Yellowknife (Dec 24/04) - Some public housing residents should prepare for a rent increase next April, when the once-frozen rent scale at the NWT Housing Corporation comes back into effect.

The current scale dates from 1995, when rent increases were scheduled to be phased in over four years. The plan at the time was to bring in 30 per cent of the increase in the first year, then 60, 90, and finally up to 100 per cent in the fourth year. Decreases were effective immediately.

However, the rising rates were frozen before the 1997 increase to 90 per cent could be applied. Rents have remained at the 60 per cent increase ever since. In September, the government voted to remove the moratorium on increases; so, as of April 1, 2005, increases will be brought in to take the total to 90 per cent, and one year later the remaining 10 per cent will be added.

As David Krutko, the minister responsible for the NWT Housing Corp., said, in addition to simply resuming the nation-wide increases of the 1990s the government is fighting to keep up with rising operational costs, particularly after losing 10 per cent out of the department's budget.

"With this initiative we're hoping to bring about $700,000 into the operational side, because right now we're spending over 50 per cent of our operational dollars in communities for housing associations," said Krutko.

"We're seeing a real increase, especially in fuel costs, utility costs and also the costs in regard to water and sewage programs."

Without this extra revenue, he added, "We cannot continue to basically throw money at a problem knowing we don't have enough."

Krutko explained that most jurisdictions in Canada have already completed similar rises through their rent scales.

"People in Nunavut and the North are paying the lowest end of the rent scale (nationally)," said the minister. "We're trying to play catch-up with the rest of Canada."

Unaffected by the increase are seniors, who will continue to live rent-free, while full-time students and income-support recipients will continue to pay $32 a month.

All rent calculations are tied to income, and no household will pay more than 30 per cent of its gross income for accommodations. According to NWT Housing Corp. figures, tenants pay an average of 11 per cent of their gross income on rent. The April 2005 phase-in will bring that average to 14 per cent.