Thank you, Mr. Chairman. The Standing Committee on Social Programs met with the Minister and his officials on Tuesday, February 24, 2004, to review the draft main estimates of the Northwest Territories Housing Corporation.
Committee noted the GNWT is supplying $53.047 million of the estimated $103.486 million the NWT Housing Corporation will spend on delivering its programs and services in 2004-2005.
Committee members made note of the following issues during their review of the 2004-2005 draft main estimates for the Northwest Territories Housing Corporation.
Market Housing Initiative
On the face of it, Mr. Chairman, committee is willing to offer limited support for the market housing initiative at this time, based on our initial discussions with the Minister and his officials.
As committee members understand, the market housing initiative is to provide funding for the creation of rental housing in non-market communities to house teachers and medical staff. After the initial purchase of the mobile homes, it is understood that the corporation hopes to recover its cost by selling to aboriginal development corporations.
What is of concern to committee members, and limiting their full support of the initiative, is the lack of consultation with the target rental market. It is not clear that the rental rates that will have to be charged to recover investment costs are acceptable. It is also not clear that the use of mobile homes meets the needs of the target rental market.
Mr. Chairman, the Standing Committee on Social Programs recommends that the NWT Housing Corporation engage an arm's length organization to conduct a survey on whether the market housing initiative meets the needs of its intended target audience: professionals at the community level.
The committee looks forward to further discussion on this potentially valuable initiative.
Somba K'e Healing Centre
The committee was disappointed to hear that the Somba K'e Healing Centre, just outside of Yellowknife, is not suitable to meet the needs of a territorial treatment centre for children. Now that this option no longer exists, it is time to make serious efforts to get this facility off the government books.
The committee was interested to hear that as the mortgage holder on this $2.8 million facility, the NWT Housing Corporation had identified a number of social agencies that were interested in acquiring the facility and planned to issue a directed RFP to these agencies. While it would be preferable for a social agency to gain control of the facility and for the facility to be used for the benefit of NWT residents, there are some concerns. Will the Department of Health and Social Services utilize any of the services that a social agency plans to deliver at the Somba K'e Healing Centre? Will that utilization generate sufficient revenue for the social agency to maintain and pay for the mortgage on the facility? Will the proponents be made aware of the land tenure issues and the maintenance and utility costs of the facility as part of the RFP package?
Committee would suggest any sale agreement have a caveat that the sale would not result in any increased appropriations for the Government of the Northwest Territories.
2004 Housing Needs Survey
During the review of the 2004-2005 draft main estimates, committee members were made aware that the Housing Corporation was putting its finishing touches on the 2004 housing needs survey. This survey is compiled by the Housing Corporation and the NWT Bureau of Statistics every four years and is used in determining housing needs at the community level.
The housing needs survey is important in determining resource allocations for new construction and repairs over the four-year period. Members of the standing committee appreciated the Minister's commitment to table the housing needs survey at the earliest opportunity. It was not clear that this would occur during the March budget session. Members of the standing committee would appreciate being provided copies of the housing needs survey upon completion.
Corporation Goals
Members of the Standing Committee on Social Programs were concerned the Housing Corporation goals changed without a demonstrated plan for implementation.
In particular, Members expressed concern that the new goal related to public education and training to reduce dependency on Housing Corporation social housing programs was not well defined. Members were concerned with how and who would deliver public education and training at the community level. The Housing Corporation admitted it has done a less than stellar job in educating people at the community level about the consequences and ramifications of accessing corporation homeownership programs.
Committee will be looking for a clear indication of an adequate and well-reasoned training and public education component as part of the corporation's 10-year plan when we meet to review that plan in April.
Supported Lease Program
The committee supports the principle behind the supported lease program of providing a transition mechanism to move targeted clients from dependency on social housing to independence. Members are, however, concerned that, as one Member put it, "imposing a market mentality on a small community does have its pitfalls."
Members were not confident that the corporation has developed a proper mechanism to report and monitor client progress. There is a concern this new program does not have a coordinated approach between the district housing office and the local housing organization. In addition, concerns expressed by some Members indicate there have been problems in the past with district managers failing to communicate effectively which has led to misunderstanding as to the client's responsibilities when it comes to homeownership. Members are also concerned that credit and lifestyle counselling may not be sufficient to break the cycle of dependency in some individuals and that the program needs to stand ready to deal with its successes and failures.
When reviewing the Housing Corporation's 10-year plan in April, the committee will be looking for evidence that the supported lease program has a clearly developed education component that clearly outlines to the client the intended purpose of the program, its intended outcome and consequences of homeownership.
Counselling Clients
Committee is concerned that the NWT Housing Corporation appears to put too much faith in the adequacy of present counselling services available to their clients. Members do not share that faith and believe that the corporation has underestimated the difficulties in transitioning from dependency to open market.
The committee strongly believes that there is a need to ensure that frontline staff at the district level and the tenant relations officer at the local level are adequately trained to counsel clients.
Members were interested to hear that the corporation is working with the Canada Mortgage and Housing Corporation to develop public education materials on homeownership, but remain convinced that the human quotient is more important in ensuring the client understands the responsibilities of homeownership.
Log Housing
Members of the standing committee understand the corporation has had limited success in delivering affordable log housing programs in the past. However,
some Members did point out that there is an opportunity to possibly use log construction to address the housing needs of single people in some communities through a user-build sort of program. It was felt that small units might be more economical than larger units.
Communication In The Communities
Members are aware there are many residents in the communities who hold the government and corporation responsible for upholding agreements made prior to the Housing Corporation coming into existence in 1974, Mr. Chairman.
Members would compliment the Minister on his awareness of this reality and look forward to further discussions on how we can meld promises made with the programs of today.
Federal Funding For Social Housing
Committee members noted that 2004-2005 marks the beginning of the reduction of funding from the federal government for the construction and upkeep of social housing. Unless the federal government has a change of heart, this will mean the GNWT and the Housing Corporation will be taking on more and more of the fiscal responsibility each year until the funding ends in 2038.
Obviously, this is of grave concern, as we do not have enough money presently to address social housing needs in the Territories.
Committee members have heard indications at the federal level that there may be money made available for social housing in the federal budget. This would be welcome, provided the NWT's share is not based on an inadequate per capita funding formula.
The committee strongly supports the Minister in any and all efforts to restore and increase the amount of money provided to the territorial government for the provision of social housing in the Northwest Territories. The committee also supports the Minister in accessing funding for aboriginal residents of the Northwest Territories through aboriginal on-reserve housing programs that are not available in the NWT. It is unreasonable for the federal government to deny access to funds that are clearly targeted at aboriginal people.
Mr. Chairman, thank you. That ends the Standing Committee on Social Programs report.