Thank you, Mr. Chairman. The mandate of the Housing Corporation is to assist residents of the NWT in accordance with need; to secure and maintain adequate, suitable and affordable shelter at a reasonable cost. These three terms: adequate, suitable and affordable shelter, are national standards that the federal, provincial and territorial government housing agencies use to determine the need and eligibility for social housing.
NWT Housing Needs Growing
Housing needs in the NWT are large and growing, and with a birth rate that is double the national average and the high rate of new families, the demand will remain high. The growing need for social housing, combined with the need to make budget cuts provides a real challenge for the Housing Corporation.
In its effort to meet this housing need, the corporation plans to build 232 public housing units and 152 home-ownership assistance units in 1992-93. This is a net increase to the social housing stock of 384 units, a net production that is higher than in 1990-91 and 1991-92.
The corporation also plans to retrofit 42 old public housing units, the Weber units. As a result of overall federal government restraint Canada Mortgage and Housing Corporation, the corporation's federal funding partner, reduced the Housing Corporation's allocation of federal units by 15 per cent. In 1991-92 CMHC also introduced a new model which has significant implications for housing in the North.
Changes In Funding
In the past, the Housing Corporation received its allocation in terms of overall federal housing units. This allowed the GNWT to fund the Housing Corporation to deliver a certain number of cost-shared units, no matter what the lifetime operating costs of those units. Starting in the fiscal year 1991-92, CMHC began funding according to a fixed dollar amount, rather than a fixed number of housing units. In other words, the Housing Corporation received an amount of funding that included the capital costs for constructing social housing units and their lifetime operating costs.
High lifetime operating costs -- for example, high water and sewage rates -- means less moneys available for the construction of new housing units. It is, therefore, critical that the individual occupants contribute more toward the costs of operating and maintaining their homes. Both the corporation and the public must join in a combined effort to reduce costs.
While the changes in funding will have an effect on how funds are distributed over all our programs, the corporation has a greater degree of flexibility to follow overall government direction and encourage people to become private home-owners.
Given the urgent housing needs, the rapidly growing population and the present climate of fiscal restraint, it is essential that new options be explored to encourage private investment in housing.
Over the course of the coming year, the corporation will be reviewing all its program policies and procedures. Clearly defined policies and guidelines are needed to ensure that scarce resources are allocated as effectively and equitably as possible. Appropriate changes to programs will be made and the corporation will ensure that program guidelines are closely followed.
Needs Survey
The next needs survey will be conducted in early 1992. Corporation staff are currently in the process of improving the questionnaire to ensure that the data provides a more accurate profile of the housing need in the communities. It is essential that both communities and corporation staff are confident in the survey's reliability as an accurate guide for housing allocations.
To the extent possible, social housing dollars should be aimed at households in greatest need. The corporation will continue to explore new ways to encourage home-ownership and aid in the development of a private rental market in communities. The corporation is developing options for those persons who do not qualify for the home-ownership assistance program because they either earn too much or too little.
Special Program To Meet Needs Of Elderly
Special attention is being paid to the elderly population and the particular housing problems they have. For example, a number of smaller communities have no public housing and elders often find themselves living in old, small, very substandard privately owned accommodation. As well as providing more information about repair programs for elders, the corporation started to replace these substandard units with small, mechanically simple, but good quality new homes for elders in selected communities. The corporation will build on this idea and develop program specifically to meet the unique needs of the elderly population. It is intended to have a program developed in time to begin implementation this year.
While the main emphasis for the corporation in 1992-93, as in the past, will be the delivery of critically needed housing, these activities will be framed within GNWT priorities, particularly those of economic development and community government.
Over the past decade the corporation has had considerable success in hiring and training local residents to manage and maintain our housing stock. The corporation will strengthen these efforts and will work in close co-operation with local housing organizations, community groups and government departments to create more opportunities for trades and professional training.
In addition, the Housing Corporation will utilize various tendering methods to ensure maximum local and northern involvement. To that end, programs will be delivered in a number of ways: labour-only contracts; supply, ship and erect contracts; design/build contracts; and projects where the corporation will be the project manager. The objective of all four tendering methods is to maximize training, business and employment opportunities for local residents.
Another key focus of the Housing Corporation in 1992-93 will be to work closely with government to develop and implement the government's community transfer initiatives. The corporation will begin the development of a strategy which will be used to facilitate and guide the implementation of this priority.
The total capital budget is $62,878,000, of which CMHC's share is $35,430,000 and the Government of the Northwest Territories' share is $27,448,000.
The capital funds requested will provide for 384 new houses. With fiscal restraint every effort is being made to target limited funds to those households most in need of assistance. The corporation is improving its programming and administrative practice to ensure the best use of limited resources, and at the same time meet the social housing needs of Northerners. In support of the community transfer initiatives, the corporation will strengthen its efforts and create additional training opportunities for local residents through its programs.
The initiatives I just reviewed show a great deal of innovation and flexibility, which the corporation will continue to strive for as we work toward our goals. There is a real limit to what the corporation and CMHC can do, the limit being the amount of territorial and federal dollars available for the construction, operation and maintenance of social housing. Only a combined effort can address the fiscal realities of today. Thank you, Mr. Chairman.