RELOCATION EXPENSES - 3830

(Revised: 03/2007)

Costs of relocating will be reimbursed according to CCR, Title 2, Sections 599.721 and 599.722. See SAM Section 8572.1 for reporting and paying taxes on relocating expenses.

Generally permanent residences can be found within 60 days. Therefore the state will usually only pay for relocation expenses for up to 60 days. Exceptions to this are only approved in rare instances. If you want to apply for an extension because of an unusual and unavoidable hardship you may submit your request on a
STD. 256. Send a STD.256, along with an explanation of the hardship, to the Department of Personnel Administration, Personnel Services Branch, 1515 S Street, North Building, Suite 400, Sacramento, CA 95814. The following requirements must be satisfied in order to receive an extension for relocation:

Request early. You must submit your request before the 60 days are up. This is a statutory requirement.  The DPA may not approve after-the-fact requests.

Hardship as a result of the move. The employee must prove that a hardship exists and that it is a direct result of the move.  The hardship must be more than an inconvenience.

Unusual circumstance. The situation must be uncommon or rare to relocation. Normal delays in processing or completing the move will not be considered. For example, if a house does not complete escrow in the 60 days, an exception will not be granted. Since escrow usually takes 30 to 60 days, this is not uncommon. However, if an unusual event directly caused the delay in the close of escrow, an extension may be granted. An example might be a death in the seller's family. If this delayed the seller from vacating the house, an exception may be granted.

Unforeseeable circumstance. The delay must be unavoidable or unforeseeable prior to acceptance of the transfer. Further, the delay must be beyond the control of the employee. Consider such items as the housing market, advancement at the new location, increased income, cost of living at the new location, and the family status at the time of the relocation prior to accepting the transfer. 
The DPA staff will review the employee's efforts to locate a residence. Even if all requirements are satisfied, the employee must document that every reasonable effort was made to step up the process of locating a new residence.

Examples of problems that have been denied in the past and will be denied in the future are as follows:

  1. Purchasing a house under construction or to be constructed. This is a personal decision of the employee's.An extension will not be granted for this reason.
  2. Areas with an obvious lack of available houses. Employees should examine the housing situation and make a decision accordingly when considering a transfer to cities that have an obvious lack of housing. The employee assumes the risk of a delay in locating a residence.
  3. Unable to sell the old residence. The legislation clearly only permits reimbursement of relocation expenses for finding a new home, not for selling an old one. Delays in selling the old home will not be considered.
  4. Damage to new home is found while in escrow. When purchasing a home, it is the buyer's duty to inspect the structure for damage. Later, if problems are found, it is the employee's responsibility, not the state's. An extension of per diem or storage allowance will not be granted.

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