in effect at the time the member received the advance with the greater of:� | 
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| | 1.the rent ceiling in effect at the time of the advance, or�� | 
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| | 2.any higher rent ceiling implemented during the repayment period of the advance. | 
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| | Currency rate protection for additional advances is calculated using the exchange rate in effect at the time the new advance is paid.� In countries where rate protection for advance rent has been implemented, monthly rents for an advance rent are processed in dollars.� See Service regulations for currency fluctuation loss/gain procedures. | 
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| | U9117� STATION ALLOWANCES FOR MEMBERS OF THE RESERVES | 
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| | See par.U7150-G3regarding station allowances application to members of Reserve components called or� ordered to active duty, or active duty for training. | 
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| | PART B2: COST OF LIVING ALLOWANCE (COLA) | 
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| | U9150� COLA | 
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| | A.Purpose. | 
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| | COLAis authorized to assist a member in maintaining the purchasing power of the discretionary portion of spendable income incident to assignment to anOCONUSPDS.� TheCOLAis derived by comparing theOCONUScost-of-living with theCONUScost-of-living.� Allowances to cover official entertainment expenses aren�t authorized by37 U.S.C. �405and aren�t included in this Volume. | 
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| | B.Allowances Payable.� | 
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| | TheCOLAamount payable is shown in Appendix J.� Specific instructions are in the paragraphs preceding the tables or are elsewhere in this Volume.� From time to time, a special determination may be issued by the Secretary concerned and thePDTATACDirector authorizing different rates due to special circumstances.�COLArates are based on the member'sPDSexcept as indicated in pars.U9300andU9301and in Chapter 6. | 
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| | U9151� COLA START/STOP | 
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| | A.Start.� | 
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| | COLAentitlement generally starts on the day a member reports to a newPDSor, when dependents arrive in advance of their sponsor, as specified in par.U9157-B.�COLAentitlement starts on the day after the day of reporting if, on the day of reporting, a member: | 
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| | 1.without dependents is entitled to aMALT PLUSorTLA; or� | 
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| | 2.with dependents is entitled toMALT PLUSfor the member andTLAfor the dependents, or toTLAfor both the member and dependents. | 
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| | (See par. U9152 for exceptions.) | 
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| | B.Stop.� | 
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| | Unless | 
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| | 1.an extension is authorized under subpar. C, or� | 
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| | 2.COLAis authorized under par.U9153,� | 
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| | COLAentitlement stops: | 
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| | 1.the day before the member departs in compliance withPCSorders,� | 
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| | 2.on the homeport change effective date (fromOCONUS) of the ship or unit to which the member is assigned, or� | 
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| | 3.on the day the last dependent departs if the dependent departs within the 60-day period after the effective date ofPCSorders or of the homeport change, as applicable. | 
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| | COLAcontinuation at the oldPDSis intended only when delayed departure of dependents is necessary for reasons beyond the member's or dependents' control (such as illness or hospitalization of the dependent(s), completion of school term, lack of acceptable housing at newPDS, difficulties related to dependent transportation,HHGshipment to the newPDS, exigencies of the Service); the member's new commanding officer or designated representative may terminateCOLApayment when any further delay is determined to be unnecessary or for personal convenience. | 
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| | C.Secretarial Extensions.� | 
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| | Entitlement toCOLAbeyond the 60-day period authorized in subpar. B may be authorized by the Secretarial Process.� For cases involving assignment from other than a dependent restricted or unaccompanied tour to a dependent restricted or unaccompanied tour when dependents remain in the vicinity of the oldPDS, see par.U9301-B1. | 
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| | U9152� CONCURRENT PAYMENT OF COLA AND TLA� | 
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| | A.� General.� | 
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| | Ordinarily,COLAisn't payable when a member is receivingTLAfor the member and/or the dependents. | 
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| | B.� COLA Paid and Not Deducted from TLA.� | 
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| | COLAis paid and not deducted fromTLAwhen: | 
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| | 1.� dependents are authorized to remain at their place of residence after the member departs in accordance with par.U9151-Bor C; | 
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| | 2.� dependents preceded the member to the newPDSin accordance with subpar.U9157-B; | 
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| | 3.� a member is required to vacate permanent quarters temporarily as envisioned by par.U9200, item 2; or | 
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| | 4.� station allowances are authorized under par.U9301; or | 
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| | C.� COLA Paid But Deducted from TLA.� | 
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| | WhenCOLAis paid, in accordance with Service regulations while the member is entitled toTLA, thenCOLAis deducted fromTLAas indicated in par.U9207-E, step 4 and parU9207-I, Example 4.� (NOTE:� Service regulations may only authorize concurrent payment to stabilize the member's pay.)� | 
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| | U9153� COLA ENTITLEMENT INCIDENT TO PCS BETWEEN PDS IN CLOSE PROXIMITY | 
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