OFFICE OF GOVERNMENT ETHICS

                          81 x 18

      Letter to a Private Attorney dated June 2, 1981


     This is in response to your letter of May 5, 1981 concerning 
an associate [with a company ("the Company")] who has accepted an
appointment [with the Federal Government].  You inquire whether it
is permissible under 18 U.S.C.  209 for [the individual] who will
completely sever her relationship with [the Company], to accept
from it the benefit of the home selling program it accords its
transferring employees pursuant to its October 1, 1980 contract
with [a real estate management company].

     Since [the individual] is leaving [the Company] instead of
transferring from [one regional] office to another office, she is
not among those usually granted access to [the real estate
company's] home buying services.   Consequently, these services,
as they apply to her, would not fall within the exemptions of 18
U.S.C.  209(b) regarding employee benefit plans.  It is therefore
necessary to consider whether [the Company's] discretionary tender
of these services, if accepted by [the individual], would
constitute a contribution to or supplementation of her salary as a
[Federal]  employee, contrary to section 209(a).

     We understand that the [real estate company's] services are
designed to provide the fair market value to [the Company's]
personnel for their homes and in a significant sense, therefore,
do not provide the employee-sellers a financial benefit. However,
there can be little doubt that there is a benefit based on time,
convenience, certainty of sale and perhaps other factors that have
a modicum of financial value.  Since conferring the benefit is
elective on the part of [the Company] the issue here turns upon
its intent and that of [the individual] under all of the
circumstances of this case.
               
        We understand that [the Company] and [the individual] look
upon the proposed benefit as a form of recognition and favor for
her excellent past work with [the Company].  We understand also
that [the Company] is motivated by the wish to predispose at this
time [the individual] to return to its employ upon the completion
of her two-year fellowship with the [the Federal Government].
Neither of these motivations suggests a preferment for [the
individual] to compensate her for the role she will play in the
Government.  In short, we are of the opinion that [the Company]
may, consistently with 18 U.S.C.  209(a), provide to her the home
buying services of [the real estate company] under this
established written relocation plan which only grants to her the
fair market value price of her home and that she may likewise
accept these services.

                                Sincerely,

                                J. Jackson Walter
                                Director