Glen Korstrom
Northern News Services

NNSL (Sep 20/99) - Though the GNWT's program to help families with their initial downpayment to buy a house was a success, it will not be repeated.

That's the word according to the minister responsible for the NWT Housing Corp.

"Continuing it may have negative effects on the private rental market and yield diminishing results as the housing market absorbs the assistance through price increases. For this reason, there are no plans by the housing corporation to re-introduce this program," Floyd Roland told the legislative assembly earlier this month.

Roland told the legislature that 555 families benefitted through the program, which granted $10,000 to those living below the treeline and $15,000 to those living above the treeline.

The goal was to stimulate the NWT's economy through housing sales and Roland called the program a success.

The program also acted as part of the GNWT's overall strategy to encourage more people to move North and for newcomers to stay.

With this goal in mind, Roland said that 22 per cent, or 118 families, assisted through the program moved to the NWT within the past two years.

In total, the program cost the GNWT $5.6 million -- a figure that Yellowknife North MLA Roy Erasmus hinted might have been too much, given how no extra money was allotted for housing repair programs.

"Several of my constituents have come forward with dilapidated houses, their siding falling off, windows in disrepair and that type of thing," Erasmus told the legislature.

He then went on to encourage Roland to spend a fraction of the money the housing corporation spent on encouraging home ownership on home repairs.

Erasmus said there was no means test to qualify for the $10,000 and $15,000 grants to buy homes, so essentially someone who was making a $1 million per year could qualify.

At the same time, people on the other end of the economic spectrum would be suffering in dilapidated housing.

Roland said there is already a system in place including an independent housing program, a seniors' program and other programs that are subject to a means test, but do distribute money.

As for whether there would be any increase to repair subsidies, as Erasmus asked for, Roland would only say that the "issue can be dealt with in the next business planning process."