BAH II, BAH-Diff, and OHA (Update)

BAH II and BAH Diff Eliminated
The elimination of BAH II and BAH-Difference is phase II of the planned transition from the old BAQ laws, and it removes the BAH II grandfathering effect.

The elimination of BAH-Diff, the rate established for servicemembers who pay child support and live on the economy, will mean that servicemembers will be converted to BAH at the “with dependents” rate and have use of the OHA higher rental ceilings. In addition stateside servicemembers who are assigned to “inadequate quarters” will begin receiving BAH I which is 25 percent of the BAH for their locality versus 25 percent of the lesser BAH II.

Servicemembers receiving either BAH without Dependents and BAH Difference or OHA with Dependents and BAH Difference will switch to "BAH with dependent" or "OHA with dependent" on December 31, 2005. Because the affects of the expiration of the old BAQ and Variable Housing Allowance (VHA) rules are highly complex and wide reaching it is recommended that servicemembers who receive BAH, OHA, Family Separation Housing Allowance (FSH) and BAH II should contact their local pay or personnel office for specific details on how the new rules will affect them.

Overseas Housing Allowance Changes:
The command sponsorship requirement for entitlement to OHA will be eliminated effective October 1, 2005. Any member residing off-base, with dependents in the vicinity of the permanent duty station, will be paid OHA at the with dependent rate based upon the location rate for the permanent duty station. This also applies to members serving on a dependent restricted tour with non-command sponsored dependents residing in the vicinity of the permanent duty station. Members serving an unaccompanied tour whose dependents do not reside near the permanent duty station will continue to be paid bah or OHA at the designated location of their dependents.

Further changes to entitlement rules are being developed and will be announced before the elimination of BAH II authority effective January 1, 2006.