UNCLASSIFIED// ROUTINE R 281224Z SEP 21 MID200001163790U FM CNO WASHINGTON DC TO NAVADMIN INFO CNO WASHINGTON DC BT UNCLAS NAVADMIN 212/21 PASS TO OFFICE CODES: FM CNO WASHINGTON DC//N1// INFO CNO WASHINGTON DC//N1// MSGID/GENADMIN/CNO WASHINGTON DC/N1/SEP// SUBJ/TEMPORARY BASIC ALLOWANCE FOR HOUSING RATE INCREASES FOR CERTAIN MILITARY HOUSING AREAS// REF/A/DOC/USC/1JAN21// REF/B/DOC/DOD/1AUG21// REF/C/DOC/ASN(MRA)/24SEP21// NARR/REF A IS TITLE 37 U.S.C. 403(B)(7), BASIC ALLOWANCE FOR HOUSING. REF B IS THE DEPARTMENT OF DEFENSE FMR VOL 7A CHAPTER 26, HOUSING ALLOWANCES. REF C IS ASSISTANT SECRETARY OF THE NAVY MANPOWER AND RESERVE AFFAIRS MEMORANDUM, DELEGATION AUTHORITY TO APPROVE REQUESTS FOR 2021 TEMPORARY INCREASE IN BASIC ALLOWANCE FOR HOUSING RATES FOR MILITARY HOUSING AREAS EXPERIENCING ABNORMAL RENTAL COST INCREASES DUE TO CORONAVIRUS 2019.// RMKS/1. This NAVADMIN announces temporary basic allowance for housing (BAH) increases for qualified Service Members residing in certain military housing areas (MHA) from 1 October 2021 to 31 December 2021. 2. In line with reference (a) and the authority stipulated in reference (b), the Office of the Secretary of Defense (OSD) has approved temporary BAH rate increases due to the coronavirus disease 2019 (COVID-19) pandemic of 10, 15 or 20 percent for qualified Service Members living in 56 MHAs. Navy centric MHAs that are on the list include LEMOORE NAS (CA023), HAMPTON/NEWPORT NEWS (VA297), EL CENTRO (CA420), NEW LONDON (CT049) and BREMERTON (WA306). A full list of the 56 MHAs impacted can be found via MyNavyHR at https://www.mynavyhr.navy.mil/References/Pay-Benefits/N130C/. It is important to note that if your MHA is not listed there, you are not eligible for a BAH increase. 3. The increased BAH rates are only payable from 1 October 2021 to 31 December 2021 for Service Members living in one of the 56 impacted MHAs who request the temporary increase via their command and can certify, using procedures listed below, that their housing expenses are higher than their current 2021 BAH entitlement and that those higher expenses occurred after 13 March 2020 such that they can be attributed to the COVID-19 pandemic. 4. Once a Service Member has been approved for a temporary BAH rate increase, the new higher rate will remain effective through the duration of the authorized period unless the Service Member detaches or changes residence from the affected MHA. Because temporary increases in BAH rates are not subject to rate protection, it is possible that Service Members will see higher or lower BAH rates than the temporary BAH rate they were receiving once the 2022 BAH rates become effective on 1 January 2022. 5. Scenarios a. Common situations that may warrant approval of a temporary BAH rate increase (1) Service Members who have relocated into one of the 56 impacted MHAs on or after 13 March 2020 and incurred housing expenses that exceed their regular BAH rate at the new permanent duty station (PDS). (2) Service Members who have renewed a lease within one of the 56 impacted MHAs on or after 13 March 2020 and incurred higher housing expenses that exceed their current BAH rate at the PDS. (3) Service Members who have relocated within one of the 56 impacted MHAs on or after 13 March 2020 and incurred housing expenses that exceed their 2021 BAH rate. b. Common situations that will warrant disapproval for temporary BAH rate increase (1) Service Members that have not incurred increased housing expenses on or after 13 March 2020. (2) Service Members that have incurred increased housing expenses on or after 13 March 2020 but cannot demonstrate authorized housing expenses exceed current BAH rate at the PDS. (3) Service Members residing in privatized military housing. (4) Homeowners who have incurred higher housing expenses on or after 13 March 2020 as a result of refinanced mortgages or home equity loans. (5) Service Members that have incurred increased expenses on or after 13 March 2020 for a home that is not their primary residence. (6) Service Members that have incurred increased expenses on or after 13 March 2020, but do not reside within one of the 56 impacted MHAs. c. Additional guidance can be found below and via MyNavyHR at https://www.mynavyhr.navy.mil/References/Pay-Benefits/N130C/ website. (1) Service Members using increased utility expenses as basis for their temporary BAH rate increase must demonstrate increased rates/costs on or after 13 March 2020 such that they can be attributed to the COVID-19 pandemic. (2) Dual military couples may be eligible for temporary BAH rate increase. Dual military couples residing in separate households at different physical locations should apply separately for a temporary BAH rate increase where applicable. Dual military couples residing in a common household may be eligible for temporary BAH rate increase only if their housing expenses exceed their combined BAH. A page 13 will be required with packages for all dual military couples denoting whether the couples are residing together or maintaining separate households. (3) Qualifying costs may be established using documentation of housing costs between 13 March 2020 and 31 December 2021. For example, a Service Member who entered a lease for an apartment with utilities included in June 2021, where the monthly rent exceeds the current BAH rate, may use that documentation to establish eligibility for the temporary increase that becomes effective 1 October 2021. (4) Eligibility for payment is retroactive to the first month where qualifying costs are established, but no earlier than 1 October 2021. (5) Once a Service Member establishes eligibility for the higher rate of BAH, eligibility continues through 31 December 2021, or upon rescission of reference (c), whichever occurs first. If a status change occurs (i.e. promotion, demotion or dependent change) that affects the Service Members BAH rate, the Service Member is required to re-apply for the temporary BAH rate increase to determine whether they still meet the eligibility requirements in paragraph 1 based on their post-status change BAH rate. There is no requirement to submit documentation of higher costs for each month in which the higher rate of BAH is received. The Service Member must continue to reside at the location approved for temporary BAH rate increase in order to continue receiving the entitlement. Any change in residence will require a new temporary BAH rate increase request. (6) BAH at dependent location or previous duty station. Eligibility is based on the location for which the Service Member receives a housing allowance. 6. Process for submitting requests a. Sailors with a lease or mortgage (occupied and rented or owned by the Service Member and/or his/her military dependents) dated on or after 13 March 2020 must submit a request to their O-5 or above commanding officer (CO) or officer-in-charge (OIC) in order to receive the temporary BAH rate. In instances where the CO or OIC is O-4 or below, requests will be forwarded to O-5 or above immediate superior in charge for approval. A template and guidance on what expenses count toward obtaining the temporary BAH rates for this request can be found via MyNavyHR at https://www.mynavyhr.navy.mil/References/Pay-Benefits/N130C/. To document housing expenses noted in the template and certify higher housing costs, the request will include at a minimum, a copy of the lease (housing expenses only include the lease amount) or mortgage (housing expenses only include monthly principle and interest, monthly residential property taxes, monthly homeowners insurance and monthly mortgage insurance), utilities (utility expenses only include electricity, heat and water/sewer company statements) and leave and earning statement. b. Commands will submit Service Member requests endorsed by the O-5 or above CO or OIC to servicing personnel support detachment/transaction support center for processing. To document housing expenses noted in the template and certify higher housing costs, commands will retain all supporting documents submitted by the Service Member in enterprise customer relationship management. c. Sailors with a lease or mortgage signed prior to 13 March 2020 requesting a temporary BAH increase based on utilities increases under paragraph 5.c.(1) will require a determination from the Military Pay and Compensation Policy Branch (OPNAV N130). Commands should submit their endorsements and all required documents stated above to NXAG_N130C(at)navy.mil for a determination. d. All appeals will be adjudicated by OPNAV N130. 7. This NAVADMIN will remain in effect until superseded or canceled, whichever occurs first. 8. Released by Vice Admiral John B. Nowell, Jr, N1.// BT #0001 NNNN UNCLASSIFIED//