I wouldn't hitch my horse to that ref. Unfortunately, it says "may request residential accommodation," not entitled. As we all know, what we want and what we're entitled to vary greatly.
The part that would concern me most is that Separation Expense (the foundation of IR) is now governed by CBI 208.997, which has a subsection of "208.997(7) (Amount – Rations and Quarters)
If rations and quarters are available at public expense, the amount of SE is limited to: (a) rations and quarters at public expense;" (the other sub paras are about parking, SE rate, and and hook-ups). The definition of "quarters" is (found in the same CBI):
“quarters” means an accommodation — without
cooking facilities — available to a member at
public expense, and includes “government and
institutional accommodation” as defined in the
National Joint Council Travel Directive, as
amended from time to time.
A quick search of "government and institutional accommodation" at the NJC site says that these are "federal government training centres, universities, colleges, Canadian or foreign military establishments, Veterans Affairs Canada hospitals, trailers, tents and other facilities owned, controlled, authorized or arranged by the Crown, including other educational institutions that provide sleeping accommodation."
As you can see, there is nothing that states any particular standard. Quite simply, if rations and quarters are available, you can be stuck in a mod across the hall from some Pte fresh off his QL3 and sharing a washroom with four other people, something I was lucky enough to experience for two months. DCBA is cracking down on abuse of certain benefits in the CF, and IR is right up there.