Mr. Speaker, cabinet has made a decision to sell government-owned staff houses in Yellowknife, Hay River and Fort Smith. The homes will be appraised and sold to the occupants at market rates.
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There are 113 of these units. The potential revenue to government will be about $12 million.
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Occupants who are not able to arrange conventional mortgages through the banks will be able to enter into a lease-purchase plan with the government. The lease-purchase plan will be based on current mortgage rates and conditions. There will be no special deals.
This initiative comes at a time of low mortgage rates and 95 per cent financing. The federal government's announcement of allowing up to $20,000 in RRSP savings to be used toward payment of the purchase price may be another incentive to some people to buy the home they presently occupy.
The initiative is the first phase of a long-term staff housing strategy. That strategy will outline a plan for providing staff housing where it is needed most and eliminating it in communities where employee needs can be looked after by the private sector. It will consider overall housing needs in the Northwest Territories and will integrate our reduced staff housing needs with other government housing programs.
In conclusion, Mr. Speaker, employees living in government-owned housing in Yellowknife, Hay River and Fort Smith will have four months to arrange financing and make a formal offer to purchase. After that period, the units will be subject to the terms and conditions of the long-term housing strategy which is scheduled to be finalized in June of this year. Thank you.