Shelter charge adjustments

RHU shelter charges are determined by applying an annual percent change to the existing base shelter value. The percent change is supplied by the Statistics Canada Consumer Price Index. CFHA is required by legislation and policy to review base shelter values every year, and to ensure that they reflect the local market. 

The Consumer Price Index, or CPI, is published monthly by Statistics Canada and is an indicator of changes in consumer prices. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers. Every August, the percentage change between years is published; this percentage change is used as the percent increase for DND residential housing shelter charges. For RHUs in Yellowknife and Iqaluit, CFHA applies the January Rent component of the CPI for Canada as recommended by the Treasury Board Secretariat of Canada. 

On average, shelter charges will increase by 5.1%, or $57 per month and the national average shelter charge will be $1,133. Because the Consumer Price Index varies among provinces, the actual adjustments range from 3.2% in Ontario and Alberta, to 7.4% in New Brunswick. Shelter charges in Iqaluit and Yellowknife will increase by 6.3%.

Shelter charges for more than half of RHUs are below the national average of $1,133 per month. Regardless of the actual increase, shelter charge increases for existing occupants are limited to $100 a month. 

CFHA is required to review shelter charges annually using a Government-approved process based on Statistics Canada’s Consumer Price Index (CPI) for rented accommodations. CPI reflects national cost trends and may differ from local market fluctuations, which can be temporary or regional. Private sector rents are influenced by competition, supply and demand, maintenance costs, and profit margins, as well as what the public is willing to pay. CFHA does not operate for profit; all revenues are reinvested into maintaining and improving RHUs for Canadian Armed Forces members.

Shelter charge revenues are reinvested to maintain the military housing portfolio including completing reactive and planned maintenance to ensure the units remain compliant, safe, and in good condition, and to provide other services including snow clearing and grass cutting. Operational expenses, including routine maintenance and repairs, are also financed by shelter charges from occupants. CFHA does not generate profit from these revenues; all income is reinvested to maintain and enhance the housing portfolio to support the quality of life of Canadian Armed Forces members and their families. Revenues are managed centrally and allocated across the country based on operational needs and priorities.

At most RHUs, occupants receive utility bills directly from the supplier, because the units have electric and/or gas meters. Some RHUs also have water meters. When RHUs do not have a utility meter, the Government is considered to be the utility provider and must charge occupants based on an established formula (Fuel and Utility Charges). Utility charges are adjusted every year in line with the Consumer Price index for water, fuel, and electricity. 

Utility payments are transferred to the utility service provider. Service providers include the municipality for water and sewer, gas companies for fuel, municipal or provincial hydro utilities for electricity, or a Base or Wing that produces the utility. 

Shelter charges are impacted by a unit’s location, the number of bedrooms and bathrooms and the overall condition of the RHU. A garage, whether it is attached, on the same lot, or assigned from a bank of row garages, increases the shelter charge. In these instances, the garage value is included in the total monthly charge and does not appear as a separate charge on the Notification of Annual Housing Shelter Charge Adjustment. When the garage is not assigned to a specific RHU, which appears most commonly with row garages, the charge appears as a separate line on the Notification. 

Shelter charges vary by location, but are not impacted by an occupant’s rank or household size. 

Most upgrades will increase an RHU shelter charge. Upgrades are necessary to ensure that the RHUs remain safe and sustainable, for use over the long-term. Shelter charges are used to fund the necessary repairs, operations and maintenance of the RHU portfolio.

Provincial rent controls do not apply to RHU shelter charges, though historically they were considered. Residential housing units remain an affordable option for CAF members. According to Canada Mortgage and Housing Corporation, housing is considered “affordable” if its rent or mortgage payment is less than 30% of a household's before-tax income. The QR&O also protects CAF members by restricting their shelter charges to a maximum of 25% of their gross household income and limiting their annual shelter charge increases to $100 per month. 

CAF members are protected against paying more than 25% of their gross household income on RHU shelter charges, excluding additional parking not allocated to the unit and utilities. If a member believes they are eligible for a reduced shelter charge, they can apply to their local Housing Services Centre for a review. Additionally, annual shelter charge increases are limited to $100 per month to protect CAF members from sudden and substantial increases in monthly shelter charge.

For members in isolated posts, where the cost of living is higher, the Department provides an Isolation Allowance.

Occupying a RHU is one of several options available for CAF members. If the new shelter charge is not the best financial interest of the CAF member, they can ask about relocating to another RHU (subject to availability), or can opt to seek housing in the private sector. 

Residential housing unit (RHU) shelter charges are determined by applying an annual percent change to the existing base shelter value. The percent change is supplied by the Statistics Canada Consumer Price Index. The Canadian Forces Housing Agency (CFHA) is required by legislation and policy to review base shelter values every year, and to ensure that they reflect the local market. 

The Consumer Price Index, or CPI, is published monthly by Statistics Canada and is an indicator of changes in consumer prices. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers. Every August, the percentage change between years is published; this percentage change is used as the percent increase for DND residential housing shelter charges. For RHUs in Yellowknife and Iqaluit, CFHA applies the January Rent component of the CPI for Canada as recommended by TBSC.

On average, shelter charges will increase by 8.6%, or $91 per month and the national average shelter charge will be $1,066. Because the Consumer Price Index varies among provinces, the actual adjustments range from 6.2% in Manitoba, to 12.2% in Alberta. Shelter charges in Iqaluit and Yellowknife will increase by 7.9%.

Although the increase for many occupants will be significant, shelter charges for more than half of RHUs are below the national average of $1,066 per month. Regardless of the actual increase, shelter charge increases for existing occupants are limited to $100 a month. 

CFHA is required to review shelter charges every year, using the Government-approved process. Since the Consumer Price Index changes year-to-year, the changes in shelter charges will also vary. Private sector rents are driven by competition, supply and demand, as well as maintenance costs and profit. Private sector rents are also impacted by the amount the public is willing to pay. CFHA does not profit from the portfolio and reinvests all of the revenues back into the RHUs.

Shelter charge revenues fund CFHA’s operations, including repairs and maintenance on the RHUs. Revenues are managed nationally and distributed across the country as needed.

At most RHUs, occupants receive utility bills directly from the supplier, because the units have electric and/or gas meters. Some RHUs also have water meters. When RHUs do not have a utility meter, the Government is considered to be the utility provider and must charge occupants based on an established formula (Fuel and Utility Charges). Utility charges are adjusted every year in line with the Consumer Price index for water, fuel, and electricity. 

Utility payments are transferred to the utility service provider. Service providers include the municipality for water and sewer, gas companies for fuel, municipal or provincial hydro utilities for electricity, or a Base or Wing that produces the utility. 

Shelter charges are impacted by a unit’s location, the number of bedrooms and bathrooms and the overall condition of the RHU. A garage, whether it is attached, on the same lot, or assigned from a bank of row garages, increases the shelter charge. In these instances, the garage value is included in the total monthly charge and does not appear as a separate charge on the Notification of Annual Housing Shelter Charge Adjustment. When the garage is not assigned to a specific RHU, which appears most commonly with row garages, the charge appears as a separate line on the Notification. 

Shelter charges vary by location, but are not impacted by an occupant’s rank or household size.

Most upgrades will increase an RHU shelter charge. Upgrades are necessary to ensure that the RHUs remain safe and sustainable, for use over the long-term. Shelter charges are used to fund the necessary repairs, operations and maintenance of the RHU portfolio.

Provincial rent controls do not apply to RHU shelter charges, though historically they were considered. Although this appears as a significant change in policy, CAF member households are protected against paying more than 25% of their gross household income on RHU shelter charges and annual shelter charge increases are limited to $100 per month.

Rent control did not apply in all provinces, and RHUs are occupied by only 16% of eligible CAF members, therefore adding it to RHU shelter charge gave some CAF members inequitable and unfair benefits. Following a recent internal regulatory and policy review, DND is now aligned with other departments and Treasury Board of Canada Secretariat direction, to not include provincial rent controls when determining shelter charges for Crown housing.

CAF members are protected against paying more than 25% of their gross household income on RHU shelter charges, excluding additional parking not allocated to the unit and utilities. If a member believes they are eligible for a reduced shelter charge, they can apply to their local Housing Services Centre for a review. Additionally, annual shelter charge increases are limited to $100 per month.

For members in isolated posts, where the cost of living is higher, the Department provides an Isolation Allowance.

Occupying an RHU is one of several options available for CAF members. If the new shelter charge is not the best financial interest of the CAF member, they can ask about relocating to another RHU (subject to availability), or can opt to seek housing in the private sector.