Thank you, Madam Chair. I am pleased to present the Northwest Territories Housing Corporation's main estimates for the fiscal year 2007-08 for a total GNWT contribution of $51.210 million.

This is an increase of 39 percent over the 2006-2007 Main Estimates. This increase is due to the $16.250 million federal northern housing trust funding received for the affordable housing initiative. This increase is offset by an equal reduction in other source revenue. In addition to the GNWT contribution, the corporation will receive an additional $68.060 million in other source revenues. This funding includes contributions from the Canada Mortgage and Housing Corporation of $17.220 million and public housing rental subsidies of $32.454 million received from the Department of Education, Culture and Employment through its responsibility for subsidized housing. Public housing rental clients will contribute an additional $4.441 million towards their shelter costs. The remainder is made up of lease revenues, mortgage and investment interest and projected sales proceeds from the disposal of housing assets.

During 2007-2008, the NWT Housing Corporation will spend over $119 million on housing in the Northwest Territories. A total of $32 million will be spent to construct 168 dwellings in communities across the NWT. Included in this allocation are 71 public housing replacement units and 97 homeownership units to assist families to become successful homeowners. The new public housing units will allow us to improve housing conditions and replace older, single detached units with modern, multi-configured energy-efficient housing. Our new homeownership programs will allow prospective homeownership clients, who have previously been unable to secure mortgage financing, to realize the benefits of homeownership.

Implementation of the affordable housing initiative is also assisted through partnerships, both with the Department of Municipal and Communities Affairs on land requirements and with communities themselves to ensure that their housing and land development needs are met.

The Housing Corporation plans to invest $6.822 million in modernizing and upgrading our rental stock through our local housing organizations. We have also set aside $4.226 million to fund homeownership assistance and residential enhancements to address deficiencies in the homeownership stock throughout the Northwest Territories. The new renovation program has broadened access and expanded eligibility criteria that will allow us to increase the number of residents we can support.

In addition, we have also developed a client counselling curriculum consisting of courses designed to prepare participants for the requirements of homeownership through education and counselling.

The corporation will also contribute $61.584 million to our community partners in support of our 3,100 unit rental housing portfolio including subsidized and market housing operations. The remaining $14.479 million supports our corporate operations which represents 12.1 percent of the NWT Housing Corporation's total budget.

The Housing Corporation's mandate has been redefined in the past year to better reflect the needs and expectations of our residents. The views expressed by stakeholders during the consultation have shaped not only our mandate, but the strategic initiatives and program implementation being undertaken by the Housing Corporation.

The Housing Corporation remains committed to reducing core need throughout the Northwest Territories. The

investments to be made during 2007-08 will contribute greatly to reducing core need in communities through a combination of public housing replacement, new homeownership and modernization and improvement projects.

As we begin to see the impact of declining federal O and M funding for public housing, it is critical that we continue to make improvements to our stock if it is to serve us in the future, as well as to take steps to secure revenue from our existing portfolio.

Madam Chair, that concludes my opening comments. At this time, I would be pleased to answer any questions the committee may have. Thank you.