Marsi cho, Mr. Speaker. In 1974, the NWT Housing Corporation was formed, and one of the principles in forming the Housing Corporation was to develop markets in the NWT.
Mr. Speaker, the Canada Mortgage and Housing Corporation, CMHC, funded the capital construction costs of new public housing, either 90 percent or 75 percent, depending on the section under which the units were built. In addition, CMHC paid for 75 or 50 percent of the operating costs and the mortgage costs, until the CMHC mortgage of 25 to 35 years was paid off. At that time, the NWT Housing Corporation would make the houses available for home ownership. The houses would be priced based on what the market could bear in each community.
An example would be that, if the NWT Housing Corporation divested a house in a strong market like Yellowknife, the house could be sold at the appraised market value. However, in communities where no market or very little market exists, the house could be discounted to what the market could bear. In communities where no market exists, the house could be transferred to the new homeowner for a nominal amount, even one dollar. When the units are transferred to home ownership, the operational and maintenance costs of those units would no longer be the responsibility of the taxpayers or the government.
Mr. Speaker, the current system allows the NWT Housing Corporation to retaken all of its public housing units and continue to keep public housing tenants within the GNWT social net. However, if the NWT Housing Corporation was to divest themselves of the houses, the cost of our entire social housing system would be reduced substantially, and markets would be developed in other communities. People who own their own homes are more apt to maintain their properties, which would benefit all residents of their community.
Mr. Speaker, the Northwest Territories Housing Corporation must move on this initiative as quickly as possible. If we keep doing the same thing over and over, there will be no community housing development and the cost to the GNWT will continue to grow. The core need will also continue to increase across the entire NWT. Marsi cho, Mr. Speaker.