CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES. (a) Consolidation of Allowances.—Section 403 of title 37, United States Code, is amended to read as follows: “§ 403. Basic allowance for housing “(a) General Entitlement.—(1) Except as otherwise provided by law, a member of a uniformed service who is entitled to basic pay is entitled to a basic allowance for housing at the monthly rates prescribed under this section or another provision of law with regard to the applicable component of the basic allowance for housing. The 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, the dependency status of the member, and the geographic location of the member. The basic allowance for housing may be paid in advance. “(2) A member of a uniformed service with dependents is not entitled to a basic allowance for housing as a member with dependents unless the member makes a certification to the Secretary concerned indicating the status of each dependent of the member. The certification shall be made in accordance with regulations prescribed by the Secretary of Defense. “(b) Basic Allowance for Housing Inside the United States.—(1) The Secretary of Defense shall determine the costs of adequate housing in a military housing area in the United States for all members of the uniformed services entitled to a basic allowance for housing in that area. The Secretary shall base the determination upon the costs of adequate housing for civilians with comparable income levels in the same area. “(2) Subject to paragraph (3), the monthly amount of a basic allowance for housing for an area of the United States for a member of a uniformed service is equal to the difference between— “(A) the monthly cost of adequate housing in that area, as determined by the Secretary of Defense, for members of the uniformed services serving in the same pay grade and with the same dependency status as the member; and “(B) 15 percent of the national average monthly cost of adequate housing in the United States, as determined by the Secretary, for members of the uniformed services serving in 111 STAT. 1776the same pay grade and with the same dependency status as the member. “(3) The rates of basic allowance for housing shall be reduced as necessary to comply with this paragraph. The total amount that may be paid for a fiscal year for the basic allowance for housing under this subsection is the product of— “(A) the total amount authorized to be paid for such allowance for the preceding fiscal year (as adjusted under paragraph (5)); and “(B) a fraction— “(i) the numerator of which is the index of the national average monthly cost of housing for June of the preceding fiscal year; and “(ii) the denominator of which is the index of the national average monthly cost of housing for June of the fiscal year before the preceding fiscal year. “(4) An adjustment in the rates of the basic allowance for housing under this subsection as a result of the Secretary’s redetermination of housing costs in an area shall take effect on the same date as the effective date of the next increase in basic pay under section 1009 of this title or other provision of law. “(5) In making a determination under paragraph (3) for a fiscal year, the amount authorized to be paid for the preceding fiscal year for the basic allowance for housing shall be adjusted to reflect changes during the year for which the determination is made in the number, grade distribution, geographic distribution in the United States, and dependency status of members of the uniformed services entitled to the allowance from the number of such members during the preceding fiscal year. “(6) So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing within an area of the United States, the monthly amount of the allowance for the member may not be reduced as a result of changes in housing costs in the area, changes in the national average monthly cost of housing, or the promotion of the member. “(7) In the case of a member without dependents who is assigned to duty inside the United States, the location or the circumstances of which make it necessary that the member 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 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. “(c) Basic Allowance for Housing Outside the United States.—(1) The Secretary of Defense may prescribe an overseas basic allowance for housing for a member of a uniformed service who is on duty outside of the United States. The Secretary shall establish the basic allowance for housing under this subsection on the basis of housing costs in the overseas area in which the member is assigned. “(2) So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing in an overseas area and the actual monthly cost of housing for the member is not reduced, the monthly amount of the allowance in an area outside the United States may not be reduced as a result 111 STAT. 1777of 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. “(d) Basic Allowance for Housing When Dependents Are Unable To Accompany Member.—(1) A member of a uniformed service with dependents who is on permanent duty at a location described in paragraph (2) is entitled to 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. “(2) A permanent duty location referred to in paragraph (1) is a location— “(A) to which the movement of the member’s dependents is not authorized at the expense of the United States under section 406 of this title, and the member’s dependents do not reside at or near the location; and “(B) at which quarters of the United States are not available for assignment to the member. “(3) In the case of a member with dependents who is assigned to duty at a location or under circumstances that, as determined by the Secretary concerned, require the member’s dependents to reside at a different location, the member shall receive a basic allowance for housing, as provided in subsection (a) or (b), as if the member were assigned to duty in the area in which the dependents reside, regardless of whether the member resides in quarters of the United States or is also entitled to a family separation basic allowance for housing by reason of paragraph (1). “(4) The family separation basic allowance for housing under this subsection shall be in addition to any other allowance or per diem that the member is otherwise entitled to receive under this title. A member may receive a basic allowance for housing under both paragraphs (1) and (3). “(e) Effect of Assignment to Quarters.—(1) Except as otherwise provided by law, a member of a uniformed service 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. “(2) A member without dependents who is in a pay grade above pay grade E–6 and who is assigned to quarters in the United States or a housing facility under the jurisdiction of a uniformed service, appropriate to the grade or rank of the member and adequate for the member, may elect not to occupy those quarters and instead to receive the basic allowance for housing prescribed for the member’s pay grade by this section. “(3) A member without dependents who is in pay grade E–6 and who is assigned to quarters of the United States that do not meet the minimum adequacy standards established by the Secretary of Defense for members in such pay grade, or to a housing facility under the jurisdiction of a uniformed service that does not meet such standards, may elect not to occupy such quarters or facility and instead to receive the basic allowance for housing prescribed for the member’s pay grade under this section.111 STAT. 1778 “(4) The Secretary concerned may deny the right to make an election under paragraph (2) or (3) if the Secretary determines that the exercise of such an election would adversely affect a training mission, military discipline, or military readiness. “(5) A member with dependents who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service may be paid the basic allowance for housing if, because of orders of competent authority, the dependents are prevented from occupying those quarters. “(f) Ineligibility During Initial Field Duty or Sea Duty.—(1) A member of a uniformed service 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. “(2) (A) Except as provided in subparagraphs (B) and (C), a member of a uniformed service 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. “(B) Under regulations prescribed by the Secretary concerned, the Secretary may authorize the payment of a basic allowance for housing to a member of a uniformed service without dependents who is serving in pay grade E–5 and is assigned to sea duty. In prescribing regulations under this subparagraph, the Secretary concerned shall consider the availability of quarters for members serving in pay grade E–5. “(C) Notwithstanding section 421 of this title, two members of the uniformed services in a pay grade below pay grade E–6 who are married to each other, have no other dependents, and are simultaneously assigned to sea duty are jointly entitled to one basic allowance for housing during the period of such simultaneous sea duty. The amount of the allowance shall be based on the without dependents rate for the pay grade of the senior member of the couple. However, this subparagraph shall not apply to a couple if one or both of the members are entitled to a basic allowance for housing under subparagraph (B). “(3) The Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, shall prescribe regulation defining the terms ‘field duty’ and ‘sea duty’ for purposes of this section. “(g) Reserve Members.—(1) A member of a reserve component without dependents who is called or ordered to active duty in support of a contingency operation, or a retired member without dependents who is ordered to active duty under section 688(a) of title 10 in support of a contingency operation, may not be denied a basic allowance for housing if, because of that call or order, the member is unable to continue to occupy a residence— “(A) which is maintained as the primary residence of the member at the time of the call or order; and “(B) which is owned by the member or for which the member is responsible for rental payments. “(2) Paragraph (1) shall not apply if the member is authorized transportation of household goods under section 406 of this title as part of the call or order to active duty described in such paragraph.111 STAT. 1779 “(3) The Secretary of Defense shall establish a rate of basic allowance for housing to be paid to a member of a reserve component while the member serves on active duty under a call or order to active duty specifying a period of less than 140 days, unless the call or order to active duty is in support of a contingency operation. “(h) Rental of Public Quarters.—Notwithstanding any other law (including those restricting the occupancy of housing facilities under the jurisdiction of a department or agency of the United States by members, and their dependents, of the armed forces above specified grades, or by members, and their dependents, of the National Oceanic and Atmospheric Administration and the Public Health Service), a member of a uniformed service, and the dependents of the member, may be accepted as tenants in, and may occupy on a rental basis, any of those housing facilities, other than public quarters constructed or designated for assignment to an occupancy without charge by such a member and the dependents of the member, if any. Such a member may not, because of occupancy under this subsection, be deprived of any money allowance to which the member is otherwise entitled for the rental of quarters. “(i) Temporary Housing Allowance While in Travel or Leave Status.—A member of a uniformed service who is in a pay grade E–4 (4 or more years of service) or above 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. “(j) Aviation Cadets.—The eligibility of an aviation cadet of the Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for housing shall be determined as if the aviation cadet were a member of the uniformed services in pay grade E–4. “(k) Administration.—(1) The Secretary of Defense shall prescribe regulations for the administration of this section. “(2) The Secretary concerned may make such determinations as may be necessary to administer this section, including determinations of dependency and relationship. When warranted by the circumstances, the Secretary concerned may reconsider and change or modify any such determination. The authority of the Secretary concerned under this subsection may be delegated. Any determination made under this section with regard to a member of the uniformed services is final and is not subject to review by any accounting officer of the United States or a court, unless there is fraud or gross negligence. “(3) Parking facilities (including utility connections) provided members of the uniformed services for house trailers and mobile homes not owned by the Government shall not be considered to be quarters for the purposes of this section or any other provision of law. Any fees established by the Government for the use of such a facility shall be established in an amount sufficient to cover the cost of maintenance, services, and utilities and to amortize the cost of construction of the facility over the 25-year period beginning with the completion of such construction. “(l) Temporary Continuation of Allowance for Dependents of Members Dying on Active Duty.—(1) The Secretary of Defense, or the Secretary of Transportation in the case of the Coast Guard when not operating as a service in the Navy, may 111 STAT. 1780allow the dependents of a member of the armed forces who dies on active duty and whose dependents are occupying family housing provided by the Department of Defense, or by the Department of Transportation 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 180 days. “(2) The Secretary concerned may pay a basic allowance for housing (at the rate that is payable for members of the same grade and dependency status as the deceased member for the area where the dependents are residing) to the dependents of a member of the uniformed services who dies while on active duty and whose dependents— “(A) are not occupying a housing facility under the jurisdiction of a uniformed service on the date of the member’s death; “(B) are occupying such housing on a rental basis on such date; or “(C) vacate such housing sooner than 180 days after the date of the member’s death. “(3) The payment of the allowance under paragraph (2) shall terminate 180 days after the date of the member’s death. “(m) Members Paying Child Support.—(1) A member of a uniformed service 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— “(A) the member is assigned to a housing facility under the jurisdiction of a uniformed service; or “(B) 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 E–4. “(2) A member of a uniformed service assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service who is not otherwise authorized a basic allowance for housing and who pays child support is entitled to the basic allowance for housing differential, except for months for which the amount payable for the child support is less than the rate of the differential. Payment of a basic allowance for housing differential does not affect any entitlement of the member to a partial allowance for quarters under subsection (n). “(3) The basic allowance for housing differential to which a member is entitled under paragraph (2) is the amount equal to the difference between— “(A) the rate of the basic allowance for quarters (with dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997, under this section (as in effect on that date); and “(B) the rate of the basic allowance for quarters (without dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997, under this section (as in effect on that date). “(4) Whenever the rates of basic pay for members of the uniformed services are increased, the monthly amount of the basic allowance for housing differential computed under paragraph (3) shall be increased by the average percentage increase in the rates of basic pay. The effective date of the increase shall be the same date as the effective date of the increase in the rates of basic pay.111 STAT. 1781 “(5) In the case of two members, who have one or more common dependents (and no others), who are not married to each other, and one of whom pays child support to the other, the amount of the basic allowance for housing paid to each member under this section shall be reduced in accordance with regulations prescribed by the Secretary of Defense. The total amount of the basic allowances for housing paid to the two members may not exceed the sum of the amounts of the allowance to which each member would be otherwise entitled under this section. “(n) Partial Allowance for Members Without Dependents.—(1) A member of a uniformed service without dependents who is not entitled to receive a basic allowance for housing under subsection (b), (c), or (d) is entitled to a partial basic allowance for housing at a rate determined by the Secretary of Defense under paragraph (2). “(2) The rate of the partial basic allowance for housing is the partial rate of the basic allowance for quarters for the member’s pay grade as such partial rate was in effect on December 31, 1997, under section 1009(c)(2) of this title (as such section was in effect on such date).”. (b) Transition to Basic Allowance for Housing.—The Secretary of Defense shall develop and implement a plan to incrementally manage the rate of growth of the various components of the basic allowance for housing authorized by section 403 of title 37, United States Code (as amended by subsection (a)), during a transition period of not more than six years. During the transition period, the Secretary may continue to use the authorities provided under sections 403, 403a, 405(b), and 427(a) of title 37, United States Code (as in effect on the day before the date of the enactment of this Act), but subject to such modifications as the Secretary considers necessary, to provide allowances for members of the uniformed services. (c) Repeal of Superseded Authorities.—(1) Section 403a of title 37, United States Code, is repealed. (2) Section 405 of such title is amended— (A) by striking out subsection (b); and (B) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. (3) Section 427 of such title is amended— (A) by striking out subsection (a); and (B) in subsection (b)— (i) by striking out “(b) Additional Separation Allowance.—” and inserting in lieu thereof “(a) Entitlement to Allowance.—”; (ii) in paragraph (1)— (I) by striking out “, including subsection (a),” in the matter preceding the subparagraphs; (II) by inserting “or” at the end of subparagraph (B); (III) by striking out or” at the end of subparagraph (C) and inserting in lieu thereof a period; and (IV) by striking out subparagraph (D); (iii) in paragraph (3)— (I) by striking out “(3) An allowance” and inserting in lieu thereof “(b) Entitlement When No Residence or Household Maintained for Dependents.—An allowance”; and111 STAT. 1782 (II) by striking out “this subsection” and inserting in lieu thereof “subsection (a)”; (iv) in paragraph (4)— (I) by striking out “(4) A member” and inserting in lieu thereof “(c) Effect of Election to Serve Unaccompanied Tour of Duty.—A member”; and (II) by striking out “paragraph (1)(A) of this subsection” and inserting in lieu thereof “subsection (a)(1)(A)”; and (v) by striking out paragraph (5) and inserting in lieu thereof the following new subsection: “(d) Entitlement While Spouse Entitled to Basic Pay.— A member married to another member of the uniformed services becomes entitled, regardless of any other dependency status, to an allowance under subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or (C) of paragraph (1) of such subsection if the members were residing together immediately before being separated by reasons of execution of military orders. Section 421 of this title does not apply to bar the entitlement to an allowance under this section. However, not more than one monthly allowance may be paid with respect to a married couple under this section.”. (4) The table of sections at the beginning of chapter 7 of title 37, United States Code, is amended by striking out the items relating to sections 403 and 403a and inserting in lieu thereof the following new item: “403. Basic allowance for housing.”. (d) Conforming Amendments.—(1) Title 37, United States Code, is amended— (A) in section 101(25), by striking out “basic allowance for quarters (including any variable housing allowance or station housing allowance)” and inserting in lieu thereof “basic allowance for housing”; (B) in section 406(c), by striking out “sections 404 and 405” and inserting in lieu thereof “sections 403(c), 404, and 405”; (C) in section 420(c), by striking out “quarters” and inserting in lieu thereof “housing”; (D) in section 551(3)(D), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”; and (E) in section 1014(a), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”. (2) Title 10, United States Code, is amended— (A) in section 708(c)(1), by striking out “basic allowance for quarters or basic allowance for subsistence” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37, basic allowance for subsistence under section 402 of such title,”; (B) in section 2830(a)— (i) in paragraph (1), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37”; and (ii) in paragraph (2), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”;111 STAT. 1783 (C) in section 2882(b)— (i) in paragraph (1), by striking out “section 403(b)” and inserting in lieu thereof “section 403”; and (ii) in paragraph (2), by striking out “basic allowance for quarters” and all that follows through the end of the paragraph and inserting in lieu thereof “basic allowance for housing under section 403 of title 37.”; (D) in section 7572(b)— (i) in paragraph (1), by striking out “the total of—” and all that follows through the end of the paragraph and inserting in lieu thereof “the basic allowance for housing payable under section 403 of title 37 to a member of the same pay grade without dependents for the period during which the member is deprived of quarters on board ship”; and (ii) in paragraph (2), by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”; and (E) in section 7573, by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing under section 403 of title 37”. (3) Section 5561(6)(D) of title 5, United States Code, is amended by striking out “basic allowance for quarters” and inserting in lieu thereof “basic allowance for housing”. (4) Section 107(b) of title 32, United States Code, is amended by striking out “and quarters” and inserting in lieu thereof “and housing”. (5) Section 4(k)(10) of the Military Selective Service Act (50 U.S.C. App. 454(k)(10)) is amended by striking out “as such terms” and all that follows through “extended or amended” and inserting in lieu thereof “shall be entitled to receive a dependency allowance equal to the basic allowance for housing provided for persons in pay grade E–1 under section 403 of title 37, United States Code,”. (e) Effective Date.—This section and the amendments made by this section shall take effect on January 1, 1998.