DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing

DGPFSS

Strength through personnel Le personnel fait la force

DGSSPF

Bob SmithNPP BOD

10 February 2010

NPP Approach to Accommodation/ Residential Housing

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES

• Policy Overview

• Housing Criteria

• Potential for NPP– Feasibility

– Requirements

– NPP framework

– Self-Help Housing

– Range of Options

– Integrated Relocation Program

– ‘Outside the Box’

• Questions

Outline


Housing and Accommodation Current Situation

• Government Policy

– Supports government owned housing only in situations where

• Insufficient private sector accommodation

• Work site is isolated

• Operational requirement (e.g. training)

• Current DND / CF Policy Objective

– CF members able to secure suitable accommodation at all locations


Housing and Accommodation Current Situation (cont’d)

• Current DND / CF Policy Highlights

– Private sector (market place) preference – Crown intervention only when market place fails

– Market based rent – but no more than 25% family income for DND owned housing

– Affordability through compensation

– Training accommodation appropriate to training environment



• Policy and Principles Not Aligned With CF Leadership Requirements and CF Personnel Expectations

– CF Leadership

• Worry free suitable housing contributes to morale, well-being and hence operational effectiveness

• Military community – contributes to family support, cohesiveness

• Service requirements should not penalize CF members quality of life



– CF personnel expectations

• Access to contemporary housing on the same basis as all Canadians

• Relocation should not impact net disposable income after accommodation costs

• Opportunity to build housing equity should not be adversely impacted through frequent postings

• Tenant rights

• 93% of CF members preference for home ownership


Criteria for a CF Housing Program

• Assure availability and affordability of adequate, contemporary housing at all locations

• Facilitate the mobility of CF members

• Responsive to home ownership aspirations of CF members

• Responsive to CF members ‘feelings’ concerning military community and proximity to workplace

• Minimize costs to DND

• Broad application – capacity to address all housing requirements


Potential Role of NPP in HousingFeasibility

• TB decision 829183 dated 27 Sep 01 – DND controlled federal real property dedicated to NPP activities to be administered iaw NPP accountability framework, policies and procedures

• NPP operates Ottawa Self-Help Housing, established by Order in Council PC 1961-11/94 dated 26 Jan 61

• TB authorized CANEX activities includes operating lodges


Potential Role of NPP in HousingRequirements

• CDS authority to establish housing as NPP line of business

• TB submission to confirm Public responsibility/support and NPP delivery model (ASD vs NPP program)

• Designate existing MQs, SQs, and/or transient quarters as NPP (iaw TB real property directive)


• Multiple potential models

– ASD to NPP (deliverer of Public program)

– Establish housing as NPP program (transfer ‘ownership’ of housing inventory)

• NPP to establish the operations framework, including rents to be charged (no longer based on CHMC appraisals)

• NPP would maximize occupancy and minimize operating costs

• Modernization / Recapitalization

• Business model to break even – no negative financial impact on NPP

• No negative impact on status of NPP

Potential Role of NPP in Housing NPP Framework


Ottawa Self-Help Housing

• NPP operates Ottawa Self-Help Housing, established by Order in Council PC 1961-11/94 dated 26 Jan 61

• Ottawa Self-Help Housing exists within the NPP framework (not an ASD), has high renter satisfaction and is ‘profitable’

• Current net worth nearly $13M with nearly $5.0M in bank

• Object – to provide affordable housing for Junior NCMs posted to NCR

– MCpl or below, OCdt, 2Lt, or Lt

– Class B Reservists eligible with 1-yr contract

– Military Families incl single members with dependants, single members w/o dependants eligible if vacancies exist


Ottawa Self-Help Housing (cont’d)

• 519 3-bdrm townhouses (904 sq ft), 26 – 3-bdrm duplex bungalows (944 sq ft).

– Each unit has gas range, refrigerator, fenced back yard and one parking spot.

– Rent $656 / mo + $25 / mo parking

– (comparable CMHC rent is $1,200 / mo)


NPP Range of Options

• Re-create Self Help Housing Model at other locations

– Designate a portion of existing housing as NPP or build new low cost townhouse housing units (recreate the 1961 model)

• ASD the delivery of MQ housing to NPP

– CFHA would be replaced by an NPP organization

– Housing would remain a Public responsibility program – would not address key policy issues


NPP Range of Options (cont’d)

• Designate all MQs as NPP

– Housing would become an NPP program

– CMHC assessed rents would no longer apply

– Would not be targeted solely to junior ranks

– Re-capitalization would become an NPP requirement (isolated locations?)

– Would adapt many principles of self-help housing

– Chain of command would be involved in delivery of housing


• Potential for Single Quarters

– ASD model

– Designated NPP

– Training locations

• Transient Quarters

– ASD Model

– Designated NPP (requirement to occupy)




• Integrated Relocation Program (IRP)

– Potential ASD to NPP (5 yrs)

– Synergy with existing NPP programs (e.g. banking)

– Complementary workforce (high proportion of NPF Employee workforce – military family members)

– Potential for savings

• Cost effective workforce

• If NPP has assigned housing delivery responsibilities


An “Outside the Box” ApproachEstablish CF Housing Trust – A Conceptual Model

• CF Housing Program based on following criteria

– Assure availability of adequate, contemporary housing at all CF locations

– Facilitate the mobility of CF personnel

– Responsive to home ownership aspirations of CF personnel

– Responsive to CF personnel feelings re military community and proximity of home to place of work

– Minimize costs to DND


• Key features

– Trust would own and manage a national inventory of houses

– Number of houses in the inventory would depend on the participation of CF personnel

– Personnel would participate by occupying Trust owned housing and buying/owning a quantity of redeemable shares in the Trust that is equal to or greater than the share value of the housing unit that they occupy

Establish CF Housing Trust A Conceptual Model (cont’d)


• Operating Details

– All houses in inventory categorized and assigned shares required, value based on variety of criteria

– CF personnel could buy/own redeemable shares

– Personnel would finance additional shares (through the Trust) sufficient to occupy the desired house

– Personnel would pay to service the shares loan, as well as monthly payment to cover taxes, long term maintenance, insurance, etc

– Shares would have book and market value – on creation of Trust, shares would have a book value of $100. Members buy and sell shares at market value



– Personnel could by any number of shares up to the value of the highest category house in the inventory, even if occupying a lower category house

– Personnel could participate in the trust at any point in their career, once in, would only be able to opt out once

– Trust would finance the inventory through shareholder equity and debt financing

– On posting, vacated house returned to Trust inventory, member selects from Trust inventory at new location

– Potential to manage renovations and upgrades through purchase of additional shares

– Trust responsible for inventory management – including rotation of inventory

Establish CF Housing Trust A Conceptual Model Operating Details (cont’d)


• Establishing the Trust

– Existing MQs sold to Trust for $1

– Annual Vote 10 Grant to Trust based on savings to DND

– CF personnel who currently own houses could join the trust by selling their house to the Trust at current market value

– CF personnel who currently rent by occupying a Trust owned home

– MQ occupants would transition to Trust participation status and would start to build equity through the purchase of Trust shares

– Trust financing requirements need to be addressed



• Could be established within NPP accountability framework or as pure private sector model



Questions

Documents

DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing