Department of Defense

Overseas Housing Allowance (OHA)

Currently OHA is a use or lose entitlement. This being said, is an entitled member has an allowance for 1200 Euro (monthly) and only uses 900 Euro, the government keeps the savings with no incentive/reward to member. This system causes members to search out a residence that takes the most advantage of their benefit. This in-turn causes an inflated mark-up of houses on the economy further driving up the cost of OHA. If incentive was offered to military members willing to use less than their full entitlement it would cause housing prices to go down in the economy driving OHA entitlements down. Basic Allowance for Housing (BAH) in the states already operates in this capacity. Only the incentive does not have to be 100% of the difference in entitlement and rental costs, further saving the government money. The savings would be substantial.

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Idea No. 4589