3. Delivering results

Our North, Strong and Free, and Capital Funding

In April 2024, the Government of Canada introduced Our North, Strong and Free: A Renewed Vision for Canada’s Defence Policy, designed to respond to emerging global threats and reinforce Canada’s sovereignty, particularly in the Arctic. Building on the foundation of Strong, Secure, Engaged, Our North, Strong and Free (ONSAF) sets a strategic direction for modernizing defence capabilities, strengthening support for military personnel and their families, and enhancing operational readiness across all domains.

Through ONSAF and Budget 2024, $1.4 billion in funding over 20 years has been allocated to build and renovate military housing across Canada. This includes targets for the construction of 1,400 new Residential Housing Units (RHU) and the renovation of 2,500 existing units. This will enable the Canadian Forces Housing Agency (CFHA) to accelerate the construction of new RHUs and comes at a time during Canada’s housing crisis where there is an urgent need. These efforts are complemented by strategic partnerships with public and private sector organizations, which support alternate solutions to supplement traditional construction. Increasing the supply of on-base housing not only improves access for military families but also helps alleviate pressure on housing demand in surrounding communities.

As part of the implementation of the updated defence policy, CFHA introduced two new performance indicators in Fiscal Year (FY) 2024-25.  

In FY 2024-25, CFHA officially mobilized its construction program at nine priority locations, marking the beginning of a multi-year effort to expand and modernize its housing portfolio. The program includes a mix of housing types tailored to the evolving demographics and household needs of Canadian Armed Forces (CAF) members. Construction began early in the fiscal year on the first six buildings in Edmonton, totaling 36 RHUs, with completion expected by the end of FY 2025-26. Significant progress was also made on pre-construction activities at the remaining priority sites.

In FY 2024-25, the Agency completed 502 renovations, significantly exceeding its annual target of 250. As part of CFHA’s annual program review, 461 RHUs were approved for renovations with an additional 41 units added to various projects throughout the year as the opportunity arose, totaling 502 renovations. These included 310 exterior renovations, 160 interior renovations, and 32 whole-house renovations. 

Departmental Results Framework

The Policy on Results outlines the fundamental requirements for federal accountability in relation to performance measurement and evaluation. It emphasizes the significance of results in guiding management decisions, allocating resources, and ensuring transparency through public reporting. The Departmental Results Framework presents a strategic overview of the Department of National Defence's (DND) mandate, outlining its key responsibilities and performance objectives. This framework supports Canadians and parliamentarians in understanding CFHA’s activities, intended outcomes, and how success will be measured.

The Agency tracks and reports annually on the following performance indicators:

In FY 2024-25, the national condition assessment rating decreased slightly from 3.25 to 3.12, reflecting the continued aging of components across the portfolio. This rating remains within the target range, which CFHA strives to maintain. Given that most RHUs were built in the 1950s and 1960s, achieving and sustaining average condition, i.e., a target of 3 out of 5, is both realistic and appropriate. It indicates that homes are being maintained to a satisfactory standard through routine maintenance and planned upgrades. While condition ratings focus on the physical state of RHUs, they do not capture other improvements such as energy efficiency or modernization, making them just one part of a broader picture of asset management.

In 2025, a process issue was identified and corrected, which resulted in a higher-than-usual number of components being downgraded. This led to a noticeable increase in the number of RHUs assessed as being in "below average" condition, rising from 1,445 units in FY 2023-24 to 2,361 units in FY 2024-25, well above the target of 1,635. While this shift is notable, it reflects a more accurate picture of aging components across the portfolio. CFHA continues to maintain the portfolio, and the issue no longer affects future reporting. CFHA will continue to prioritize RHUs with below average condition ratings to help bring the portfolio back in line with targets. These targeted interventions, delivered through lifecycle programming and minor capital renovations, will support improved functionality, safety, regulatory compliance, and long-term sustainability across the housing portfolio.

Condition breakdown of RHUs by category

The net occupancy rate is a  performance outcome indicator that reflects the overall utilization of RHUs across CFHA’s portfolio. In FY 2024-25, the net occupancy rate was 89%, slightly below last year’s result of 90% but still above the target of 88%. Maintaining high net occupancy remains a priority, given the high demand for military housing. At the same time, CFHA must balance this priority with the need to sustain its assets through planned renovations and lifecycle work, which require some units to be temporarily taken offline. Formal reporting to the department began this fiscal year, and CFHA will continue to monitor this indicator annually to ensure that a substantial proportion of available units remain in active use.

Sustainability initiatives

CFHA continued to advance its sustainability agenda through strategic partnerships with Natural Resources Canada (NRCan), focusing on energy efficiency, emissions reduction, and data-driven decision-making.

The ongoing Letter of Agreement with NRCan’s CanmetEnergy, renewed annually since 2019, supported a broad range of initiatives this fiscal year. This collaboration has evolved significantly, expanding from technical support to a comprehensive suite of activities. Key initiatives included evaluating energy use and greenhouse gas (GHG) emissions across CFHA’s housing portfolio, identifying opportunities for emissions reduction, and integrating building performance requirements into CFHA Design Standards. The partnership also supported the implementation of highly energy-efficient whole-house renovations in Esquimalt, Trenton, and Valcartier, and contributed to the development of a building science training course for CFHA staff. Additionally, NRCan provided technical reviews of project designs and guidance on tracking energy consumption and onboarding to RETScreen.

Further strengthening CFHA’s data capabilities, a new two-year Memorandum of Understanding was signed with NRCan’s CanmetENERGY Varennes in FY 2024-25. This initiative aims to onboard CFHA’s portfolio of 11,734 RHUs into the RETScreen platform. RETScreen is a software tool developed by NRCan that helps organizations track and analyze energy use, GHG emissions, and other sustainability metrics across their buildings. The integration will enable CFHA to monitor the impact of energy improvements over time, access baseline energy models and GHG calculations for annual reporting, and track broader sustainability metrics such as water and waste, as data becomes available.

CFHA continued to modernize and green its vehicle fleet. Building on previous years’ efforts, the Agency expanded its use of plug-in hybrid electric vehicles (PHEVs), receiving four new PHEVs this fiscal year, along with four mono-fuel models. Notably, CFHA also integrated its first fully electric, zero-emission vehicle, marking an important milestone in its transition toward low-emission transportation. By the end of the fiscal year, CFHA’s fleet consisted of 81 vehicles across 24 sites, with a growing mix of hybrid and electric models. These additions reflect CFHA’s alignment with federal greening targets and its sustained efforts to reduce GHG from operations.

Together, these initiatives reflect CFHA’s commitment to evidence-based sustainability planning and continuous improvement in environmental performance across its housing portfolio and operational activities.

Indigenous procurement

In collaboration with Defence Construction Canada (DCC), CFHA awarded 3.14% of contracts to Indigenous businesses this year, falling short of the 5% target. To improve these outcomes, the Agency is actively working with DCC and Public Services and Procurement Canada (PSPC) to enhance outreach and engagement with Indigenous communities.

Current initiatives to establish Standing Offers at 19 locations include Indigenous components, and CFHA continues to collaborate with Procurement Assistance Canada to advance inclusive procurement strategies. CFHA is committed to building respectful, long-term partnerships with Indigenous businesses and communities, and is confident that ongoing efforts will lead to more meaningful and representative procurement outcomes.

Elevate the customer experience

In FY 2024-25, CFHA continued to advance its efforts to improve the housing experience for its occupants, guided by its strategic commitment to Elevate the Customer Experience. 

The Agency made progress in improving the customer service program by implementing enhancements to the complaint resolution process and expanding feedback channels. Expanded feedback channel initiatives included:

• The ongoing distribution of seasonal newsletters.
• The creation of new Notices to Occupants to advise of policy changes. 
• The release of standardized Occupancy Management email templates to support consistent communication across all sites.
• New posters featuring CFHA Stars, and QR codes to quickly provide occupants with access to online services.
• The introduction of a new phone system that converts voicemails from occupants into emails sent directly to the Customer Service inbox.

Delivering consistent, high-quality housing services remained a top priority for CFHA in FY 2024-25. The Agency strengthened its oversight by regularly monitoring contractor performance through automated reporting tools, with a particular focus on the timeliness of work completion. These reporting tools provide Housing Services Centre (HSC) staff with clear, real-time data, enabling them to quickly identify and address performance issues. In addition, occupants were asked to rate their satisfaction with work completed. Together, these insights supported CFHA’s efforts to respond to concerns more effectively and to enhance overall satisfaction with housing services.

CFHA continues to foster a culture in which every team member prioritizes the customer experience. Through internal workshops, journey mapping, and recognition programs, customer-centric values are being embedded throughout the organization. This ongoing cultural focus empowers staff to foster meaningful, two-way engagement with occupants, creating a more positive and consistent customer service experience at every touchpoint.

Enhance the employee experience

In response of high operational demands, 42 new employees joined CFHA over the course of the year. This influx of new talent contributed to a net increase of 14 full-time equivalent positions, reflecting the Agency’s strategic growth. In addition, CFHA supported the development of future talent by hiring 41 students through the Federal Student Work Experience Program and co-op programs. These students brought fresh perspectives and contributed meaningfully to the Agency’s work across various regions and functions.

CFHA also continued to invest in the development of its workforce, with a particular emphasis on change management. Targeted training efforts throughout the year helped equip managers with the knowledge and tools needed to effectively implement organizational changes across the Agency. This approach supported CFHA in navigating several key change initiatives, including the restructuring of its Housing Operations division from three to four regions.

Modernize the business 

CFHA advanced its digital modernization and technology-enabled service delivery, in alignment with the Government of Canada’s Digital Ambition and the DND defence policy update. Through strategic investments in information management and information technology planning activities, such as innovation planning, organizational alignment, technical configuration, and upskilling, CFHA laid the foundation for more visible changes like new digital tools, automated workflows and improved customer service channels, in order to modernize its business operations to better support CAF members and their families.

To support this transformation, CFHA undertook key discovery, foundational, and planning activities aimed at enabling the future adoption of cloud-based platforms, integrating greater automation into business processes, and enhancing data analytics and digitization across customer service channels.

As part of the ongoing modernization efforts, CFHA introduced a new electronic prioritization and waitlist allocation system, which became mandatory across all sites in fall 2024 to coincide with the implementation of the updated Living Accommodation Instruction. Previously managed at the local level, the waitlist is now administered through a single, nation-wide system. The system enhances CFHA’s ability to manage housing allocation by enabling real-time tracking of waitlists and priority categories, reducing manual administrative work, and improving reporting capabilities. These improvements help streamline operations and provide more accurate data to support planning and decision-making across the portfolio. 

These efforts laid the groundwork for the next phase of implementation, which will focus on concrete actions to improve operational efficiency, support data-driven decision-making, and enhance the overall customer experience.

CFHA is proud to be leading a transformative shift in federal housing infrastructure with the construction of six net-zero-emissions-ready apartment buildings at Canadian Forces Base (CFB) Edmonton. These buildings, each containing six two-bedroom units, represent the first net-zero-emissions-ready residential buildings built by a federal organization in Canada, setting a new standard for sustainable Crown housing. Construction of the Edmonton six-plexes began in spring 2024 and is progressing well, with completion expected by the end of FY 2025-26.

Designed to meet Tier 4 of the National Building Code, meaning they will be at least 40% more energy efficient than a typical new build with advanced insulation, airtight construction, and high-efficiency systems, the buildings are engineered to significantly reduce energy consumption and lower monthly utility costs for occupants. Each unit will include electric vehicle plug-ins, and the buildings are designed to allow for the future installation of solar panels and other energy-reducing measures.

In line with the release of Treasury Board’s Greening Government Strategy and the Defence Climate and Sustainability Strategy, the Edmonton apartment project is the first of many to come with higher energy efficiency standards. These designs are important for CFHA’s construction plans as they will be adapted for future six-unit buildings in other sites, helping to scale energy-efficient housing nationwide and providing occupants with lower utility bills.

On November 1, 2024, CFHA officially added 189 RHUs in Yellowknife to its national portfolio. As a result of an administrative transfer which had been years in the making, DND acquired the Crown-owned housing from PSPC, who ceased housing operations on behalf of the Government of Canada in the area. This transfer marked a significant change not only to the Agency’s housing portfolio but for the occupants they serve north of the 60th parallel, including its role in supporting CAF operations related to the North Atlantic Treaty Organization (NATO) and the North American Aerospace Defense Command (NORAD).

Of the 189 RHUs acquired, CFHA is managing 186 units for occupants. The other three units are serving different purposes: one is being used as DND quarters, one as the local Military Family Resource Centre office, and one unit is being renovated to serve as the local CFHA office. These three units will be managed by Assistant Deputy Minister (Infrastructure and Environment) (ADM(IE))’s Real Property Operations.

CFHA successfully provided a seamless transition and uninterrupted housing services to members of the CAF and the Royal Canadian Mounted Police (RCMP) and their families already living in the RHUs. In view of the RCMP’s continued need for housing in Yellowknife, the Agency secured an agreement with the national police service to allocate and manage 65 units for RCMP personnel in Yellowknife, ensuring their housing needs are met alongside those of the CAF community.

It took an incredible effort from many teams across the Agency who worked tirelessly to make this transfer move along as smoothly as possible. The transfer would not have been possible without the support of various partners and stakeholders within ADM(IE), the Joint Task Force North command team and the Office of the DND/Canadian Forces Legal Advisor.

Tree planting initiative update

CFHA continued its partnership with NRCan to support tree planting at residential housing sites across Canada. As part of the Government of Canada’s 2 Billion Trees (2BT) commitment, CFHA has planted a total of 7,043 trees since the initiative began in May 2022.

In FY 2024-25, CFHA planted 2,291 trees at HSC Moose Jaw and Shilo. Next year, planting is planned at HSC Shilo, Petawawa, and Montreal, marking CFHA’s final year of participation in the 2BT program. Participation in this program has helped CFHA contribute to the Greening Government Strategy objectives, reducing noise pollution and soil erosion, providing shade and windbreaks for RHUs, and supporting occupant well-being and satisfaction.