Rent freeze extended
Rent subsidies, income support to be integrated
by Richard Gleeson
NNSL (Mar 02/98) - The 5,800 households in the NWT that rely on rental subsidies are safe, at least until division.
The territorial government announced rent on subsidized units will remain
unchanged at least until division. The rent freeze was an extension of one
that began last April.
Both freezes were the result of the government's plans to integrate
its rental subsidy and income-support programs.
That, said NWT Housing Corporation director of policy Gary
McLellan, is expected to take at least another eight or nine months.
"The work, to be jointly done by the NWT Housing Corporation and
the Department of Education, Culture and Employment, will set a framework
for future social program implementation for the two new governments in
1999," said deputy premier Goo Arlooktoo in announcing the extension of the
moratorium.
Rental subsidies are calculated on an international standard that
says people can afford to pay no more than 30 per cent of their income for
shelter.
In the South establishing an income threshold for a community
simply involves calculating the average rent.
For the vast majority of Northern communities it's a little more
difficult, since few have rental markets.
To get around it, the Housing Corporation uses a formula that
accounts for construction, heat, mortgage, power and other operational
costs to establish an income threshold has been established for each
community in the North.
All those above the threshold are not eligible for rent subsidies.
Those below it will pay only a maximum of 30 per cent of their income
toward rent. The territorial and federal governments pay the rest.
Administration of rental units is done by the local housing
organizations.
Last year the Housing Corporation provided $81.4 million to housing
organizations for the operation of rental units. Three quarters of that was
paid by the federal government. |