Embassy New Delhi, India and Constituent Posts - OIG - US ...

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where approximately one-third of the over 300 residences are government owned, were well
below the average of recent OIG inspections, as were the scores for equity and administration of
the housing program. Narrative comments criticized the quality of leased housing, which they
described as dirty, noisy, and plagued by water leaks and resulting mold. Some respondents
believed that discrimination occurs in housing assignments based on personal rank and agency
affiliation.
Government-owned units are clustered in compounds in relative close proximity to the
embassy and school. They generally provide better security, infrastructure, and amenities,
including recreation and off-street parking. The facilities management staff performs all
maintenance, and OBO funds improvements and upgrades to the units. Although some staff
members prefer to live in leased units, many experience problems with parking, noise, unsanitary
surroundings, and municipal services. Leased units can lack safety features such as secondary
egress and fire detection systems. Some landlords are willing to make necessary upgrades and
fulfill their contractual obligations for major maintenance and repairs, but many are reluctant to
do so.
Embassy management recognizes the need to upgrade the housing pool, but finding
affordable, quality housing is becoming increasingly difficult. Lease costs have been rising
rapidly in recent years, with total country outlays for FY 2010 amounting to $8.36 million, up
from the $7.55 million for FY 2009. All leases in New Delhi now exceed the annual cost
threshold of $25,000 that requires OBO approval, with most in the $40,000-$90,000 range. A
few exceed $100,000. Embassy New Delhi participates in the Rental Benchmark Initiative
program, under which the longtime threshold was replaced with a new set of price ceilings for
the various categories of housing. An upcoming review will likely increase its ceilings to reflect
recent inflationary market trends.
The OIG team noted a discrepancy in the management of 13 U.S. Government-owned
residential properties in New Delhi. The property numbers of the residences are: R13041, R6030,
R7031 (A&B), R5029 (A&B), R10036 (A&B), R12040, R9033, R9034, R11037, and R11038.
According to its housing handbook, the embassy assigns “unofficially dedicated housing to the
heads of the political, economic, public affairs, management, regional security, and consular
sections as well, although these homes are not guaranteed by FAM regulation.” In practice,
assignment to the oversized residences circumvented the interagency housing board and, while
assignment to the homes was not guaranteed, the OIG team found no one who could remember
an exception to their treatment as dedicated housing. According to embassy files, the last agenda
that notes an assignment to one of the residences dates back to June 2007. The embassy is
treating the 13 properties as dedicated housing contrary to 15 FAM 235.3. Furthermore, the
embassy does not appear to consider the 15 FAM 264.1 guidelines for determining residential
space authorization in placing employees in these properties.
Recommendation 48: Embassy New Delhi should cease treating properties R13041, R6030,
R7031 (A&B), R5029 (A&B), R10036 (A&B), R12040, R9033, R9034, R11037, and R11038 as
dedicated housing and bring their management into compliance with Department of State
regulations. (Action: Embassy New Delhi)
The housing markets at the constituent posts are also challenging, but with some
fundamental differences. In Mumbai, the economic expansion has fueled an ongoing and
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