What we examined (see Focus of the audit)

This audit focused on whether the Department of National Defence and the Canadian Armed Forces (National Defence) managed military housing in a manner that supported housing requirements, that was consistent with government regulations and policies, and that was cost-effective.

We examined the policies and practices that National Defence used to support decisions on military housing requirements. We also examined how the Canadian Forces Housing Agency managed military housing.

Why we did this audit

This audit is important because, according to National Defence, access by Canadian Armed Forces members to suitable housing contributes to operational effectiveness, the morale of members, and the well-being of members and their families.

What we concluded

We concluded that National Defence policy on military housing was consistent with government policy but National Defence did not comply with key aspects of its own policy. Most notably, it did not clearly define its operational requirements or consider how the private housing market could meet the needs of Canadian Armed Forces members.

We also concluded that National Defence did not have adequate and approved plans to support the current and future needs of military housing and, because of constraints, could not spend its funds effectively to modernize the portfolio.

What we found

Military housing requirements

Overall, we found that the Department of National Defence and the Canadian Armed Forces (National Defence) did not comply with key aspects of its military housing policy. We found that National Defence did not clearly define its operational requirements for military housing. We also found that, at some locations, it did not consider how the private housing market could meet the needs of Canadian Armed Forces members.

This is important because clear operational requirements help to define military housing needs, including what style of housing to provide (such as housing size and number of bedrooms), which members to provide the housing to, and where to provide it. In addition, by knowing when the private housing market can meet members’ needs, National Defence can focus its work on locations where military housing is necessary.

• National Defence did not clearly define its operational requirements for military housing consistent with its policy

  Recommendation. National Defence should complete the review of its military housing policy and clearly define its operational requirements for military housing.

Military housing management

Overall, we found that the Department of National Defence and the Canadian Armed Forces (National Defence) did not have adequate plans that defined the work, time, and resources needed to modernize the military housing portfolio and meet the current and future needs of Canadian Armed Forces members. We also found that the Canadian Forces Housing Agency was working under constraints that limited its ability to spend its funds effectively on military housing.

This is important because adequate plans could help the Agency better meet the current and future needs of members. However, constraints can prevent National Defence from completing the high-priority work that could help it achieve its goal of modernizing the portfolio.

• National Defence does not have adequate plans for military housing

  Recommendation. Once National Defence has completed its policy review and clearly defined its operational requirements for military housing, it should develop adequate plans that identify the work, time, and resources needed to meet these requirements.

  Recommendation. The Canadian Forces Housing Agency should regularly capture and update its condition assessment information to ensure it is accurate and available to inform decisions.

• National Defence could not spend funds on military housing effectively

  Recommendation. National Defence should ensure that it uses resources dedicated to military housing effectively. In particular, it should

  • clarify operating costs and track the costs it expects to be covered by rental revenue, and
  • allocate capital funds in a timely manner so that it can plan their use adequately.

Entity Responses to Recommendations

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Related Information

For more information

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