15 FAM 220
rental benchmark program
(CT:OBO-102; 07-20-2020)
(Office of Origin: OBO)
15 FAM 221 purpose
(CT:OBO-102; 07-20-2020)
The Rental Benchmark Program (RBP) operates under the direction of the Office of Real Property Leasing, Directorate of Planning and Real Estate, Bureau of Overseas Buildings Operations (OBO/PRE/RPL). This program promotes cost-effective residential property leasing and efficient management of housing programs at overseas posts. All posts, except those with fewer than ten operating leased residential properties, must participate in the RBP unless otherwise excepted or directed by OBO.
15 FAM 222 RENTAL BENCHMARKS
(CT:OBO-102; 07-20-2020)
Posts participating in the RBP have rental benchmarks 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) Cost of the most recent leases for residential properties in post’s housing inventory;
(2) Post’s rental market surveys;
(3) Surveys conducted by private real estate firms contracted by OBO/PRE/RPL;
(4) Independent sources’ analysis of local rental market information; and
(5) Security restrictions on particular neighborhoods or areas placed on housing by the post RSO
Benchmarks are set for the various rank and family sizes and are provided by cable to posts. Benchmarks are typically stable for several years at a time and are increased or decreased to reflect the local market’s rental rates.
15 FAM 223 rbp - DELEGATED LEASING AUTHORITY
(CT:OBO-102; 07-20-2020)
a. Under the RBP, posts may sign operating leases for those residential properties, without seeking formal OBO approval 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 Article 5 of the lease (or equivalent) under $50,000 per year for the entire term of the lease;
(4) Will not be vacant more than 90 days;
(5) Have funding for the specific lease available for the fiscal year’s duration;
(6) Do not deviate from the model lease in 15 FAM 351; and
(7) Meet other applicable leasing policies and guidelines including those at 15 FAM 312 and 15 FAM 313.
b. Residential leases that do not meet any of these criteria, or lease above $25,000 per year at posts without rental benchmark programs, must be submitted to OBO for approval as a lease waiver request (15 FAM 321) or as a major lease request (15 FAM 311.4).
15 FAM 224 rbp REVIEWS
(CT:OBO-102; 07-20-2020)
The approved rental benchmarks are maintained in RPA. OBO/PRE/RPL will review post’s compliance with the RBP’s requirements. Post must ensure RPA 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 of signature of documents after, escalations or inflationary adjustments go into effect, and other changes to lease terms occur.
OBO will review post's performance based on metrics found in the electronic lease waiver system. Based on those results, posts will be designated Green (80% compliance or higher), Yellow (60% to 79% compliance) or Red (below 60% compliance). For posts that are designated Green or Yellow, OBO/PRE/RPL will extend post's authority for a subsequent year. Posts that are designated Red may receive increased monitoring, real estate assistance visits and/or may experience temporary rescission of their RBP authority.
15 FAM 225 housing pool
(CT:OBO-102; 07-20-2020)
a. Each post must establish a safe and secure 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 rent, allow for the U.S. Government to recoup commissioning and security upgrade costs, and create stability within the housing pool. To achieve maximum 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 post’s inventory for a period of 6 to 10 years. (See 15 FAM 361.3 for guidance on lease terms.)
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 its leases.
15 FAM 226 THROUGH 229 UNASSIGNED