Debates of February 24, 2005 (day 43)

Topics
Statements

Minister’s Statement 95-15(3): Changes To The Rent Scale Implementation

Thank you, Mr. Speaker. Mr. Speaker, I rise today to inform the Members and the general public of a change to the planned implementation of the new rent scale.

Mr. Speaker, in 1995, the public housing rent scale moved from a flat rate of 25 percent of income to a sliding scale of between 6.4 percent and 30 percent. This was done to bring our public housing sector more in line with other jurisdictions across the country and to ensure that public housing remained available to clients in need. This change was originally scheduled to take place over a four-year period from 1995 to 1998 but was halted after only the second year by the government-of-the-day.

As Members are aware, the 2005-06 budget for the NWT Housing Corporation calls for this moratorium to be lifted and for the final phase-in to be completed. Our original plan was to make this final change over a two-year period with the largest element of the change taking place in year one. Based on concerns raised by Members, I am pleased to announce a new implementation schedule which will spread any changes equally over a two-year period.

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Under this new schedule, Mr. Speaker, tenant rent will average 13 percent of household income. This is well below rents in other jurisdictions where 25 percent to 30 percent of household income is charged for public housing. Over 86 percent of our tenants will see increases of less than $100 a month and over 66 percent of tenants, including all students and people receiving income support, will see no rent increases.

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As always, Mr. Speaker, seniors will continue to pay no rent for public housing.

It is my hope that the Members of this Legislature will support this new implementation plan. Information on the rent scale implementation is available by contacting local housing organizations or through my office. Thank you, Mr. Speaker.

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