1.  How do I know if I am eligible for CFHD?

Use the tables on this web page to help determine:

• Your Pay Level, based on monthly income
• The 2024 CFHD rate for your Pay Level and Place of Duty.

2. How do I apply for CFHD?

Apply for CFHD using form DND 4899 (only available on DWAN). For more information, please speak to your orderly rooms (ORs).

3.  What are the CFHD rates?

CFHD rates are based on a comparator value that considers:

• Rental costs for a two-bedroom apartment across Canada, and
• CAF members’ monthly rate of pay.

The rates are calculated so that CAF members are not required to spend 25% or more of their monthly income on housing.

4. Why are the CFHD rates adjusted every year?

CFHD rates are updated annually so that CAF members can find suitable housing across Canada.

5.  Who determines what the CFHD rate is for each location?

TBS is the final approving authority, with input from the Department of National Defence (DND) and CAF.

6. Are CFHD payments paid automatically?

No, CFHD payments are not paid automatically. If you are eligible, you need to apply for CFHD to receive your monthly payment on time. If you have already registered, you do not have to re-apply unless you have relocated.

7.  What are CFHD monthly rates based on?

CFHD rates are based on a small handful of very specific factors:

• A CAF member’s salary
• Whether they share their primary residence with one or more CAF members
• Their place of duty (as opposed to the location of their residence)
• Rental costs across Canada for a two-bedroom apartment.

Please note, on April 1, 2024, the economic increase could change your CFHD rate and eligibility.

8. What are the most significant changes between the CAF’s new CFHD policy and the previous Post Living Differential (PLD)?

The most significant change between the two policies is the methodology for determining entitlement.

PLD was based on the general cost of living (housing, groceries, transportation, childcare, etc) in a geographical area compared to the standard city (Ottawa/Gatineau).

CFHD rates are based on a comparator value representing the difference between rental costs (for a two-bedroom apartment) at the place of duty to which a CAF member is posted and a percentage of the member’s monthly rate of pay, including in the National Capital Region (NCR). The rates are calculated so that Canadian Forces members are not required to spend 25% or more of their monthly income on housing.

The CFHD employs an equitable, rather than equal, approach. Unlike PLD, CFHD is tied to a calculation that accounts for both the salary of a CAF member as well as their place of duty, as opposed to a calculation that did not account for salary and only considered the location of a CAF member’s residence.

9. Why are changes to the CAF’s policy on providing CAF members financial housing assistance in Canada happening now?

From April 2009 until this fall, the previous policy, the Post Living Differential (PLD) was under review by Treasury Board Secretariat (TBS), DND and the CAF. This review has concluded, and a newly-developed replacement policy is now ready for implementation. The CFHD is TBS-mandated, and the result of significant deliberation by the DND, CAF and TBS to establish a policy that respects the allotted annual budget for this differential, while focusing on assisting those CAF members who require housing assistance most.

10. When will the new policy take full effect, and where can I find it?

The new policy will take effect on July 1, 2023, and it can be found here.

11. Why did the policy need to change?

The new CFHD eliminates a lot of issues born of the PLD policy because it is a more sophisticated directive, inclusive of a GBA(Plus) analysis, and its focus is refined on providing assistance to the CAF members who require it the most.

The purpose of the PLD was to reduce the negative financial impact on CAF members and their families when they were posted to a region with a cost of living above the standard city (Ottawa/Gatineau). Due to such factors as fluctuating domestic housing markets and regional economic factors, PLD rates, based against the standard city, have been outdated for some time and were no longer consistent with proportional costs of living within those identified geographical locations. Also, many locations where cost of living has drastically increased were not, at any point, allotted PLD.

Under CFHD, the standard city has been eliminated from consideration. This removes any requirement to compare housing costs to one location (instead CFHD considers them independently when determining a member’s entitlement), and a greater number of geographical locations than under PLD have been assigned entitlement amounts under CFHD.

Finally, under PLD the physical boundaries of the outdated Post-Living Differential Areas (PLDAs) were no longer well-aligned with the development and expansion of those regions. With CFHD, the only geographical location considered is the member’s place of duty (ex. Medley, AB; Kingston, ON; Ottawa, ON).

12. Why is CFHD based on salary?

The CFHD is focused on lower-salaried members in exceptionally expensive locations. This policy aims to assist members posted to these types of locations where their salaries cannot cover their housing costs, and it places a focus on ensuring that no CAF member feels unreasonably financially burdened due to the affordability of housing at their work location.

13. Is CFHD a taxable benefit?

Yes, like PLD, CFHD is a taxable benefit.

14. Who determines the CAF’s housing differential policies for its members, including when and how they change?

As with all DND/CAF pay and allowance policies, TBS is the final approving authority with input and consultations from DND/CAF.

Comparator rental rates employed in CFHD calculations (for each location) will be adjusted annually, and are based on rental cost data provided by a contracted third party. A CAF member’s CFHD payments will also be based, in real-time, on their salary as it changes over the course of their career. The employed comparator rental rates will be pre-approved by TBS every winter, announced in the spring and automatically applied every July 1.

15. What will the transition to CFHD look like?

The CFHD will come into force on July 1^st, 2023. As entitlement calculations are salary dependent, some CAF members will receive a greater monthly payment than what they previously received under PLD, and some a lesser amount. In the instance of members already residing in PLDAs assigned a zero PLD entitlement, those with salaries above the threshold for CFHD entitlement will continue to receive zero benefit. CAF members residing in Residential Housing Units (RHUs) or single quarters will also not receive CFHD.

This policy change has been deliberately timed to align with a substantial economic increase (ie pay raise) to many CAF members’ salaries across all ranks for both the Regular Force and Reserve Force. Non-Commissioned Members, General Service Officers and Pilots in the rank of Lieutenant-Colonel and below, as well as all Medical and Dental Officers will receive a compounded pay increase of 10.4%, covering retroactive increases starting April 1, 2021. The economic increase is designed to address remaining living expenses from the former PLD calculation (such as for groceries, transportation, childcare, etc.). These changes means that CAF members should look at their salary as the balancing weight on the broader “cost of living” scale, and that when combined, most members will see an overall increase in total pay and allowances under this plan to transition from PLD to CFHD. It is estimated that over 28,000 CAF members will receive CFHD, this represents an increase of 6,300 recipients over that of PLD. This does not include the approximately 12,000 members who occupy RHU and single quarters. In total it is estimated that over 40,000 CAF members will receive either CFHD, or occupy single quarters or RHU, the latter of which guarantees that rents will not exceed 25% of a family’s gross household income.

16. If you are a CAF member residing in DND/CAF single quarters or a Residential Housing Unit (RHU), can you be eligible to receive the CFHD?

CAF members residing in RHUs will no longer receive PLD, nor will they be allotted the new CFHD benefit. That stated, CAF members residing in single quarters or RHUs can submit paperwork, in accordance with military housing regulations, aligning their monthly RHU rental rates to not exceed 25% of their gross monthly familial income.

17. In April 2009, the DND/CAF froze designated Post Living Differential (PLD) rates at their 2008 levels. In the new policy, will amendments include adjusting rates in accordance with the Canadian housing market, be similarly infrequent or more regular moving forward?

Comparator rental rates will be provided to DND/CAF annually from a contracted third party in order to ensure that CFHD rates remain up to date.

18. Under the new policy, what are the basic calculations for determining a CAF member’s monthly housing differential entitlement?

A CAF member’s monthly housing assistance calculation is determined annually (whether they relocate that year or remain posted in the same geographical location). It is the value of a pre-determined ‘median rent’ comparator value for the geographical location of a CAF member’s place of duty (their military posting) minus a fixed percentage of their gross monthly salary. The median rent comparator values across Canada will be determined annually by a third party contractor. The fixed salary percentage will fluctuate annually between the mid-twenty to mid-thirty percentile in order to coincide with Canadian gross debt-to-income norms, while respecting budget allocation.

19. Is there an annual calculation cycle associated to the assignment of CFHD rates?

Yes, in the winter (January) timeframe of each year, a contracted third party will provide updated comparator values – the median rent per CAF place of duty – to DND/CAF. On or about April 1 the new CFHD rates will be published, allowing CAF members to prepare for the Annual Posting Season (APS). On July 1, the new rates will be effective.

20. How do these calculations differ from the previous policy (“Post Living Differential”)?

The previous policy’s calculation for a member’s allowance was based on a single rate for a specific Post Living Differential Area (PLDA). The PLDA accounted for the locations of both a CAF member’s residence and place of duty. The calculation for CFHD is personalized per pay level. It is based on a CAF member’s salary, and geographically, it only factors in the location of their place of duty. This allows members and their Commanding Officers more flexibility in where CAF members may reside while remaining eligible for a differential.

21. Are a CAF member’s CFHD payments impacted if they live with other CAF members?

When any number of CAF members who are eligible for CFHD reside in the same residence, they each receive 50% of their applicable rate. For example, in the instance of a service couple, if one CAF member’s applicable rate is $1000, and the second member’s is $500 (based on salary), they would receive $500 and $250 respectively. In the instance of non-related CAF roommates residing in a permanent residence meeting CFHD criteria, the same rule applies. For example, if three CAF members were respectively entitled to $800, $1200 and $0, they would respectively receive $400, $600 and $0. There is no limit to the number of CAF members in one residence for whom this would apply; however they all must be listed on the rental agreement, lease of mortgage.

It’s also important to note that Reserve Force Members do not impact the CFHD rates of the Regular or Class “B” or “C” Reserve Force with whom they share a residence; unless that Reserve Force member is entitled to CFHD, even if that amount is $0.

22. Are there examples of what some of these calculations (for co-located CAF members) as reference?

The following examples illustrate how CFHD payments will be calculated based on co-location with other CAF member(s):

FULL PAYMENT:

Place of Duty: Borden

Member 1 – CFHD Pay Level 02, CFHD monthly amount = $1200.00

Entitled to 100% of monthly amount = $1200.00

REDUCED PAYMENT (2 members, both entitled, same pay):

Place of Duty: Cold Lake

Member 1 – CFHD Pay Level – 01, CFHD monthly amount = $650.00

Entitled to 50% of monthly amount = $325.00

Member 2 – CFHD Pay Level – 01, CFHD monthly amount = $650.00

Entitled to 50% of monthly amount = $325.00

REDUCED PAYMENT (2 members, both entitled, different pay):

Place of Duty: Halifax

Member 1 – CFHD Pay Level – 02, CFHD monthly amount = $1200.00

Entitled to 50% of monthly amount = $600.00

Member 2 – CFHD Pay Level – 04, CFHD monthly amount = $500.00

Entitled to 50% of monthly amount = $250.00

REDUCED PAYMENT (2 members, only one entitled):

Place of Duty: Greenwood

Member 1 – CFHD Pay Level – 01, CFHD monthly amount = $500.00

Entitled to 50% of monthly amount = $250.00

Member 2 – CFHD Pay Level – 03, CFHD monthly amount = $0.00

Entitled to 50% of monthly amount = $0.00

REDUCED PAYMENT (3 members, all entitled, different pay):

Place of Duty: Kelowna

Member 1 – CFHD Pay Level – 01, CFHD monthly amount = $1800.00

Entitled to 50% of monthly amount = $900.00

Member 2 – CFHD Pay Level – 01, CFHD monthly amount = $1800.00

Entitled to 50% of monthly amount = $900.00

Member 3 – CFHD Pay Level – 02, CFHD monthly amount = $1450.00

Entitled to 50% of monthly amount = $725.00

23. If I share a residence with another member who is not my spouse, am I able to enter into a rent agreement with that member for the purpose of CFHD?

Yes, if two members reside together and only one member has an agreement with the landlord, that member may provide a rental agreement to another CAF member, so long as it is at “arm’s length”.

24. What constitutes as a lease/rental agreement?

Lease/rental agreement should be a written agreement and clearly indicate basic information such as the following:

• the name(s) of the landlord/lessor and tenant(s);
• address of the rental property;
• agreed-upon rent, with or without utilities/parking etc.; and
• when rent is due each month.

25. What if multiple CAF members reside in the same residence and one member has reached the ‘7 year limit’?

The member who has reached the ‘7 year limit’ will cease to receive a CFHD amount, and all other members of the same residence who have not reached the ‘7 year limit’ will continue to receive 50% of their CFHD amount.

26. Is this new housing differential policy part of the CAF’s new Reconstitution Directive?

Although not a direct result of the CAF’s current reconstitution efforts, this new policy aligns with these efforts to support CAF members in a deliberate and issues-focused manner. It’s a more sophisticated approach to a housing differential than the previous policy, including a GBA(Plus) analysis, and it is more focused on ensuring that CAF members receive the assistance they need when posted from location to location. Because it is proportional to salary, the CFHD removes the strain of the cost of housing on CAF members who need it most.

27. Is this entitlement only for Regular Force CAF members?

No, it also includes Reserve Force members who are serving on a nationally-solicited Class B or C period of service and authorized a move of Household Goods and Effects (HG&E) at public expense to their place of duty.

28. If the new policy’s housing differential calculations are based on a CAF member’s salary and the geographic location of their posting, which geographic locations provoke the highest payments?

The locations that provoke highest payments are those that have higher comparator values in comparison to a CAF member’s salary. The comparator value is the median rent per CAF place of duty as determined by a contracted third-party.

29. Is there a salary threshold where a CAF member’s CFHD automatically becomes zero irrespective of geographical location?

CFHD depends largely on the place of duty to which a CAF member is posted. With that in mind, salary is also a large component of the CFHD calculation. Currently, when a CAF member’s gross salary exceeds $9900/month (Pay Level 20) the member is only entitled to CFHD in Vancouver. All calculations are subject to median rent comparator values, determined annually, that dictate which regions are the most expensive.

30. Does the size of a CAF member’s family impact the size of their comparator value?

The DND/CAF appreciates that not all CAF families are the same size. At this time, to ensure that the policy is as straightforward as possible, a CFHD comparator value for one geographical location will be the same for every CAF member irrespective of family size and using the median rental rate in that area for a two-bedroom residence.

31. How many salary brackets or bands are there in the new HD policy?

There are 20 pay levels, which are detailed here.

32. What happens to your CFHD if you’re promoted partially through a posting in one geographical location and the promotion changes your salary bracket and CFHD entitlement amount?

When a CAF member is promoted their CFHD calculation will be automatically updated. Dependent on the promotion and what pay level the member falls under, a CAF member’s CFHD payment may be reduced.

This system-generated adjustment helps ensure a seamless transition of CFHD payments between a CAF member’s pay levels.

Members and administrators must ensure the timely entry of promotions and other pay transactions to ensure CFHD rates are properly applied.

33. Besides salary and geographical location, what other factors influence CFHD entitlement?

The CFHD is meant to assist members with the cost of housing, where a member does not incur a housing cost exceeding the threshold for CFHD there is no entitlement. Disentitlement criteria is follows:

A CAF member is not entitled to CFHD in any of the following conditions:

• Member does not pay rent/mortgage for their permanent residence;
• Member does not have lease or rental agreement for their permanent residence;
• The mortgage lease or rental agreement is not at ‘arm’s length;
• Member resides in permanent residence or in same place of duty for 7 consecutive years;
• Member has Household Goods & Effects (HG&E) in storage at public expense;
• Member is posted to and in receipt of allowances under CBI 11 (Isolated Post);
• Member is ordered to or resides in DND living accommodations;
• Member has claimed an intended place of residence on release;
• Member resides in single quarters or a Residential Housing Unit (RHU); and
• Member of Reserve Force has initiated early termination of their period of service, or receives a return move upon completion of Class “B” or “C” Reserve service.

Greater detail on the above criteria can be found in Chapter 205.

34.  What is the start date of CFHD?

Entitlement commences on the date in which the member established their permanent residence. A members establishes their permanent residence when their HG&E is delivered, they occupy the residence and are no longer in receipt of ILM&M.

35. If a member is entitled to a move at public expense but does not take one, can they receive CFHD?

This response may vary depending on member’s specific case but the member may be entitled to CFHD if they satisfy conditions under CBI 205.453(3); specifically, sub-paragraph (iii) or (iv).

36. Am I entitled to CFHD if my permanent residence is a boat or a mobile home, located at my place of duty and I pay rent?

Yes, if one can prove that there is an agreement to pay rent or to lease the residence or the land where it is located and the entitlement conditions for CFHD are met, then member is entitled.

37. Am I entitled to CFHD if I go on tour for an extended period while my dependents remain at my permanent residence?

This response may vary depending on the member’s specific case but if the member receives subsequent prohibited posting while on tour then the member may remain entitled if they meet entitlement conditions under CBI 205.453(3); specifically, sub-paragraph (ii).

38. If I am authorized to work remotely as per CF Military Personal Instruction 01/22, am I entitled to CFHD?

Yes, if a member is authorized to work remotely, as per CF Mil Pers Instr 01/22 they will remain entitled. The rate will be associated to the place of duty, to which the member was authorized to work remotely as per instruction section 3.3. Operating Principles.