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http://www.canoe.ca/NewsStand/OttawaSun/News/2004/12/24/795710-sun.html
Feds not battling military rents
Hikes for families living on bases not 'unreasonable,' treasury board prez says
By STEPHANIE RUBEC, Parliamentary Bureau
THE FEDERAL government has handed Canadian soldiers living in military homes a lump of coal for Christmas. Treasury Board President Reg Alcock decided against taking action on the steep $100 rent increase slapped on hundreds of soldiers and their families living on bases across Canada.
"On the face of it, it sounds like there is a problem," Alcock said in an interview.
"But I had a look at the whole portfolio. On seeing the facts, I just don't think it's unreasonable."
Families living in 300 of the 11,100 military homes faced the maximum monthly rent increase last month of $100. On average rents were raised by $11 across the country.
The hike is meant to bring their rents in line with those in the surrounding community. The benchmark price for the units is set by the Canada Housing and Mortgage Corporation and applied to similar-sized units on the same base by the military housing agency.
If housing values drop, then military rents are decreased.
Alcock said the rents remain below local market values even with the recent rent increase, and no one will pay more than 25% of their income in rent.
UPGRADES ON TAP
Also, Alcock pointed out that the housing agency will be spending more than $120 million this year to upgrade units -- bringing total renovation costs since 1997 to almost $500 million.
"Put all that together and this is not such a big deal," he said, adding he's combed through a detailed report prepared by his staff on military housing. "I don't think it's unrealistic."
Alcock said he's been assured that no military base in Canada charges more in rent than the surrounding market.
Defence Minister Bill Graham asked Alcock to review the Treasury Board policy, which requires the military to bring its rents in line with local market value last month.
Soldiers have complained that some of the homes are over-priced and sub-standard, plagued with poor insulation and leaky basements.
Graham said he wants action on problems facing homes on specific bases.
"What I heard is in certain specific areas there are problems and I want to make sure those have been addressed," he said.
Graham said he wants base homes to be compared to similar quality homes in nearby communities, and not to the higher-end houses that often flank them.
"I still want to be satisfied that there aren't local distortions that make those comparisons difficult," he said.
"When I've had a chance to discuss this, I may be going back to Treasury Board."
Feds not battling military rents
Hikes for families living on bases not 'unreasonable,' treasury board prez says
By STEPHANIE RUBEC, Parliamentary Bureau
THE FEDERAL government has handed Canadian soldiers living in military homes a lump of coal for Christmas. Treasury Board President Reg Alcock decided against taking action on the steep $100 rent increase slapped on hundreds of soldiers and their families living on bases across Canada.
"On the face of it, it sounds like there is a problem," Alcock said in an interview.
"But I had a look at the whole portfolio. On seeing the facts, I just don't think it's unreasonable."
Families living in 300 of the 11,100 military homes faced the maximum monthly rent increase last month of $100. On average rents were raised by $11 across the country.
The hike is meant to bring their rents in line with those in the surrounding community. The benchmark price for the units is set by the Canada Housing and Mortgage Corporation and applied to similar-sized units on the same base by the military housing agency.
If housing values drop, then military rents are decreased.
Alcock said the rents remain below local market values even with the recent rent increase, and no one will pay more than 25% of their income in rent.
UPGRADES ON TAP
Also, Alcock pointed out that the housing agency will be spending more than $120 million this year to upgrade units -- bringing total renovation costs since 1997 to almost $500 million.
"Put all that together and this is not such a big deal," he said, adding he's combed through a detailed report prepared by his staff on military housing. "I don't think it's unrealistic."
Alcock said he's been assured that no military base in Canada charges more in rent than the surrounding market.
Defence Minister Bill Graham asked Alcock to review the Treasury Board policy, which requires the military to bring its rents in line with local market value last month.
Soldiers have complained that some of the homes are over-priced and sub-standard, plagued with poor insulation and leaky basements.
Graham said he wants action on problems facing homes on specific bases.
"What I heard is in certain specific areas there are problems and I want to make sure those have been addressed," he said.
Graham said he wants base homes to be compared to similar quality homes in nearby communities, and not to the higher-end houses that often flank them.
"I still want to be satisfied that there aren't local distortions that make those comparisons difficult," he said.
"When I've had a chance to discuss this, I may be going back to Treasury Board."
