# 2019-027 Pay and Benefits, Real estate and legal fees

Case summary

F&R Date: 2019-09-17

On posting, the grievor purchased a building occupied by five separate tenants. The grievor evicted the tenants upon taking possession and stated that he intended to convert the building into a single residence for his own use. When he applied for reimbursement of his purchase expenses, he was denied because the building was deemed to be an income-producing property.

The Initial Authority determined the grievor was not eligible for purchase expenses because the building was a 100% income-producing property, as it was fully occupied by tenants at the time the grievor took ownership.

The Committee similarly found that, at the time of purchase, the building consisted of five separate fully occupied units. In addition, the grievor had collected rent from the units in the months before the tenants were evicted. Having concluded that the grievor's building was an income-producing property, the Committee found that he had no entitlement to reimbursement of his purchase expenses pursuant to the Canadian Forces Integrated Relocation Program Directive. Consequently, the Committee recommended that the Final Authority not afford the grievor redress.

FA decision summary

The Acting Chief of the Defense Staff agreed with the Committee's findings and recommendation not to afford the grievor redress.