DEPARTMENT OF THE INTERIOR

DEPARTMENT OF THE INTERIOR
QUARTERS HANDBOOK

This Departmental Quarters Handbook (400 DM) provides uniform guidelines for the acquisition, management, maintenance and disposal of Government furnished quarters by bureaus and offices of the Department of the Interior. (See the Forward)

CHAPTER 1 -- INTRODUCTION

1.1 -- Purpose. This Departmental Quarters Handbook (DQH) sets forth the legislative and regulatory guidelines, together with the procedures and companion forms, to be utilized by bureaus and offices of the Department of the Interior (DOI) in acquiring, utilizing, managing and disposing of Government furnished quarters (GFQ), and in establishing and collecting rental rates and charges for related facilities. This handbook is designed for use as a desk manual with revisions to be issued, as necessary, to ensure that the contents remain current.

This handbook supplements various Office of Management and Budget (OMB) circulars and sets forth Department of the Interior (DOI) policies and guidelines. It is intended to promote maximum uniformity in quarters program administration.

1.2 -- Coverage. This handbook extends to all phases of quarters program management. The regulations and procedures apply to all Government-owned or leased quarters rented in support of Federal programs, whether rented to employees of the holding bureau, to employees of another Interior bureau, to another Federal agency, or to non-Federal tenants who are housed in order to accomplish a Federal program. They apply to quarters which are rented to the public pending future official use or disposal. They apply, geographically, to rental quarters in the 50 states, the District of Columbia, Puerto Rico and the territories and possessions of the United States. These regulations do not apply to quarters, custody of which has been transferred to a non-Federal activity pursuant to a written lease or contract authorized by law. This handbook does not apply to GFQ in foreign countries, as such housing is subject to Department of State regulations. "Rental quarters" are defined in OMB Circular A-45, Revised (see Appendix 6) as follows:

"...all furnished and unfurnished quarters supplied under specific Government authority to Government employees, contractors, contractor employees, and all other persons to whom housing is provided as an incidental service in support of Government programs. It includes, but is not limited to, Government-owned or leased dwellings, apartments, bunkhouses, dormitories, trailer pads, cabins, guard stations and lookouts, mobile homes, house trailers, and housekeeping as well as nonhousekeeping units. The term excludes tents, containers, housing which due to extreme deterioration is unsuitable for occupancy except in exigent circumstances, and "public quarters" designated for occupancy by members of the uniformed services with loss of allowances, but it includes quarters occupied by such personnel on a rental basis under 37 U.S.C.  403(e), 42 U.S.C.  1594a(f) and 1594b, and other authorities."

1.3 -- Revisions.

A. The Office of Acquisition and Property Management (PAM) is responsible for ensuring
that this handbook is current and for preparing any necessary revisions. Such revisions may be issued over the signature of the Director, PAM.

B. To further promote program uniformity, any bureau or office developing procedures
in support of this handbook must submit the procedures for review and approval by the Director, PAM, prior to placing the procedures into effect. If approved, and of general application, the procedures will be added to this handbook.

1.4 -- Distribution.

A. The distribution of this handbook will be determined by each bureau. Distribution
will be made in bulk to the respective bureaus for internal distribution. Bureaus shall ensure that the DQH is available for examination by all employees.

B. The distribution list will be maintained by the Quarters Program Manager (QPM).
The QPM will also maintain supplies of the handbook and its revisions for replacement purposes. Requests for additions to, or deletions from, the list shall be directed to the QPM, Bureau of Reclamation, ASC (D-2910), 7301 West Mansfield Avenue, Denver, Colorado 80235-2230.

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CHAPTER 2 -- LEGISLATIVE AND REGULATORY REQUIREMENTS

2.1 General. This chapter describes the laws and regulations affecting the DOI quarters management and rental program.

2.2 Legislation.

A. 5 U.S.C 5911 is the legislation authorizing Government agencies to provide quarters
and related facilities to their employees only when conditions of employment or of availability of quarters warrant such action. This law requires the collection of rent and charges for facilities made available in connection with the occupancy of quarters (related facilities) from employees who occupy quarters. It prescribes that rental rates and charges for related facilities must be based upon the reasonable value of the quarters and facilities to the employee in the circumstances under which the quarters are provided, occupied or made available. Finally, this authority contemplates that the general method of collection will be through payroll deductions. A copy of 5 U.S.C. 5911 appears as Appendix 1.

B. 5 U.S.C. 5536, Extra pay for extra services prohibited. This authority provides
that employees, whose pay is fixed by statute or regulation, may not receive additional pay or allowances for any other service or duty unless specifically authorized by law. This section prohibits the establishment of rents or other charges so as to provide a housing subsidy; to serve as an inducement in the recruitment or retention of employees; or to encourage occupancy of existing housing. Such action would constitute the provision of additional pay or allowances, which is prohibited. 5 U.S.C. 5536 appears as Appendix 2.

C. Public Laws 98-473 and 100-446. Public Law 98-473, Section 320, requires
quarters rental receipts to be deposited in a special fund, where they will remain, until expended, for quarters maintenance and operation. Section 320 also required that 90 percent of the monies collected, must be spent at the unit (installation) in which the quarters were located; however, this limitation was rescinded by Public Law 100-446, Section 316. These authorities appear in Appendix 3.

2.3 Office of Management and Budget Circulars. The Office of Management and Budget (OMB) has issued the following Circulars pertaining to the quarters program.

A. Circular No. A-11 sets forth policies for budgeting and planning the construction
of Federally owned housing for use in conjunction with Departmental programs. The pertinent provisions of Circular A-11 are shown in Appendix 4. Note: While Circulars A-11 and A-45 establish policies regarding construction of quarters, the principles set forth in these Circulars will also be satisfied prior to acquiring additional or replacement quarters (see also paragraph 4.2 of this handbook).

B. Circular A-25 establishes policies for developing a uniform and equitable system
of charges for certain Government services and property. The provisions of Circular A-25 require a fair market value return to the Government whenever quarters are rented for revenue purposes to private parties (the general public) pending future official use or disposal action. As the policies of Circular A-25 are not compatible with those of OMB Circular A-45, relative to rental rate establishment, a separate set of procedures must be employed when public rental is contemplated. Refer also to Paragraph 5.3D, DQH for additional guidance. OMB Circular A-25 appears as Appendix 5.

C. Circular A-45 establishes guidance on construction standards for quarters and
procedures to be used in establishing quarters rental rates and charges for related facilities supplied to tenants, except rental to the public. (Policies covering the latter are provided in OMB Circular A-25.) OMB Circular A-45 appears as Appendix 6.

2.4 Federal Property Management Regulations. The Federal Property Management Regulations (FPMR) are issued by the Administrator of General Services under authority of the Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended, and other laws and authorities. Selected Parts and Subparts of the FPMR pertain to the acquisition, utilization and disposal of real property, and therefore effect the Departmental quarters program. The FPMR has been codified at 41 CFR 101. Copies may be obtained from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402.

A. 41 CFR 101-3, Annual Real Property Inventories, establishes the policies and
procedures for annual reports of real property (including quarters) owned or leased by the United States.

B. 41 CFR 101-18, Acquisition of Real Property, sets forth the policy and procedures
for acquiring real property (including Government-furnished quarters) by lease, purchase or condemnation; it provides guidance on obtaining delegations of leasing authority from the General Services Administration (GSA), and it imposes limitations on the use of delegated authority.

C. 41 CFR 101-19, Construction and Alteration of Public Buildings. 41 CFR
101-19.003-6(a) excludes housing and residential projects from the "public building" definition. This is important as FPMR provisions relating to conduct while on Federal property (41 CFR 101-20.3) do not apply to quarters. Instead, bureaus are guided by this handbook, and bureau regulations pertaining to restrictions associated with occupancy of GFQ.

D. 41 CFR 101-47, Utilization and Disposal of Real Property. This Part establishes
the requirement for annual surveys of real property; and the procedures and forms for reporting unused, or underused, real and related personal property to GSA for disposal. This Part also establishes the responsibilities of the holding agency during the disposal process; the rules pertaining to transfers of real property among Federal agencies; and the process for granting rights for non-Federal interim use of excess and surplus real property. 41 CFR 101-47.203-6 provides that prefabricated movable structures (Butler-type structures, quonset huts and house trailers, with or without undercarriages) and related personal property, may be disposed of as personal property.

2.5 Authority. 5 U.S.C 5911(f) delegates to the head of each agency the authority to prescribe and issue regulations pertaining to management of quarters and facilities, consistent with controlling legislation and executive regulations (OMB Circulars, FPMR, etc). The Secretary of the Interior has in turn delegated authority to each program Assistant Secretary to carry out quarters management activities. Some of these may be redelegated in accordance with 205 DM 10.1 (see Appendix 7). To ensure that proper management control is exercised, certain authorities may not be redelegated below the level of bureau head or regional director (see 205 DM 10.1B and C in Appendix 7).

2.6 Interior Property Management Regulations (IPMR).

A. 114-3, Annual Real Property Inventories. This Part establishes the Departmental
guidelines pertaining to preparation and submission of annual reports of real property, including quarters.

B. 114-47, Utilization and Disposal of Real Property. This Part contains the
Departmental rules and procedures pertaining to annual surveys of real property and to the identification, utilization, transfer and disposal of unneeded and underutilized real property. This Part also establishes the guidelines for interim use by other Interior bureaus or other Federal agencies, and for interim leasing to non-Federal entities of unutilized, underutilized, excess and surplus real property.

C. 114-51, Government Furnished Quarters. This Part establishes that the
Department of the Interior quarters management regulations are prescribed in 400 DM, Departmental Quarters Handbook. A copy of this Part appears as Appendix

D. 410 Addition to IPMR, Personal Property Management Regulations (114-60).
This regulation establishes the responsibilities of "cognizant employees", and the guidelines to be followed incident to loss or damage to personal property. The provisions of 114-60.8 will be followed whenever Government quarters, furnishings and appliances have been damaged, destroyed or lost.

E. Temporary Regulations. Temporary regulations are issued when time is limited,
and the regulation is not of a permanent nature, or is subject to frequent revision. Each temporary regulation not subject to frequent change shall have an established expiration date or be scheduled for conversion to a permanent regulation.

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CHAPTER 3 -- DEFINITIONS

3.1 This chapter provides the following definitions to those terms which are common to quarters management. These definitions will apply to, and will be used when, interpreting and implementing the Department's quarters management program.

A. Appliances. Household devices operated by electricity or fossil fuel. Appliances include
refrigerators, ranges, wood stoves, fireplace inserts, washers, dryers, televisions, radios, window air conditioners, irons, etc.

B. Bunkhouse/Dormitory. A structure classified as a dormitory or bunkhouse shall
have at least one of the following.

(1) Multiple bathroom fixtures such as several sinks, showers and toilets in one bathroom.

(2) Multiple kitchen fixtures, such as several ranges, refrigerators and sinks, or a lack of
kitchen facilities.

(3) A large common bedroom area with numerous beds, bunkbeds and/or lockers.

C. Comparable Housing. Housing in the private sector which is generally equivalent in
size to the rental quarters, with the same number of bedrooms, and with generally equivalent related facilities. Such housing is available on a landlord-tenant basis, with rental rates reflecting the fair market value of the accommodations. This is distinguished from housing rented on an employer-employee basis or between friends and relations, for which other considerations may have influenced the rental rates. In addition, such housing as other Government furnished housing (Federal, state or local) and housing provided by Indian tribes, churches or religious societies are excluded from this definition of comparable housing.

D. Equipment. Powered and nonpowered tools and devices used in and around households,
including lawn mowers, saws, base radio stations, battery chargers and watering or fertilizing devices.

E. Established Community. Ordinarily the nearest population center (Metropolitan
Statistical Area or an incorporated or unincorporated city or town) having a year-around population of 1,500 or more (5,000 or more in Alaska), provided that it has minimum essential medical facilities (i.e. at least one physician and one dentist) available to all occupants of Government quarters on a non-emergency basis, and a private rental market with housing available to the general public. Population determinations will be based upon the most recently published decennial census of the United States. Established communities are the locations in which rental and related facilities cost data are gathered for use in surveys and appraisals for establishing rental charges for GFQ.

F. Excess Quarters . Excess quarters are those which have been reported to GSA on
Standard Forms 118 and/or 118a by the holding bureau as being excess to the needs of the Department. While excess quarters may be the responsibility of the holding (reporting) bureau, they shall be considered as being under GSA control. For the purposes of this chapter the term "excess quarters" also includes quarters which have been categorized by GSA as surplus property.

G. Furnishings. Furnishings include furniture, appliances, equipment and other household
effects necessary to provide a reasonable degree of livability in personnel quarters. Furnishings do not include installed fixtures or equipment which is permanently affixed to and part of the quarters (i.e. central air conditioner, furnace, installed cupboards or cabinets).

H. Furniture. Major household goods articles (excluding appliances, equipment and other
household effects), which are typically freestanding and movable. Furniture includes tables, chairs, sofas, lamps, mattresses (but not bedding), bed frames, chests, dressers, etc.

I. Government Furnished Quarters. Housing units owned or leased by the Government
for which the Government serves as landlord. The terms Government quarters, quarters, rental quarters and GFQ have the same meaning as Government furnished quarters. The word "furnished" in the term Government furnished quarters means provided by the Government, and is not intended to imply that the Government has provided furniture, appliances, equipment or other household effects.

J. Housekeeping Quarters. Quarters which include a kitchen as an integral part of
each unit.

K. Mobile Home. A moveable living unit in excess of 8 feet wide (and 256 square feet),
regardless of length.

L. Monthly Base Rental Rate (MBRR). The Monthly Base Rental Rate (MBRR) is the
rental value of a GFQ equipped with a refrigerator, range and floor and window coverings. Where applicable, the MBRR reflects exclusions of excess (closed off) and Official Use space. The MBRR is determined by a survey or appraisal analysis of market rental comparables, as described in Chapter 10 of this DQH. The MBRR does not include charges for related services, or administrative deductions.

M. National Quarters Officer. The National Quarters Officer is the chief bureau official
responsible for managing that bureau's quarters program. National Quarters Officer and National Housing Officer are interchangeable terms. Bureaus which utilize quarters shall assign one individual with responsibility for implementing this handbook and for program coordination. As provided in Paragraph 17.3H, this position may be funded from rental income.

N. Nonexcess Quarters. Nonexcess quarters are those which are not presently required
by the holding bureau for the provision of service or protection of property, but for which there is a known or probable future need for provision of service or protection of property. Nonexcess quarters will not have been reported to the General Services Administration (GSA) as excess real property, and remain in the possession and control of the holding bureau.

O. Non-Housekeeping Quarters. Quarters without kitchens, or with shared kitchens,
including dormitories, barracks, bunkhouses, transient quarters and tents.

P. Non-Federal Tenant. Any person, other than an employee of the holding bureau,
whose occupancy is not directly related to the performance of a contract, or other formal agreement between the managing bureau and another Federal agency, a state agency, or a contractor providing services or supplies to the managing bureau.

Q. Obsolete Quarters. Quarters which have been classified as "obsolete" on the
Government Quarters Inventory (Form DI 1875). These are quarters which are unsuitable for occupancy because they are not decent, safe and/or sanitary. Whenever occupancy of obsolete quarters is considered essential, the provisions of paragraph 7.3A of this DQH shall be followed.

R. Other Household Effects. Uninstalled minor household goods articles (excluding
furniture, appliances, equipment, and floor and window covering), necessary for the operation of a household. These include cooking and eating utensils, bedding material, linen, wall hangings, personal articles and bric-a-brac.

S. Permit. A permit is a document granting a temporary right of occupancy (one year or less)
of vacant quarters to a Federal tenant. A permit is revocable at will by the permitting bureau, and does not transfer an interest in the property. The permit, which should be used by bureaus to allow temporary occupancy of vacant nonexcess quarters by other Interior bureaus or other Federal agencies, is shown in Appendix 10. When permitting excess quarters to Federal tenants, GSA may prescribe the use of a permit which differs in format from the permit shown in Appendix 10.

T. Quarters Management and Information System (QMIS) Program Manager.
The QMIS Program Manager heads the QMIS Program Office.

U. QMIS Program Office. The QMIS Program Office is responsible for administering the
interagency Regional Rental Survey program. This office conducts regional rental surveys; prepares regional survey reports, annual rental adjustment instructions, and special analyses; conducts quarters training; and maintains the interagency quarters data base. The QMIS Program Office mailing address is: QMIS Program Office (Code D-2910), Administrative Service Center, 7301 West Mansfield Avenue, Denver, CO 80235-2230.

V. Quarters Program Manager. The Quarters Program Manager is responsible for
administering the Department's Quarters Management Program; overseeing the activities of the QMIS Program Office; preparing Departmental quarters regulations and policies; and representing the Department in all intradepartmental and interagency quarters management activities.

W. Reasonable Value. Reasonable value is the net rental charge (Netrent) which results
after adding charges for related facilities, and after administratively adjusting the Monthly Base Rental Rate, or the Consumer Price Index Adjusted Monthly Base Rental Rate (CPI-MBRR). The authorized administrative adjustments are intended to account for many of the differences in conditions between the established communities from which rental data is gathered, and the sites at which Government furnished quarters are located.

X. Related Facilities. Related facilities include all services, utilities, furniture, appliances,
equipment, supplies and other household effects which the Government may provide in connection with the occupancy of GFQ.

Y. Revocable License. A revocable license grants a temporary right of occupancy (one
year or less) of vacant quarters to a non-Federal tenant. A revocable license is revocable at will by the licensing bureau, and does not transfer an interest in the property. The revocable license, which should be used by bureaus to allow temporary occupancy of vacant nonexcess quarters by non-Federal tenants, is shown in Appendix 11. When licensing excess quarters to non-Federal tenants, GSA may prescribe the use of a revocable license which differs in format from the license shown in Appendix 11.

Z. Same General Area. The same general area, or general area, means the areas in or
adjacent to the established communities nearest a Government installation.

AA. Seasonal Quarters. Quarters are considered seasonal when the planned period
of occupancy is limited -normally six months or less.

BB. Tent, Tenthouse or Tin Top. A tenthouse has paved or frame floors and sidewalls
with a tent over it. Tin tops are tenthouses with the tenting replaced with tin roofs. Tents are typically supported fabric structures without paved or framed floors. This housing class has few conveniences, is for seasonal use only, and has a shared community bath. Rental and related charges will not be assessed for this type of housing.

CC. Travel Trailers. Travel trailers are movable living units, not in excess of 8 feet wide (or
256 square feet), regardless of length.

DD. United States. United States means the 50 States, the District of Columbia,
Puerto Rico, the Virgin Islands and the territories and possessions of the United States.

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CHAPTER 4 -- ESTABLISHMENT AND DISPOSAL OF QUARTERS

4.1 Policy. The cost to the Government of acquiring, constructing, operating, maintaining, managing and disposing of GFQ typically far exceeds the value of rental receipts collected over the useful life of the GFQ. For this reason, new or replacement GFQ shall not be provided unless it has been determined by the appropriate program Assistant Secretary (or by the head of the bureau or regional/area director if the authority has been redelegated pursuant to 205 DM 10.1C) that the GFQ are essential to the accomplishment of a bureau's mission, and are energy efficient. The need to construct or acquire additional GFQ (including replacement units), or to retain previously constructed or acquired GFQ, is limited to circumstances where it is determined that the employees must live at the station to provide necessary service or protection, or that adequate housing is not available in the area.

4.2 Justification for Additional or Replacement Quarters. OMB Circulars A-11 and A-45 establish the policies, justifications, requirements and restrictions associated with the construction of GFQ. Although these Circulars do not address other means of establishing GFQ (such as leasing or purchasing GFQ; obtaining excess quarters from GSA; or obtaining quarters by permit from other bureaus or Federal agencies), the provisions of these Circulars will be applied, as prescribed below, regardless of the method contemplated for establishing new or replacement GFQ.

A. Housing Requirements Analysis. A Housing Requirements Analysis (HRA) will be
conducted to ascertain the need for each proposed additional or replacement GFQ. Where two or more additional or replacement GFQ are contemplated at a specific housing site within an installation, the HRA may include all of the GFQ at such site. Although no specific form or format is prescribed, the HRA should contain, as a minimum, the following information.

(1) The number of employees, by position, title, series and grade for whom the housing
would be provided.

(2) The duties and services to be performed by each employee for whom housing is
proposed. The HRA should positively establish that only through the performance of these duties can necessary service or protection of property be provided.

(3) A conclusive demonstration that necessary service and protection of property can
only be rendered if the individuals with the specified duties are housed at the designated housing site. This determination is typically made on the basis that key employees will be needed on 24-hour call (service and protection of property are 24-hour per day responsibilities). In these circumstances, the HRA should specify how these functions will be performed during the temporary absence (annual leave, temporary duty, shopping trips, etc.) of persons in positions for which the housing is intended.

(4) A statement that housing is not available, currently or prospectively, at the designated
housing site. If housing (Government or private) is present at the housing site, the HRA should explain why available housing cannot be used to meet the requirement. If other personnel are presently housed at the designated site, the HRA should explain why those individuals are unable to provide the necessary services or property protection, or alternatively, why they cannot vacate the housing to provide the housing to the individuals for whom the proposed housing is intended.

(5) A description of Government and private housing (if any) available within 30 road
miles of the designated housing site; and a supported finding that the available supply (present and prospective) will not meet the necessary housing requirements. The HRA will consider private housing available for sale and for rent; except that in situations where it is the practice of the bureau to rotate the designated personnel between intervals of three years or less, only rental housing need be considered available. In such situations, the HRA should establish that the personnel rotation system is reasonable and contributes to the effective prosecution of its program. Insufficiency or inadequacy of the housing supply shall be demonstrated in the HRA by a showing that one or more of the following conditions exist and are likely to be of extended duration.

(a) Housing cannot be located through realtors or advertisement.

(b) Available housing is substandard by reasons of design, construction or location.

(c) Available housing, because of size, is considerably more costly than employees can afford.

(d) Employees subject to rotation cannot obtain leases permitting them to vacate on 30 days notice, at prevailing rental rates.

(6) Following guidelines prescribed in OMB Circular A-45, the HRA should determine
the number and sizes of the families to be housed; the numbers and types of dwellings to be established (houses, apartments, mobile homes, etc.); the design standards, configuration, size and number of rooms of each proposed GFQ; and relationship between the prospective rental charge and the employee's ability to pay.

(7) Because of the high cost of operation and maintenance, and the relatively low
rental revenue associated with mobile homes, mobile homes shall not be used to meet new or replacement quarters requirements, unless there is no reasonable or economic alternative. The proposed use of mobile homes shall be fully supported and justified in the HRA.

(8) The name, organization, address and telephone number of each person contacted
during the conduct of the HRA.

(9) The signature, and typewritten name and title of the person preparing the HRA,
and the date the HRA was prepared.

B. A Justification for New or Replacement Quarters, Form DI 1871, (see Appendix 12)
should be prepared and submitted to the bureau's approving official. The appropriate HRA(s), along with any additional supporting justification, should accompany the Form DI 1871 through the review and approval cycle. Following approval, of additional or replacement quarters by the program Assistant Secretary or bureau head, a copy of the approved Form DI 1871, the HRA, and other supporting documentation should be provided to the Departmental Quarters Program Manager. Copies of approved requests should be retained by bureau national, regional and installation quarters offices.

4.3 Establishment of New or Replacement Quarters. Following the justification of new or replacement housing, bureaus shall comply with the procedures below when establishing the required housing.

A. In accordance with IPMR 114-47.201-2(b), and to the extent compatible with program
requirements, bureaus shall fulfill the need for new or replacement quarters, first, by utilizing quarters that may be offered by other Interior bureaus, and second, by utilizing quarters reported as excess by other Federal agencies to GSA. When requesting space from GSA, bureaus shall utilize Standard Form 81, Request for Space.

B. If quarters are not available under paragraph 4.3A above, bureaus may establish quarters
by one of the following methods.

(1) Construction. Construction of quarters may be undertaken at a given location only when
specifically authorized through the normal budgetary process.

(2) Leasing. Leased quarters may be provided if funds are available for this purpose.
However, it must be kept in mind that where housing is available for lease on the private market, it would be almost impossible to find that circumstances warranted the provision of leased housing, except to satisfy a short-term need. Under FPMR 101-18.1, the leasing function shall be performed by GSA, unless a bureau has leasing authority, or unless GSA has delegated the leasing function to a bureau.

(3) Purchase. Bureaus may acquire quarters through purchase if funds are available for this
purpose. GSA shall perform the transaction, unless the bureau has the authority, or unless GSA has delegated the authority to the bureau.

4.4 Retention of Quarters. In compliance with the spirit of 5 U.S.C. 5911, OMB Circulars A-11 and A-45, and IPMR 114-47.201-1, it is Departmental policy to promptly dispose of any GFQ not essential to accomplishment of a bureau's mission. Housing should not be retained for use as GFQ merely because it is available. Unneeded housing acquired in conjunction with land acquisition programs is particularly susceptible to unjustified retention. Unneeded housing may also result from a growth in the housing supply in a nearby community; changes in bureau program objectives with attendant reductions in total staff or required occupants; or improved commuting conditions. Bureaus shall take the following measures to minimize retention of unneeded housing.

A. Bureaus should avoid the acquisition of land containing residential housing except where
the land is required for program purposes.

B. As directed by FPMR 101-47.201-2 and IPMR 114-47.201-2, each bureau having
jurisdiction over real property shall survey all of its real property, including GFQ, at least once each year to determine which holdings, or portions thereof, are no longer needed in Interior programs.

C. In accordance with IPMR 114-47.802-50, quarters may be retained by a bureau only
if one of the following conditions is met.

(1) Quarters Currently Utilized. In this situation, the quarters are currently being used
for the provision of service or the protection of property, and should be retained until no longer needed for the provision of service or protection of property.

(2) Nonexcess Quarters. In this situation, the quarters are not currently required
for the provision of service or the protection of property (even though they may be occupied by employees who are not required occupants, or by other authorized individuals). However, there is a definite or probable future need for the quarters for the provision of service or protection of property. The known or future need for such quarters shall be documented, and the quarters may be retained. However, if after one year, the quarters are not utilized by the holding bureau for the provision of service or protection of property, they shall be disposed of or rejustified. Rejustification (following the procedures in paragraph 4.2, DQH) shall be accomplished annually during periods when such quarters are not being utilized for provision of service or protection of property. The justification to retain such quarters shall be approved by the bureau National Quarters Officer.

4.5 Disposal of Quarters.

A. Disposal Criteria. Quarters in the following situations, as described in IPMR
114-47.802-50, shall be regarded as unneeded, and shall be promptly disposed of by the holding bureau.

(1) Quarters not currently utilized for the provision of service or protection of property,
and for which there is no foreseeable future need for provision of service or protection of property.

(2) Nonexcess quarters described in paragraph 4.4C(2), DQH, that have not been
justified and approved for retention.

(3) Quarters used by another Interior bureau or Federal agency under a permit, but
which have not been justified as having a definite or probable future need for provision of service or protection of property. Such quarters shall not be retained by the holding bureau solely on the basis that they are occupied by rent-paying tenants. Instead, the quarters shall be conveyed to the permittee bureau or agency by formal transfer of accountability, or disposed of otherwise.

(4) Quarters leased to non-Federal tenants, but which have not been justified as
having a definite or possible future use for provision of service or protection of property. Such quarters shall not be retained solely on the basis that they are occupied by rent-paying tenants.

(5) Quarters presently used for the provision of service or protection of property, but
which are located within ten (10) one-way road miles of an established community shall be disposed of unless rejustified following the provisions of paragraph 4.2 of this handbook. Thereafter, such quarters shall be rejustified every two years, or until disposed of.

B. Disposal Procedures. Bureaus shall promptly dispose of unneeded and obsolete GFQ,
following procedures in FPMR 101-47, IPMR 114-47, and bureau regulations. Copies of documentation incident to the circularization and excess processes shall be provided to the holding bureau's headquarters and appropriate regional offices. The installation name and the quarters number shall be entered on all disposal documents.

(1) When it is determined by the holding bureau that quarters are no longer needed
by the holding bureau for the provision of service or protection of property, the availability of the quarters shall be circularized and offered to other DOI bureaus and offices (see IPMR 114-47.203-1(c)). Transfers of available quarters to other Interior bureaus shall be made without an exchange of funds except as provided in IPMR 114-47.203-1(e). If the circularization process does not result in a transfer of quarters to another Interior bureau, the holding bureau shall determine that the quarters are excess to the needs of the Department of the Interior, and shall report the quarters as excess property to GSA on Standard Form 118, Report of Excess Real Property, and accompanying Standard Forms 118a, 118b and 118c (see FPMR 101-47.202-2).

(2) In accordance with FPMR 101-47.203-6, prefabricated movable structures, such
as Butler-type structures, quonset huts, mobile homes (with or without undercarriages), travel trailers and houseboats may be disposed of as personal property.

(3) Bureaus with specific statutory authority to dispose of quarters using procedures
different from those described above, may dispose of quarters in accordance with special authorities. An example of special disposal authority is 25 U.S.C. 443 (a), under which the Bureau of Indian Affairs may convey certain buildings to Indian tribes.

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CHAPTER 5 -- USE OF QUARTERS BY NON-BUREAU TENANTS

5.1 Scope. The provisions in this Chapter apply to the interim use of quarters by other Interior bureaus, by other Federal agencies, and by non-Federal tenants, during periods of temporary non-utilization, and pending disposal by GSA. These provisions are not applicable in situations where quarters are made available to a non-Federal entity incident to the lease of an installation, such as when quarters are included in the lease of a fish hatchery (and associated property) to a state on a long term basis. Tents and quarters that are in obsolete condition shall not be made available to non-bureau occupants.

5.2 Interim Use of Nonexcess and Excess Quarters by Other Interior Bureaus or Federal Agencies. Subject to the following provisions, bureaus may allow temporary occupancy of vacant, nonexcess and excess quarters by other Interior bureaus or Federal agencies.

A. Permits to other Interior Bureaus or Federal Agencies. Nonexcess quarters (as
described in IPMR 114-47.5104(a) and paragraph 3.1N, DQH) and excess or surplus quarters reported to GSA may be made available for interim use under permits to other Interior bureaus or Federal agencies (see IPMR 114-47.51).

B. Approval.

(1) Nonexcess Quarters. All permits shall be approved and signed at the regional
office level. GSA approval is not required when permitting nonexcess quarters to another DOI bureau (see FPMR 101-47.203-1). However, GSA approval must be obtained prior to permitting GFQ to a non-DOI Federal agency, unless the holding bureau has specific authority to permit real property to another Federal agency (FPMR 101-47.802(a)(3)(i)).

(2) Excess Quarters. All requests to permit excess quarters must be approved at
the regional office level. Since excess quarters are under GSA control, GSA approval must be obtained prior to execution of the permit (see FPMR 101-47.203-8(b)).

C. Documentation.

(1) Nonexcess Quarters.

(a) Permits to Other Interior Bureaus. The minimum documentation requirements
include evidence of a probable or known future need for the GFQ by the holding bureau (see paragraph 4.4C(2), DQH); the regional office approval to permit the GFQ; and a signed copy of the permit (see Appendix 10). If, at the end of the permit period, another permit is established, documentation for the current and all previous permits should be retained. Documentation shall be maintained at the regional office and installation, with a copy provided to the bureau headquarters office.

(b) Permits to Other Federal Agencies. Where bureaus have specific authority
to permit GFQ to another Federal agency, the documentation requirements are the same as those in paragraph 5.2C(1)(a), above. Where bureaus do not have specific authority to permit GFQ to another Federal agency, the documentation will include the necessary GSA approval, in addition to the requirements in paragraph 5.2C(1)(a), above. Documentation shall be maintained by bureaus at the installation, regional and national levels.

(2) Excess Quarters. The minimum documentation requirements include the regional
office approval to permit the GFQ; GSA's approval to permit the GFQ; a copy of the signed permit (either the GSA-prescribed permit, or the permit illustrated in Appendix 10); and other documentation which GSA may require. Documentation for permitted excess quarters shall not be provided to the Departmental Quarters Manager.

D. Reimbursement. Pursuant to FPMR 101-47.203-8(b), the permittee bureau or
Federal agency shall reimburse the permitting (holding) bureau for the full rental value of each quarters unit. The full rental value of quarters permitted to another bureau or agency is determined by applying the provisions of OMB Circular A-45. Thus, the rent shall consist of the Consumer Price Index-adjusted Monthly Base Rental Rate (CPI-MBRR), plus charges for Government furnished related facilities, minus applicable administrative adjustments. The permittee bureau or agency shall be responsible for rental collections from quarters occupants.

5.3 Interim Use of Nonexcess and Excess Quarters by Non-Federal Tenants. Subject to

the conditions and limitations in this paragraph, bureaus may allow temporary occupancy of vacant, nonexcess and excess quarters by non-Federal tenants. Bureaus shall first determine that no other bureau or Federal agency has an interim need for the quarters. When quarters are leased to non-Federal tenants (general public), a revocable license (not a permit) shall be the instrument granting temporary occupancy. Quarters may be licensed and leased to non-Federal tenants only during interim periods pending future use by the holding bureau, or pending disposal by GSA. Interim use of quarters by non-Federal tenants shall be subject to the following provisions.

A. Non-Federal Tenants. Non-Federal tenants include members of the general public
and any person not a Department of the Interior employee, whose occupancy is not directly related to performance of a contract, memorandum of understanding, or other formal agreement between the bureau or office managing the quarters and another cooperating Federal or state agency or with a contractor providing services or supplies to the managing bureau or office. A former employee (or the family of a deceased employee), who continues to occupy quarters for a period of up to 60 days following the separation or the death of the employee is not a non-Federal tenant, and shall pay rental charges established pursuant to OMB Circular A-45. A former employee (or the family of a deceased employee), who continues to occupy quarters for a period of more than 60 days, shall not be regarded as a non-Federal tenant, if the continued occupancy is related to extenuating circumstances (sickness or death), and if the continued occupancy is approved at the regional office level. In the absence of extenuating circumstances, a former employee (or the family of a deceased employee), who continues to occupy quarters beyond 60 days of the separation or death of the employee, shall be considered to be a non-Federal tenant, unless continued occupancy is directly related to performance of a contract, memorandum of understanding, or other formal agreement with the bureau, another cooperating Federal or state agency, or with a contractor providing services or supplies to the managing bureau. Employees in the Military Reserve, who are called to active military duty shall not be regarded as non-Federal tenants. Where such employees, or their families, continue to occupy GFQ, they shall continue to pay rental charges established pursuant to OMB Circular A-45.

B. Approval.

(1) Nonexcess Quarters. Bureaus without specific authority to license and lease
property to non-Federal tenants shall first obtain written approval from the program Assistant Secretary, and then from GSA (FPMR 101-47.802(a) (3)(i)). Bureaus with authority to lease to non-Federal tenants must obtain approval from the program Assistant Secretary (but not GSA) prior to renting nonexcess quarters to non-Federal tenants.

(2) Excess Quarters. All requests to license and lease excess quarters to non-Federal
tenants, must be approved, first by the program Assistant Secretary, and then by GSA. Bureaus do not need specific statutory authority for leasing to non-Federal entities in these circumstances, since GSA approval constitutes authorization under the Federal Property and Administrative Services Act of 1949 (FPMR 101-47.203-9).

C. Documentation.

(1) Revocable License. A copy of the revocable license to be used for all leases of
excess and nonexcess GFQ to non-Federal tenants is shown in Appendix 11. Issuance of a revocable license is in addition to the other documentation requirements set forth in paragraphs 5.3C(2) and (3), below. The "General Conditions" appearing in the license are prescribed by GSA, and will be updated as necessary. When GSA is involved in the licensing process, the actual license/format used may vary somewhat to comply with additional GSA requirements. Other terms and conditions deemed essential by bureaus to protect the Government's interests may be incorporated by adding the following paragraph E to the "Terms and Conditions" portion of the license.
"E. The additional terms and conditions appearing on Attachment "B" hereto, are hereby incorporated and made a part of this license."

(2) Nonexcess Quarters. The minimum documentation requirements include evidence
of a probable or known future need for the GFQ by the holding bureau (paragraph 4.4C(2), DQH); the written approval of the program Assistant Secretary and (where necessary) GSA; a signed copy of the revocable license (Appendix 11); Form DI 1879, Quarters Occupancy/ Vacation Inspection Form (Appendix 15); Form DI 1880, Rent Computation Schedule (Appendix 16); Form DI 1882, Notice of Rental Adjustment (Appendix 19); and Form DI 1881, Quarters Assignment Agreement (Appendix 14). The revocable license shall be incorporated into the Quarters Assignment Agreement by adding the following statement to the "Other Conditions" section of the Form DI 1881.
"The attached revocable license is made a part of this agreement."

(3) Excess Quarters. The minimum documentation requirements include the written
approval of the program Assistant Secretary and GSA; a signed copy of the revocable license (Appendix 11) issued by the bureau or by GSA; Form DI 1879, Quarters Occupancy/ Vacation Inspection Form (Appendix 15); Form DI 1880, Rent Computation Schedule (Appendix 16); Form DI 1882, Notice of Rental Adjustment (Appendix 19); and Form DI 1881, Quarters Assignment Agreement (Appendix 14). The revocable license shall be incorporated into the Quarters Assignment Agreement by adding the following statement to the "Other Conditions" section of the Form DI 1881.
"The attached revocable license is made a part of this agreement."

(4) Retention and Distribution of Documents. Full documentation shall be maintained
at the installation and Regional Office; copies of the revocable license shall be provided to the bureau National Quarters Officer and the Departmental Quarters Program Manager. If, at the end of the license period, another license is established, documentation for the current and all previous licenses should be retained.

D. Rental Charges. When quarters are rented to non-Federal tenants, the holding bureau
is responsible for establishing and collecting the rental charges. Rental charges to non-Federal tenants shall be established in accordance with OMB Circular A-25, Revised. As contrasted with OMB Circular A-45, which prescribes the establishment of a "reasonable value" rent, OMB Circular A-25 requires the establishment of a "fair market" rent, when renting to non-Federal tenants. Fair market rental charges shall be established as follows.

(1) Survey Method. Where regional surveys are used, the rent shall consist of
the CPI-MBRR plus charges for all Government furnished related facilities (utilities, appliances, furnishings, services, etc.). The adjustments in paragraph 11.3 and Chapter 12 of this DQH are not allowed; however, bureaus may offset from the rent the amount of possessory interest tax (if any) actually paid by non-Federal tenants. The base rental rate and charges for related facilities shall be affirmed or adjusted annually as prescribed by OMB Circular A-45; however, incremental implementation of rental adjustments in excess of 25 percent (see paragraph 14.7, DQH) is not authorized for non-Federal tenants.

(2) Appraisals. Where appraisals are used, they shall be conducted by appraisers who
have been certified in accordance with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Appraisals shall be fully documented; and approved by a certified review appraiser. The appraisal shall establish the fair market rental value, taking into consideration all relevant factors, including the imposition of special terms and conditions required by the Government. The appraisal shall also establish the market value (including all taxes, surcharges and delivery charges) of related facilities (utilities, furnishings, appliances, services, etc.) provided by the Government. The adjustments in paragraph 11.3 and Chapter 12 of this DQH are not allowed; however, bureaus may offset from the rent the amount of possessory interest tax (if any) actually paid by non-Federal tenants. The fair market value rental rate and charges for related facilities shall be affirmed or adjusted annually as prescribed by OMB Circular A-45; however, quarterly incremental implementation of rental adjustments in excess of 25 percent (see paragraph 14.7, DQH) is not authorized for non-Federal tenants.

E. Deposits. It is customary in the private sector for landlords to require advance rental
payments and security/damage deposits. Inasmuch as OMB Circular A-25 requires that the charges for real property reflect the fair market value, and that they be in accordance with commercial practices, bureaus are authorized to collect and hold, until vacation of the quarters, an amount equal to two months' rental charges (including charges for related facilities) as a condition of occupancy. These amounts are in addition to the tenant's monthly rental payments. These funds, less amounts due the Government for unpaid rental charges and for damage to the GFQ and/or contents, shall be refunded following vacation of the quarters.

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CHAPTER 6 -- GOVERNMENT PROVIDED FURNISHINGS

6.1 Scope. This chapter sets forth the policies and criteria governing the provision of furnishings in GFQ.

6.2 Policy. Bureaus shall provide furnishings in GFQ in accordance with the following criteria.

A. Restricted Furnishings. Unless otherwise authorized, bureaus shall not provide:

(1) Television sets, radios and other pleasurable, but unnecessary, items (except Government
provided radios, etc. required for official purposes).

(2) Other household effects as defined in paragraph 3.1R, DQH.

B. Living space in all quarters, except tents, shall be provided with finished floors. Finished
flooring may be carpeting, tile, sheet vinyl or linoleum, wood parquet or finished boards, but not painted or unpainted plywood, particle board or cement.

C. Window covering (curtains, shades, blinds, drapes, etc.) shall be provided for each
window in living areas.

D. Appliances normally associated with rental housing (washer, dryer, refrigerator and range)
may be provided in GFQ. In making the determination as to what other appliances are to be provided, bureaus shall consider such factors as remoteness of the quarters site, geographical location and climatic conditions. Bureaus shall establish appropriate approval levels.

E. Government Quarters in the United States. GFQ located in the United States
generally shall be provided to employees unfurnished, except that:

(1) Bureaus may provide furnishings in GFQ located in Alaska, Hawaii, Puerto Rico and the
Virgin Islands when determined to be advantageous to the Government.

(2) Bureaus may provide furnishings in GFQ located in remote, highly inaccessible areas
where transportation difficulties and periods of duty are such that it is more economical for the Government to provide furnishings. An example of this type of quarters might be a ranger station, which is inaccessible to all or most motor transportation. However, mere remoteness from populous areas is not enough to justify provision of furnishings. The following costs shall be considered in evaluating relative economies and the total thereof compared with the costs of packing, crating, transportation, and other costs of moving personally owned furnishings, which would be incurred if Government furnishings were not supplied.

(a) Cost of new furnishings.

(b) Delivery costs of new furnishings.

(c) Storage costs of furnishings not in use.

(d) Cost of moving furnishings in and out of quarters.

(e) Cost of repairing furnishings.

(f) Cost of storing furnishings owned by occupants of furnished quarters (including related transportation costs) when such storage at Government expense is authorized by law.

(g) Cost of administering a "furnishings" program.

(3) Bureaus may provide furnishings in GFQ if necessary because the GFQ occupant is
required to accommodate or entertain visitors frequently as a part of his or her official duties.

(4) Bureaus may provide furnishings in GFQ that are normally occupied on a shared or
short-term basis. These include transient and seasonal quarters, tents and dormitories.

(5) Bureaus may provide furnishings in GFQ when only specially designed or built-in
furnishings can be used, as in mobile homes.

F. Government Quarters Outside the United States. GFQ located outside the United
States should be provided with furnishings, except that unfurnished quarters, or partly furnished quarters, may be provided at locations where:

(1) Assigned personnel are expected to remain for four years or more.

(2) It is determined after considering overall economy, equity and morale, that an exception to
the general rule of providing furnishings is clearly advantageous to the Government.

G. Reduction of Shipping Weight Allowance. When furnishings are provided by the
Government, bureaus shall restrict the weight allowances for transportation of household goods and personal effects. When the shipping allowance is restricted, the remaining household goods may be placed in storage at Government expense. In such cases, the amount shipped plus the amount stored shall not be in excess of the amounts allowed in the Federal Travel Regulations.

6.3 Selection of Furnishings. The following criteria shall be considered in the acquisition of

furnishings to be provided in GFQ. The acquisition of furniture or other household effects shall be as prescribed in FPMR 101-26.505.

A. Furnishings shall be of good, durable, but not excessive quality, and within price ranges
suitable to the proposed quarters. They shall be of commercial types and grades which are compatible in quality and appearance with personally owned items. Furnishings shall be in sound condition, safe operating order, and free of major surface or internal defects. Where the quality of Government provided furniture in a particular room is substantially lower than the quality contemplated in this paragraph, that room shall not be considered as being furnished by the Government.

B. Furnishings should be appropriate for the climate and for the quarters units to be furnished.
The general styling and materials should be consistent with those in common use in the locality, insofar as practicable.

C. Consideration should be given to interchangeability, simplicity, adaptability to different
room sizes and configurations, durability, ease of warehousing, maintenance, and general acceptability to persons of different tastes.

6.4 Guidelines for Determining Furniture Requirements. The tables below, set forth guidelines to be used in determining the amounts of furniture to be provided in GFQ. Where the Government provides substantially less (50 percent or less) furniture than is indicated below for a particular room, that room shall not be considered as being furnished by the Government.

A. Houses, Duplexes, Triplexes, Townhouses, Multi-Room Apartments and Mobile Homes.

(1) Living room/area:

Sofa/couch (3-person capacity)1
Armchairs (upholstered) 2
Coffee table 1
Occasional tables 2
Lamps (table or floor) 2

(2) Dining room/area:

Dining table with one leaf 1
End chairs (arm chair) 2
Side chairs 4
Side board/buffet with china cabinet 1

(3) Master bedroom:

Double bed 1
Mattress and box spring 1
Dresser with mirror 1
Chest of drawers 1
Night table 1
Table lamp 1

(4) Other bedroom:

Twin bed or double bed 1
Mattress and box spring 1
Dresser 1
Night table 1
Table lamp 1

B. Efficiency Apartment, Travel Trailer, Transient Quarters.

Sofa bed (3-person capacity) 1
End table 1
Coffee table 1
Small (or drop-leaf) table 1
Side chair (no arms) 2
Dresser 1
Table or floor lamp 1

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CHAPTER 7 -- MAINTENANCE OF QUARTERS

7.1 Policy. It is the policy of the Department of the Interior that all occupants of GFQ under the control of Interior bureaus shall be provided decent, safe, sanitary and energy efficient housing. Toward that end, the guidelines in this chapter shall be followed by each bureau responsible for GFQ.

7.2 Quarters Maintenance Responsibilities.

A. Government Responsibilities. Bureaus shall ensure that all occupied quarters are
safe, decent, sanitary and energy efficient. All alterations and improvements to quarters are the responsibility of, and shall be performed by the holding bureau. Unauthorized alterations and improvements made by an occupant shall become the property of the Government. In meeting these responsibilities, bureaus shall be guided by the following requirements.

(1) Housing shall be maintained at a level at least equal to the code requirements
in the vicinity of the GFQ. Bureau maintenance and construction standards may be used if the bureau standards equal or exceed the local code requirements.

(2) Meters. As required by OMB Circular A-45, meters (electricity, heating
fuel and water) shall be installed on all GFQ. In multi-unit dwellings, such as duplexes, triplexes, townhouses, rowhouses or apartments, each living unit shall be individually metered. Buildings used as dormitories, bunkhouses or transient quarters shall be metered at the building level, but not at the living unit level. Tents need not be metered. Bureaus are responsible for ensuring that meters are installed, calibrated and in good operating condition. Exceptions to these requirements must be fully justified by the bureau, and approved by PAM.

(3) Fire Protection Devices. Fire protection devices, as required by the Fire
Administration Authorization Act of 1992 (Public Law 102-522) shall be installed in all GFQ. The number and locations of these devices shall be as recommended by local fire fighting or safety officials. Bureaus shall inspect these devices periodically, to ensure that they are in working condition.

(4) Quarters Maintenance Inspections. Each GFQ shall be inspected by
facility/maintenance personnel to ensure that the housing is decent, safe, sanitary and energy efficient; and to identify and correct maintenance deficiencies. Quarters shall be inspected before initial occupancy, and thereafter annually, or with a change in tenant, whichever occurs first. Quarters no longer required by a bureau for provision of service or protection of property shall be inspected prior to making it available to another bureau, reporting it as excess to GSA, or issuing an interim use permit or revocable license. As the purpose of these inspections is to obtain information regarding the condition of the GFQ and associated maintenance needs, bureaus should develop appropriate inspection checklists for use during these inspections.

(5) Inventory and Rental Changes. Following a quarters mainte- nance inspection,
or the completion of maintenance or alterations, it may be determined that the description of the GFQ as it appears on the Government Quarters Inventory (Form DI 1875) does not agree with the actual appearance, condition or configuration of the GFQ. In such cases, the local housing manager shall revise the inventory to reflect the actual description of the subject GFQ. The bureau rent setting office shall be notified within 30 days of the inventory changes. Where necessary, rental charges and charges for related facilities shall be recalculated to reflect the new GFQ description. Revised rental charges will be effective 30 days following notification of the occupant of the inventory and rental rate changes. Additional information concerning the Government Quarters Inventory may be found in Chapter 16, DQH.

(6) Quarters renovation, and installation or replacement of appliances, furnishings and
fixtures are management actions and are not subject to prior tenant approval, even if the actions result in rental increases. While every effort should be made to avoid inconvenience to the tenants (i.e., scheduling maintenance, painting, carpet cleaning, etc., during periods of vacancy), tenants should be advised prior to occupancy that this may not always be possible.

(7) Relocation of Occupants. Bureaus shall make every effort to accomplish
maintenance or renovation during periods of vacancy. However, where it is necessary to move employee occupants of GFQ to other GFQ or to private sector housing (apartment or hotel), the bureau may pay the cost of moving and/or storing the occupants' personal effects, as well as the cost of alternate private sector housing as administrative expenses of operating the installation. Under these circumstances, the relocated occupants continue to occupy GFQ and shall pay the rental charge applicable to the "new" housing unit. The holding bureau shall not pay the expenses of relocating occupants who are employees of other bureaus or Federal agencies, using the GFQ under permits issued by the holding bureau. Likewise, the holding bureau shall not be liable for the expenses of relocating non-Federal entities occupying the GFQ under a revocable license.

B. Quarters Occupant Responsibilities. Occupants of GFQ have the normal tenant
responsibilities described below.

(1) GFQ occupants are responsible for minor maintenance of the quarters and the grounds,
such as yard upkeep, snow removal, and light bulb replacement. Occupants shall also perform such activities as cleaning garages, storage areas, porches, steps, walks, windows, inside walls, woodwork, floors, furniture, fixtures, appliances and similar household equipment.

(2) GFQ occupants shall conduct periodic checks of fire protection devices (fire
extinguishers, smoke detectors, etc.) to verify that they are in operating condition; inadequate units shall be reported to the housing manager. Occupants are also responsible for replacing batteries in smoke detectors, as necessary.

(3) GFQ occupants shall maintain the quarters in a clean and sanitary condition, and
shall pay for damage beyond normal wear and tear.

(4) GFQ occupants should, at least annually, verify that the Government Quarters
Inventory (Form DI 1875) accurately reflects the description, condition and configuration of the quarters unit. Any discrepancies shall be reported to the installation housing manager. Occupants have the normal tenant responsibility to report all GFQ deficiencies to the housing manager as soon as such deficiencies are identified.

7.3 Maintenance Priorities. While unanticipated requirements must be satisfied on a day-to-day basis, bureaus shall establish housing maintenance plans, in which intermediate and long term maintenance needs are identified and programmed. Bureaus shall incorporate the following priorities in their quarters maintenance plans.

A. Priority #1 -Obsolete Quarters. The Department is committed to furnishing decent,
safe, sanitary and energy efficient quarters to its employees. Quarters, which have been classified as "obsolete" on the Government Quarters Inventory (Form DI 1875), are by definition not decent, safe or sanitary, and should not be used as housing. Where program essential quarters are classified as being obsolete, the highest maintenance priority shall be given to either repair, remodel or modernize the GFQ to meet local code requirements, or bureau standards (if bureau standards are more stringent than applicable building codes). Alternatively, obsolete GFQ should be replaced or disposed of in accordance with bureau program requirements and this DQH.

(1) Whenever occupancy of obsolete quarters is considered essential, approval by
the appropriate program Assistant Secretary (or head of the bureau or regional/area director where authority has been delegated), shall be obtained prior to occupancy.

(2) Interim use of obsolete quarters will be dependent upon positive evidence of
action to eliminate the deficiencies, or to replace the obsolete units. Occupancy of such units shall not continue beyond one year from the date of determination of obsolete condition, unless the deficiencies are corrected.

(3) Employees, contractors, grantees and essential cooperators occupying obsolete quarters
shall not pay rent for the use of such quarters; however, they shall be required to pay for utilities, services and related facilities, which the Government may provide.

(4) Decisions concerning repair, rehabilitation or replacement of obsolete quarters are
property and maintenance management decisions, and are not subject to tenant approval, even where improvement or replacement results in rental rate increases.

B. Priority #2 -Health and Safety Deficiencies. Quarters which have health and
safety deficiencies, even though not inventoried as being in obsolete condition shall be accorded the second level of maintenance priority.

C. Priority #3 -Energy Inefficient Quarters. The third level of maintenance
priority shall be given to quarters which are so energy inefficient that the occupants are allowed an adjustment for excessive heating or cooling costs (see also paragraph 11.3, DQH).

D. Priority #4 -Quarters in Poor Condition. This maintenance category includes quarters
classified on the Government Quarters Inventory (Form DI 1875) as being in poor exterior and/or interior condition. Also included in this category are quarters which have been inventoried as having minimal or no weatherproofing, even though the occupant may not be eligible for an adjustment for excessive heating or cooling costs. The installation files for such quarters shall contain adequate documentation fully supporting the inventory determination. If the quarters are to be retained for three years or longer, a budget and maintenance schedule shall be established to improve the level of insulation/weatherproofing to at least "adequate," and the condition to at least "fair."

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CHAPTER 8 -- ASSIGNMENT AND VACATION OF QUARTERS

8.1 Assignment of Quarters.

A. Assignment Policy. Each bureau having jurisdiction over GFQ shall develop and
make known to its employees a quarters assignment policy with implementing procedures appropriate to the number of quarters involved and the requirements of the bureau's programs. The assignment policy should be in accord with the provisions of this Chapter 8. All assignments of quarters shall be made without regard to race, color, creed or national origin.

B. Required Occupants.

(1) Authority and Delegation. 5 U.S.C. 5911(e) provides that an agency may
not require an employee to occupy quarters unless the agency head determines that necessary service cannot be rendered, or that property of the Government cannot adequately be protected, otherwise. Within the Department, the authority to make the determination that an employee must occupy Government quarters has been delegated to heads of bureaus (205 DM 10) with authority to redelegate, but not below the level of regional director (see Appendix 7).

(2) Policy and Procedure. The decision to require occupancy of GFQ as a
condition of employment is an agency determination -not an employee determination -which should be based upon the requirements of the program. Required occupancy may not be established solely to achieve a high GFQ occupancy rate, or as a means of forcing efficient use of existing housing. It is the policy of the Department of the Interior that employees shall not be required to occupy GFQ unless all of the following conditions are met.

(a) Occupancy is required for the provision of necessary service, or for the protection of life and property.

(b) Occupancy is required as a condition of employment, and is specified as a condition of employment in the job announcement, position description and the SF-50.

(c) Occupancy is required for the convenience of the employer - not the employee. That is, the requirement for occupancy of GFQ shall be associated with the need for and responsibilities of a particular position, rather than the personal preference of the individual who happens to encumber the position at the moment. Thus, where there is an historic pattern of alternating occupancy between "required" and "permissive," to accommodate the desires of the employee, occupancy shall not be regarded as "required," since in such cases, required occupancy is not for the convenience of the Government.

(3) Examples of Types of Service and Protection Which May Require Occupancy
of GFQ. Examples of circumstances under which occupancy of quarters may be required for service or protection include the following.

(a) Suitable private housing is unavailable within a reasonable commuting distance. Where the nearest established community is over 30 miles distance, or if less, forty-five or more minutes normal one-way commuting time by private automobile, occupancy of GFQ may be required to ensure availability of employees to meet the service or protection requirements. These "non-availability" determinations should be made on an "all employee or none" basis. Thus, in "non-availability situations, where even one employee is allowed to live in private housing (i.e., is not required to occupy GFQ), it would be inappropriate to designate any GFQ occupant at that installation as a "required" occupant.

(b) The immediate availability of specific trained individuals is required to respond to emergencies, such as outbreak of fires, canal breaks, storm damage, etc.

(c) The presence of a specifically designated work force is required during the frequent periods in winter when roads to refuges, reservations, parks, installations and construction projects are impassable.

(d) Specifically designated and trained individuals are required to provide protection, guidance, information and aid to large numbers of the general public visiting Interior installations, and parks, particularly those arriving or remaining after business hours.

(e) All incumbents of specifically designated positions, or all occupants of specifically designated housing units are required to occupy GFQ in order to convey to potential malefactors (vandals, arsonists, poachers, thieves, out-of-season hunters, etc.) that people are living on the premises around the clock and throughout the year.

(f) All occupants of specifically designated housing units are required to occupy GFQ because occupancy, in and of itself, will prevent or deter rapid deterioration or will ensure the protection and maintenance of the quarters and premises.

(g) The continual availability of all incumbents in specifically designated positions or all occupants of specifically designated housing units are required to render services at all hours to the direct beneficiaries of Interior programs, e.g., Indian families on reservations, irrigation farmers on reclamation projects, etc.

(h) Additional Considerations. Other important elements in determining whether an occupant shall be required to occupy GFQ are shown below.

(i) The normal and emergency responsibilities documented in the position description.

(ii) Documented requirements to perform essential duties outside normal working hours.

(iii) Documented requirements to perform overtime or standby duty on a frequent basis.

(iv) Response time if alternatively housed in a nearby community and the consequences of delayed response.

(v) Where duties are limited to certain specific times of the year, consideration should be given to staggering staff work hours.

(4) Minimum Response Time. In lieu of requiring occupancy of Government
quarters, bureaus may establish minimum response times, within which employees must be able to travel from their residences to the duty station when called to duty. Employees under minimum response time requirements may be provided Government quarters, or they may obtain private housing; however, such employees, even if provided GFQ, shall not be regarded as required occupants.

(5) Requirement to Occupy Quarters. Each required occupant shall occupy
assigned GFQ as the primary residence. The employee does not satisfy the terms of required occupancy solely by paying rent on the assigned housing.

(6) Documentation. All determinations of required occupancy shall be in
writing. The delegations of authority in 205 DM 10 reserve to the appropriate program Assistant Secretary, the head of the bureau or bureau regional/area directors, the determination of whether an employee must occupy GFQ for the convenience of the Government and as a condition of employment, in order to provide necessary service or to protect life or property. These determinations will be based upon the justification and recommendations submitted in writing on Form DI 1872, Certification of Required Occupancy, which appears in Appendix 13. Since required occupants may attempt to use the Form DI 1872 as the basis for reducing their Federal tax liabilities, misrepresentations on the Form DI 1872 could result in penalties imposed by the Internal Revenue Service. Since required occupancy is a condition of employment, the requirement to occupy GFQ shall also be included in the position description and job announcements for required occupancy positions; and on the SF-50. Each required occupant shall be provided with a copy of the approved Form DI 1872, the SF-50 and the Position Description. Copies of these documents should also be retained at the installation.

(7) Encumbered Positions. Required occupancy should not be established while
a position is encumbered (filled), unless justified by a serious and immediate need, or unless the affected incumbent agrees voluntarily to such a designation. In such cases, applicable changes shall be made in the incumbent's position description, and written notice must be provided to the affected employee at least 30 days prior to the effective date of the required occupancy.

(8) Appeal of Required Occupancy Determination. Affected employees shall
be notified in writing of required occupancy determinations affecting them, and informed of their right to appeal such actions through proper channels, in accordance with paragraph 17.4, DQH. In considering employee appeals, the fullest consideration will be given to the personal desires of the employee, subject only to the paramount requirements of the Government.

C. Volunteers. Bureaus with authority to hire and employ volunteers, may allow
volunteers to occupy GFQ, without charge, under the following circumstances.

(1) Occupancy is necessary for the provision of service and/or protection of property;
or because suitable private housing is not available within a reasonable commuting distance.

(2) It must be determined that the GFQ to be occupied by volunteers is not needed at
the time for housing required occupants or other station personnel.

(3) The contribution of volunteers assigned to GFQ must be significant enough to
justify the provision for GFQ without charge.

(4) Each volunteer must be covered by a volunteer service agreement, or other
contractual document, which legally enrolls an individual as a volunteer. This agreement shall specify the full name and address of the volunteer, the commencement and termination dates, and a brief description of the work to be performed. The agreement shall be signed both by the volunteer and by an authorized bureau official.

D. Assignment Priorities. In assigning quarters, the bureaus shall follow the priorities
in the order listed below.

(1) Required Occupants. Individuals who have been designated as required
occupants in accordance with paragraph 8.1B, above, shall be accommodated ahead of all other categories of occupant. However, required occupants do not have a right to select a specific GFQ unit. Assignment of required and permissive occupants to specific GFQ units will be done in the context of paragraph 8.1E, DQH.

(2) Station Officials. Station officials, including contractors and essential
cooperators.

(3) Volunteers. Volunteers employed by the holding bureau under
paragraph 8.1C above.

(4) Other Bureaus. Employees of other Interior bureaus, who are allowed
occupancy during periods of temporary non-use, or in interim periods pending disposal of the GFQ (see paragraph 5.2, DQH).

(5) Other Agencies. Employees of other Federal agencies, who are allowed
occupancy during periods of temporary non-use, or in interim periods pending disposal of the GFQ (see paragraph 5.2, DQH).

(6) Non-Federal Tenants. Non-Federal tenants, who are allowed occupancy
during periods of temporary non-use, or in interim periods pending disposal of the GFQ (see paragraph 5.3, DQH).

E. Assignment Consideration. To the maximum extent practicable, and within the
assignment priorities listed in paragraph 8.1D, above, bureaus shall assign quarters on an objective and equitable basis, in accordance with the following.

(1) In assigning GFQ, bureaus shall consider the grade, seniority, permanency
of position, family size, and the sex and age of the children of prospective occupants.

(2) Larger or more expensive quarters should be assigned to occupants with larger
families, or to higher salaried personnel.

(3) Adults and children should not occupy the same bedroom.

(4) Children of the same sex may share a bedroom. However, separate bedrooms
should be provided for children of opposite sex who are ten years of age or older.

8.2 Assignment Records. Written records, in the format specified below, shall be kept at the installation level to reflect all housing assignments and periods of occupancy. The assignment record should, as a minimum, set forth the rights and obligations of the tenant and the Government; list the equipment and furnishings provided; note existing damage to premises, equipment and furnishings; state requirements on subletting, assignment, sharing or conducting business on premises; specify the termination of assignment and recapture of quarters; specify which party will service the equipment, cut grass, remove snow, etc.; control painting and alteration; reserve the right of the Government to enter to make safety and maintenance inspections; and include information on any aspect of the landlord-tenant relationship, which is likely to arise in quarters of the type or the locations involved.

A. Quarters Assignment Agreement. A Quarters Assignment Agreement (Form DI 1881)
shall be completed for all occupants of GFQ. Where a GFQ is occupied by a family unit, the individual to whom the GFQ is assigned (the employee-tenant) shall be regarded as the occupant. This agreement provides the essential contractual elements common to all GFQ assignments; however, bureaus may incorporate additional terms and conditions deemed applicable to a given tenancy situation. The Quarters Assignment Agreement must be signed by the occupant and by a designated bureau employee. A copy of this agreement will be provided to each tenant; the original will be retained by the installation. Prospective occupants who refuse to sign the agreement shall not be allowed to occupy GFQ. This form accommodates annual adjustments of the monthly rental rate and charges for related facilities, outlined in paragraph 13.3, DQH. Thus, the agreement need not be re-executed annually, but will be effective until the tenancy is terminated, or the base rental rate is revalued (normally every fifth year). Occupants who refuse to sign a re-executed agreement, implementing a revalued rental rate shall be evicted. The Quarters Assignment Agreement is illustrated in Appendix 14.

B. Quarters Occupancy/Vacancy Inspection Form. Bureaus have a responsibility
as landlords to ensure that GFQ are in good condition when assigned to employees or other occupants, and when vacated. Therefore, GFQ (including appliances, furnishings and fixtures) shall be inspected jointly by the occupant and by bureau housing personnel prior to each occupancy and immediately following vacation of the GFQ. Since these inspections are the bases for determining occupant liability for property loss or damage in excess of normal wear and tear, the inspections shall be documented using the Quarters Occupancy/Vacancy Inspection Form (Form DI 1879). Occupants who refuse to sign Form DI 1879 shall not be allowed to occupy GFQ. This form is shown in Appendix 15.

C. Rent Computation Schedule. A Rent Computation Schedule (Form DI 1880) shall
be prepared for each GFQ occupant (except volunteers, who are provided housing without charge). This schedule is used to document the rental calculation at the time the GFQ are occupied and is effective immediately upon occupancy of the GFQ. This schedule is also used to document subsequent rental changes resulting from a new regional survey; annual adjustments required by OMB Circular A-45; or changes in the description of GFQ as reflected in revisions to the Government Quarters Inventory. Initial rental charges are effective immediately upon occupancy; changes in rental charges subsequent to occupancy require a 30-day written notice. The Rent Computation Schedule is illustrated in Appendix 16.

D. Miscellaneous Rental Schedules. Form DI 1876 (Isolation Adjust- ment) and
Form DI 1877 (Excessive Heating/Cooling Deduction) shall be prepared for each occupant entitled to these adjustments. This documentation should not be prepared for volunteers who are provided housing without charge; or for non-Federal occupants, who are not entitled to the administrative adjustments authorized in OMB Circular A-45. These forms are illustrated in Appendices 17 and 18, and are explained more fully in paragraphs 11.3 and 12.2 of the DQH.

E. Notice of Rental Adjustment. A Notice of Rental Adjustment (Form DI 1882) shall
be prepared for each occupant of GFQ, except volunteers, who are provided housing without charge. This notice is prepared upon initial occupancy of GFQ, and subsequent to occupancy to reflect changes in the rental charge as reflected in the Rent Computation Schedule. This form is shown in Appendix 19.

F. Certification of Required Occupancy. A certification of Required Occupancy
(Form DI 1872) shall be prepared for each required occupant as set forth in paragraph 8.1B(6) above.

G. Permit. When GFQ are permitted to another bureau or Federal agency, the
original permit shall be retained by the installation on which the GFQ is located. The permittee bureau or agency shall be responsible for ensuring that the other assignment and occupancy documentation complies with applicable regulations. See paragraph 5.2, DQH for additional information.

H. Revocable License. When GFQ are occupied by non-Federal tenants (including
private citizens), under conditions described in paragraph 5.3, DQH, a copy of the revocable license is required in addition to the other documentation requirements described above.

8.3 Reassignment of Quarters. Reassignment of bureau occupants from one GFQ to another GFQ, or to Government acquired temporary private sector housing should take place only under unusual circumstances in which the best interests of the Government are clearly served. If such reassignment is at the Government's request, the cost of the move will be the Government's responsibility. Reassigned occupants shall pay the rental charges applicable to the "new" housing unit, and need not be provided with a 30-day advance notice of rental adjustment.

8.4 Vacation of Quarters. This paragraph sets forth the procedures and documentation associated with termination of GFQ occupancy.

A. Notice of Intent to Vacate GFQ. Occupants shall notify the installation
housing manager of their intention to vacate assigned GFQ. This written notice shall be submitted at least 30 days prior to the intended date of vacancy, and shall specify the intended vacation date.

B. Pre-termination Inspection. A pre-termination inspection should be held 10 to
30 days prior to the intended vacation date to identify conditions requiring correction by the tenant and by the Government, prior to vacation.

C. Final Inspection of GFQ. Immediately following vacation of GFQ, the local housing
manager and the GFQ occupant shall jointly inspect the GFQ, including appliances, furnishings and fixtures. The inspection shall be documented on the Quarters Occupancy/Vacancy Inspection Form (form DI 1879). The purpose of this inspection is to determine and document the condition of the GFQ, appliances, furnishings and fixtures; and to compare the condition at vacancy with the condition at the time of occupancy.

D. Cleaning of Quarters. Occupants shall be required to leave the GFQ and immediate
premises in a clean and orderly condition. GFQ left in an unsatisfactory condition may be cleaned by the bureau (or by a bureau contractor) at the expense of the vacating occupant. If desired, the vacating occupant may arrange for the cleaning to be done in any other manner acceptable to the housing manager.

E. Occupant Responsibility for Loss or Damage to GFQ. Occupants of GFQ are
responsible for the care and safekeeping of GFQ and related Government furnished property (appliances, furnishings and fixtures). Quarters occupants may be held responsible for property loss or damage in excess of normal wear and tear. Where the Quarters Occupancy/Vacancy Inspection form indicates that damage to the quarters or other Government property exceeds normal wear and tear, or where Government property is missing, bureaus shall provide the occupant with an opportunity to repair or replace the property rather than to pay for the loss or damage. Occupants who restore the property/premises to a satisfactory condition shall be relieved of further liability. In instances where the occupant does not restore the property/premises to a satisfactory condition, bureaus shall follow the Report of Survey procedures prescribed in IPMR 114-60 to determine the negligence and liability of quarters occupants. Bureaus shall initiate collection action against occupants who are found by a Board of Survey to be liable for property loss or damage. Amounts collected for loss and damage to Government property are not rental receipts and must be deposited with the Treasury as miscellaneous receipts.

F. Employees on Leave or Furlough. Employees on leave or furlough will continue
to be charged for GFQ and related facilities unless the quarters are vacated and made available to the bureau for reassignment.

G. Instances of Hardship. Former Federal employees (or other occupants) and
dependents of deceased Federal employees (or other occupants) may continue to occupy GFQ for a period normally not to exceed 60 days. In extenuating circumstances (sickness or death), National Quarters Officers may approve extensions of the 60-day limitation. Such occupants will continue to pay the established rental rate, as adjusted to reflect the results of a new regional survey or appraisal, or the application of required adjustments in the interim years between baseline rental revisions.

H. Eviction. GFQ occupants may be evicted upon termination of, or for breaching, the
Quarters Assignment Agreement (Form DI 1881). Occupants who pose a serious threat to the public health and welfare may also be evicted. As eviction is an extreme action, all prospective evictions shall be referred to the appropriate Field Solicitor's Office to ensure that there are adequate grounds for the action, that proper process is followed, and that the matter is adequately documented.

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CHAPTER 9 -- HISTORIC STRUCTURES USED AS QUARTERS

9.1 Background. Some GFQ held by Interior bureaus are included in, or are eligible for inclusion in the National Register of Historic Places (National Register). The National Historic Preservation Act imposes two requirements upon Federal agencies. 16 U.S.C. 470 sets forth the procedures for nominating properties for inclusion in the National Register; and 16 U.S.C 470f requires agencies to take into account the effects of undertakings on properties included in, or eligible for inclusion in the National Register, and to afford the Advisory Council on Historic Preservation (ACHP) with a reasonable opportunity to comment on an undertaking prior to the agency's approval and funding of the undertaking. The intent of the National Historic Preservation Act is that bureaus should compare the benefits of completed undertakings with historical preservation, costs and other factors. In this regard, while the ACHP does not have veto power over bureau actions, bureaus are required to consult in good faith with the ACHP.

9.2 Use of Historic Buildings as Quarters. The National Historic Preservation Act (at 16 U.S.C. 470h-2(a)(1)) requires agencies to use historic properties to the maximum feasible extent prior to acquiring, constructing or leasing buildings. Thus, historic buildings may be used as GFQ where the following determinations have been made.

A. The need for GFQ has been identified and justified under paragraph 4.2, DQH.

B. The use of historic buildings as GFQ will provide the most desirable means of
preservation, protection and management of each historic building at issue. In this regard, human occupancy of historic buildings provides protection from fire, theft and vandalism; as well as early detection of structural deterioration, such as roof leaks. It also protects the historic fabric through continued housekeeping and routine maintenance.

C. It is not appropriate, necessary or cost effective to use the historic structures at issue for
other official bureau uses.

9.3 Definitions. For the purpose of this chapter, the terms below shall have the following meanings.

A. Historic Building. Historic buildings are those which are already listed in the National
Register; those which are not listed, but which have been formally determined as being eligible for listing in the National Register; and those which have not been formally determined eligible for listing, but which appear to meet the eligibility criteria specified in 36 CFR 60.4.

B. Undertaking. An undertaking is any activity that can result in changes in the
character or use of historic properties. With respect to GFQ, the term "undertaking" includes (but is not limited to) maintenance, repair, renovation, alteration (i.e., adding a garage, carport, patio, sidewalk, etc.), destruction, transfer, lease or sale.

9.4 Procedure. In planning for any undertaking to a GFQ, which is also an historic building under paragraph 9.3A, above, bureaus shall comply with the procedures set forth in 36 CFR 800. While these procedures are summarized below, bureaus shall consult 36 CFR 800, and the other authorities and documents listed in paragraph 9.5, below.

A. Identification and Evaluation of Historic Buildings. In determining whether an
undertaking affects an historic building, it is first necessary to determine if the structure at issue is an historic structure. Historic properties are listed in the National Register. Annual updates of new National Register listings are published in the Federal Register, as are listings of properties, which (while not listed in the National Register) have been determined to be eligible for inclusion in the National Register. However, since the National Historic Preservation Act applies to any eligible property (including those for which eligibility determinations may not have been made), bureaus should seek the assistance of State Historical Preservation Officers (SHPO's). These individuals can provide information on previous identification studies for the area at issue and properties on state registers or listings. SHPO's can also direct the bureau to other sources of information, such as local Governments or Indian tribes. If the bureau and the SHPO cannot reach agreement regarding a property's eligibility for inclusion in the National Register, the bureau must obtain a formal determination of eligibility from the Keeper of the National Register of Historic Places using procedures set forth in 36 CFR 60.9. Additional information on the National Register nomination and eligibility determination processes may be found in 16 U.S.C. 470a and 36 CFR parts 60 and 63. A list of National Park Service (NPS) regional offices and SHPO's, including mailing addresses and telephone numbers may be found in 36 CFR 61, Appendix B.

B. Assessment of the Effect of an Undertaking on Historic Properties. In this second
step, the bureau, in consultation with the SHPO, determines whether the undertaking has no effect; has no adverse effect; or has an adverse effect on historic properties. This determination is made by applying the criteria in 36 CFR 800.9(b) and (c).

C. Consultation to Avoid, Reduce or Minimize Adverse Effect. When a proposed
action will have an adverse effect on an historic property, the bureau shall consult with the SHPO and other interested persons. The purpose of these consultations is to consider alternatives and mitigation methods that will reduce the damage an undertaking is expected to impose upon historic properties. If agreements are reached, they are documented in a Memorandum of Agreement (MOA), which is reviewed by the ACHP. If agreement is not reached, the bureau shall request ACHP comments on the undertaking.

D. Comments of ACHP. ACHP comments can be in the form of an MOA, if an
agreement is reached on alternatives and mitigation measures. If consultation with the ACHP does not produce an agreement, the bureau shall request the ACHP to review the documentation and to comment, within 60 days, on the undertaking.

E. Final Agency Decision. Where agreement is reached between the bureau and
the SHPO and/or the ACHP, the bureau shall proceed with the undertaking as set forth in the MOA. If agreement cannot be reached, the bureau shall take into account the ACHP's written comments, and then make a final decision as to how (or whether) to proceed with the undertaking. The bureau must notify the ACHP, in writing, of its decision before work begins on the undertaking.

9.5 Additional References. Detailed descriptions of the procedures, forms and formats that are used in implementing the National Historic Preservation Act may be found in the publications listed below.

A. Code of Federal Regulations.

(1) 36 CFR 60: National Register of Historic Places.

(2) 36 CFR 61, Appendix B: Addresses and telephone numbers of SHPO's and
NPS offices.

(3) 36 CFR 63: Determinations of Eligibility for Inclusion in the National Register of
Historic Places.

(4) 36 CFR 68: The Secretary of the Interior's Standards for Historic Preservation.

(5) 36 CFR 800: Protection of Historic Properties.

B. Publications of the Advisory Council on Historic Preservation. The following
publications are available from the Advisory Council on Historic Preservation, 1100 Pennsylvania Avenue NW., Suite 809, Washington DC 20004, telephone 202-786-0503.

(1) 36 CFR Part 800: Protection of Historic Properties -Regulations of the Advisory
Council on Historic Preservation Governing the Section 106 Process.

(2) Section 106, Step-by-Step.

(3) Preparing Agreement Documents: How to Write Determinations of No Adverse
Effect, Memoranda of Agreement, and Programmatic Agreements Under 36 CFR 800.

C. Publications of the National Park Service. The National Park Service (NPS) prepares
and maintains numerous publications, including those listed below. These publications are available from: Interagency Resources Division, P.O. Box 37127, Washington, DC 20013-7127.

(1) National Register Bulletins. This is a list of numbered bulletins
available from the NPS.

(2) Catalog of Historic Preservation Publications. This catalog lists and
describes numerous publications available from the NPS and other organizations.

(3) Guidelines for Applying the National Register Criteria for Evaluation.
This publication explains how to apply the criteria to determine the eligibility of properties for listing in the National Register.

(4) Guidelines for Completing National Register of Historic Places Forms.

(5) Policies and Procedures for Processing National Register Nominations.

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CHAPTER 10 -- MONTHLY BASE RENTAL RATE DETERMINATION

10.1 General. The reasonable value of a GFQ consists of the Monthly Base Rental Rate (MBRR)(Chapter 10, DQH), the value of Government provided related facilities (Chapter 11, DQH), the value of applicable administrative adjustments (Chapter 12, DQH), and the value of interim year annual adjustments (Chapter 13, DQH). The determination of reasonable value of GFQ shall be based upon an impartial study of comparable private rental housing. Only two methods may be employed to determine the MBRR: regional surveys and appraisals. Since OMB Circular A-45 expresses a preference for regional surveys, bureaus shall use the regional survey method for all GFQ located within designated survey regions. Exceptions must be obtained in writing from PAM.

10.2 Base Rent Principles. Monthly base rental rates for GFQ will be set at the prevailing rental rates for comparable private housing in the survey area (where rental charges are based upon regional surveys), or in the established community (where rental charges are based upon appraisals). Generally, rental rates lower than those prevailing in the nearest established community or survey area may not be charged for quarters, since this would be a form of employee subsidization specifically forbidden by statute, Comptroller General decisions and OMB regulations. Conversely, base rental rates higher than those in the nearest established community or survey area should not be charged. It is recognized that the reasonable value rent actually established and charged under the rental valuation system set forth in OMB Circular A- 45 does not necessarily equate to fair market valuation of the comparables after required administrative adjustments are made to the base rental rate. These administrative adjustments (see Chapter 12, DQH) are designed to provide a uniform basis for assessing differences in physical and economic characteristics, and for establishing reasonable value to the employee in the circumstances under which the quarters are provided, occupied or made available.

10.3 Regional Surveys. The purpose of a regional survey is to establish reasonable rents by producing a general cost-adjusted market-derived base rent schedule for the whole region, rather than the specific market appraisal of a unit on a specific site in a specific neighborhood. This schedule should reflect physical differences in structures and economic differences among communities, where these differences are shown to impact the rental rate structure. This is done by obtaining community and comparative private rental housing data for use in constructing the MBRR tables for each class of quarters; and by obtaining market data on the cost of related facilities for use in determining charges for Government provided utilities, appliances, furnishings and services. Regional surveys shall be conducted at least every five years by the QMIS Program Office, in coordination with PAM and the participating bureaus and agencies.

A. Regional Survey Principles. In regional surveys, reasonable rents are derived from
an analysis of the market rents of private comparable properties in the established communities nearest to concentrations of Government housing. The process of arriving at the MBRR of a structure can be influenced by real estate appraisal principles, statistical limitations or administrative principles and considerations. Often there may be a conflict among these three which necessitates a trade-off.

(1) Real estate appraisal principles include matching comparables as closely as
possible to the specific subject property in physical characteristics and locations and adjusting in a logical direction for all significant differences.

(2) Statistical principles involve: trying to minimize the standard error of the estimate
(unexplained variation); getting a good match of characteristics between the properties analyzed and those the analysis is applied to; obtaining a large and diverse sample and making adjustments only for factors that are significant in explaining variation. Ideal samples may not always be available in the market, and the market search may be limited (like an appraisal) due to time and budget constraints.

(3) Administrative considerations recognize that Government housing is often not
located in or very close to the nearest established community. Physical characteristics, such as in historical houses, one room cabins, lookouts, dormitories or transient quarters are usually difficult to match in the market. Government housing is frequently found in areas influenced by tourism or boom-bust natural resource development that may produce unreasonable rents. Consistency and relative reasonableness, as well as time and budget constraints, must also be taken into consideration.

While trade-offs among these three considerations may result in a less than ideal application of any one of the three principles, the goal is still to determine MBRR's which are: relatively consistent with the local market rents for similar properties; internally consistent and logical from one unit to another; and which represent reasonable value to the employee.

B. Regional Survey Process. Regional surveys shall be conducted by the QMIS Program
Office, and shall incorporate the following features and procedures.

(1) Survey Region. The boundary of each survey region is established by
the QMIS Program Office in coordination with PAM and the participating bureaus and Federal agencies. The survey region should be large enough to permit an adequate sampling of comparable rental properties in several established communities, and may encompass one or more states. Within a survey region, the actual areas to be surveyed shall be nearest established communities, including an area extending five miles from the community boundary (i.e., city/town limits) for house and apartment comparables; and fifteen miles for mobile homes and trailer spaces. In exceptional circumstances, the QMIS Program Office may expand the community survey area. If adequate private rental housing data is not available in a nearest established community, data may be gathered in and around the next closest community meeting the established community criteria. In some regional surveys, budgetary constraints may preclude a survey of every designated nearest established community.

(2) Survey Sample. The QMIS Program Office will analyze the quarters inventory
data base to identify the established communities near which there are GFQ, and to determine for each established community, the number of GFQ by housing class. Generally, the total number of comparables sampled in each community should be proportional to the total number of GFQ in the vicinity of the community; and the number of comparables in each housing class should be proportional to the number of GFQ in each housing class. If available, at least two samples of each housing class should be collected in each established community for each class of GFQ present at surrounding installations. The total number of samples collected for each quarters class should be sufficient to give an adequate estimate of average rental values for the communities surveyed, and for the region. In the interest of economy, a community may be excluded from the survey if it is used as an established community for one or only a small number of GFQ. The QMIS Program Manager will coordinate the sample plan with bureau and agency National Quarters Officers.

(3) Data Collection. The regional survey data may be collected by a private
contractor, or by qualified Government personnel not quartered in Government housing. The following data will be gathered during regional surveys.

(a) Descriptive, community and rental cost data for each private rental comparable sampled. This information will be documented on Private Rental Survey, Form 7-2226 (for houses, apartments and mobile homes) and on Private Rental Survey -Trailer Spaces, Form 7-2227 (for trailer spaces). Form 7-2226 appears in Appendix 20; Form 7-2227 appears in Appendix 21.

(b) Tariffs and other summary data documenting the costs of utilities (water, sewer, electricity, fossil fuel and trash removal) in each surveyed community

(4) Data Analysis. The method of analysis must be capable of recognizing
different physical characteristics and differences in economic conditions, and of reflecting such differences in base rents. Regional survey data analysis shall follow the process generally described below.

(a) Data Edit. Survey data shall be edited for accuracy and completeness. Samples containing irreparable data errors or omissions shall be removed from further consideration.

(b) Rental Adjustments. The contract rent of each comparable shall be adjusted to exclude the value of appliances, services, utilities and furnishings which are provided by the landlord. Since most private housing (and GFQ) units rent with a landlord-provided range and refrigerator, the value of these appliances are not excluded. If a range or refrigerator is not supplied by the landlord, their value will be added to the contract rents. Central air conditioning and fireplaces will be treated as real property and analyzed as to their contributory market value. Generally, if it is necessary to adjust the contract rent of a market comparable by more than 30 percent, that comparable will be excluded from further consideration.

(c) Relational Analysis. Individual private rental market housing samples will be screened for relational consistency with other comparables in the established community and the survey region prior to derivation of the MBRR formulae. Comparables with adjusted rental rates that are substantially higher or lower than the regional and community means for a given housing class should be scrutinized as to actual comparability. Samples, which are significantly at variance with community or regional rental patterns should be identified and removed. Comparables should be excluded from the final sample if they are in areas subject to unreasonable conditions of seasonal agriculture or tourism, population explosion, severe economic boom or other conditions which may have created an inequitable rent structure.

(d) Stepwise Regression. Relevant community and rental data for improved comparables are analyzed using forward in-and-out stepwise regression to identify features (age, size, condition, location, rooms, etc.), and their value contributions (plus or minus), which are most significant in explaining the variation in the adjusted market rents. The analysis of trailer space data may be accomplished using more fundamental techniques. While this step of the process employs statistical methodologies, the QMIS Program Office is ultimately responsible for reviewing (and adjusting, where necessary) the results of the analysis from a property valuation perspective to ensure that the results of the analysis are logical, consistent and complete.

(e) Utility data are analyzed to determine the regional unit cost of each utility surveyed.

(f) Nationwide appliance, furnishings and service cost data are updated once each year as part of the annual adjustment process described in paragraph 13.3, DQH.

(5) Monthly Base Rental Rate Tables. The MBRR of a GFQ, derived from the
analysis of survey data, is the estimated value of that unit before applying administrative adjustments or charges for related facilities. Each regional survey report shall contain MBRR tables for each class of quarters identified from the inventory of GFQ. The QMIS Program Office may combine classes into a single class where a review of GFQ warrants such action. MBRR tables for housing classes that are not typically present in the market (i.e., dormitories and transient quarters) may be established by extension of comparability as provided in OMB Circular A-45. The MBRR tables, derived from the market analysis, shall be structured and formatted to permit construction of GFQ MBRR's. When establishing the MBRR for a particular GFQ, the construction of the GFQ -not its use -will determine its housing classification and MBRR. For example, a unit constructed or reconstructed as a single family dwelling, but which is used as a dormitory, will be valued as a house; not as a dormitory.

(6) Regional Survey Report. The QMIS Program Office shall incorporate the results
of the analysis in a regional survey report, which shall include a list of communities surveyed, the base rent tables and charges for related facilities; and which shall be reviewed and approved by PAM. The QMIS Program Office, in consultation with partici- pating agencies and bureaus, shall establish an implementation date for each regional survey report.

10.4 Appraisals. Appraisals shall not be conducted in areas covered by a regional survey without

the approval of PAM. When rental rates are to be determined by the individual appraisal method, the appraisals shall be performed by appraisers who have been certified in accordance with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989; and who do not reside in GFQ. All appraisals will be reviewed for technical acceptance by certified reviewing appraisers, prior to their utilization in establishing the monthly rental charge.

A. Appraisal Process. The appraisal process shall incorporate the following features and
procedures.

(1) Selection of Comparables. To ensure a uniform approach to valuation, the appraiser
will be limited to comparing the GFQ with current comparable market rentals in the established community nearest to the subject GFQ. However, if there is no rental market in the nearest established community for one or more classes of housing, the appraiser will collect comparable rental data for those rental classes from the next closest community meeting the established community criteria. No less than two private rental units must be utilized for comparative purposes in establishing the base rental rate for each quarters unit.

(2) Rental Adjustments. The contract rent of each comparable shall beadjusted to exclude
the value of appliances, services, utilities and furnishings, which may be provided by the landlord. Since most private housing (and GFQ) units rent with a landlord-provided range and refrigerator, the value of these appliances are not excluded. If a range or refrigerator is not supplied by the landlord, their value will be added to the contract rents. Central air conditioning and fireplaces will be treated as real property and analyzed as to their contributory market value. Adjustments for the value of utilities, appliances, services and furnishings will be based on the retail costs of these items in the established community in which the comparables are located.

(3) Adjustments of Comparables to the GFQ. The appraiser shall apply recognized
real estate valuation principles, and will adjust only for differences in physical characteristics. Each adjustment shall be shown in either dollar or percentage terms, and the source of each adjustment shall be fully explained and documented. No adjustments will be made (as part of the appraisal process) for excessive heating/cooling costs, isolation, site amenities or other administrative adjustments. Rather, these adjustments will be made as provided in Paragraph 11.3 and Chapter 12, DQH.

B. Forms. To ensure Department-wide uniformity, the following forms will be used for
all appraisals.

(1) Government Quarters Inventory (Form DI 1875). Prior to conducting the
appraisal, the appraiser will either be furnished, or will complete on his/her own, the appropriate quarters inventory form for the GFQ to be appraised. This form and the instructions for completion are found in Appendix 22. If the completed inventory form has been furnished, it shall be re-verified by the appraiser and co-signed. Any conflicts in the data provided and the observations made by the appraiser will be resolved by the appraiser.

(2) Private Rental Survey. The Private Rental Survey (BOR Form 7-2226), or
equivalent form, shall be used to document the information concerning all improved comparables (