GAO urges State Department to modernize overseas housing space standards
The recommendation targets the Department of State's overseas housing program for its roughly 9,000 Foreign Service employees, as detailed in the FY 2025 GAO review.
GAO found that the State Department's maximum housing space standards have not been revised since 1991, a span of 35 years, raising the risk that the agency is paying for larger units than necessary for its overseas personnel.
Data from fiscal year 2025 show that 87 percent of overseas units met cost standards and 81 percent met space standards, yet waivers were required for some posts. Cost waivers produced an overage of under 2 percent of annual lease costs, amounting to $8.8 million of the total $497 million in lease expenditures.
GAO recommends that the Secretary of State direct the Director of the Bureau of Overseas Buildings Operations to (1) review and, as appropriate, update the maximum housing space standards to reflect current economic conditions in the Washington, D.C., area, and (2) align the method for measuring overseas housing space with domestic industry standards. The Department of State has concurred with both recommendations.
State officials cite the Staff Housing Opportunity Purchase program as a tool to acquire residential properties using proceeds from the global sale of excess properties, aiming to lower long-term lease costs while providing higher-quality housing.
The GAO review examined relevant laws, policies, and FY 2025 housing data, and included interviews with officials at headquarters and at three overseas posts - Côte d'Ivoire, France, and Thailand - to illustrate the range of challenges faced in meeting the standards.