Hay River (Jun 19/06) - Seniors can live rent-free in the Northwest Territories. Even if they have lots of cash in the bank.

The situation is provoking controversy in the legislature. And some seniors are distressed.

Ben and Fran Greenfield stand outside their new home -- one of 12 new, 100-per-cent subsidized public housing units for seniors in Hay River. - Paul Bickford/NNSL photo

"We didn't realize people thought it was wrong," said Hay River's Fran Greenfield, 78.

She and her husband, 81-year-old Ben are among elderly people who moved - rent-free - into seniors housing in Hay River soon after selling their houses. Ben has had heart surgery and has Parkinson's disease.

For the past 10 years, the territorial government has offered a 100 per cent subsidy for seniors in public housing without considering their assets, including money from the sale of a home. Their household income only needs to be less than $40,000 a year.

Fran Greenfield said it's upsetting that she and her husband - pioneers of the Paradise Valley farming area about 20 km south of downtown Hay River - have been dragged into the controversy. "People should know us well enough to know we weren't trying to swindle anyone."

But some MLAs are bothered that seniors can sell their homes and live rent-free.

"It is outrageous that the housing corporation allowed this to happen," said Kam Lake MLA David Ramsay.

The government is throwing money around too loosely Ramsay said, "It's an example of government not getting a handle on what it's doing."

He said he doesn't begrudge the seniors for taking advantage of government policies though. It's up to the government to ensure situations like this don't happen.

Ramsay said there should be a means test. If people can pay, they should pay.

The $2 million public housing for seniors in Hay River - six two-bedroom duplexes - opened earlier this year. Each fully-subsidized unit costs the government $120,000 a year to run.

Bea Campbell, the president of the NWT Seniors Society, said the society wants to be consulted before any policy changes are made.

"I think everyone should pay a little bit," she said adding that a couple hundred dollars a month would be fair.

A report covering the housing policy is expected this fall according to Jeff Anderson, the chief financial officer with the housing corporation. He notes the Department of Education, Culture and Employment is responsible for the subsidy and has reviewed all income security programs.

"The policy has to catch up with what's happening now," he said. Anderson notes the housing corporation is also considering a means test as part of its criteria for everyone, not just seniors. Public housing exists mainly for lower-income people, but physical disability is also a consideration.

The Greenfields sold their house and farm nine months ago, hoping to find a place that was easier to look after. Contrary to some reports, they contend they did not get $300,000, although they wouldn't reveal the exact selling price.

The Greenfields laugh when asked if they plan to travel with any money they may have made on the sale.

"With our infirmities, we won't be going far from home," Fran said.

Lloyd Brunes, 76, also sold his home and ended up in public housing.

He got $149,000 but by the time surveying and improvements were paid, he and his wife netted about $129,000.

Brunes said the money has been put aside but adds, "$100,000 doesn't go very far these days."

As for the controversy, he describes it as a lot of hot air. "People have got to have something to yap about, and the media is making a big deal out of it," he notes.

The former president of the Hay River Seniors Society expects people will eventually have to pay to live in the public housing.

"I think, if you could afford it, you should pay."