Mr. Speaker, I rise today to provide an update on the implementation of the new public housing rent scale. Implementation of the new rent scale started on July 1, 2012, and to date, response has been very positive.
We have heard reports from communities where they have had trouble in the past finding casual employees because of the disincentive to work caused by our rent scale. We are now seeing large numbers of people applying for casual positions.
In reporting these overall impacts, we can’t lose sight of the positive impact on families. For example, a tenant from Behchoko earning $51,000 a year and supporting a family of six had their rent decline from $1,126 in June to $580 in July.
Mr. Speaker, the change in the public housing rent scale was a major change in approach. While we have seen positive results, we also recognize that some people saw their rent increase. Most of the increases in rent were fairly modest, and while nobody likes having their rent increased, it is my sense that our tenants have responded positively to the changes.
Mr. Speaker, on September 1, 2012, the next step in implementing the new rent scale was started. Seniors that live without younger adults started paying rent. As Members are aware, the NWT Housing Corporation is phasing in rent for these seniors. We are charging 50 percent of the new rent for seniors that don’t live with younger adults until July 2013, when full implementation will take place.
In September, seniors living in 448 units without any younger adults started paying rent. The NWT Housing Corporation and the local housing organizations worked closely with these seniors to explain the new approach. While these are preliminary estimates, I am pleased to report that the collection rate for these households was 114 percent for September. This reflects the fact that some seniors paid rent ahead for future months and that some seniors were paying for previously accumulated arrears.
It is certainly no surprise to me that seniors have stepped up and have accepted the new responsibility. Many seniors over the years have indicated to me that they don’t mind paying modest rent and this early result supports that. For September, rent was 3.1 percent of the total income for these seniors and 91 percent of these households paid less than $100 in rent.
Mr. Speaker, these are early overall results of the new public housing rent scale. We will need to continue to work with our tenants and pay particular attention to implementation of the new rent scale and to ensure we are doing our part to address past arrears and work with tenants to make sure they remain in good standing.
We will continue to provide updates on this initiative and I look forward to working with all Members as we advance the priorities of the 17th Legislative Assembly. Thank you Mr. Speaker.
Thank you, Mr. McLeod. Colleagues, before we continue, I’d like to draw your attention to the gallery. We have the Conflict of Interest Commissioner, Mr. Gerald Gerrand. I will be tabling Mr. Gerrand’s annual report later today. Welcome Mr. Gerrand into the House.
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Also, we have Mayor Mervin Gruben from my home community of Tuktoyaktuk. Welcome to the House, Mervin.
The honourable Minister of Human Resources, Mr. Abernethy.
