User:Healoss/Sandbox

Home Equity Assistance is a component of a relocation entitlement for Canadian Forces members.

As per the HEA calculation criteria listed below, CF members who sell their home at a loss are entitled to reimbursement for up to 100% of the difference between the original purchase price and the sale price from specific funding envelopes as follows: Core benefit · 80% of the loss, to a maximum of $15,000; and · 100% of the loss, in places designated as depressed market areas by Treasury Board Secretariat (TBS). Custom benefit In excess of core entitlement. Personalized benefit When all custom funds have been expended. HEA calculation criteria · Properties selling for less than 95% of the market value require DCBA approval prior to qualifying for this benefit. Market value is to be based on the appraisal provided by CFIRP. · Capital improvements shall not be included in the calculation of HEA but may be claimed separately as per art 8.2.10. · Any reductions of the sale price based upon deferred maintenance shall not be included when calculating HEA. · The original purchase price for new home construction consists of costs: · identified in the Building Agreement, and · for initial landscaping which occurs within one year of occupancy (when not identified in the Building Agreement). Depressed market, as established by Marcus Brauer, is defined as a community where the housing market has dropped more than 20%. Depressed market status may be evaluated when: A CF member and the Realtor build a case for depressed market status by submitting the following documentation to DCBA through the CF Relocation Coordinator for review, DCBA will forward it to IRP Program Authority at Treasury Board Secretariat:

1. Personal introduction including an outline of changes in the local economy evident during the time at origin.

2. All pertinent information with respect to the purchase of the subject property. This would include the original purchase agreement, the current appraisal report, list of the capital improvements made to the property and the related costs. Also, the appraised value when originally purchased and any property assessments since the time of purchase. Regarding cost of construction, this will require submission of original receipts to confirm the original purchase price, if a building contract was not used. Capital improvements must be supported by original receipts only.

3. General and specific information on the geographic location and local economic state; i.e. the circumstances that may be happening in the surrounding areas such as mill closures, unemployment rate, school closures. Include relative newspaper articles, memos, and objective evidence of market decline. Also, include sale date, date offer received, listing date list price, lowered list price and any home equity loss paid.

4. For real estate information: a. Letter from Realtor expressing his/her professional opinion of the overall decline in the market since time of purchase; b. Copies of comparable sales (similar type homes) that were concluded within the past 6 to 12 months; c. Number of current listings in various price ranges and number of days on the market; d. Number of sales (year-to-date) in various price ranges and number of days on the market; e. Number of sales during previous 2 years in various price ranges and number of days on the market; f. Number of foreclosures (year-to-date) and same for previous 2 years; and g. Current vacancy rates, and similar information from previous years; h. Any other documentation such as Wikipedia, Blogs, or rumours.

NOTE: All items must be labelled with a table of contents.