DND Living Accommodations Policy Review: Infographic and Frequently Asked Questions

Following the important update released on 1 December 2024, a subsequent update has taken effect on 1 December 2025. In addition, the DND and the CAF have planned regularly scheduled reviews to update, as needed, its policies to maintain a clear and equitable approach in assisting CAF members who are assigned or request to live in DND living accommodations in Canada.

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 for DND to do so in their 2015 Report, Canadian Armed Forces Housing. 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, concluded by an important update released on 1 December. A subsequent update has been released on 1 December 2025 to clarify and strengthen cohesiveness in the policy statements.

What is commonly called shelter charge, but referred to as monthly charge for occupancy (MCO) in this review, is established and calculated in accordance with Queen’s Regulations & Orders (QR&O) Volume IV, Appendix 4.1, Regulations Respecting the Charges for Residential Housing Units. The following changes have been approved and were effective as of 1 December 2024:

• 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 this discrepancy between geographic locations and will ensure the same standardized federally regulated MCO for CAF members in DND RHUs. As a result, shelter charge adjustment calculations will be impacted going forward. 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 MCO than those in other provinces, whose MCO were already assessed against a non-rent-controlled local market.

A federal protection is in place to ensure that, in most cases, an occupant is not charged more than 25% of their gross monthly household income for their monthly charge for occupancy (MCO).

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.

DND residential housing is government property. As such, their management is subject to Treasury Board rules and guidance.

The charges to occupy a residential housing unit should align with the local market, which fluctuates. Therefore, the shelter charges are assessed annually to align as closely as possible to the local market. The managing authority is accountable for maintaining that alignment with the local market at a pace reasonable both in terms of their objectives and in terms of the impact on the occupants.

The Living Accommodation Instructions (LAI), Section 3.5(e) and Section 8.2, states respectively that:

“Shelter charges for DND living accommodations with a residential purpose must reflect the local private sector market and must not provide a benefit nor form part of the CAF member’s pay or compensation.”

“A Licence to Occupy is a temporary personal entitlement granted to the occupant by the MND and does not create any estate or interest. Therefore, no tenancy is established by this Licence to Occupy, and provincial or territorial legislation and municipal by-laws in the area of tenancy do not apply to RHUs.”

The DND and the CAF have measures in place to ensure affordability of residential housing.

The DND and the CAF can provide access to residential housing in line with federal government policies and to satisfy CAF operational requirements. The government policy states that employees would normally be responsible for their own residential accommodations. The government can only intervene to provide access to housing when there is a necessity to live at an isolated workplace or there are no other viable housing options available where they are posted. However, the Chief of Defence Staff-approved CAF operational requirements also allow the DND and the CAF to provide access to residential housing for:

1. new CAF entrants on their first move of dependants, household goods and effects ((D) HG&E) at public expense;
2. CAF members moved at public expense for training; or
3. CAF members affected by the challenges of the unique military lifestyle such as frequent postings, and the obstacles associated with getting re-established in a new geographic location.

For the circumstances described here, the DND and the CAF may provide access to residential housing. The DND and the CAF will always work towards providing access to residential housing to posted CAF members, however, availability can be limited.

Yes. Priority for DND living accommodations, which include DND RHUs, are based on federal government policies and CAF operational requirements as recommended by the Office of the Auditor General in their 2015 Report, Canadian Armed Forces Housing. This means that CAF members on their first move at public expense, 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 Living Accommodations Instruction section 5.

CAF members may apply to the Canadian Forces Housing Agency for a residential housing unit at the following website (Apply for military housing).

The Canadian Forces Housing Agency will place CAF members on a single waitlist in accordance with their priority and household size, as detailed in the Living Accommodations Instruction sections 5 and 6. Applicants will be provided with a number on the waitlist, as applicable, indicating their assigned position in accordance with their household size.

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 the window to claim their posting-related expenses has been extended by Director Compensation and Benefits Administration, in which case they may retain their priority upon request to the Canadian Forces Housing Agency.

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

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.

No, however eligibility and priority for DND living accommodations has changed and now they will be allocated in accordance with the priorities set in the DND Living Accommodations Instruction. Any remaining available RHUs will be allocated to eligible individuals on the priority four waitlist.

It is likely that your monthly shelter charge 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 monthly charges for DND residential housing units (RHUs). However, moving forward, these updated living accommodations policies will enable the CAF to support its members and their families while maintaining CAF operational effectiveness.

Not all CAF members choose to live in DND residential housing units. In fact, less than 20% of CAF members utilize that option. Within the new entrants’ cohort, a portion chooses to reside in furnished residential quarters when they opt for Crown living accommodations.

Recent data show that the primary demographic in RHUs are Corporals, making up 41% of the occupants. This group does not traditionally qualify as new entrants. Privates, the most junior tier in the ranking, tie Master Corporals as the second most represented group in the occupancy of RHUs at 18% each. This highlights that new entrants do not factually constitute most of the RHU allocations and more experienced members who choose DND residential housing will still be a significant portion of the RHU allocations.

Aligning with the Canadian Human Rights Act and the Canadian Charter of Rights and Freedoms, all eligible CAF members can equally apply for DND residential housing irrespective of their family or marital status. It is considered a discriminatory practice not to allow a CAF member to apply for DND residential housing based on marital status or the size of their family. The priority criteria are rather based on operational requirements, as determined by the Chief of Defence Staff.

For the 2024-2025 Active Posting Season, approximately 22% of the new entrants coming off the Basic Training List have dependants. That is a proportion close to the ratio of CAF members choosing DND residential housing. Therefore, it is an assumption that new entrants do not have dependants.

Additionally, a portion of new entrants chooses to reside in residential furnished quarters rather than residential housing units and that choice must be protected.