8.1 Purpose
To enhance the employee's mobility by assisting in the disposal of a principal residence at the former place of duty.
8.2 Time Limit to Sale
The time limit on the sale of a home is governed by clause 2.13.1.
Employees may request an extension to the prescribed time limits in situations where the sale of the home is delayed due to exceptional circumstances.
- the employee must submit a business case to the DNC who shall forward the submission with their recommendation to the Project Authority at TBS for approval.
- the Project Authority will provide a written response to the request, as early as possible, but no later than ten (10) working days after receipt of the submission.
- requests for extension shall not be unreasonably requested or denied, in accordance with the Principles outlined in the Directive.
- exceptional circumstances may include, but are not limited to the following examples:
- Medical conditions of employee/dependants
- Education commitments
- Depressed housing market conditions
8.3 10% Home Sale Assistance (Effective October 1, 2008)
Employees may be reimbursed the difference between the appraised value of their principal residence at origin and the actual selling price, if the latter is lower.
Core Fund
- Employees can reduce the selling price by up to 10% of the appraised value.
- An employee can accept a lower selling price and be reimbursed the difference between the selling price and the appraised value up to 10 % of the appraised value.
- Limited to $15,000
- No Home Equity Assistance (HEA)
Customized/Personalized Funds
- Any amounts above $15,000 - subject to availability of funds from the envelope and subject to CRA rules
Notes:
- The appraised value is to be determined by means of a certified appraisal as per the provisions under the IRP contract.
- If an employee wishes to accept an offer of purchase for the principal residence at origin that is less than 95% of the appraised value of the home, the employee must first obtain the approval of the Departmental National Coordinator. All such cases are to be submitted by CRSP directly to the Departmental National Coordinator for approval.
Example:
Home appraised at $100,000 but is listed at $105,000. If the selling price is reduced to $90,000 because of the 10% option, prior approval must be obtained from the Departmental National Coordinator because the sale price is now below 95% of the appraised value.
8.4 Occupancy Requirements
There is no entitlement for the reimbursement of expenses associated with the sale of a property unless the employee, his/her dependants or both, immediately prior to official notification of the posting, occupied the residence as the principal residence (as defined by Canada Revenue Agency).
8.5 Lot Size
The reimbursement of expenses in this Directive is limited to a lot size of not in excess of 1.235 acres (1/2 hectare) or less, unless otherwise required by zoning law, but not to exceed 4 acres (2.47 hectares).
When an employee sells land or acreage as a parcel with the principal residence, the employee shall only be reimbursed for that portion of the cost which results from the sale of the residence together with the lot size limitations as indicated above.
8.6 Co-Ownership
Where the principal residence is co-owned by a person who is not the spouse or common law partner or a dependant of the employee:
- Only that portion of the expenses directly proportional to the employee's legal share of the property shall be reimbursed;
- The employee must provide such information regarding the percentage of ownership the Third Party Service Provider requires.
8.7 Funding Overview
The benefits outlined in this section are funded from both the Core Fund and if need be, the Customized/Personalized Funds as follows:
| Benefit | Core | Customized/Personalized |
|---|---|---|
|
Real Estate Commission |
Established corporate rates |
|
|
Legal Fees and Disbursements |
Established corporate rates |
|
|
Appraisal Fees |
One professional appraisal |
One additional if deemed necessary. |
|
Mortgage Breaking Penalties |
Employee chooses not to buy; or cannot buy:
|
Employee did not port the mortgage when this was an option - Personalized Funds
|
|
Attending Fees/Power of Attorney |
As per Directive |
|
|
Temporary Dual Residence Assistance (TDRA) |
|
|
|
Commuting Assistance |
|
|
|
Structural Inspection |
As described below |
|
|
Home Equity Assistance |
|
|
|
Home Sale Assistance |
EX/GIC only |
|
|
Professional Cleaning - Former/New Residence |
|
|
|
Capital Improvements |
||
|
Marketing Incentives |
|
|
|
Property Management Fees |
|
8.8 Real Estate Commission
Employees shall be reimbursed actual real estate commissions under the Core Fund not exceeding the rates established with the Third Party Service Provider.
8.9 Legal Fees
Employees shall be reimbursed expenses incurred to complete the sale of the property such as:
- legal fees and disbursements including applicable taxes;
- legal expenses incurred to provide clear title to a property.
These expenses shall be reimbursed from the Core Fund as follows:
- land survey costs if the employee's lawyer/notary certifies that:
- the last survey is more than five years old; or
- observable changes have been made to the lot since the last survey; or
- by law, the vendor is required to provide a survey.
- charges levied by the lender for the disposal of a first or second mortgage on the property, but not both.
8.10 Appraisal Fees
A professional appraisal helps the employee to establish a realistic asking price for the principal residence. Employees shall be reimbursed for the cost of:
Core Fund
- One professional appraisal (IRP specific) not exceeding IRP pre-negotiated rates
Customized/Personalized Funds
- A second appraisal if desired by the employee
8.11 Mortgage Breaking Penalties
Employees shall be reimbursed a mortgage early repayment penalty up to an amount not exceeding 3 months' interest or $5,000, whichever is lesser and as follows:
Core Fund
- Employees purchasing at the new location who cannot port mortgage
- Employees who rent at the new location
- Employees who are unable to buy because of a requirement to occupy Crown housing
Personalized Funds
- Employees who purchase at the new location and who decide not to port their mortgage when portability was an option
8.12 Attending Fees or Power of Attorney
Fees for the preparation of a Power of Attorney are not normally reimbursable. However, such fees may be reimbursed from Core if the employee was prevented from being present for operational reasons.
8.13 Temporary Dual Residence Assistance (TDRA)
Employees shall be reimbursed actual and reasonable expenses associated with maintaining two residences.
8.13.1 Employee Moves HG&E and Family
When an employee and dependants proceed to a new place of duty and the former residence remains unsold, vacant, and is being actively marketed, the following benefits shall be reimbursed on the unsold property:
- interest charges on a first or on a second mortgage if there are no charges on the first mortgage;
- property taxes;
- utilities (i.e. electricity and heating);
- property maintenance (snow removal, lawn cutting, etc.);
- additional insurance costs;
- and rental of mobile home pad.
Core Fund
- Actual and reasonable expenses
- 180 days (6 months) maximum
Customized/Personalized Funds
- Period(s) in excess of 6 months (180 days)
8.13.2 Employee Proceeds Unaccompanied
An employee preceding the family to the new location has a choice of temporary/permanent accommodation. The costs of this accommodation shall be reimbursed as follows. Accommodation other than permanent accommodation must be approved by the Departmental National Co-ordinator before the employee secures such accommodation.
8.13.2.a Interim Accommodation
- Employees proceeding alone to the new place of duty shall be reimbursed interim accommodation expenses from the Core Fund to a maximum of seven days in order to secure semi-permanent accommodations.
8.13.2.b Commercial Accommodation (Hotels/Apartment-Hotels)
Core Fund
- Actual and reasonable lodging expenses inclusive of parking, laundry charges, etc.
- 180 days (6 months) maximum
- 65% of dinner rate
Customized/Personalized Funds
- Period in excess of 6 months (180 days)
8.13.2.c Private Accommodations or Room & Board
Core Fund
- Actual and reasonable lodging expenses up to customary boarding and lodging rates for that location
- Up to 180 days (6 months)
- No meal allowances are payable
Customized/Personalized Funds
- Lodging expenses in excess of the Core entitlement
- No meal allowances are payable
For persons in private accommodation, deductions in the monthly allowance shall be made if the period of absence exceeds one week. Reductions shall be proportionate to the period of the absence.
8.13.2.d New Permanent Family Home - rented or purchased
When an employee proceeds unaccompanied to a new place of duty and the former residence remains unsold and is being actively marketed, the following benefits are reimbursable on the property at the new location:
- rental costs inclusive of associated living expenses such as parking, laundry charges, and furniture rental;
- utilities (i.e. basic telephone, cable and electricity.);
- interest charges on a first or second mortgage if there are no charges on the first mortgage;
- property taxes;
- rental of mobile home pad.
Core Fund
- Actual and reasonable expenses
- Up to 180 days (6 months)
Customized/Personalized Funds
- Period in excess of the Core entitlements
8.13.2.e Government Owned or Controlled Accommodation
Core Fund
- Reimbursement of actual costs for meals provided, accommodation and incidentals;
- When these living quarters are self-contained with meal preparation facilities, the only expenses reimbursed shall be the cost of utilities and laundry (not dry cleaning) when these are not provided free of charge to the employee.
8.13.3 Employee ships HG&E - leaves one or more dependants at origin
When one or more dependants of an employee remain at the former place of duty to complete an educational term (secondary school - semester, university - current school year), the only living expenses reimbursed are as follows:
Core Fund
- $525/month for actual and reasonable living expenses
- up to 180 days (6 months)
Personalized Funds
- Amounts in excess of the Core allowance
Notes:
- When the employee or family, or both, are relocated, but one or more dependants (who had lived in the family home at the time of the relocation) remain at the old location (e.g. to complete an educational term or for other justifiable reasons), the employee shall be reimbursed the equivalent of the private accommodation allowance ($525) to help defray the dependant's living costs. Only one allowance shall be paid. This allowance is not payable if other TDRA allowances are being paid.
- Dependants left behind for school, at the conclusion of the semester or school year are entitled to transportation and travelling expenses in accordance with Section 6 - Travel to the New Location, of this Directive.
8.13.4 Dependant(s) precede employee
When one or more dependants precede an employee and the family to the new place of duty (normally to start an educational term), the employee shall be reimbursed their living expenses from Core, to the maximum of the private accommodation allowance of $525.
8.14 Weekend Travel Home while on TDRA
Applicable to employees with dependants who remain in the family home.
This entitlement is based on the premise that the employee will make travel arrangements more than 14 days in advance.
8.14.1 When a door-to-door move is not possible, employees shall be entitled to travel home on average every two weeks while on Temporary Dual Residence Assistance (TDRA). The total number of weekend travel home trips shall not exceed:
- two (2) trips over the initial thirty days of the TDRA; and
- four (4) trips over the initial sixty days of the TDRA; and
- not to exceed five (5) trips over the period of the TDRA.
Payment of these transportation expenses comes from the Core fund.
8.15 Conditions of Reimbursement - TDRA
8.15.1 Conditions of reimbursement
- The capital costs portion of a mortgage payment.
- Car rental costs at either location.
- Expenses related to dependant who has been attending school and was not living at home prior to the employee's relocation, because expenses would not be increased by the relocation.
- Expenses related to the voluntary separation of the family for personal reasons.
8.15.2 Non-reimbursable expenses
- An employee shall be responsible at all times for the expenses associated with the household, at origin.
- In exceptional circumstances, request for reimbursement of expenses at origin, rather than at destination, may be submitted through the departmental national coordinator to the Project Authority at TBS for consideration.
- TDRA ceases when ownership of residence at origin ceases or when funds from the Custom and Personalized envelopes have been depleted.
- The principal residence at origin must be actively marketed for sale.
- The separation is not due to dependants remaining behind to dispose of income- producing property or for employment purposes.
- A dependant left behind who has been living at home (principal residence at origin) prior to the relocation must be in full time attendance at school.
8.16 Commuting Assistance
When the old and new locations of work are within daily commuting distance and purchase of a residence at the new place of work meets the 40 km limitation as defined by the Income Tax Act, the employee may commute daily (subject to prior approval by management in consultation with the Departmental National Co-ordinator), while making the decision to acquire permanent accommodation at the new place of work. In those circumstances, the commuting allowance may be paid instead of the costs that would be incurred for temporary accommodation at the new place of work.
Reimbursement will be based on the kilometric rate approved by the NJC Travel Directive and as follows:
Core Fund
- Up to 3 months; and
- not to exceed $500/month
Customized/Personalized Funds
- Not applicable
8.17 Building/Structural Inspection
Employees shall be reimbursed expenses for a building/structural inspection if it is a condition necessary for the sale of a property.
Core Fund
- Inspection expenses for situations not under a transferee's control, such as pyrite inspection
Customized/Personalized Funds
- Reimbursable amount not to exceed corporate fees negotiated by the Third Party Service Provider
8.18 Return Trip to Finalize Sale
Where exchange of documents via courier or electronically are not sufficient to finalize the sale, the employee shall be authorized by the departmental national co-ordinator to return unaccompanied to his/her previous place of duty to finalize the sale. The employee shall be required to use leave provisions for this travel when it cannot be arranged to correspond with days of rest. Reimbursement shall be as follows:
Core Fund
- Transportation (by most economical means)
- Meals & incidentals (maximum of 2 days)
8.19 Return Trip to Effect Move
Employees under TDRA may return to the former place of duty to assist and finalize the shipment of HG&E. The employee shall be required to use leave provisions for this travel when it cannot be arranged to correspond with days of rest and shall be reimbursed actual and reasonable transportation and travelling expenses as follows:
Core Fund
- Transportation (by most economical means)
- Meals for periods (pack/unpack) spent in temporary accommodation - not to exceed 5 days inclusive of travel period
- Incidentals (pack/unpack) is for a maximum of 5 days
8.20 Home Equity Assistance (HEA)
Employees who sell their home at a loss may be reimbursed the difference between the original purchase price and the sale price.
The reimbursement of such losses is funded as follows:
Personalized Fund
- 100% of all qualifying losses subject to funding availability.
Notes:
- Market value is to be based on appraisal as provided for under IRP and is to be consistent with other IRP requirements.
- Properties being sold for less than 95% of the appraised value require pre-approval of the Departmental National Coordinator.
- Any reductions of the purchase price based upon deferred maintenance shall not be included when calculating HEA.
Example:
Inspection of residence reveals that furnace must be replaced. If the asking price is reduced in lieu of replacing the furnace, this amount is excluded under HEA. - There is a 50% tax implication for losses reimbursed in excess of $15,000.
8.21 Professional Cleaning of Residence
Employees shall be reimbursed actual and reasonable expenses for the cost of professional cleaning of the former residence after the household effects have been loaded and at the new residence before or after the unloading of furniture. Reimbursement shall be as follows:
Core Fund
- Maximum of $100 (inclusive of taxes)
Customized/Personalized Funds
- Expenditures over Core
8.22 Income Property
Employees who sell an income-producing property such as a duplex, triplex, multiple unit building, small store or confectionery, that is also their residence, shall only claim expenses for that part of the building which they use as their principal residence.
Example:
If the employee owns a multiple unit residence building within which each unit is self-contained (e.g. a duplex or an apartment block), occupies one unit as principal residence, and sells the building on relocation, only those parts of the costs related to the home unit may be reimbursed. The relationship the home unit bears to the entire building may be calculated on the floor area, or by any other method accepted under the Income Tax Act.
8.23 Private Sale
8.22.1 Employees who sell their principal residence privately, in lieu of real estate fees, shall be reimbursed from Core for the actual and reasonable costs of a professional appraisal, advertising, "For Sale" signs, and similar expenses related to the sale. The sum of such expenses must not exceed the commission that would have been paid had the residence been sold by a licensed real estate agent.
8.22.2 Employees who sell privately are not entitled to receive the 80% savings on the real estate commission; this benefit is available to employees who choose not to sell.
8.24 Marketing Incentives
Marketing incentives shall be reimbursed when the Third Party Service Provider advises they are necessary to sell the property. Such incentives, for example decoration bonuses, early closing bonuses, prepaid condo fees and/or property taxes and mortgage interest buy down, shall be clearly identified on an amended property listing agreement and the agreement to purchase document. Incentives are funded from Customized/Personalized Funds and are subject to compliance with CRA listing.
8.25 Property Management Fees
An employee who has transferred the real estate commission equivalent incentive for not selling the residence at origin may use funds from the Personalized Funding envelope to pay for any property management fees incurred.