Federal workers question steep damage charges after moving out of Iqaluit housing

Some federal workers in Iqaluit say they're being hit with hefty and unreasonable repair bills after moving out of government housing units, and say that they have limited options to dispute those charges.

Rob Arsenault moved to Iqaluit in 2021 to work as an environmental enforcement officer with Environment and Climate Change Canada. While there, he lived in federal housing. 

A few weeks after moving out near the end of April 2023, he was hit with a bill for more than $10,000 — for "supply materials and labour to fix tenant damage."

"My heart sunk. It kind of took my breath away and it was that feeling of shock. And also, how am I going to pay this? And how did you come up with that number?" said Arsenault.

The quote cited over 60 hours in painting and patching costs to Arsenault's unit.

Arsenault was not present for his walk-out inspection at the unit in April 2023. He said he understood at the time that some painting would have been necessary, but the $10,746 bill makes no sense to him at all.

He said he is still paying it off today.

CBC News has spoken to other federal employees, including some CBC workers, who say they've been hit with similar bills in the thousands of dollars.

The federal government leases housing units in Iqaluit and other communities from property management companies, and Public Services and Procurement Canada (PSPC) then subleases those units to various government or Crown corporation employees. 

PSPC is responsible for doing walk-out inspections when tenants move out of the units, and then contracting businesses to repair any damages, acting in a landlord-style role.

Arsenault said he tried to dispute the bill he was given by going through his department supervisors, who then attempted to contact the minister of PSPC. Those attempts went nowhere, he said.

"The minister wouldn't even hear what I had to say, as far as challenging the quote," said Arsenault.

Other federal employees have also told CBC News that after moving out of their government housing units, they received a bill from their department, which they were asked to pay within 30 days or face deductions from their wages.

CBC News reached out to PSPC for comment but did not receive a response by deadline.

Disputing costs with an employer 

Arsenault decided against some sort of legal challenge because of the potential costs involved. That meant his only other option would be to file a formal grievance with his employer at Environment and Climate Change Canada.

Arsenault decided not to file a grievance, fearing it would affect his employment status, but other federal employees facing similar bills for damages to their housing units say they have.

Rebecca Louis moved to Iqaluit in December 2021 to work as a federal prosecutor with the Public Prosecution Service of Canada. Louis vacated her housing unit in November 2023. 

She received a notice of debt this past April, nearly a year and a half after she moved out, asking for payment of over $3,000 for cleaning and minor repair charges.

Louis said she doesn't understand why she was billed so long after moving out. She also said she was present during her walk-out inspection in 2023.

"If there are any damages, they should be noted on an appendix to the march-out document. Nothing was noted on my appendix," said Louis.

Louis was sent photos along with the charges, but she said it isn't clear when they were taken — since none were taken during her walk-out inspection.

"They're undated. I have no idea when those photos were taken, between the time that I vacated the unit and the approximate year and a half since I've been there," said Louis.

Another lawyer who worked in Iqaluit and lived in federal housing told CBC News the same thing happened to them. They described a situation oddly similar to Louis's — with a similar amount owing, and a bill received months after moving out. CBC News agreed not to disclose the identity of that individual because they feared repercussions in their employment.

Both that lawyer, and Louis, have filed grievances but Louis argues that the process is fundamentally flawed.

"The employer [the federal government] has no incentive to rule against themselves in this circumstance. That's a problem. There's very good reason that this should be before a neutral arbiter and not the employer," said Louis.

What are the rules?

Nunavut's Residential Tenancies Act lays out what landlords can and can't do, including rules around repairing units.

But the Attorney General of Canada recently argued in court that territorial legislation doesn't apply to federal housing for federal workers.

Louis said that's unfair to the tenant.

"The federal government is entering into these so-called 'occupancy agreements,' and takes the position that they're not tenancy agreements," said Louis.

That case, from earlier this month, involved an Iqaluit tenant who failed to leave their government unit after their job ended. The Nunavut Court of Justice ultimately ruled that the Residential Tenancies Act did, indeed, apply.

Louis argues that that means dispute processes, like her own, should be handled the same as any other dispute involving a tenancy agreement in Nunavut. That usually involves applying to a rental officer to evaluate the situation, potentially leading to mediation, a hearing or a court order.