DND Living Accommodations Policy Review: Infographic and Frequently Asked Questions

All the changes to the DND living accommodations policy review are effective on 1 December 2024.

National Defence reviews its policies on a regular basis to ensure efficient and well aligned service delivery to CAF members and their families. While reviewing living accommodations policies, a need to update corresponding regulations governing them was identified.

Concurrently, the Office of the Auditor General of Canada (OAG) found reasons to improve those policies and made recommendations in their report for DND to do so. DND accepted those recommendations and also committed to the Federal Government’s Standing Committee on Public Accounts to respond accordingly.

These recommendations resulted in a comprehensive review of the living accommodations policy suite.

What is commonly called shelter charge, but referred to as monthly charge for occupancy (MCO) on this page, is established and calculated in accordance with QR&O Volume IV, Appendix 4.1, Regulations Respecting the Charges for Residential Housing Units. The following changes have been approved as follows:

• ensure the continuation for occupants to have a 3-months notice prior to any increase of the MCO;
• enable the adjustment of the MCO in between occupants when the estimated appraised value of a residential housing unit (RHU) has changed. This will allow for an alignment with the market value across the local housing portfolio;
• remove the link between the MCO and a military member’s rank. Linking MCO to income was identified by the Office of the Auditor General as an unfair practice;
• provide occupants of residential housing units larger than 2,500 square feet, who are charged for utilities via metered services, the same reduction as occupants who are bulk billed for utilities; and
• remove provincial rent control as a factor in the monthly charge for RHU occupants. As provincial rent control only applies in four provinces, this will remove the discrepancy between geographic locations and will ensure CAF members in DND RHUs the same standardized federally regulated MCO. As a result, the next shelter charge adjustment calculation will be impacted. This could mean that RHUs occupants in Ontario, British Columbia, Manitoba, and Nova Scotia–the provinces where rent-control was previously factored into local rental market assessments—could see a more significant increase in monthly shelter charges than those in other provinces, whose shelter charges were already assessed against a non-rent-controlled local market.

A federal protection is in place that will ensure that an occupant is not charged more than 25% of their gross monthly household income for their monthly occupancy. That protection does not account for other charges such as utilities or parking and a caveat enables a limit to this 25% maximum in exceptional cases to maintain fairness and equity.

Additionally, there is a limit to the annual adjustment of MCO to no more than the limit set out in the Treasury Board guidelines, currently $100. This change will preclude a sudden and substantial increase in the MCO, and aligns with federal government policies.

Yes. Priority for DND living accommodations, which include DND RHUs, are now based on federal government policies and CAF operational requirements as recommended by the Office of the Auditor General. This means that CAF’s newest qualified members, members moved at public expense for training, and members requiring specific considerations due to the unique nature of the military lifestyle will be the highest priority for RHUs. The remaining military members moved at public expense are the second priority. CAF members moving at their own expense will be assigned to priority three or four following criteria established in the DND Living Accommodation Instruction section 5.

CAF members may apply to the CFHA for a residential housing unit at the following website (Apply for military housing).

CFHA will place CAF members on a single waitlist in accordance with their priority and household size, as detailed in the DND Living Accommodation Instruction sections 5 and 6.

CAF members posted at public expense generally have two years in which to claim expenses related to their posting. Therefore, CAF members on a priority waitlist will retain their priority for two years, unless they have been extended by Director Compensation and Benefits Administration, in which case they may retain their priority upon request to CFHA.

CAF members who do not receive an offer within 24 months while on priority one status, will be placed at the bottom of that list or have the option to withdraw their application in writing.

If a priority one or two CAF member does not receive an allocation offer, they will lose their current priority status and will be removed from the waitlist. However, upon their written request, a CAF member’s application may be added to the priority three waitlist as of the date they were added to their original waitlist. For example, a CAF member who is added to the waitlist on 15 July 2025 and does not receive an allocation offer for 24 months, may request to be added to the priority 3 waitlist on 15 July 2027, with an effective date of 15 July 2025.

CAF members approved for IR and who are eligible for separation expense (SE) (as per Compensation and Benefits Instructions 208.997(7) (Amount – Quarters)) are required to stay in residential furnished quarters if those are available. CAF members approved for IR will need to confirm with their local base/wing’s accommodations section, the availability of residential furnished quarters.

CAF members on IR are eligible to apply for an RHU as a household of one if no furnished quarters are available. However, when a CAF member on IR intends to move their family, the IR status should be lifted to authorize the move.

Yes, eligibility and priority for DND living accommodations has changed and now they will be allocated in accordance with the priorities set in the LAI. Any remaining available RHUs will be allocated to eligible individuals on the priority four waitlist.

CAF members currently waitlisted as priority one will retain their priority until they receive an allocation offer or until their priority status expires after 24 months of COS date.

CAF members waitlisted as priority two will be waitlisted at priority 3. CAF members waitlisted as priority three will be waitlisted as priority four.

It is likely that your monthly shelter charge for fiscal year 2025-26 will increase more than previous years, especially if you currently live in Ontario, British Columbia, Manitoba or Nova Scotia, where rent control will no longer be considered in calculating the value of DND residential housing units (RHUs). In addition, it is also possible that your place on a waitlist for DND RHUs could be reordered due to the policy’s impact on prioritization of DND RHU’s allocation. However, moving forward, these updated living accommodations policies will enable the CAF to support its members and their families while maintaining CAF operational effectiveness.