Nathan VanderKlippe
Northern News Services

Yellowknife (Feb 06/02) - Affordable housing will get a $45 million boost during the next five years.

The program was announced Monday. The federal government has committed $7.5 million toward the project. That money is part of the $680 million Ottawa has committed for affordable housing across Canada.

The NWT Housing Corporation has not yet decided how it will spend the funds.

"At this point in time we're still developing our affordable housing strategy," said Greg Barton, Housing Corp. manager of policy and implementation.

"Some of our immediate steps include expanding our extended downpayment assistance program."

The Housing Corp. is meeting with developers, the diamond mines and both the territorial and municipal governments "to identify some constructive strategies so we can work together and have a positive effect on the affordable housing supply," Barton said.

However, officials are being careful to avoid what happened with the Minimum Down Payment Assistance Program. That program gave over 500 people a chance to buy a home by offering $10,000 toward a downpayment. However, it negatively affected the private sector rental market.

"One of our biggest concerns is market disruption," said Barton. "We don't want to rush into something where we're competing with the private sector."

News of the money was welcome at the Yellowknife Housing Authority (YHA). Acting CEO Guy Langlois said the money should be put toward new affordable housing.

"There's not much of that happening," he said.