I will call the committee to order. We are reviewing the Northwest Territories Housing Corporation main estimates, 2000-2001. I would like to ask the Minister responsible for the department if he has any opening comments. Mr. Minister.

Yes, I do Mr. Chairman, thank you. Mr. Chairman, as you and all Members of this House are aware, working in partnership with our communities is a key element of Towards a Better Tomorrow.

Mr. Chairman, the Northwest Territories Housing Corporation is committed to working in partnership with communities to assist them to become accountable for their own choices in housing. By working together, all community residents are provided with opportunities for homes that support a healthy, secure, independent and wholesome lifestyle.

The mandate of the Corporation is to assist communities to assume the role of providing housing to their residents and to sustain northern economic development. This is achieved by providing mentorship and support to our communities in the areas of technical services, research, financial support, information sharing, training as well as economic development.

Mr. Chairman, I am asking this Legislature to approve the Government of the Northwest Territories contribution to the Corporation of $43 million. Approximately $16 million of this will go to assist residents to become homeowners or to upgrade their homes.

For example, Mr. Chairman, this year the Corporation has budgeted $7.4 million for its Independent Housing Program, which helps low income families who are able to run a home but may not meet other requirements for a traditional bank mortgage. Over four and a half million has been budgeted for the Expanded Downpayment Assistance Program, which provides assistance to families who can get a bank mortgage. Last year, this program had a budget of more than $2.7 million, which resulted in clients being able to access more than $3.2 million of bank financing.

Senior citizens who need repairs or renovations to their homes can benefit from the Senior Citizens' Home Repair Program, which has over a million dollars budgeted.

Further, Mr. Chairman, $2.3 million from the GNWT will go towards the building public housing for senior citizens. Also this year, the Corporation will use over $4.2 million to assist local housing organizations upgrade, repair or, in some cases, replace public housing units.

Last year, Mr. Chairman, these programs assisted more than 350 NWT families to improve their housing situation. This means over 1,000 of our residents saw their living conditions improve through these three programs:

• • Independent Housing Program
• • Expanded Downpayment Assistance Program
• • Senior Citizen's Home Repair Program

The remaining portion of the GNWT's contribution will be used for the operation of the Corporation and local housing organizations, which operate the more than 2,200 public housing units across the NWT. These 2,200 units house over 6,000 of our residents, Mr. Chairman.

I recently tabled the Housing Corporation's 2000 Housing Needs Survey. This survey provides the Corporation with statistical information on housing needs in each of our communities. The staff of the Corporation is using this information to revise existing programs and to develop new programs or initiatives that are best suited to improve the housing situation in all of our communities.

The 2000 Housing Needs Survey shows that 20 percent of the families in the NWT are in need of some form of housing assistance. This figure, while well above the national rate, represents a decline in housing need, down from 22 percent in 1996. The total withdrawal of federal funding for new social housing has put a severe strain on the Corporation's ability to meet the housing needs of our residents.

By increasing the number of homes and repairing and renovating existing homes, the Corporation helps to address the other important social problems that children and families face. Overcrowded and inadequate housing contributes to numerous social and health problems. By providing better housing the costs of health care, income support, policing and penitentiary services are lowered. This supports the goal of healthy Northerners in Towards a Better Tomorrow.

By using the information from the Housing Needs Survey and by working in partnership with our communities, economical and innovative solutions are being developed that meet community needs.

Mr. Chairman, as part of this effort to work in partnership with communities, the Corporation is developing four-year capital plans to improve the housing conditions. Also, the Corporation has begun work to move program delivery closer to the communities. Two new district offices are being created. The Western Arctic district has been divided in two, creating the new Sahtu district and the Beaufort Delta district. In the south, the South Slave district has been split creating the new district of Nahendeh. These new districts offices are located in Norman Wells and Fort Simpson.

This concludes my remarks, Mr. Chairman, except to say how important it is to have a single agency dedicated solely to improving housing conditions for all of our constituents. Thank you, Mr. Chairman.

Thank you, Mr. Minister. Does the chairman of the committee overseeing this department have any comments on the committee's review of the department's main estimates? Mr. Miltenberger.

Yes, I do. Thank you, Mr. Chairman.

General

The NWT Housing Corporation works with the local housing authorities and other concerned citizens and non-governmental organizations to achieve acceptable results in the provision of housing in the Northwest Territories. The Housing Corporation aims to ensure there is adequate social housing available for those who need it and that there are affordable housing options available for those who can look after their own needs. The Housing Corporation also supports NWT based construction and manufacturing with high aboriginal participation.

The Standing Committee on Social Programs met on May 30th, 2000, to review the draft 2000-2003 Business Plans and the draft 2000-2001 Main Estimates of the Northwest Territories Housing Corporation.

Committee members were generally satisfied with the business plan of the NWT Housing Corporation. Committee members realize that the Corporation is doing what it can with the reduced federal social housing funding that it receives.

Seniors' Housing Strategy

The committee was surprised to see a strategy referenced that was obviously used to formulate the business plan of which the members were not previously aware. Committee members can understand how the transition between Assemblies and the amount of work that we have expected our employees to accomplish in getting ready for the budgetary cycle of the first year of our mandate could have led to this oversight. However, committee members strongly believe that if a strategy or new government position is going to be used to formulate a departmental business plan, the committee should have ample opportunity to review and comment on the strategy prior to its use as a policy base.

Committee members also believe that there is a need to integrate programs and services for seniors. This is particularly true of the departments in the social envelope. The result will be access that is simplified and streamlined. This government has appointed a Minister responsible for Seniors. The committee is of the opinion that this appointment is a first step in meeting the needs of NWT seniors. However, committee members believe that with the increasing seniors population much more needs to be done.

The committee appreciated being provided with a copy of the strategy subsequent to meeting with the Minister and his officials. Committee members reserve the right to comment on the Seniors' Housing Strategy following detailed committee review.

The committee recommends that when a department or corporation plans to use a new strategy or policy they have developed in formulating a business plan, that the strategy or policy should be provided to the committee in advance of the budget review;

And further, that the committee be given every opportunity to comment on new strategies and initiatives prior to their use as a basis for setting government policy.

In addition, the committee recommends that the departments in the social envelope form an inter-departmental working group under the leadership of the Minister responsible for Seniors;

And further, that this working group should conduct a study and provide recommendations on how the Government of the Northwest Territories can better streamline and integrate the services that are offered to seniors;

And furthermore that the Minister report on the findings and recommendations of this interdepartmental working group to the Standing Committee on Social Programs within one calendar year.

Harmonization Between Income Support (ECE) and Social Housing

Both programs contain provisions that discourage people from seeking active employment. There is no incentive for a person on income support and living in social housing paying $32 per month to take a lower paying job when he or she is no better off because of higher rent and loss of income support.

Members of the Standing Committee on Social Programs are pleased that this long-outstanding issue between the NWT Housing Corporation and the Department of Education, Culture and Employment is scheduled to go in front of Cabinet. Committee members look forward to a briefing on the Harmonization Plan in the near future.

Committee members' major concern with the Harmonization Plan was that the Corporation realizes that it is vitally important an effective communication strategy be an integral part of the Harmonization Plan. Any time that this government changes the way in which it delivers its core services, it is imperative that these changes be communicated to the clients in a timely and appropriate manner.

Committee members were pleased to hear that a communication strategy is part of the Harmonization Plan and look forward to reviewing that component of the Harmonization Plan.

Extended Downpayment Assistance Program and Mortgages

Committee members are aware that in some communities the potential for loan defaults exists under the Extended Downpayment Assistance Program (EDAP). A client's circumstances of life can change for the worse, resulting in loan defaults to the lending institution.

Committee members have heard of Housing Corporation officials assisting EDAP clients refinance with the bank and even cases where the Housing Corporation has lowered the mortgage payments for the EDAP client by increasing the amount that the Corporation finances through the EDAP Program.

However, it was confusing to committee members to then hear from the Minister and his officials during the business plan review that there was nothing the Housing Corporation could do to help clients in a loan default situation. This does not agree with what members have heard happening in some districts. The attitude that it is a matter between the bank and the EDAP client may not be an appropriate approach.

It appears to committee members that there is no clear policy to guide the Housing Corporation in providing assistance to an EDAP client who's in danger of defaulting on their mortgage with a lending institution. Given that, in all likelihood, an EDAP client who defaults on a mortgage will end up in social housing, the Corporation should have a policy to guide their approach to these individuals. It appears from information provided by the Corporation that the problem is not as severe as some members believed. Nonetheless, members believe that there is a need for a definitive policy.

Reduced Canada Mortgage and Housing Corporation Funding

Committee members are well aware that the current level of CMHC funding will be sunsetted on a sliding scale over the next 38 years. Members of the committee share the Minister's concern that this will have an extremely detrimental effect on the ability of the Corporation to deliver new public housing and to maintain the existing housing stocks.

Members of the Standing Committee were pleased to hear that the federal Minister has agreed to meet with his provincial and territorial counterparts for the first time in a number of years. We must take advantage of this opportunity to lobby for the restoration of social housing funding from the federal government.

The committee strongly recommends the Minister's continued cooperation with other Canadian jurisdictions that were also adversely affected by the federal government's withdrawal from the provision of public housing funding to make sure that the Northwest Territories receives its fair share of any restored funding.

Committee members also share the Minister's concern that because the Government of the Northwest Territories assumed the responsibility for aboriginal housing in the Northwest Territories, the Northwest Territories is not eligible for any federal housing funding that targets treaty aboriginal people.

The committee recommends that the Minister continue to lobby his federal counterparts to ensure that the Northwest Territories receives a fair share of housing funding that targets aboriginal housing, such as the On-Reserve Housing Program.

At this time I would like to ask Mr. Dent to conclude the remainder of this report. Thank you.

Thank you. Mr. Dent.

Thank you, Mr. Chairman.

NWT Development Corporation and RWED Housing Market Development Strategy

Committee members are very interested in seeing the results of the proposed strategy between the Housing Corporation, the NWT Development Corporation and the Department of Resources, Wildlife and Economic Development. The committee understands that this joint strategy is aimed at developing private housing markets in communities that can sustain a viable housing market.

It is apparent to committee members that caution must be exercised in the development of a housing market creation strategy. There is a danger of creating an artificial market and thus the strategy becoming another "hidden government subsidy". Care will have to be taken to ensure that this does not occur.

Balancing Affordability and Economic Diversification

Committee members held a wide-ranging discussion on the need to balance economic diversification against the desperate requirement for social housing in our smaller communities.

In the near future, the committee notes that block funding may be an imminent part of self-government agreements. As a consequence, it becomes incumbent upon the government and the NWT Housing Corporation to develop a policy that balances the need for northern spending and support for northern manufacturing against the desire to acquire the greatest amount of goods and services at the lowest prices.

Committee members hope that the deputy minister's working group on Procurement Policy can possibly provide direction for the Northwest Territories Housing Corporation in the years ahead. Committee members look forward to the report of the working group.

Energy Conservation Strategy

Members of the Standing Committee on Social Programs were puzzled with the exclusion of an Energy Conservation Strategy in this business plan. The committee notes that an Energy Conservation Strategy was an integral part of the previous two business plans. It was further noted that, the Housing Corporation, in its presentation, provided information that projected skyrocketing energy costs. Members could not reconcile the Housing Corporation's decision to abandon an Energy Conservation Strategy with present fiscal pressures on the Corporation.

Members were pleased that the Minister agreed with the committee's position that the Northwest Territories Housing Corporation needs an Energy Conservation Strategy. Committee members look forward to reviewing this strategy in the next business planning cycle in October 2000.

Targets, Goals and Base-line Information

As with other departments that the Standing Committee on Social Programs reviewed during this budget cycle, there is disappointment on the part of committee members with the lack of clear targets and goals for the Corporation.

Committee members pointed out that the Housing Corporation had goals and targets that were attained. However, the committee notes that these goals and targets were not appropriately reported in the business plan. Examples included the Corporation's plan for dealing with the building-piling crisis in the Inuvik area and the plans for decreasing core need in the communities.

Committee members believe that the discussions held with the Minister and his officials led to greater understanding on the part of the Corporation as to the quantity and quality of information that the committee expects to see when setting goals and targets.

Committee members did appreciate the department assigning measurable targets to their goals in correspondence received by the committee subsequent to the discussions with the Minister and his officials. Committee members look forward to the next business plan for the Northwest Territories Housing Corporation reflecting that understanding.

Action Plan For the Housing Corporation Versus Core Needs

Members were pleased to see that the Housing Corporation had developed a four-year delivery plan that covered capital acquisitions. However, members could ascertain no reason why these delivery plans could not be included in the business plan instead of being provided to the Committee as part of an overhead presentation. Committee members are concerned that vital information that should be provided to the general public is not available by virtue of its non-inclusion in the official business plan. This is an issue for other departments as well and the Accountability and Oversight Committee will be making a recommendation concerning this issue.

Members of the Standing Committee on Social Programs could find no direct correlation between the four-year action plan and the core needs identified in the 2000 Housing Needs Survey.

If committee members are to believe that progress is being made in meeting the core needs in the communities there has to be a direct linkage between these two documents.

The discussion between the committee and the Minister and his officials focused on how information on repairs and new construction could be presented to the committee. Currently, the information is hidden in the grants to the local housing organizations. Members of the committee were pleased to hear that the activities of the local housing organizations are laid out in business plans that the LHOs provide to the Housing Corporation. Members look forward to the next business plan cycle and receiving this information presented and linked to the community core needs. The committee thanks the Minister for this commitment.

The committee did appreciate that, subsequent to the commitment by the Minister, the committee received copies of the capital plan and the pages from the 2000 Housing Needs Survey that identified core need in the communities. This still does not address the committee's concern of whether the Corporation is reducing core need in the communities. The committee members feel that they need to know how many units are being repaired and replaced in the communities in each year and how this affects the overall core need in the community. The information provided by the Corporation does not accomplish this. Members hope that the Corporation will be able to provide this information in the next business planning cycle.

Quality of Information in Business Plan and Main Estimates

Members appreciated the effort that the Housing Corporation put into ensuring that all of the additional information requested by the standing committee was provided.

Members were also impressed with the quality of information that the Corporation included in its affirmative action report. Committee members were also pleased with the success that the Northwest Territories Housing Corporation has realized in achieving affirmative action parity.

Mr. Chairman, this concludes the report of the standing committee.

Will the Minister responsible for the Housing Corporation call any witnesses?

Yes, Mr. Chairman.

Does the committee agree?

Sergeant-at-Arms, can you please escort the witnesses in?

Mr. Minister, for the record, can you introduce your witnesses, please?

Thank you, Mr. Chairman. On my immediate left, Tom Beaulieu, president of the Northwest Territories Housing Corporation. To my right, Mr. Jeff Anderson, chief financial officer.

Thank you, Mr. Minister. Welcome witnesses. We are dealing with the Northwest Territories Housing Corporation. General comments. Mr. Roland.