Printing - FECA-PT2 - National Association of Letter Carriers

over $10,000, and that amount must be returned to the Government. See Minne B. Lewis,
53 ECAB 606 (2002) (ECAB upheld OWCP’s repayment provisions as they “prevent unjust
enrichment.” ECAB stated that without them a claimant who has received a Government
subsidy to purchase property could turn a quick profit by simply selling the property. OWCP
procedures requiring reimbursement to the government attempt to return the claimant,
after the property is relinquished, to substantially the same position he or she enjoyed
previously.)
For example, if an elevator is installed in the claimant's house and the house is later sold,
the OWCP should be reimbursed from the proceeds of the sale for the current value of the
elevator, if it exceeds $10,000 after applying the sliding scale. The current value may be
determined in any reasonable, equitable manner, such as estimates from real estate
sources, bank appraisers, or by comparing recent sale prices of similar houses without the
special equipment.
A sliding scale is used to determine the remaining enhanced value at the time the house or
housing modification is relinquished or no longer needed by the claimant. The amount of
reimbursement due to the Government will be reduced gradually. If the claimant leaves the
modified home after one year of residence, the amount of reimbursement due the
Government would be 90% of the total disbursements made for the purchase and/or
housing modifications. After two years of residence in the modified home, the amount of
the reimbursement to be sought by OWCP would be 80% of the disbursements. The
amount of the reimbursement due the Government would continue to reduce annually, with
a reduction to zero after ten years of residency has elapsed.
While some modifications may decrease rather than increase the value of a home, no
reimbursement to the claimant can be made for any reduction in the value of the house
resulting from modifications which may inconvenience prospective purchasers.
(15) The claimant (and authorized representative if applicable) should be notified of these
reimbursement requirements and should sign an acknowledgment of these reimbursement
responsibilities. See Exhibit 2.
(16) If a house has been modified, the claimant must notify OWCP before any move
which may result in a claim for further housing modifications. A claimant who sells a
modified house is liable for modifying any future residence absent a claims-related reason
for the move and prior OWCP approval (see paragraph 10 below).
b. Technical Development. If medical eligibility has been satisfied, the claimant should be
advised of the criteria mentioned in this section. Specifically, The claimant should be advised that
proposed housing modifications should be of a quality and finish level consistent with his or her
present residence but not superior to it. (For example, builder grade cabinets will be replaced with
similar cabinets, not expensive custom cabinets). Likewise, proposals should mention the type of
materials being used rather than concentrating on a specific brand name. The most cost-effective
means of accomplishing the modification should be provided in the proposal. The claimant should
also be advised that if it is established that it is not structurally feasible to modify the present
FECA-PT2 Printed: 06/08/2010 723