Hay River Reserve (Jun 12/06) - Ten new houses were officially opened on the Hay River Reserve May 23.

The two-bedroom units are the result of a unique funding arrangement between the NWT Housing Corporation and K'atlodeeche First Nation (KFN).

The corporation provided a loan guarantee to the KFN so it could borrow one million dollars from the bank to build the housing.

The housing corporation will pay the interest on the loan for up to five years, by which time the band hopes to have its treaty land entitlement (TLE) negotiations finished with the federal government.

The band would then pay back the loan with any money included in the TLE settlement.

If the TLE is not settled in that time, the housing corporation would pay the principal of the loan and deduct the money from allotments for housing on the reserve.

"It's a good deal," said Chief Roy Fabian at the opening ceremonies. "We just had to take the risk and say we could do it."

Construction of the houses, which are built in a line along a reserve street, began last fall.

Fabian said people should start moving in by early June.

The housing has been targeted for young couples and single people.

The project was designed and managed by the KFN, which will be the landlord.

David Krutko, minister responsible for the NWT Housing Corporation, thanked the band for taking on the initiative.

Krutko noted six more units will be coming to the reserve over the next three years under the recently-announced $100-million Affordable Housing Strategy.

Dehcho MLA Michael McLeod said the project was a creative way of dealing with the housing shortage on the reserve.

"These houses will certainly take the pressure off."

McLeod noted the project has attracted interest from other NWT communities interested in new ways of dealing with their housing shortages.

"It has become a showcase for the rest of the Northwest Territories."

Fabian said the idea for the project originated in 1998 with a previous band council.

The KFN plans to rent the houses for the next two years, with the possibility it may sell some of the houses to tenants after that time.