# 2020-079 Pay and Benefits, Home Equity Assistance

Case summary

F&R Date: 2020-08-10

On 19 April 2018, revisions to the Canadian Forces Integrated Relocation Program (CFIRP) Directive came into effect, removing the option to apply for 100% Home Equity Assistance (HEA) reimbursement from the Core envelope for homes sold in a depressed market area. The grievor relocated from Cold Lake, Alberta in August 2018, and her home sold that same month for an equity loss of $97,500. The grievor argued that she had purchased her home in Cold Lake with the protection of the depressed market clause in mind. She contended that the policy in place at the time when a home is purchased should be the policy that determines the benefits upon the eventual sale of that same residence.

The Initial Authority (IA) found that, on 17 July 2018, the Treasury Board Secretariat (TBS) declared that houses sold in Cold Lake after 18 April 2018 would be subject to the revised version of the CFIRP Directive HEA policy which no longer considered the depressed market status. The IA denied the grievance, finding that the grievor's home sold after 18 April 2018 and could not be administered under the previous CFIRP Directive.

The Committee first considered whether the grievor had a vested right to be administered under the previous CFIRP Directive but found that she would have had to sell her house before 19 April 2018 to have locked-in a vested right. The Committee then referred to an interview given by the Director of Compensation and Benefits Administration (DCBA) to the Canadian Broadcasting Corporation in May 2018, where the DCBA stated that the intent of the Canadian Armed Forces (CAF) was to address catastrophic home equity losses using a “caveat” found in the CFIRP Directive. DCBA staff advised the Committee that the “caveat” was CFIRP Directive, article 2.1.01. The Committee found that article 2.1.01 did apply to the grievor in that her issue was directly related to her relocation and the extent of her equity loss was exceptional in nature. The Committee recommended that the Final Authority direct DCBA to forward the grievor's claim for full reimbursement of her equity loss to the TBS with the full support of the CAF.