# 2019-091 Pay and Benefits, Real Estate Incentive - Time limit for signing the waiver electing not to sell

Case summary

F&R Date: 2020-03-11

In September 2017, the Ontario Residential Tenancies Act was amended to require landlords, who exercise their right to re-occupy their rental unit, to pay one month's rent to their tenant. The grievor, having already accepted the Real Estate Incentive (REI) payment and leased her house prior to this amendment, was required to compensate her tenant when she re-occupied her house upon a return posting. The grievor, acknowledging that there is currently no provision in the Canadian Forces Integrated Relocation Program (CFIRP) Directive to reimburse this fee, argued that her circumstances were exceptional and due to service requirements. Therefore, she sought a full reimbursement and an amendment to the CFIRP addressing this matter.

The Initial Authority, the Director General Compensation and Benefits, denied the grievance finding that he was bound by Treasury Board Secretariat (TBS) approved policy and did not have the authority to extend or create benefits.

The Committee noted that the CFIRP provides a range of relocation options from which Canadian Armed Forces (CAF) members can choose, and the grievor chose to accept the REI benefit and rent her house. As a result, the Committee found that the grievor's decision was a personal one and not driven by a service requirement, that her house became an income-producing property for which the CFIRP does not contemplate providing any reimbursement and, that the grievor was not entitled to reimbursement of the compensation she paid her tenant.

The Committee also noted that the TBS had provided the CAF their opinion on the matter, stating that they did not support such a reimbursement as renting a former principal residence is a personal choice. The Committee arrived at the same conclusion. As such, the Committee found that there was no compelling reason to invoke the Ministerial Authority found in CFIRP article 2.1.01 to reimburse the grievor for her income-producing property. The Committee recommended that the Final Authority (FA) not afford redress.

FA decision summary

The FA agreed with the Committee's findings and recommendation not to grant redress since the grievor opted for the Real Estate Incentive as per section 8.2.14 of the CFIRP and signed a waiver acknowledging that no future reimbursement of disposal costs can be claimed. It was a personal decision to maintain ownership at origin to rent out the house, and the grievor must assume the expenses related to that business decision. Therefore, the one month penalty imposed as a landlord by the Ontario Residential Tenancies Act is not reimbursable through the CFIRP.