Debates of October 18, 2005 (day 12)

Mahsi, Mr. Speaker. Mr. Speaker, I would like to ask some more questions of Mr. Krutko, Minister responsible for the NWT Housing Corporation. It concerns an initiative that is now in its second year, the market housing initiative. Mr. Speaker, this was something that this Assembly initially supported because it was designed to assist those communities that were having trouble attracting and keeping essential employees for GNWT services, especially Health and Education. We are now into the second and final year of delivering a total of 42 units to communities. What is the status on the delivery of the second lot of units, and are we on time and are we able to get things in under the weather radar here, Mr. Speaker? Thank you.

Thank you, Mr. Braden. Mr. Krutko.

Return To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. Mr. Speaker, the majority of the units are in place. We have units going to Aklavik, Deline, Norman Wells, Rae and Gameti. The only one that still hasn’t been placed is the one in Gameti. It’s going to have to go on the winter road this winter. With regard to Rae, there are three units that have not been in place. We have one unit that is presently being constructed. We have two units still at the plant, and one unit is on site because we are presently in the process of developing the properties that they sit on. In Norman Wells, they are presently being constructed. We are hoping to have them ready to go by the end of November. The one in Aklavik is presently being put on site, and we are hoping to have that ready by the end of November. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Braden.

Supplementary To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. I would like to focus on the original objective of this, which was to get employees into units that were appropriate for them and affordable. The uptake on this in the first year was not all that great. I wanted to ask the Minister, of the 42 units that are either on site or in the process of being finalized, how may of them are being occupied by those essential workers, the initial target group of tenants? Thank you, Mr. Speaker.

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. Mr. Speaker, with regard to phase one, the 22 units, we do have 18 units occupied. There are four units that aren’t occupied. Sixteen units are occupied by professionals, but we have sold two units in Tulita and one in Fort Resolution. Interest has been shown for other units in Fort Good Hope and Fort Liard.

Mr. Speaker, people have taken up housing units in those communities. Because they are available and people realize they are there, they understand what the cost of renting these units are. With the promotion of the Department of Education and ourselves, people will realize when you go into the communities that there is a cost associated with the rent. In order to rent these units, they will have to pay a certain price. We are able to bring down those costs; we are seeing an intake of different professionals. We have seen a major increase with regard to the rental of those units. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Braden.

Supplementary To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. Mr. Speaker, that was a pretty skinny answer. Maybe I will try it again. This Assembly and government went through considerable contortions to get the budgets passed, enable this to happen because we believed in the idea. We wanted to respond to those communities that were having problems getting teachers and nurses on site in our communities. The Minister has told us that a bunch of professionals are using them. That’s good. It’s great to see them occupied, but has the corporation managed to put together the costs or the availability of these for that target audience? How many of these 42 units are occupied by nurses and teachers? Let’s try it that way, Mr. Speaker.

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. The Member keeps referring to 42 units. As we all know, the last 20 units were implemented this year. At the time that it was presented to the House and we approved the budget, we made it clear to them that those 20 other units will not be on the ground. I would just like to have the Member realize that we went through a logistic problem the first time around, and we are going through it again. A lot of these communities are through the road access, and also ensuring that we have to deal with barging. As I said, Mr. Speaker, I don’t think we discriminate between professionals in communities. They are professionals that work at the band office, professionals who work at the municipal office. It’s not totally for nurses and teachers. This is a program to build capacity in communities and ensure that professional people who do live in these communities now have the ability to rent locally and not have to worry about trying to find accommodation once they get there. We are now providing accommodation in those communities to professionals in all walks of life, not just strictly to nurses and teachers. The communities are requiring these units to provide these programs and services that we ask them to deliver on our behalf. So we can’t restrict these to certain professionals. Again, we have seen a major increase in that area. As I stated earlier, 18 of these units are now presently occupied, under phase one, out of 22. So we are almost at 90 percent capacity. That alone should show you that we are providing assistance to those people to keep them in those communities. Thank you.

Thank you, Mr. Krutko. Final supplementary, Mr. Braden.

Supplementary To Question 153-15(4): Market Housing Initiative

Okay, so the Minister doesn’t have information for us or can’t go back to really what the original objective was and say that it has been satisfied; the program has changed to accommodate other people. Mr. Speaker, one part of this program was also that the units will not be subsidized and the Housing Corporation has been directed -- I’m reading from the business plan of last year -- to ensure a lease rate that is based on a full cost recovery basis. Can the Minister assure the House that the cost of renting and the sale of some of these units have indeed been at full cost recovery? Thank you, Mr. Speaker.

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 153-15(4): Market Housing Initiative

Thank you, Mr. Speaker. That is the direction that was given by Cabinet when this was taken out. It had to be at full cost recovery and that’s exactly how it has been operated. Thank you.