October 2004

The rent review process applies to the 20 per cent of military families who live in married quarters. The remaining military families have chosen to buy or rent on the local market and are subject to the conditions that normally apply on the private home ownership or rental markets.

Treasury Board policy has long stated that rents for Crown-owned housing must reflect market rates in the local economy. This is the policy of the government for all Crown-owned housing, not just for the housing offered to members of the Canadian Forces. This policy’s aim is to respect the principle of fairness by ensuring that the 20 per cent of military personnel living in Canadian Forces housing do not receive a benefit that is not available to their colleagues living on the private market in the same community.

Each year, Canada Mortgage and Housing Corporation evaluates a sample of married quarters against comparable housing on the local market to determine fair market rent. This evaluation takes into account various elements, including location, market conditions, and physical characteristics of the home. Once the houses are appraised, a base shelter value (market value) is determined. Rents may increase, stay the same, or decrease, depending on local housing market conditions. In Ontario and Manitoba, shelter charge increases are limited by provincial rent controls.

The situation in 2004

On 1 September 2001, the Canadian Forces Housing Agency adopted Treasury Board rent phasing limits for current occupants of Canadian Forces married quarters across the country. However, following changes in Treasury Board guidelines, the rent phasing limits that apply since 1 November 2003 are in accordance with Appendix 4.1 of the Queen’s Regulations and Orders for the Canadian Forces, which states, “where annual increases in shelter charges exceed that year’s market rate of escalation for the locality and are due to no fault of the occupant, the increase in the monthly rate shall be limited to one half of one percent of the occupant’s annual salary or $100.00 per month, whichever is less.” In this way, the Canadian Forces Housing Agency continues with phasing to a maximum of $100.00, rather than apply sudden increases to shelter charges.

Regulations specify that the monthly rental charge, not including parking costs and costs for fuel and utilities, shall not exceed 25 per cent of the family’s gross family income.

The rent adjustment process

In July 2004, housing managers from the Canadian Forces Housing Agency advised all occupants, in writing, of the rent applicable to their residential units effective 1 November 2004.

Similarly to private market rents, married quarter rents are reviewed and adjusted annually. In order to fit in with the annual posting cycle, rents are adjusted on 1 November of each year, with occupants receiving three months’ notice of any changes. New occupants moving in during the three-month notice period are advised of any upcoming adjustments at the time that they request a married quarter.