Thank you, Madam Speaker. Later on today, the new social housing rent scale will be tabled. Over the past ten years, ever since the recommendations of the Special Committee on Housing, there has been growing concerns about the need to revise the social housing rent scale.
The existing rent scale has been in place since 1983. At that time, communities were divided into two groups. One group was called home ownership communities. These were communities where it was felt home ownership programs would be successful. The other group was called non-home ownership communities. These were communities where the cost of home ownership was thought to be too expensive for most residents.
The existing rent scale charges very low maximum rents in the so-called "non-home ownership communities." This means that people with incomes high enough to afford home ownership, have no incentive to move. This contributes to overcrowding and housing shortages, which is so severe in many communities.
It will come as no surprise to Members, or the public, that the federal government is not prepared to subsidize high income tenants in cost-shared rental housing. CMHC will reduce its funding by a further $5.3 million, unless we address this issue with a revised rent scale that charges high income tenants more realistic rents.
That being said, Madam Speaker, a new rent scale is long overdue. Over the years, in many reports and consultation meetings, tenants, community leaders and MLAs have urged that the rent scale be changed. In the recent community consultation meetings held across the NWT, residents made many suggestions for changing the rent scale. The Advisory Committee on Social Housing and all MLAs have voiced concerns and suggested changes.
The rent scale that will be tabled today addresses many of these concerns.
1. The new rent scale will be applied in the same way in every NWT community, Madam Speaker. It will treat all tenants fairly and equitably regardless of where they live.
2. All rents will remain affordable. No tenant will pay more than 30 per cent of their household income for rent.
3. There will be no across-the-board increases in rent, in fact, lowest income tenants will be paying less rent.
4. High income tenants will be encouraged to become home owners.
5. Education and employment will be encouraged.
6. Federal funding will be maintained.
Madam Speaker, the new rent scale recognizes the high cost of living in remote communities. It also recognizes the additional costs of raising large families. There will also be deductions for units in poor condition.
Implementation of the new rent scale will be gradual. Major rent increases will be phased in over the next two years. The first increase will not take effect until January 1, 1995, but decreases will take effect in July, 1994.
Information on the new rent scale is going out to all local housing organizations, community governments, band councils and Metis locals. Representatives of these groups will be invited to attend a consultation meeting in their district in May or June, to be briefed and to discuss the new rent scale and other housing issues.
Madam Speaker, I believe the new rent scale is fair to all tenants. I appreciate the input of tenants, local housing organizations, the Advisory Committee on Social Housing, MLAs and the public in the development of the new rent scale. Thank you, Madam Speaker.
---Applause