15 FAM 220
rental benchmark program
(CT:OBO-60; 11-02-2017)
(Office of Origin: OBO)
15 FAM 221 purpose
(CT:OBO-60; 11-02-2017)
The Rental Benchmark Program (RBP) operates under the
direction of the Office of Real Property Leasing, Directorate for Planning and
Real Estate, Bureau of Overseas Buildings Operations (OBO/PRE/RPL). This
program promotes cost-effective residential property leasing and more efficient
management of housing programs at overseas posts. All posts, except those with
fewer than ten operating leased residential properties and those without an
established rental housing market, must participate in the RBP.
15 FAM 222 RENTAL BENCHMARKS
(CT:OBO-60; 11-02-2017)
Posts participating in the RBP have rental benchmarks set
for housing categories set by the Portfolio Management Division, Office of Real
Property Leasing, Directorate of Planning and Real Estate, Bureau of Overseas
Buildings Operations (OBO/PRE/RPL/PM). That office develops and reviews the
benchmarks, in consultation with post, based on:
(1) Current cost of leases for residential properties
in posts existing housing inventory;
(2) Posts rental market surveys;
(3) Surveys conducted by private real estate firms
contracted by OBO/PRE/RPL; and
(4) Independent sources analysis of local rental
market information.
Benchmarks can be increased or decreased to reflect the
local markets rental rates.
15 FAM 223 rbp - post authority
(CT:OBO-60; 11-02-2017)
a. Under the RBP, OBO grants authority to poston an
annually renewable basisto sign operating leases for residential properties,
without waiver approval for residences that:
(1) Fall within the approved residential rental
benchmarks for the occupant;
(2) Are within established space standards for the
occupant;
(3) Have base rental rates as stated in Section V.A.
of the lease (or equivalent) under $50,000 per year for the term of the lease;
(4) Will not be vacant more than 90 days; and/or
(5) Have funding for the specific lease available for
the fiscal years duration.
b. In addition, posts participating in the RBP must:
(1) Maintain a current and accurate automated real property
application (RPA) database;
(2) Attach required documentation to RPA within 5 business
days of signing; and
(3) Provide required documentation to OBO/PRE/RPL/ML
regarding leasing of major nonresidential and designated properties.
15 FAM 224 rbp - required lease waivers
(CT:OBO-60; 11-02-2017)
Posts participating in the RBP must submit lease waivers
by electronic lease-waiver request (e-LWR) to OBO for:
(1) All leases for residential properties:
(a) That exceed approved rental benchmarks for the
occupant; or
(b) That exceed $25,000 if there is no benchmark for a
given category; or
(c) If post is not part of the Rental Benchmark Program,
whether the assignment is to an existing, new, or renewal lease;
(2) All housing assignments exceeding the maximum
space standards allowed for the occupant, whether the assignment is to an
existing, new, or a renewal lease;
(3) All residential leases with an annual rent in
excess of $50,000 at any time during the leased period;
(4) All nonresidential nonmajor leases per 15 FAM 311.4,
regardless of cost; and
(5) All residential properties that will be vacant
(not occupied by a USDH officer to which the unit has been permanently
assigned)even if assignedfor periods of over 90 days.
15 FAM 225 rbp REVIEWS
(CT:OBO-60; 11-02-2017)
Every quarter, OBO/PRE/RPL will review posts compliance
with the RBPs requirements. Based on OBOs review of post performance,
OBO/PRE/RPL will extend post's authority for subsequent years. The approved
rental benchmarks are maintained in RPA. Post must ensure RPAs data is
current and accurate, comply with the requirement to submit documents in a
timely manner, and submit lease waivers as required. RPA must be updated
within 5 business days as documents are signed, escalations or inflationary
adjustments go into effect, and other changes to lease terms occur.
15 FAM 226 HOUSING INVENTORY
(CT:OBO-60; 11-02-2017)
A posts housing inventory includes all U.S.
Government-held residences, whether owned or leased, including living quarter allowance
(LQA). Where USAID manages its own housing program, USAID has a separate
housing inventory.
15 FAM 227 housing pool
(CT:OBO-60; 11-02-2017)
a. Each post must establish a housing pool with a mix
of housing that will meet the long-term needs of personnel of varying ranks and
family sizes. Longer retention of units will protect against spiraling lease
costs, allow for amortization of make-ready or security upgrade costs, and
provide for the availability of housing in limited markets.
b. USAID at all posts should be a fully participating
member of the interagency housing pool. However, USAID retains the authority
to lease, buy, and sell property overseas (see 15 FAM 112.3, U.S.
Agency for International Development (USAID) Authorities and Responsibilities).
If post does not have one service provider for leasing/housing, or a unified
housing pool, then USAID may continue to sign their leases.
15 FAM 228 HOUSING SELECTION
(CT:OBO-60; 11-02-2017)
a. Leased housing should reflect housing space
standards, post housing requirements, and rental benchmarks where established.
b. To achieve maximum cost benefit to the U.S.
Government, every effort should be made to lease appropriate housing with terms
that reflect the likelihood of the housing unit remaining in posts inventory,
with lease terms of five years with several renewal options whenever
appropriate.
c. In recognition of host-country factors
necessitating a U.S. Government leasing program and if it is in the best
interests of the U.S. Government, post management is authorized to retain
leases on units which may be left vacant for short periods of time between
employee transfers (not to exceed 90 days without OBO approval). (See 15 FAM 160 for
funding.)
d. To retain a unit that post anticipates will be
vacant more than 90 days, request OBO approval no more than 45 days into the
proposed vacancy, regardless of the funding agency.
15 fam 229 unassigned