New armed forces housing benefit won't help Petawawa troops, realtor warns
A change to the Canadian Armed Forces housing benefit will see thousands more members partially compensated for housing.
However, in Petawawa there's a sense this change will have little impact.
"I would say that about 80 per cent of the transactions in our office are about military transferees," Pembroke and Petawawa based Re/Max realtor Cynthia Lloyd says.
The new housing benefit, named the Canadian Forces Housing Differential (CFHD), was created to give relief to the lowest earners in the ranks. As armed forces members move up the pay scale, the less they will be compensated for housing.
"The greater assistance goes to those who don't make as much, and so therefore have a larger gap that they are facing to try and afford basic accommodation," said Brigadier-General Virginia Tattersall, Director General of Compensation and Benefits with the Canadian military.
"The idea is that for their gross monthly salary they are not paying more than 25 per cent of their budget on housing."
"We are an affordable location compared to other bases," Lloyd says. "So say for instance Ottawa or Borden or even Trenton, it is more affordable here in Petawawa."
Based on that affordability, armed forces members in the Ottawa Valley on only the three lowest pay levels will be able to claim the benefit. The pay levels range from level 1 (lowest earners) to level 20 (highest earners).
Regular force, Class B reserves, and Class C reserves on the three lowest levels can claim the benefit. Those members living in Petawawa on level 1 can claim up to $950 a month, level 2 up to $600 a month, and level 3 up to $150 a month.
The new housing benefit is seen by some as a way of recruiting new members to a severely under-staffed force.
"The military needs highly motivated members and one of the ways it can make sure members are motivated is that especially at the younger ages, at the more junior levels where people join, that they have adequate financial means," says Christian Leuprecht, a professor at the Royal Military College and Queen's University.
"The housing benefit urgently needed an overhaul, like so many other policies in this department."
The previous benefit, known as post living differential (PLD), had been frozen since 2009 and had been described as a one-size-fits-all approach.
But Lloyd says despite the new assistance, it won't help much for members coming to the Ottawa Valley.
"We're in a very undersupplied market," Lloyd tells CTV News.
"So we are already at an under supply of homes for sale. So I don't think that making it more affordable on the monthly will change the market conditions here in Petawawa."
The CFHD expires after seven years for stationary members. CAF members who are consistently posted around the country will remain eligible. However, members who stay in one location - such as Petawawa - for longer than seven years will lose the benefit after that time.
"In that seven years, we expect that there's a greater likelihood that they will get promoted or move up in pay incentives," Tattersall says.
The new Canadian Forces Housing Differential comes into effect July 1, 2023.
CTVNews.ca Top Stories
Breast cancer screening should start at age 40, Canadian Cancer Society says
The Canadian Cancer Society says all provinces and territories should lower the starting age for breast cancer screening to 40.
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels is on the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Canadian-Israeli man shot dead in Egypt; claim links killing to Gaza
A Canadian man 'of Jewish Israeli descent' has been shot dead in the Egyptian city of Alexandria in a suspected criminal case, a security source said, while a previously unknown militant group said it carried out the attack in reaction to the war in Gaza.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Bank of Canada says financial system is stable, but risks remain
The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.
BREAKING Sheldon Keefe out as head coach of Toronto Maple Leafs
The Toronto Maple Leafs have fired head coach Sheldon Keefe. The team made the announcement Thursday after the Original Six franchise lost to the Boston Bruins in seven games in the first round of the Stanley Cup playoffs.