# 2022-221 Pay and Benefits, Home Equity Assistance Program

Case summary

F&R Date: 2023-11-23

On 19 April 2018, revisions to the Canadian Forces Integrated Relocation Program (CFIRP) Directive came into effect, removing the option to apply for 100% Home Equity Assistance (HEA) reimbursement from the Core envelope for homes sold in a depressed market area. The grievor's home near Edmonton sold in March 2021, resulting in an equity loss of approximately $115,000. The grievor was reimbursed approximately $40,000 through the HEA benefit. The grievor asked for the extraordinary circumstances of his relocation be considered, argued that the HEA benefit is inadequate to address such high home equity losses, and sought full reimbursement of their home equity loss. The grievor also argued that heavy taxation of the HEA benefit resulted in less effective reimbursement to offset the equity loss.

The Initial Authority, the Director General Compensation and Benefits, found that the grievor had been treated in accordance with applicable policies and regulations.

The Committee cited an interview given by the Director of Compensation and Benefits Administration (DCBA) to the Canadian Broadcasting Corporation in May 2018, where the DCBA stated that the intent of the Canadian Armed Forces (CAF) was to address catastrophic home equity losses using a “caveat” found in the CFIRP Directive. DCBA staff later advised the Committee that the “caveat” was CFIRP article 2.1.01. The Committee found that CFIRP article 2.1.01 applied to the grievor's case given that the expense was directly related to the relocation and the extent of the equity loss was exceptional in nature.   

The Committee also observed that taxation of the current $30,000 HEA maximum reimbursement from the Core funding envelope serves to further reduce the benefit received by the grievor. Given that taxation is governed by the Income Tax Act, the Committee recommended that the CAF work with the Treasury Board Secretariat (TBS) to pursue a reduction in this tax burden on military members. The Committee also recommended that the Final Authority direct that the grievor's claim for full 100% reimbursement of their home equity loss be forwarded to the TBS, with the full support of the CAF.