at? UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

3.. .E Washington, 0.020480
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OFFICE OF
MAR 3 2013 GENERALCDUNSEL
MEMORANDUM

 

SUBJECT: Review of Lease Agreement Under the Federal Ethics Regulations Regarding Gifts

FROM: Kevin s. Minoli 1 
Designated Agency thies Of?cial 
Principal Deputy General Counsel

T0: Matthew Z. Leopold
General Counsel

 

As requested, the Ethics Of?ce reviewed the lease agreement entered into by E. Scott Pruitt
(TENANT) and 1Vicki Hart (LANDLORD) under the federal ethics regulations regarding gifts.
The regulations issued by the Office ofGovernment Ethics are clear that if a federal employee
pays market value for something, it is by de?nition not a gift under those regulations. 5 C.F.R.
from the de?nition of gift ?[a]nything for which market value is paid
by the employee?). Market value for rental apartments is commonly thought of in terms of rental
cost per month. Under the terms of the lease, if the space was utilized for one 30-day month, then
the rental cost would be $1500, which is a reasonable market value. The lease authorized use by
the Administrator and his immediate family, speci?cally including his spouse and children, and
consistent with that provision of the lease his immediate family did stay there when they were in
Washington, DC. The lease did not require payment when the property was not utilized. Neither
of these two provisions render the rental cost under the lease as something other than market
value. Therefore, entering into the lease was consistent with federal ethics regulations regarding
gifts, and use of the property in accordance with the lease agreement did not constitute a gift as
defined in those regulations.