# 2012-127 Pay and Benefits, Integrated Relocation Program (CF IRP), Purchase of a Principal Residence, Relocation Benefits, Temporary Dual Residence Assistance (TDRA)

Case Summary

F&R Date: 2012–12–27

The grievor was denied reimbursement of the expenses related to his bridge financing home equity line of credit (HELOC) upon his posting to a new place of duty.

The issue before the Board was to determine whether the grievor was entitled to reimbursement of the expenses associated with his use of a HELOC to purchase his principal residence at his new place of duty.

The adjudication section of the Director Compensation and Benefits Administration (DCBA) denied the reimbursement request, indicating that it did not meet the "intent" of article 8.3.13 of the Canadian Forces Integrated Relocation Program (CF IRP).

The grievor argued that the expenses for which he sought reimbursement were covered under articles 8.2.07 and 8.3.12 of the CF IRP, both of which entitled him to reimbursement of the interest, legal and administrative costs arising from the HELOC.

The Board found that CF IRP, article 8.3.13, was not the only CF IRP provision that DCBA should have considered, and that articles 8.2.07 and 8.3.12 both addressed the grievor's circumstances. The Board examined both articles in light of the grevor's circumstances and found that the grievor's circumstances fit within the parameters of article 8.3.12 which states under “Custom benefit”:

When CF members purchase a replacement residence at the new location before selling their principal residence, they will be reimbursed for the interest on a bridge loan or a line of credit and the associated administration fees charged by the financial institution, provided that it does not exceed the lesser of the:

• equity in their unsold principal residence (i.e., difference between the appraised value and the existing mortgage); or

• purchase cost of the replacement residence.

The Board also found that the grievor was eligible, under CF IRP article 8.2.05 Appraisal fees, for reimbursement of any additional appraisal fees related to the HELOC.

The Board recommended that the Chief of the Defence Staff uphold the grievance.

CDS Decision Summary

CDS Decision Date: 2013–08–29

The CDS agreed with the Board's findings and recommendation that the grievance be granted.