Kerry McCluskey
Northern News Services

Iqaluit (Apr 08/02) - The Iqaluit Housing Authority says changes the government is proposing to its rent scale could hurt Nunavummiut.

Authority manager Susan Spring said recently her board of directors thinks changes suggested by the Housing Corporation do not take problems with the current rent scale into account.

The government uses the rent scale and an individual's income to calculate how much to subsidize tenants in public housing.

Spring explained that the government recognizes that many low- and fixed-income residents can't afford to pay market rates.

At issue is how the government proposes to assess the household income of those residents. The new formula would be based on an average income over the previous three years.

The board argues that the new system ignores current living situations. Specifically, if an individual earned a high salary two years ago, but is currently unemployed and in public housing, rent would still partly reflect their previous salary.

"That's a tragic flaw," said Spring. "Who keeps money for future rent?"

The board also wants to know if rent is established once for each entire year or if it can adapt to changing circumstances.

Housing authority board members still have time to take their concerns to MLAs.

Kelvin Ng, the minister responsible for the Housing Corporation, said he planned to brief his colleagues in the legislature. Their replies will govern his course of action.

"If there are a lot of concerns about what's on the table, we may want to get into another discussion with MLAs on that. If there's a lot of support, we'll put it in place as soon as possible," said Ng.

Ng added however, that he hopes to bring the new legislation to cabinet in the near future and to have the new rent scale in place by May 1.

Subsidy system

- The rent scale starts at the market rate and decreases from there. On average, Nunavummiut residing in public housing pay about 17 per cent of their gross income for rent.

- If public housing tenants earn no income and survive on social assistance, they pay $32 a month for rent. Officials believe this discourages people from seeking an income.

- Built into the subsidy are payments for heat, water and the majority (six per cent user-pay) of electricity.

- IHA estimates its pays $1,500 in subsidies per month per unit. In Iqaluit alone, where there are 424 units, that amounts to $636,000.