A decision from the Canadian Forces Grievance Board Authority on Military Relocations

The Board[1] examined the Home Equity Assistance (HEA) policy under section 8.2.13 of the Canadian Forces Integrated Relocation Program (CFIRP), which was applicable to members on posting who sold their homes at a loss in relation to the original purchase price. Section 8.2.13 contains a $15,000 maximum on compensation for losses on sale where the home is not located in a depressed market area. (Treasury Board Secretariat has defined a depressed market area as a community where the housing market has dropped more than 20%, and in such an area, section 8.2.13 authorizes compensation for 100% of the loss.) The Board found that, under modern market conditions, in light of the $15,000 maximum on compensation and 20% market drop required for a depressed market designation, it was likely that CF members in certain cases would continue to incur unreasonable losses on the sale of their homes on posting ($30,000 in this case).

The Board found that permitting losses of this magnitude did not achieve the aim of relocating members with a minimum detrimental effect and was not in accordance with the purposes of the CFIRP policy[2].

Recommendation

The Board recommended that the CDS direct that the HEA policy applicable to CF members selling their homes upon posting be re-examined with a view to reducing the impact of losses on sale to a reasonable and minimally detrimental level.

[1] http://www.cfgb-cgfc.gc.ca/english/Reports_AR_2010_6.html#part04

[2] Note: This is prohibited under limitations of delegated auth of FAA to TBS

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