---
kind: "range"
citation: "24 C.F.R. §§ 17.83–17.113"
title: "24"
from: "17.83"
to: "17.113"
count: 16
url: "https://uscodex.org/cfr/24/17.83..17.113"
---

# §17.83. Scope and definitions.

- (a) The provisions set forth in [§§ 17.83 through 17.113](/cfr/24/17.83..17.113.md) are the Department's procedures for the collection of delinquent nontax debts by salary offset of a Federal employee's pay to satisfy certain debts owed the government, including centralized salary offsets in accordance with [31 CFR part 285](/cfr/31/part285.md).
- (b)
  - (1) This section and [§§ 17.85 through 17.99](/cfr/24/17.85..17.99.md) apply to collections by the Secretary through salary offset from current employees of the Department and other agencies who owe debts to the Department; and
  - (2) This section, [§ 17.85](/cfr/24/17.85.md), and [§§ 17.101 through 17.113](/cfr/24/17.101..17.113.md) apply to HUD's offset of pay to current employees of the Department and of other agencies who owe debts to HUD or other agencies under noncentralized salary offset procedures, in accordance with [5 CFR 550.1109](/cfr/5/550.1109.md).
- (c) These regulations do not apply to debts or claims arising under the Internal Revenue Code of 1954 ([26 U.S.C. 1-9602](/usc/26/1-9602.md)), the Social Security Act ([42 U.S.C. 301-1397f](/usc/42/301-1397f.md)), the tariff laws of the United States, or to any case where collection of a debt by salary offset is explicitly provided for or prohibited by another statute.
- (d) These regulations identify the types of salary offset available to the Department, as well as certain rights provided to the employee, which include a written notice before deductions begin, the opportunity to petition for a hearing, receiving a written decision if a hearing is granted, and the opportunity to propose a repayment agreement in lieu of offset. These employee rights do not apply to any adjustment to pay arising out of an employee's election of coverage or a change in coverage under a Federal benefits program requiring periodic deductions from pay, if the amount to be recovered was accumulated over four pay periods or less.
- (e) Nothing in these regulations precludes the compromise, suspension, or termination of collection actions where appropriate under the Department's regulations contained elsewhere in this subpart (see [24 CFR 17.61 through 17.79](/cfr/24/17.61..17.79.md)).
- (f) As used in the salary offset provisions at [§§ 17.83 through 17.113](/cfr/24/17.83..17.113.md):

  Agency means:

- (i) An Executive department, military department, Government corporation, or independent establishment as defined in 5 U.S.C. [101](/usc/5/101.md), [102](/usc/5/102.md), [103](/usc/5/103.md), or [104](/usc/5/104.md), respectively;
- (ii) The United States Postal Service; or
- (iii) **The Postal Regulatory Commission.** Debt means an amount owed to the United States and past due, from sources which include loans insured or guaranteed by the United States and all other amounts due the United States from assigned mortgages or deeds of trust, direct loans, advances, repurchase demands, fees, leases, rents, royalties, services, sale of real or personal property, overpayments, penalties, damages, interest, fines and forfeitures (except those arising under the Uniform Code of Military Justice), and all other similar sources.

  Determination means the point at which the Secretary or his designee decides that the debt is valid.

  Disposable pay means that part of current basic pay, special pay, incentive pay, retired pay, retainer pay, or in the case of an employee not entitled to basic pay, other authorized pay remaining after deductions required by law. Deductions from pay include:

- (i) Amounts owed by the individual to the United States;
- (ii) Amounts withheld for Federal employment taxes;
- (iii) Amounts properly withheld for Federal, state, or local income tax purposes, if the withholding of the amount is authorized or required by law and if amounts withheld are not greater than would be the case if the individual claimed all dependents to which he or she were entitled. The withholding of additional amounts under [26 U.S.C. 3402(i)](/usc/26/3402.md?p=i) may be permitted only when the individual presents evidence of tax obligation that supports the additional withholding;
- (iv) Amounts deducted as health insurance premiums, including, but not limited to, amounts deducted from civil service annuities for Medicare where such deductions are requested by the Health Care Financing Administration;
- (v) Amounts deducted as normal retirement contributions, not including amounts deducted for supplementary coverage. Amounts withheld as Survivor Benefit Plan or Retired Serviceman's Family Protection Plan payments are considered to be normal retirement contributions. Amounts voluntarily contributed toward additional civil service annuity benefits are considered to be supplementary;
- (vi) Amounts deducted as normal life insurance premiums from salary or other remuneration for employment, not including amounts deducted for supplementary coverage. Both Servicemembers' Group Life Insurance and “Basic Life” Federal Employees' Group Life Insurance premiums are considered to be normal life insurance premiums; all optional Federal Employees' Group Life Insurance premiums and life insurance premiums paid for by allotment, such as National Service Life Insurance, are considered to be supplementary;
- (vii) Amounts withheld from benefits payable under title II of the Social Security Act where the withholding is required by law;
- (viii) Amounts mandatorily withheld for the U.S. Soldiers' and Airmen's Home; and
- (ix) **Fines and forfeitures ordered by a court-martial or by a commanding officer.** Employee means a current employee of a Federal agency, including a current member of the Armed Forces or Reserve of the Armed Forces of the United States.

  Pay means basic pay, special pay, income pay, retired pay, retainer pay, or, in the case of an employee not entitled to basic pay, other authorized pay.

  Salary offset means a deduction from the pay of an employee without his or her consent to satisfy a debt. Salary offset is one type of administrative offset that may be used by the Department in the collection of claims.

  Waiver means the cancellation, remission, forgiveness, or nonrecovery of a debt allegedly owed by an employee of an agency as permitted or required by 5 U.S.C. [5584](/usc/5/5584.md), [10](/usc/5/10.md) U.S.C. 2774, 32 U.S.C. [716](/usc/32/716.md), or [5](/usc/32/5.md) U.S.C. 8346(b), or any other law.


# §17.85. Coordinating offset with another Federal agency.

- (a) **When HUD is owed the debt.** When the Department is owed a debt by an employee of another agency, the other agency shall not initiate the requested offset until the Department provides the agency with a written certification that the debtor owes the Department a debt (including the amount and basis of the debt and the due date of the payment) and that the Department has complied with these regulations.
- (b) **When another agency is owed the debt.** The Department may use salary offset against one of its employees who is indebted to another agency if requested to do so by that agency. Such a request must be accompanied by a certification by the requesting agency that the person owes the debt (including the amount) and that the employee has been given the procedural rights required by 5 U.S.C. [5514](/usc/5/5514.md) and [5](/usc/5/5.md) CFR [part 550](/cfr/24/part550.md), subpart K.

# §17.87. Determination of indebtedness.


In determining that an employee is indebted to HUD, the Secretary will review the debt to make sure that it is valid and past due.


# §17.89. Notice requirements before offset.


Except as provided in [§ 17.83(d)](/cfr/24/17.83.md?p=d), deductions will not be made unless the Secretary first provides the employee with a minimum of 30 calendar days written notice. This Notice of Intent to Offset Salary (Notice of Intent) will state:

- (a) That the Secretary has reviewed the records relating to the claim and has determined that a debt is owed, the amount of the debt, and the facts giving rise to the debt;
- (b) The Secretary's intention to collect the debt by means of deduction from the employee's current disposable pay account until the debt and all accumulated interest are paid in full;
- (c) The amount, frequency, approximate beginning date, and duration of the intended deductions;
- (d) An explanation of the Department's requirements concerning interest, penalties, and administrative costs, including a statement that such assessments must be made unless excused in accordance with the Federal Claims Collection Standards as provided in [31 CFR 901.9](/cfr/31/901.9.md) (although this information may alternatively be provided in the demand notice pursuant to [24 CFR 17.65](/cfr/24/17.65.md));
- (e) The employee's right to inspect and copy Department records relating to the debt or, if the employee or his or her representative cannot personally inspect the records, to request and receive a copy of such records;
- (f) The employee's right to enter into a written agreement with the Secretary for a repayment schedule differing from that proposed by the Secretary, so long as the terms of the repayment schedule proposed by the employee are agreeable to the Secretary;
- (g) The right to a hearing, conducted in accordance with [subpart A of part 26](/cfr/24/part26-subpartA.md) of this chapter by an administrative law judge of the Department or a hearing official of another agency, on the Secretary's determination of the debt, the amount of the debt, or percentage of disposable pay to be deducted each pay period, so long as a petition is filed by the employee as prescribed by the Secretary;
- (h) That the timely filing of a petition for hearing will stay the collection proceedings (See [§ 17.91](/cfr/24/17.91.md));
- (i) That a final decision on the hearing will be issued at the earliest practical date, but not later than 60 calendar days after the filing of the petition requesting the hearing, unless the employee requests and the hearing officer grants a delay in the proceedings;
- (j) That any knowingly false or frivolous statements, representations, or evidence may subject the employee to:
  - (1) Disciplinary procedures appropriate under 5 U.S.C. Ch. [75](/cfr/24/ch75.md), [5](/cfr/24/ch5.md) CFR [part 752](/cfr/24/part752.md), or any other applicable statutes or regulations;
  - (2) Penalties under the False Claims Act, [31 U.S.C. 3729-3731](/usc/31/3729-3731.md), or any other applicable statutory authority; or
  - (3) Criminal penalties under 18 U.S.C. [286](/usc/18/286.md), [287](/usc/18/287.md), [1001](/usc/18/1001.md), and [1002](/usc/18/1002.md) or any other applicable statutory authority.
- (k) Any other rights and remedies available to the employee under statutes or regulations governing the program for which the collection is being made;
- (l) Unless there are applicable contractual or statutory provisions to the contrary, that amounts paid on or deducted for the debt which are later waived or found not owed to the United States will be promptly refunded to the employee; and
- (m) The method and time period for requesting a hearing, including the address of the Office of Hearings and Appeals to which the request must be sent.

# §17.91. Request for a hearing.

- (a) Except as provided in [paragraph (d)](#d) of this section, an employee must file a petition for a hearing that is received by the Office of Hearings and Appeals not later than 20 calendar days from the date of the Department's notice described in [§ 17.89](/cfr/24/17.89.md) if an employee wants a hearing concerning—
  - (1) The existence or amount of the debt; or
  - (2) **The Secretary's proposed offset schedule.**
- (b) The petition must be signed by the employee, must include a copy of HUD's Notice of Intent to Offset Salary, and should admit or deny the existence of or the amount of the debt, or any part of the debt, briefly setting forth any basis for a denial. If the employee objects to the percentage of disposable pay to be deducted from each check, the petition should state the objection and the reasons for it. The petition should identify and explain with reasonable specificity and brevity the facts, evidence, and witnesses that the employee believes support his or her position.
- (c) Upon receipt of the petition, the Office of Hearings and Appeals will send the employee a copy of the Salary Offset Hearing Procedures Manual of the Department of Housing and Urban Development.
- (d) If the employee files a petition for hearing later than the 20 calendar days as described in [paragraph (a)](#a) of this section, the hearing officer may accept the request if the employee can show that the delay was because of circumstances beyond his or her control or because of failure to receive notice of the filing deadline (unless the employee has actual notice of the filing deadline).

# §17.93. Result if employee fails to meet deadlines.


An employee waives the right to a hearing, and will have his or her disposable pay offset in accordance with the Secretary's offset schedule, if the employee:

- (a) Fails to file a petition for a hearing as prescribed in [§ 17.91](/cfr/24/17.91.md); or
- (b) **Is scheduled to appear and fails to appear at the hearing.**

# §17.95. Written decision following a hearing.


Written decisions provided after a request for a hearing will include:

- (a) A statement of the facts presented to support the nature and origin of the alleged debt;
- (b) The hearing officer's analysis, findings, and conclusions, in light of the hearing, concerning the employee's or the Department's grounds;
- (c) The amount and validity of the alleged debt; and
- (d) **The repayment schedule, if applicable.**

# §17.97. Review of departmental records related to the debt.

- (a) **Notification by employee.** An employee who intends to inspect or copy departmental records related to the debt must send a letter to the Secretary stating his or her intention. The letter must be received by the Secretary within 20 calendar days of the date of the Notice of Intent.
- (b) **Secretary's response.** In response to timely notice submitted by the debtor as described in [paragraph (a)](#a) of this section, the Secretary will notify the employee of the location and time when the employee may inspect and copy Department records related to the debt.

# §17.99. Written agreement to repay debt as alternative to salary offset.

- (a) **Notification by employee.** The employee may propose, in response to a Notice of Intent, a written agreement to repay the debt as an alternative to salary offset. Any employee who wishes to do this must submit a proposed written agreement to repay the debt, which is received by the Secretary within 20 calendar days of the date of the Notice of Intent.
- (b) **Secretary's response.** In response to timely notice by the debtor as described in [paragraph (a)](#a) of this section, the Secretary will notify the employee whether the employee's proposed written agreement for repayment is acceptable. It is within the Secretary's discretion to accept a repayment agreement instead of proceeding by offset. In making this determination, the Secretary will balance the Department's interest in collecting the debt against hardship to the employee. If the debt is delinquent and the employee has not disputed its existence or amount, the Secretary will accept a repayment agreement instead of offset only if the employee is able to establish that offset would result in undue financial hardship or would be against equity and good conscience.

# §17.101. Procedures for salary offset: when deductions may begin.

- (a) Deductions to liquidate an employee's debt will be by the method and in the amount stated in the Secretary's Notice of Intent to collect from the employee's current pay.
- (b) If the employee filed a petition for hearing with the Secretary before the expiration of the period provided for in [§ 17.91](/cfr/24/17.91.md), then deductions will begin after:
  - (1) The hearing officer has provided the employee with a hearing; and
  - (2) **The hearing officer has issued a final written decision in favor of the Secretary.**
- (c) If an employee retires or resigns before collection of the amount of the indebtedness is completed, the remaining indebtedness will be collected according to the procedures for the collection of claims under [§§ 17.61 through 17.79](/cfr/24/17.61..17.79.md).

# §17.103. Procedures for salary offset: types of collection.


A debt will be collected in a lump sum or in installments. Collection will be by lump-sum collection unless the debt is for other than travel advances and training expenses, and the employee is financially unable to pay in one lump sum, or the amount of the debt exceeds 15 percent of disposable pay. In these cases, deduction will be by installments.


# §17.105. Procedures for salary offset: methods of collection.

- (a) **General.** A debt will be collected by deductions at officially established pay intervals from an employee's current pay account, unless the employee and the Secretary agree to alternative arrangements for repayment. The alternative arrangement must be in writing, signed by both the employee and the Secretary.
- (b) **Installment deductions.** Installment deductions will be made over a period not greater than the anticipated period of employment. The size and frequency of installment deductions will bear a reasonable relation to the size of the debt and the employee's ability to pay. However, the amount deducted for any period will not exceed 15 percent of the disposable pay from which the deduction is made, unless the employee has agreed in writing to the deduction of a greater amount. If possible, the installment payment will be sufficient in size and frequency to liquidate the debt in 3 years. Installment payments of less than $25 per pay period or $50 a month will be accepted only in the most unusual circumstances.
- (c) **Sources of deductions.** The Department will make deductions only from basic pay, special pay, incentive pay, retired pay, retainer pay, or, in the case of an employee not entitled to basic pay, other authorized pay.

# §17.107. Procedures for salary offset: imposition of interest.


Interest will be charged in accordance with the Federal Claims Collection Standards as provided in [31 CFR 901.9](/cfr/31/901.9.md).


# §17.109. Nonwaiver of rights.


So long as there are no statutory or contractual provisions to the contrary, no employee involuntary payment (of all or a portion of a debt) collected under these regulations will be interpreted as a waiver of any rights that the employee may have under [5 U.S.C. 5514](/usc/5/5514.md) or any other provision of contract or law.


# §17.111. Refunds.


The Department will refund promptly to the appropriate individual amounts offset under these regulations when:

- (a) A debt is waived or otherwise found not owing the United States (unless expressly prohibited by statute or regulation); or
- (b) The Department is directed by an administrative or judicial order to refund amounts deducted from the employee's current pay.

# §17.113. Miscellaneous provisions: correspondence with the Department.


The employee shall file a request for a hearing with the Clerk, OHA, 409 3rd Street SW., 2nd Floor, Washington, DC 20024, on official work days between the hours of 8:45 a.m. and 5:15 p.m. (or such other address as HUD may provide by notice from time to time). All other correspondence shall be submitted to the Departmental Claims Officer, Office of the Chief Financial Officer, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410 (or such other officer or address as HUD may provide by notice from time to time). Documents may be filed by personal delivery or mail.