# 2023-089 Others, Home Equity Assistance Program

Case summary

F&R Date: 2025-05-16

On 19 April 2018, revisions to the Canadian Forces Integrated Relocation Program (CFIRP) Directive came into effect, removing the ability to apply for 100% Home Equity Assistance (HEA) reimbursement from the Core envelope for homes sold in a depressed market area. The grievor's home in Cold Lake sold in April 2021, resulting in an equity loss of approximately $100,000. The grievor was reimbursed approximately $40,000 through the HEA benefit. The grievor argued that it was unfair to be penalized for circumstances outside of their control due to housing market conditions. The grievor sought full reimbursement of their home equity loss under the previous HEA benefit, arguing that the purchase of the home occurred under the protection offered by that policy.

The Initial Authority, the Director General Compensation and Benefits, found that the grievor had been treated in accordance with applicable policies and regulations.

The Committee cited 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 later advised the Committee that the “caveat” was CFIRP Directive article 2.1.01, which allowed for the Treasury Board Secretariat to approve requests for reimbursement of expenses that are exceptional circumstances. The Committee noted that the Canadian Armed Forces Relocation Directive (CAFRD) replaced the CFIRP Directive on 1 April 2021 and, most unfortunately, removed the “caveat” of CFIRP article 2.1.01. The Committee found that because the grievor's home sold after 1 April 2021, the CAFRD applied.

However, the Final Authority (FA) has set strong precedence that the HEA benefit remains inadequate and that CAF members should not absorb such catastrophic equity losses. The FA also used CFIRP article 2.1.01 to provide attempted redress of other recent Cold Lake home equity loss grievances. Notwithstanding the removal of the “caveat” from the CAFRD applicable to the grievor's situation, the Committee found that the grievor was deserving of reimbursement of their home equity losses.

The Committee recommended that the FA afford the grievor redress by pursuing a mechanism to enable the grievor's request for 100% reimbursement of their HEA loss, potentially through a submission to the Treasury Board with the full support of the CAF.