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Tuesday, April 24, 2001

Military urged to revisit how housing allowances are determined and explained

By Adam Ramirez, Stars and Stripes

The military needs to improve the way it sets housing rates as well as find a better way to explain changing rates to servicemembers, according to a recent government report.

A review of how the Department of Defense sets housing rates by the U.S. General Accounting Office revealed that when the military changed the way it determined how much money people would get to live on, some families didn’t get enough money to cover their rent and utilities.

The report went on to say rates were set too low in some places when DOD changed to using each servicemember’s rank to determine his housing costs. It questioned whether the new system was fair.

In January 2000, many housing allowance rates dropped because of the new system. Before, DOD based rates primarily on servicemembers’ housing costs in each geographic area.

But when the rates changed, housing offices around the military found themselves unprepared to answer the simplest query: Why?

"When members questioned how their rates were determined, officials cannot provide specific details, such as the local housing and utility cost estimates used," the report stated.

"That doesn’t surprise me — when I was in Georgia the rates kept changing and I couldn’t always get the place I wanted," said an Army sergeant who lives near Ramstein Air Base. "It’s hard to figure out what you can get and then, if it’s suddenly too low, you have to pay the difference. It’s like they pick a number out of the air."

In order to build servicemembers’ confidence, the report suggests the defense department develop a way to keep installation officials better informed on how final housing rates are determined.

"Because DOD does not now routinely provide this information, local managers lack assurance that the rates are well supported and calculated correctly," the report states.

Other areas of concern include:

  • Whether the standards associated with each military rank is, in fact, appropriate.

  • Whether standards should be the same for members living in privately owned and government-owned housing.

While the new system may have some glitches, the report commended the defense department for fixing problems soon after they cropped up.

When the money disappeared for some servicemembers, the report said, the defense department responded quickly.

"In view of its findings, DOD decided in March 2000 to revert to the higher 1999 rates in all areas where rates had decreased," the report stated.

The DOD agreed with the recommendation and said they "believe the January 2001 rates are fair and accurate in all areas of the country."


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