Thank you, Mr. Speaker. Throughout the Northwest Territories, people are having public housing issues and these issues are common throughout. I would like to mention several today. The income threshold at which whole economic rent is demanded is too high relative to income and ability to pay. A confusing Rent Subsidy Program now involving two-stop shopping rather than one has caused an upsurge in arrears that lingers on and is causing anxiety amongst tenants. Finally, delays in assessments, highly variable incomes necessitating frequent rent subsidy adjustments and delayed payments can combine to yield penalties such as rent increases to full economic rent. This deadly combination can lead tenants into a downward spiral that benefits neither our citizens nor our government.
Mr. Speaker, when our public housing tenants finally get to where they begin making a decent wage and they can begin to establish themselves financially, we almost immediately kick in a requirement for 30 percent of their salary to be paid out in rent. In actual fact, this amounts to 50 percent of their gross income. This substantial burden comes while the tenant is likely trying to deal with other debts and with solidifying their financial status. Further, because it is diabolically based on gross income, this degree of levy does not fully consider ability to pay, which is related to number of dependents, medical situation, et cetera. Were it to be based on take home pay, that would be a different story. Well, this is a federal policy and is an actual problem that GNWT could clearly take the lead on.
Secondly, Mr. Speaker, the ongoing insistence that the government shows to house the Rental Subsidy Program in ECE has caused an increase in arrears, many of which remain today. This situation is not working, causing people to shift back and forth between income support in ECE and Housing Corporation is confusing and unfair. The remedy is clear.
Finally, Mr. Speaker, many of our housing tenants have unpredictable or seasonal employment that causes their incomes to fluctuate, sometimes wildly as in the case of sport hunting guides. Assessments do not seem to take this fact into account, leading to assessments that the tenant is sometimes unable or late to pay. At this point the rent gets kicked up to full economic rent and thus the spiral begins.
Mr. Speaker, our housing programs are key for the people of the Northwest Territories and we have a good record of getting things built on the ground.
But when it comes to administering rent subsidies, we have less than a sterling record. Let’s not cling to our ways, Mr. Speaker, but show our adaptability and change or admit mistakes as required. Mahsi.