# 2012-064 Pay and Benefits, Home Equity Assistance Program (HEAP), Relocation

Case Summary

F&R Date: 2012–08–07

The grievor lost $101,500.00 on the sale of her residence upon being relocated. After being reimbursed $15,000.00 from core and $14,412.47 from her custom and personal envelopes for the loss of equity pursuant to the applicable Canadian Forces Integrated Relocation Program (CF IRP) provisions, the grievor still incurred a loss of approximately $72,000.00. In accordance with section 8.2 of the CF IRP, the grievor prepared a detailed submission to demonstrate that the market in that location had dropped by more than 20 percent between the time of purchase and sale of her residence which she forwarded to the Director Compensation and Benefits Administration (DCBA) for furtherance to the Treasury Board Secretariat (TBS) for review.

The grievor was informed by the DCBA that her claim was not going to be forwarded to the TBS because the TBS had stated there was no depressed market in that particular location at the time of the sale. The grievor submitted a grievance.

The grievor stated that her submission should have been forwarded to the TBS for adjudication as indicated in section 8.2.13 of the CF IRP. She requested that she be reimbursed 100 percent of her loss and that if her request is denied, she be informed of the relevant policy sections on which such a decision would be founded.

The initial authority 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 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 the residence is located in a depressed market area as defined by TBS; the Board acknowledged, as stated by the grievor, that 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. On this issue, the Board pointed out that the relevant part of the CF IRP policy does not require that the TBS "designate" a depressed market; what the policy says is that a depressed market is defined as a community where the market has dropped more than 20 percent. The policy then stipulates that a member must build a case for depressed market status and that the submission is to be forwarded by the DCBA to the TBS for consideration. In the Board's opinion, whether or not the claim will be granted is not for the DCBA to determine.

Based on the evidence presented, the Board was satisfied that the market analysis prepared by the grievor demonstrated precisely the type of depressed situation contemplated in the home equity assistance (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 Chief of the Defence Staff (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 resaonable 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: 2013–02–20

The CDS agreed with the Board that the grievance be partially upheld. Since the grievor has provided the information required by article 8.2.13 of CF IRP 2009 in support of his contention that his neighbourhood in Edmonton was a depressed market, 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 DGCB 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.