Mahsi, Madam Speaker, and mahsi, colleagues. The major reason for the lack of success of the program is the fact that the units the Housing Corporation inherited from DIAND were poorly constructed and hardly worth the tenants buying when one took into consideration the amount of money that would have to be spent to bring the house up to code. In addition, once a unit is upgraded using funds from the Canada Mortgage and Housing Corporation, the unit, by virtue of the contribution agreement, has to be taken off the rental purchase program stock and placed on the public housing stocks.
It is basically a vicious little circle. Although a tenant might be able to afford to buy the unit they are living in, they would not be able to afford the repairs. The Housing Corporation has had to rely upon contribution agreements in the past with the Canada Mortgage and Housing Corporation and has, by necessity, taken the path of least resistance. It is cheaper to remodel the old units into proper units; however, the only source of funds available dictates that the units must become part of public housing stock.
So, although people are now living in units that meet minimal, acceptable standards for living, the units are no longer available for purchase. The rental purchase program has now been replaced by other programs such as HAP and the new access to housing program. There are still units available for purchase under the rental purchase program but, as all the units were constructed in the 1960s and early 1970s, it is not economically feasible for tenants to purchase, given the cash outlay necessary to bring the units up to an acceptable standard. There has also been a significant number of units that have been abandoned due to fire and disrepair.
Madam Speaker, this is an interesting program and it raises a lot of questions which I will be pursuing later with the Minister responsible. Mahsi.