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Transcript of DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February...
![Page 1: DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649de55503460f94add672/html5/thumbnails/1.jpg)
DGPFSS
Strength through personnel Le personnel fait la force
DGSSPF
Bob SmithNPP BOD
10 February 2010
NPP Approach to Accommodation/ Residential Housing
![Page 2: DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649de55503460f94add672/html5/thumbnails/2.jpg)
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
Housing and Accommodation Current Situation (cont’d)
• 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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
Housing and Accommodation Current Situation (cont’d)
– 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
![Page 7: DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649de55503460f94add672/html5/thumbnails/7.jpg)
CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• 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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• Potential for Single Quarters
– ASD model
– Designated NPP
– Training locations
• Transient Quarters
– ASD Model
– Designated NPP (requirement to occupy)
NPP Range of Options (cont’d)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
NPP Range of Options (cont’d)
• 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
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
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
![Page 18: DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649de55503460f94add672/html5/thumbnails/18.jpg)
CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• 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)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• 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
Establish CF Housing Trust A Conceptual Model (cont’d)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
– 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)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• 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
Establish CF Housing Trust A Conceptual Model (cont’d)
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CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
• Could be established within NPP accountability framework or as pure private sector model
Establish CF Housing Trust A Conceptual Model (cont’d)
![Page 23: DGPFSS Strength through personnelLe personnel fait la force DGSSPF Bob Smith NPP BOD 10 February 2010 NPP Approach to Accommodation/ Residential Housing.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649de55503460f94add672/html5/thumbnails/23.jpg)
CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICESSERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES
Questions