# 2024-270 Pay and Benefits, Canadian Armed Forces Relocation Directive, Capital Improvements in accordance with article 8.2.10 of the CF IRP, Home Equity Assistance Program

Case summary

F&R Date: 2025-09-18

Upon posting to a new location and after purchasing a home without an inspection, the grievor found it required significant renovations. The grievor was then posted to a new location one year later and although selling the home for more than it was purchased for, sought reimbursement of the renovation costs that were not covered by the sale of the home. The grievor argued that the home purchase should be considered a new build purchase because of the extensive renovations resulted in a virtually new home. The grievor contended that the renovation costs should be added to the purchase price of the residence for the calculation of the Home Equity Assistance (HEA) benefit of the Canadian Armed Forces Relocation Directive (CAFRD).

The Director General Compensation and Benefits, acting as the Initial Authority (IA), noted that article 8.3.04 of the CAFRD required a contract for the construction of a newly built residence, which implied that the residence had never been lived in. The IA therefore determined that the renovation costs could not be added to the purchase price. The IA also found that because the grievor sold the home for more than it was purchased for, the grievor was ineligible for the HEA benefit. The IA denied redress.

The Committee found it was clear that the home was a resale purchase and not a new build as there was no building agreement or any other indication at the time of purchase to differentiate from a standard resale. The Committee also found that the situation did not qualify as exceptional circumstances under section 1.4 of the CAFRD. The Committee noted that while the Canadian Armed Forces did post the grievor for a very short duration, the grievor assumed significant risk in purchasing the home without an inspection. As such, the Committee found that the grievor had not been aggrieved. The Committee recommended that the Final Authority not afford the grievor redress.