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FSAType I during the assignment or following the
departure of the dependents.
In Hawaii when the dependents reside in, or
during which all dependents return to, one of the other
states or the District of Columbia to establish a
permanent residence and the member is entitled to VHA
prescribed for the PDS provided the member would be
entitled to FSAType I during the assignment or
following the departure of the dependents if the PDS
were outside the United States.
Offset
At times, a members prescribed VHA plus BAQ
will exceed the members actual rental or ownership
expenses. In these cases, the VHA payable to the
member will be computed at an offset rate. The offset
will reduce the members entitlement so that the
entitlement will more accurately correspond with the
members actual expenses. The VHA offset will be
explained in greater detail later in this chapter.
NOTE: In no case will the amount of the offset or
reduction exceed the members prescribed VHA for his
or her actual expenses. If the members housing costs
equal or exceed the total of the members prescribed
VHA plus BAQ, the member is entitled to the full VHA
without offset.
Residence
A residence is any quarters in which a member
and/or his or her dependents actually reside.
Rental Expenses for a Residence
A member who rents a residence maybe entitled to
rental expenses for a residence. In the case of a member
who rents a residence, the allowable housing expenses
for the purpose of computing the VHA offset rate will
be limited to the rent payment, liability and personal
property
insurance,
p l u s t h e s t a n d a r d
utility/maintenance expense (SUME) for the applicable
location and members paygrade.
For a member who rents a mobile home or
houseboat as a residence, the allowable housing
expenses will also include the lot or berthing fees, if
applicable.
Ownership Expense for a Residence
The term ownership expense for a residence refers
to an eligible member who owns his or her residence.
In the case of a member who owns a residence, the
allowable housing expenses for the purpose of
computing the VHA offset rate will be limited to the
periodic mortgage payments, and if not included in the
mortgage payments, hazard and liability (homeowner)
insurance and real estate taxes and personal loans used
to repair, renovate, or enlarge the residence unsecured
by mortgages plus the SUME for the applicable location
and members paygrade.
For a member who owns a mobile home or a
houseboat as a residence, the allowable housing
expenses will also include the lot or berthing fees, if
applicable.
Standard Utility/Maintenance Expense
An SUME will be used for computing the VHA
offset rate for each geographic locality, grade, and
dependent status.
This expense will be based on
reported utility and maintenance costs for each locality,
grade, and dependent status as shown in a table prepared
by the PDTTAC.
The SUME includes the monthly cost for
electricity, natural gas/propane, fuel oil, wood/coal,
water/sewer, and garbage. It also includes the average
monthly cost of condominium fees, homeowners
association fee, property and hazard insurance if not
part of the monthly house payment, and maintenance
costs for upkeep of the residence. Maintenance costs
include such items as plumbing, electrical,
heating/cooling system, or structural repairs. It does
not include the cost of home improvements such as
remodeling, a new roof, a new furnace, major
appliances, new fences, and other additions.
DOCUMENTATION FOR VHA
ENTITLEMENT
The documentation requirements for VHA
eligibility include the VHA Certificate, Dependency
Application/Record of Emergency Data, and other
supporting documents.
VHA Certificate
As mentioned earlier, the member must file a VHA
Certificate for entitlement to VHA. A copy of the
certificate is shown in figure 8-9.
8-17
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