1. The year in review from the Chief Executive Officer

A reflection on the year’s achievements, challenges, and strategic direction

It is with great pride and optimism that I present the Canadian Forces Housing Agency’s (CFHA’s) Annual Report for fiscal year (FY) 2024-25.

Amid a rapidly evolving economic landscape and a renewed national commitment to defence investment, this past year has been one of progress and transformation where CFHA focused on setting the stage to deliver the Defence Residential Housing Program in the years to come.

Highlights of our key accomplishments for the year include:

Release of Building Our Future: Strategic Plan 2025-2030

The release of CFHA's Building Our Future, Strategic Plan 2025-2030 marked a defining moment for the Agency. We adopted a revised mandate: to provide housing solutions to support the current and future needs of the Canadian Armed Forces (CAF), and to ensure assets are well-maintained. We also revised our mission: to meet the evolving housing needs of the CAF and contribute to the quality of life of CAF members and their families. This forward-looking plan charts our course toward becoming a leader in the provision of diverse and sustainable Crown housing solutions. It introduces four strategic pillars—meeting the current and future housing needs of the CAF, elevating customer experience, enhancing the employee experience, and modernizing the business—that will guide every decision and action we take. Grounded in our core values of customer-centred service, commitment, teamwork, respect, and agility, and driven by our new guiding principles of leadership and innovation, the plan provides a clear roadmap to learn, evolve, and thrive. I am incredibly proud of the work that went into shaping this vision and of the passionate, committed team that will bring it to life.

Mobilization of the Residential Portfolio Capital Investment Plan Construction Program Phase 1

In FY 2024-25, we officially mobilized Phase 1 of the Residential Portfolio Capital Investment Plan Construction Program. Initially targeting 668 new units at nine priority locations over five years, the target has since increased to more than 800 Residential Housing Units (RHU). As of March 31, 2025, more than 86% of applications are for one- and two-bedroom units, highlighting a clear and growing need for smaller unit sizes. The program will expand the diversity of housing options including a mix of housing types that will respond to the changing demographic and household characteristics of the CAF. I am happy to share that construction began early in the fiscal year on the first six two-bedroom apartment buildings in Edmonton for a total of 36 RHUs, with completion expected by March 31, 2026. These units represent a major milestone as they are the first net-zero-emissions-ready apartment buildings constructed by the Government of Canada, marking an important step forward in modernizing federal residential housing infrastructure. Beyond this initial milestone, we made significant progress on pre-construction activities for all priority sites, including design work, site studies, and procurement planning. We successfully awarded the design phase for our first-ever regional modified design build (MDB) contract, for the construction of 200 units in Ontario at three locations – Petawawa, Kingston and Borden. We also awarded the design phase through the use of MDB contracts in Esquimalt (120 RHUs) and Gagetown (40 RHUs). These foundational efforts are critical to enable increased and accelerated construction activity in the years ahead to deliver on our long-term housing commitments.

Exploration of alternative approaches to increasing the housing supply

CFHA continued to explore alternative approaches to increasing the housing supply beyond traditional construction. This included optimizing the use of existing units, pursuing innovative partnerships, and collaborating with other government departments to identify flexible, sustainable solutions that support the evolving needs of the CAF. A major success in this area was the administrative transfer of 189 RHUs in Yellowknife from Public Services and Procurement Canada officially added to our national portfolio on November 1, 2024. This marked a significant expansion of our footprint north of the 60th parallel and demonstrated the potential of strategic transfers to strengthen our ability to meet the housing needs of the CAF.

Sustainment of the current portfolio

As indicated in our financial statements, we are investing more than in previous years, a total of $185 million in new builds and housing services, including renovations and repairs at more than 3,500 RHUs across the country. Continuing to sustain and renovate our existing portfolio, which is made up primarily of aging homes built in the 1950s and 1960s, is essential to keep houses available for allocation at a moment of increased demand across the country. As these units continued to age, we invested over $82 million in renovations, including those aimed at improving energy efficiency and functionality, with the goal of keeping our portfolio well maintained.

With increased funding, we now have a unique opportunity to tackle deferred maintenance, enhance the quality of our housing portfolio, and expand our availability to better meet the needs of CAF members and their families. This momentum brings both promise and responsibility. To make the most of it, we must strengthen communication and coordination across all teams. Smart investment decisions depend on clear, timely information from every level of the organization. Now, it’s up to all of us at CFHA to ensure those dollars are spent where they’re needed most.

Advancing environmental stewardship

CFHA continued to strengthen its environmental leadership through strategic collaboration with Natural Resources Canada (NRCan), advancing initiatives focused on energy efficiency, emissions reduction, and data-driven planning. A major milestone this year was the signing of a two-year Memorandum of Understanding to begin onboarding the Department of National Defence’s entire housing portfolio into the RETScreen platform, a clean energy management software used to monitor and analyze energy performance. This will enable more effective tracking of energy use and greenhouse gas emissions as well as a reduction of utility bills for our occupants. Finally, CFHA supported the 2Billion Trees initiative led by NRCan with planting projects in Trenton, Shilo, Wainwright, Moose Jaw, and Dundurn.

New electronic prioritization and waitlist allocation system

In FY 2024-25, CFHA adopted a new electronic prioritization and waitlist allocation system, fully aligned with the updated Living Accommodation Instruction which took effect on December 1, 2024. Previously managed at the local level, the waitlist is now administered through a single, nation-wide system. The new system enables real-time tracking of waitlists and priority categories, reduces manual administrative work, and improves reporting capabilities.

Strengthening our culture of excellence

In these dynamic and often uncertain times, the strength of our organization lies in our people. I want to extend my deepest gratitude to the entire CFHA team for their unwavering commitment, professionalism, and focus. Our dedication to innovation isn’t just a guiding principle, it’s embedded in everything we do. Through our partnership with Excellence Canada, we continue to foster a culture of learning, continuous improvement, and meaningful change. Having achieved Platinum Certification in Excellence, Innovation, and Wellness, we are now working toward the Order of Excellence, the final step in this journey. By investing in our workforce and nurturing a supportive, growth-oriented environment, we are ensuring CFHA remains an employer of choice and that our team is equipped to manage the largest housing portfolio within the Government of Canada.

This past year has been one of progress and transformation for CFHA. The road ahead is ambitious, but so are we. Although many uncertainties lie ahead, viewing these challenges as a pivotal moment to adapt and improve our services will be key to excelling in our mandate to support military members and their families, and to contribute to solidifying CAF readiness. With a strong foundation and clear vision, we are well-positioned to navigate change and seize the opportunities that lie ahead.

Paola Zurro, ing., P.Eng.
Chief Executive Officer,
Canadian Forces Housing Agency

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2025-11-21

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1. The year in review from the Chief Executive Officer

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