Thank you, Mr. Chairman. I am pleased to present the Northwest Territories Housing Corporation’s main estimates for the fiscal year 2011-2012, which requests a total GNWT contribution of $61.175 million. This is an increase of 64.7 percent from last year, due to the transfer of the Public Housing Rental Subsidy from the Department of Education, Culture and Employment. Including other revenue sources primarily from the Canada Mortgage and Housing Corporation, the NWT Housing Corporation will have approximately $112 million available to invest in housing in the Northwest Territories in this fiscal year.
Since 2006-2007 the federal government has invested $114 million in new housing and repairs in the Northwest Territories, or an average of $22.9 million per year. The 2011-2012 fiscal year represents the first year without this significant level of federal investments. However, the federal government remains an important funding partner through its support of our Public Housing Program as well as CMHC specific programs. As well, the NWT Housing Corporation and its provincial and territorial counterparts have been involved in recent discussions with CMHC on the future of funding previously provided through the federal Affordable Housing Initiative and Residential Rehabilitation Assistance Program. We will continue to work with our provincial and territorial colleagues to encourage Canada to make long-term funding commitments for new construction, operation and maintenance of units, and to reverse the continuing decline of federal support for the operation of social housing.
Over the past five years we have delivered approximately 600 new housing units and completed repairs on a significant portion of our housing stock. In 2011-2012 we will be returning to our historical level of housing delivery. This is not to say that we will not be making important housing investments in our communities this year. However, given current needs in many communities and the lack of federal funding, our primary focus in 2011-2012 will be on improving existing social housing through public housing replacement and completing major modernization and improvements.
In 2011-2012 we will invest $7.1 million to replace 28 public housing units, and an additional $10.4 million to modernize and improve public housing with 126 units scheduled to undergo major upgrades. These investments are critical to enhance the long-term sustainability and energy efficiency of existing social housing, which will in turn lower operating costs and lessen the impact of
declining CMHC funding on our local housing organizations.
Improving our public housing stock also means identifying older units that require disposal or demolition and, where possible, replacing them with more energy-efficient homes. NWT Housing Corporation is removing these units and replacing them with higher quality homes that will not only provide better housing options to residents but will contribute to improving the overall quality of life within our communities.
The NWT Housing Corporation will also provide $9.7 million to assist current and prospective homeowners under Housing Choices and other programs. This funding includes $1.6 million for construction and material purchases for delivery under the Homeownership Entry Level Program, HELP, and $1.5 million to support home purchases under the Providing Assistance for Territorial Homeownership Program, PATH.
On the repair side, we will provide $4.7 million for repair projects under our Contributing Assistance for Repairs and Enhancement Program, CARE, $654,000 in CMHC repair programs and $938,000 in preventative maintenance assistance for seniors and other lower income residents. The remaining $250,000 represents funding available to community groups to develop housing that would be suitable to rent to essential service providers through the GNWT Housing for Staff Initiative. Our home ownership programs are designed to ensure that the housing programs and services that we provide foster independence and respond directly to client needs in a manner consistent with our resources.
We also recognize that there may be gaps in and between our programs. In 2010 we undertook an internal review of our programs focused on those applicants with household incomes that exceeded our program thresholds by 10 percent or less. Following the review, the NWT Housing Corporation tested a mechanism that would address these applicants who do not qualify for assistance under Housing Choices because their incomes marginally exceeded the threshold but who fulfill all other program requirements. We have included additional funding under our PATH program in 2011-2012 to provide home ownership options for those who fall into this category. We believe that through this kind of analysis we will identify individual applicants who can be successful homeowners.
We will realize further opportunities to provide housing to our residents through our vacant unit strategy. Under the first half of 2011-2012, the NWT Housing Corporation will utilize a series of options to ensure that available housing units in communities are serving a housing need for residents. These options include our recent
Housing Choices yearly intake, secondary intakes in selected communities where there are available housing units, and other uses as identified through dialogue with communities. This also includes the conversion of some vacant units to public housing as it is recognized that rental housing is the best option for many residents in need. The conversion to public housing will also extend to some communities where public housing does not currently exist, marking the first time since the early 1990s that the NWT Housing Corporation has added to its public housing inventory.
As always, the Housing Corporation’s largest expenditure is related to the delivery of the Public Housing Program in our communities. The approximately 2,400 units in our public housing inventory cost $41 million to operate each year, of which $5 million is recovered through tenant rents and which means that $36 million is funded through a government subsidy. This amount is provided to local housing organizations by the NWT Housing Corporation to subsidize tenant rents and to support the operation and maintenance of our public housing stock. This also includes $669,000 to fund the hiring of apprentices at local housing organizations.
Once again, federal funding for the operation and maintenance of public housing will decline in 2011-2012 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 GNWT and the Housing Corporation recognize this problem. In order to minimize the risk and sustainability of our existing housing stock in light of the federal government’s lack of commitment to long-term funding, the GNWT has committed $300,000 to allow the Department of Executive and the Housing Corporation to collaborate on a Shelter Policy review. This review will consider a number of challenging issues related to housing in the Northwest Territories, including declining federal funding for social housing and the ongoing housing issues in our communities. Included within this review will be an evaluation of the Housing Choices programs that were introduced in 2007 as well as a review of the current rent scale for the Public Housing Program. The Shelter Policy review will help us to build on our own capacity to address these challenges as well as providing a strategic framework for the next Legislative Assembly to make decisions about future housing approaches by the GNWT.
In this time of fiscal restraint it is important that the NWT Housing Corporation collect outstanding mortgage and rent arrears in order to reinvest them in our communities. The collection of this outstanding revenue is a key strategic consideration for the NWT Housing Corporation. It is critical that outstanding mortgage payments be made in order for homeowners to fully meet their
obligations and so that revenue collected through the process can be used to enhance programs and service delivery. Public housing tenants have a role to play in the financial viability of local housing organizations, given the reliance of local housing organizations on the rent revenues for the operation and maintenance of public housing stock. Our officials continue to work with clients in mortgage arrears and tenants with rental arrears to put in place repayment plans that address their arrears so that they can continue in the Housing Corporation’s programs. However, in cases where mortgage clients have consistently resisted, efforts to resolve their mortgage debt files will be sent for legal action.
We rely on the strength of partnerships in providing housing to our residents. Within the GNWT, the Housing Corporation works closely with departments such as Health and Social Services; Municipal and Community Affairs; Education, Culture and Employment; as well as the Department of Executive to promote interdepartmental approaches and collaboration in policy, planning and coordination. Our work with these departments is about more than just housing; it is about using our scarce dollars in the most effective way, given the clear linkage between quality housing and areas like health, education and community development.
The need for strong partnerships extends to the community level as well. Our local housing organizations work closely with us to ensure that our delivery reflects community needs and interests. Tenants are also considered our partners as they make a vital contribution to the viability of public housing through timely payment of rent and by ensuring that their units are well kept. The Housing Corporation’s role in these partnerships is clear: providing quality energy-efficient housing and ensuring that our programs and services are easily accessible and are communicated properly to those who stand to benefit from them.
Through these partnerships, we can move forward together into a future where quality, affordable housing is the norm in our communities and where our housing stock is sustainable for generations to come.
That concludes my opening remarks. At this time I would be pleased to answer any questions the committee may have.