Posted on Sep 3, 2019
Is it true that single soldiers in reserve components are encouraged to draw up a lease agreement with parents to collect BAH while deployed?
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I have been asked this question because relatives of a friend have stated that their child member of a PA reserve unit who is a single college student, as well as similarly situated members of the unit were advised by the UA to do so. They did, and collected BAH while deployed. These kids were either living in dorms or in their parents home prior to deployment.
Personally, I perceive this as fraud waste and abuse. I can't find the correct answer. Any finance gurus out there?
Personally, I perceive this as fraud waste and abuse. I can't find the correct answer. Any finance gurus out there?
Posted 5 y ago
Responses: 1
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Here's the thing: BAH is an entitlement on active duty.
The military owes you that money regardless of what your rent or mortgage is.
Just like how the military owes you a set amount of BAS regardless of what you spend on groceries, just like how the military owes you a uniform/clothing allowance regardless of how much you spend on uniforms, just like how the military owes you Tricare Prime coverage whether you see a doctor or not, etc.
However, the required source document in the Army is a DA 5960, and the source document required for the address on that 5960 is a mortgage or lease agreement.
That college kid can draw up a lease agreement with their parents showing they pay $1 a month or $7500 a month in rent, and they are still entitled to BAH Type I without dependents, based on zip code not actual rent, because they are on active duty orders for over 30 days.
Is it waste? Sure.
But how much more money would we waste implementing a more complex system that investigates and determines actual cost of rent, if any, for every single Guard and Reserve service member that starts orders over 30 days, every year?
Is it fraud?
If that reserve Soldier lives in a low rent zip code and decides to "move" to a high rent zip code for a deployment, yeah that's fraud.
We warn Soldiers every year that they will pay that back, and they do, sometimes with a rank reduction for good measure.
The military owes you that money regardless of what your rent or mortgage is.
Just like how the military owes you a set amount of BAS regardless of what you spend on groceries, just like how the military owes you a uniform/clothing allowance regardless of how much you spend on uniforms, just like how the military owes you Tricare Prime coverage whether you see a doctor or not, etc.
However, the required source document in the Army is a DA 5960, and the source document required for the address on that 5960 is a mortgage or lease agreement.
That college kid can draw up a lease agreement with their parents showing they pay $1 a month or $7500 a month in rent, and they are still entitled to BAH Type I without dependents, based on zip code not actual rent, because they are on active duty orders for over 30 days.
Is it waste? Sure.
But how much more money would we waste implementing a more complex system that investigates and determines actual cost of rent, if any, for every single Guard and Reserve service member that starts orders over 30 days, every year?
Is it fraud?
If that reserve Soldier lives in a low rent zip code and decides to "move" to a high rent zip code for a deployment, yeah that's fraud.
We warn Soldiers every year that they will pay that back, and they do, sometimes with a rank reduction for good measure.
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SFC Barbara Layman
I completely understand all of what you say. For us, 6 retired NCOs, one of whom has spent time in all active Army branches, WAC, Army, USAR and ARNG, this seems out of the ordinary at best.
It isn't about the amount - it's about the principal. In the case of the soldier with whom we are familiar, s/he has been living 'at home' free gratis since HS graduation. Suddenly a DA civilian is advising them to create a document stating otherwise. Something the former unit administrator among us, who was assigned as such during OIF and OEF, asserts is fraud.
It isn't about the amount - it's about the principal. In the case of the soldier with whom we are familiar, s/he has been living 'at home' free gratis since HS graduation. Suddenly a DA civilian is advising them to create a document stating otherwise. Something the former unit administrator among us, who was assigned as such during OIF and OEF, asserts is fraud.
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SGM (Join to see)
I get it, but DFAS does not care how much a servicemember pays in rent, the document is required as proof of physical residency, because reservists on active orders are entitled to BAH based on the zip code of their physical residency, even if that means living rent free with parents, relatives or friends.
The entitlement is not, and never has been, based on actual cost paid, only zip code and dependency status, either zero or one or more.
Because it is an entitlement not at all based on actual cost of rent, it is not fraud.
It would be fraud if the servicemember falsified either dependency status or zip code for a higher rate that they are not entitled to.
The entitlement is not, and never has been, based on actual cost paid, only zip code and dependency status, either zero or one or more.
Because it is an entitlement not at all based on actual cost of rent, it is not fraud.
It would be fraud if the servicemember falsified either dependency status or zip code for a higher rate that they are not entitled to.
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