Grievance Case Summary - G-281

The grievance concerns the refusal decision made by the Officer in charge, Financial Control and Policy, Finance Branch, (the "Respondent") to acquiesce to the Grievor's request that he declare the community in which the Grievor owned his principal residence prior to being transferred "depressed housing market" which would have the effect of increasing the amount of compensation that he would be entitled to under the Integrated Relocation Program (IRP) for the fact that he lost money on the sale of his home. In 1998, the Grievor purchased a single family home for $133,000. Over the next three years, he made capital improvements which cost him $21,000. When he was transferred in the Fall of 2001, an appraisal report for his residence revealed that market prices for residential properties in the community had declined by 20% to 25% since the time of purchase but the capital improvements to the home had a positive impact on its value. The Grievor's property sold for $113,000 in January 2002. The IRP limited the amount of compensation to which the Grievor was entitled to $15,000 unless it was determined that he was in a depressed market, which is defined as "a community where the housing market has dropped more than 20% since the time of purchase". Information was provided to the Respondent regarding property sales in the community between 1998 and 2001 which suggested that property values had dropped by as much as 32%. However, the Respondent deemed this information to be irrelevant and refused to declare that the Grievor was in a depressed market because the difference between the purchase price and sale price of the Grievor's home was only 13%. The Level I adjudicator concluded that the Respondent had correctly interpreted the IRP.

The Grievor is correct in maintaining that property sales of other homes in the community during the same time period constitutes relevant evidence for the purpose of addressing the issue of whether this was a depressed housing market. However, that determination has to be made by Treasury Board Secretariat (TBS), rather by the Force. The Respondent erred by not forwarding the Grievor's request to TBS.

The grievance should be allowed in part. The Respondent should be ordered to seek a determination from TBS as to whether the Grievor was in a depressed market.

The Commissioner agreed with the findings and recommendation of the Committee. He upheld the grievance and directed that Financial Policy and Control make a submission to Treasury Board Secretariat on the Grievor's behalf.