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NORTHWEST TERRITORIES
Public housing rent scales will be simpler and more predictable under the NWT Housing Corporation's new strategic framework, according to president David Stewart.

Minister Robert C. McLeod holds a copy of Building for the Future-Northern Solutions for Northern Housing, the new strategic framework for the Northwest Territories Housing Corporation. - photo courtesy of the Government of the Northwest Territories

The changes come with the release of Building for the Future - Northern Solutions for Northern Housing, the government's new housing policy, which follows its recent Shelter Policy Review.

Rent will now be based on the gross household income of all household members and will range between 4.2 per cent for low income tenants and 19.5 per cent for high income tenants.

Under the policy, households with income less than $1,667 will pay between $70 and $80, while households with income over $8,333 will pay between $1,445 and $1,625. Tenants living in Yellowknife and regional centres like Fort Simpson and Norman Wells will pay more than tenants in smaller, more remote communities like Tulita and Sachs Harbour.

Under the previous policy, households in the highest income bracket could be charged more than $4,000 per month.

Currently, the corporation's 2,400 units pay an average of $146 per month, bringing in an annual revenue of approximately $4.2 million

Revenues will initially decline under the new rent scale, but in the long term the corporation hopes to see an increase as more tenants seek work, Stewart said.

The previous policy was criticized because as soon as tenants started making more money, their rent was raised. The housing corporation president said this discouraged people from looking for work and created a dependency on the corporation.

"We're hoping that more people will, if the opportunity's there, get some employment," he said. "That will generate a bit more revenue."

With the new rent scales, a tenant's income can fluctuate without their rent fluctuating as well, making it easier to create a monthly budget. For example, there is no variation in rent for someone earning $60,000 per year and someone earning $79,000.

"Now, it's predictable," said Robert McLeod, minister responsible for the NWT Housing Corporation.

The new policy no longer includes an exemption from paying rent for seniors, although the first $1,000 of their monthly income will be exempt from their rent calculations.

Approximately 30 units are occupied by independent seniors, Stewart said.

"Seniors have been living rent-free for a while," McLeod said. "It's just not sustainable."

In addition to the rent scale changes, the corporation announced it would be forming a five-person appeals committee to help tenants file complaints against them.

The housing corporation will be launching a communications campaign to educate people on the changes, McLeod said, as some tenants will see an increase to their rent and some will see a decline.

"The change to the public housing rent scale is a major shift," McLeod said. "The changes address the concerns that we have heard from residents."

The new rent scale will be implemented on July 1.

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