# 2012-058 Pay and Benefits, Home Equity Assistance Program (HEAP), Relocation

Case Summary

F&R Date: 2012–07–27

The grievor lost $53,000 on the sale of his principal residence upon being relocated and was reimbursed $15,000 for the loss of equity pursuant to the applicable Canadian Forces Integrated Relocation Program (CF IRP) provisions. In accordance with section 8.2 of the CF IRP, the grievor prepared a detailed submission to demonstrate that the condo market in that location had dropped by more than 20 percent between the time of purchase and sale of his residence which he forwarded to the Director Compensation and Benefits Administration (DCBA) for furtherance to the Treasury Board Secretariat (TBS) for review.

A staff member of the Relocation Adjudication Section of the DCBA denied the grievor's request indicating that TBS had advised the DCBA that there were no designated depressed markets in Canada. The grievor submitted a grievance.

The grievor stated that he was unfairly denied the full reimbursement for the home equity loss and requested an additional reimbursement of $38,000.

The initial authority (IA) denied the grievance on the basis that the Canadian Forces (CF) has no authority to amend a policy approved by TB or extend a benefit beyond its prescribed margins. The IA also stated that since the issue raised in the grievance pertained to a matter prescribed by the Governor in Council (GOC) in regulations, the grievance was returned without further action.

The Board commented the IA's assertion that the grievance could not be considered based on the fact that it pertained to a matter prescribed by the GOC in regulations. The Board pointed out some previous cases in which it indicated, and the Chief of the Defence Staff (CDS) agreed, that this particular IA's interpretation of Queen's Regulations and Orders for the Canadian Forces article 7.01(1) was erroneous. The Board reiterated that this subsection does not prevent CF members from submitting grievances involving matters governed by GOC regulations, but that it rather enables the GOC to make regulations excluding specific matters or cases from the grievance process. In the case at hand, the Board found that the grievor had the right to submit a grievance regarding the DCBA decision concerning his entitlement to home equity assistance (HEA).

The Board noted that pursuant to section 8.2.13 of the CF IRP, a CF member may only receive compensation for 100 percent of the loss on the sale of a principal residence if it is located in a depressed market area as defined by TBS; this section also states that a CF member should build a case and submit the specified documentation to the DCBA for consideration by the TBS. Based on the evidence provided, the Board was satisfied that the market analysis prepared by the grievor demonstrated precisely the type of depressed situation contemplated in the HEA policy and, in the Board's view, the DCBA was required to forward the file to the TBS for review.

The Board indicated that it previously made a systemic recommendation regarding the need to have the HEA program reviewed; the Board added that, in a recent decision, the CDS agreed and directed the Director General Compensation and Benefits (DGCB) to review the HEA provisions with the TBS with a view to reducing the impact of losses on sale of a residence to a reasonable and minimally detrimental level. The Board expressed the hope that this matter will be treated as a priority by both the CDS and the DGCB, given the prospect of further similar grievances due to the current trends in the real estate market.

The Board recommended that the grievance be partially upheld.

The Board recommended the CDS direct the DGCB to forward the grievor's submission, related to a depressed market, to the TBS for review.

CDS Decision Summary

CDS Decision Date: 2013–02–21

The CDS agreed with the Board that the grievance be partially upheld. Since the grievor has provided considerable information that seemed to meet the depressed market criteria of article 8.2.13 of CF IRP 2009 , supporting his contention that Calgary's condos market had dropped, the CDS directed that his file be sent through DCBA to TBS for determination.

As recommended by the Board in several HEA cases, and given the detrimental effect on CF members, the CDS directed CMP to review the adequacy of the CF IRP HEA provisions with TB to minimize any negative impact to CF members brought on by the exigencies of military service.