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FAQs : Rationalization Program
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What is the Rationalization Program?

The Rationalization Program is a housing portfolio renewal program comprising disposals, renovation, demolition, new construction and new acquisition. It addresses both the size and the condition of the portfolio. Its goal is to develop and maintain a sustainable housing portfolio that meets the housing needs of CF families and is responsive to evolving and cyclical change.

How is CFHA determining which houses will be renovated and which ones will be demolished or sold?

Houses are identified for renovation or disposal on a site-by-site basis, with the goal of bettering quality of life while rightsizing the portfolio. Decisions are based on unit design, proximity to services, parking, traffic flows, existing infrastructure, and cost considerations.

How can you be sure that the houses being disposed will not be needed down the road?

CFHA performs a Housing Requirement Study to determine CF members’ housing needs at Bases and Wings across Canada. The Housing Requirement Study provides a long-term projection based on trends within the local real-estate market and the characteristics of the CF population at that site. Analysis takes into account changes to requirement that may occur because of anticipated changes in the markets or in the number of CF members being posted at a given site.

What are Housing Requirement Studies?

Housing Requirement Studies measure the housing needs of CF members at locations of posting across Canada, and determine whether the identified need can be met within the private sector marketplace. They entail an analysis of the demographic characteristics of CF members and an analysis of the supply and availability of housing on the private market in each of the locations where more than 50 CF members are posted or where there are DND residential housing units.

Why is CFHA not donating surplus houses to the needy instead of demolishing them?

Houses that are being disposed are often beyond economical repair, and in many cases, would need to be moved off-site, as the land on which they site might still fulfill an operational requirement. As is the case with the disposal of any Crown-owned real estate, a notice of availability is circulated to federal organizations. If no organization expresses interest, a public competitive bidding process for disposal of the units is initiated. In the case of DND housing, parties are able to submit a bid to either deconstruct the units or move them from DND property.

Is the Rationalization Program being implemented at all sites?

The Rationalization Program will affect all 26 Bases and Wings where DND residential housing units are available to military personnel. Renovation and construction work will start at some sites while work at other sites is still in the planning stage. The Department examined all the sites and then ranked them in order of priority, to determine where work should begin.

Will a smaller portfolio mean higher rents?

No. Rents for DND residential housing are based on the rents of comparable units on the local private market; therefore, reducing the size of the portfolio will have no effect on how the rents are determined.

How does CFHA determine the standards for housing units?

DND has established a list of Functional Accommodation Standards, which addresses national standards for housing units in terms of square footage, number of bedrooms and bathrooms, amenities, etc.

How will renovation and demolition contracts be awarded?

Contracts will be awarded on a site-by-site basis. All contracts will be tendered through Defence Construction Canada, and depending on the size of the market, they will be offered locally or regionally.

Will CFHA continue to perform maintenance on houses that are identified for disposal?

Yes. All occupants are entitled to the same standards for responsive maintenance, health, safety, security, and fundamental comfort, regardless of the status of the housing units they occupy.

What will happen to occupants whose houses are being renovated?

Every effort will be made not to disrupt CF families. However, some families will have to relocate if work is scheduled on the units they are occupying. Where new units are available, they will be offered to displaced families before they are allocated to other CF occupants.

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