Debates of May 30, 2005 (day 4)

Thank you, Madam Speaker. Madam Speaker, it’s been reported in the newspaper and a couple days in the House regarding the housing situation that my honourable colleagues have been asking the Minister responsible for the Housing Corporation. I’d like to ask the Minister responsible for the Housing Corporation about the programs and how that has impacted our region in the Sahtu with regard to the types of programs that have been talked about in the House in recent days. Thank you.

Thank you, Mr. Yakeleya. The honourable Minister responsible for the Housing Corporation, Mr. Krutko.

Return To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, in regard to the EDAP program, as we all know that’s probably one of the programs that we’ve been able to get the most mileage out of and I think, if anything, in most communities that’s the only program we can get people out of public housing into home ownership. They have been taking advantage of that. Like I stated in my statement over the last week, we’ve put some 570 people into this program and we’ve put some $67 million into the Northwest Territories economy.

Hear! Hear!

But I think more importantly the EDAP program was originally designed to help people move from public housing into home ownership who were paying the high end with regard to the rent scale. So I’d just like to note for the Member that the EDAP program, as it was originally laid out, was to assist small communities and individuals to move out of public housing into home ownership. Thank you, Madam Speaker.

Thank you, Mr. Krutko. Supplementary, Mr. Yakeleya.

Supplementary To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you. Madam Speaker, the EDAP program seems to be getting a good response from the smaller communities. In terms of the home ownership programs, can the Minister inform this House if someone is rejected for whatever circumstances of their application if there is a process for the people to reapply? Is there an independent board that they can go to, or do they apply through the office of the Housing Corporation to seek another approval of the application? Thank you.

Thank you, Mr. Yakeleya. Mr. Krutko.

Further Return To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, there is a process in which we encourage the applicants to reapply in regard to the following year because of change of circumstances. Like I stated last week, there are certain responsibilities in the application that the client must consider. They must be able to show that they’re able to sustain a house in regards to the operation of the unit, but also more importantly they have to retain a mortgage through the bank for a portion of the payment for the unit.

The other problem that we have in a lot of small communities is land development. A lot of these clients in small communities are having problems trying to access land, and there are time limits with regard to the application, which is 90 days. In a lot of cases, communities do not have access to banks, don’t have access to the lands to be developed in that time frame. So in most cases the applications are approved and then the following year a lot of this construction takes place. So because of that, a lot of clients are basically informed that because they have not completed or concluded the responsibilities laid out in the application, they are rejected and encouraged to apply next year, hopefully with a better chance of getting access to a bank or being able to obtain land to build on. Thank you, Madam Speaker.

Thank you, Mr. Krutko. Supplementary, Mr. Yakeleya.

Supplementary To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, sometimes it takes a little special consideration in the smaller communities, because the Minister has outlined several of the reasons in terms of the land development. Can the Minister advise the House in terms of what types of steps the Housing Corporation is doing in terms of seeking more land? I know there are special arrangements made with the land set aside for band residents under the Indian Act. Is there anything the Minister can do or is he looking in terms of assisting people in the small communities in terms of the land development and in terms of getting them some secure notion that they could continue and succeed in applying for funding? Otherwise they will give up and, out of frustration, leave the application alone. Thank you.

Thank you, Mr. Yakeleya. Mr. Krutko.

Further Return To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, we are working with the Department of Municipal and Community Affairs and also the different aboriginal tribal councils and Indian Affairs, because Indian Affairs does have responsibility for band lands. I think that is where the problem is. There are ongoing meetings with Indian Affairs to try and find a resolution to this problem and I think because of the capacity problems in a lot of our small communities, we’ve realized through Municipal and Community Affairs that we have to put more money into those small communities so they can develop those lands so that people who want to get into home ownership have the ability to access those lands. So we are working with other agencies to be able to resolve this problem. Again, it is a problem that we’re having with Indian Affairs with regard to the office here and we are having ongoing meetings with them. Hopefully through that we will be able to resolve this issue. Thank you.

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

Supplementary To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, with the EDAP program the Minister has said there is, and I have noticed, some special consideration for the small communities versus the larger centres. Now in these small communities, can the Minister advise or inform this House in terms of the large amounts that are given to the individuals in the smaller communities in terms of this program here? Why are such large amounts given to our smaller communities than our larger centres under this program here? Thank you.

Thank you, Mr. Yakeleya. Mr. Krutko.

Further Return To Question 47-15(4): Administration Of The Homeownership Program (EDAP)

Thank you, Madam Speaker. Madam Speaker, we do have unique challenges in small communities and we also realize that the cost of living is a lot higher and that the clients in most cases have minimum wages in the $50,000 range. In regard to construction of a lot of these units where you have to bring them in through the winter road or by barge, there is a higher transportation cost associated with that. We take that into consideration.

Like I stated last week, this program was designed to get people out of public housing and into home ownership, and a lot of those people are in the bracket range of $45,000 to $50,000. In order to assist them with acquiring a $300,000 or $250,000 home, there will be a subsidy associated with it. The subsidy is not actually money that’s going into the individual’s pockets. It’s a subsidy that is based on depreciation over 15 years of a mortgage in which it declines every year. You have to live in that unit for 15 years, pay down the portion of whatever you borrowed from the bank, but also realize that the forgiveness is based on a 15-year period. If you sold your house before the 15 years or you gave up the mortgage, the second mortgage is still held by the Housing Corporation. We still have an interest in it. I think that’s an important component that hasn’t been explained here.

For communities, we realize there’s a high cost associated with getting people out of public housing and also the cost of financing it. We also have to realize that to keep people in public housing for a life period of…Say one of our housing units costs us about $1 million just to keep somebody in public housing. By making an investment of $50,000 or $60,000 to help these people get into home ownership is a benefit to ourselves as government to encourage people to get out of public housing and get into home ownership. Hopefully that explains the Member’s question. Thank you, Madam Speaker.