Home Equity Assistance

100% Home Equity Assistance in CFIRP

CFIRP Decision # 2013-049

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In previous grievance files, the Committee has expressed its concerns regarding the deplorable inadequacy of the current HEA policy. In a recent decision, the Chief of the Defence Staff (CDS) agreed that the policy on the HEA benefit fails to account for the current reality that a member faces when he/she is required to sell their home on posting. In fact, the CDS directed the Director General Compensation and Benefits to review the adequacy of the CF IRP HEA provisions with the Treasury Board to minimize any negative impact to Canadian Armed Forces members brought on by the exigencies of military service.[i]

Report on systemic issue: 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 IRP policy. [ii]

The CDS also agreed with the Board’s systemic recommendation and he directed DGCB to review the HEA provisions with TB with a view to reducing the impact of losses on sale of a residence to a reasonable and minimally detrimental level. One issue for review is the definition of “community”: using a large metropolitain area as a basis for defining a community would average out large discrepancies amongst the communities that make up the larger area.  For example, Ottawa is an amalgamated city that includes several previously existing cities (Vanier and Kanata), each of which consists of identifiable areas considered as communities . (did it for them)

[i] http://mgerc-ceegm.gc.ca/cs-sc/2013-049-eng.html

[ii]  http://mgerc-ceegm.gc.ca/rec/024-eng.html


Written by Major Marcus Brauer

February 22, 2015 at 15:05

Posted in Uncategorized

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