Thank you, Mr. Chair. I am pleased to present the Northwest Territories Housing Corporation’s main estimates for the fiscal year 2010-2011, which requests a total GNWT contribution of $37.122 million. This is a decrease of 1.8 percent from the 2009-2010 Main Estimates.
Including revenue sources such as client rent, public housing subsidy, CMHC cost-shared funds and lease and mortgage payments from clients, the Housing Corporation will have approximately $138 million available to spend on housing in the Northwest Territories in 2010-2011.
Federal funding for housing programs in the Northwest Territories in 2010-2011 will total over $43 million. As Members are aware, 2010-2011 represents the final year of federal investments in housing in the Northwest Territories as part of its stimulus package to boost the Canadian economy. This funding accounts for $29 million of the total federal investment in housing in the NWT this year. This government has committed to match this funding through the GNWT’s contribution to the Housing Corporation. Canada has also provided a further $4 million in unilateral program funding through programs to support our non-profit and cooperative housing sector, $2 million for the modernization and improvement of public housing and a further $500,000 for renovations through the Residential Rehabilitation Assistance Program (RRAP). In addition, this funding includes approximately $9 million of debt recovery related to the repayment of cost-shared mortgage with CMHC.
Mr. Chair, this funding will be utilized in a number of areas, including program and capital delivery, public and social housing operations, debt repayment and administrative costs. The Housing Corporation will once again provide approximately $22 million in homeownership and repair assistance through its Housing Choices Homeownership Programs. Of this $22 million, $9 million will be
used to build 36 new units for delivery through the Homeownership Entry Level Program (HELP). Eight million will be invested in repairs and renovations to private homes through the Contributing Assistance for Repairs and Enhancements program (CARE), which includes a $2 million additional investment under the Reducing the Cost of Living Strategic Initiative to fund repairs for lower-income households. The remaining funding of $5 million will support homeownership assistance through the Providing Assistance for Territorial Homeownership program (PATH), CMHC repair programs, third-party non-profit renovations, and preventative maintenance activities. Our Homeownership Programs are designed to ensure that the housing programs and services we provide foster client independence and respond directly to client needs in a manner consistent with our resources.
In an effort to strengthen the long-term viability of our public housing stock, the Housing Corporation will invest $13 million to construct approximately 46 replacement public housing units. We continue to promote the sale of existing public housing units as part of this replacement process. We will invest just over $18 million in the existing public housing stock, including $15 million in major modernization and improvement projects, $3 million in minor modernization and improvements, and $230,000 for mobile equipment expenditures. As part of the modernization and improvement plan, $1 million identified through the GNWT’s Energy Investment Plan will focus on energy assessments and retrofits of the public housing portfolio.
As always, the corporation’s largest expenditure is related to the delivery of the Public Housing Program in our communities. The approximate 2,400 units in our public housing inventory cost $40 million to operate each year. A large portion of this funding is provided to LHOs through the Public Housing Rental Subsidy which, as Members know, will be transferred back to the Housing Corporation during the coming fiscal year. Approximately $5 million is collected through tenant rents. Our ability to deliver the Public Housing Program depends on the rent we collect and it is important for our tenants to play their part in the program’s success by undergoing income assessments and paying the portion of rent required based on their income.
Mr. Chair, it is clear that Canada is an important funding partner required to support the efforts of this government to improve housing conditions in our Territory. As noted previously, at the end of 2010-2011, funding for new construction under the Economic Action Plan will cease, and changes will be made to federal programs such as RRAP and AHI. Earlier in this session, I outlined new housing need data showing an increase in our core housing need from 16 percent to 19 percent over the past five years in spite of significant investments by both
levels of government. If we are to continue to make progress in improving housing conditions across our Territory, it will be critical for us to put pressure on the federal government to continue to invest in northern housing while also recognizing that we can do more as a government to improve housing conditions on our own. I, along with my territorial counterparts, have called for a new approach to northern housing that would provide long-term predictable funding to the Territories, based on need rather than population, and including funds to not only build housing but to operate and maintain them as well. I see this as a critical step in making improvements to our communities and improving the lives of our residents.
In closing, it should be noted that we are pleased with the federal government’s commitment to the North through housing investments. The sustainability of our existing public housing stock, however, will be at risk if we are unable to secure a long-term funding commitment from the federal government. Once again this year, federal funding for the operation and maintenance of public housing has declined and it will continue to do so until lapsing completely in 2038. The annual impact of this decline is beginning to be felt more severely. The Housing Corporation recognizes this problem and is developing strategic approaches to deal with the decline of CMHC funding. These approaches will build on our own capacity to address these challenges as well as ongoing strategies to ensure that our public housing stock remains viable. Protection of these housing assets are critical as public housing is perhaps the single most important means we have to adequately, affordably and suitably house residents in the greatest need.
That concludes my opening remarks. At this time I would be pleased to answer any questions the committee may have. Thank you.