SOMBA K'E/YELLOWKNIFE - Housing in the NWT will receive some much needed attention thanks to $35 million targeted at upgrading, replacing or building 1,100 units territory-wide.

A substantial portion of the funding - $28.7 million - will be doled out by the federal government.

Leona Aglukkaq, federal minister responsible for the North, and Robert McLeod, minister responsible for the Northwest Territories Housing Corporation, announced the funding on Friday at Northern United Place in Yellowknife.

"A safe and affordable place to call home is important," said Aglukkaq commenting on the decision to extend the 2009 $66 million Canada-Northwest Territories Affordable Housing Agreement. "This funding ensures we can continue to provide comfortable and affordable housing. It will also contribute to the economic and social well-being of the communities by creating work."

McLeod explained many of the housing corporation's units are ageing and in need of retrofit or replacement. The goal of the corporation is to get more units and tenants ready for homeownership.

Through its Homeownership Entry Level Program, tenants work with the housing corporation toward owning their own home. By paying their lease, utilities and maintaining their home for two years they become eligible for money to be put toward a home purchase.

"Our goal is to get as many people out of social housing as possible," said McLeod. "When people are in their own homes they are less reliant on government. We know some will always need social housing and we will continue to be there for them."

The new homes being built will mainly be two and four unit buildings with central heating systems. McLeod said that these buildings are cheaper to construct and to heat. Another beneficiary of the funding is Northern United Place, which has 84 low-rent apartments (bachelor, single and double bedroom). Northern United Place, which also provides meeting space for volunteer, non-profit and cultural groups, is set to receive $248,000 to replace an ageing water system.

"Our rent scale for those groups ranges from nothing to when government shows up and we squeeze every penny we can out of them," Northern United Place board chair Larry Elkin told Aglukkaq with a smile. "But it's for a good cause, it allows us to help a lot of people."

Operating as a non-profit has allowed Northern United Place to offer an average rent of $588 monthly - for downtown Yellowknife, that's cheap. But it's a 36-year-old building that needs significant work. Last year it received $495,000, which was put toward insulation, siding, heating controls and windows.

"It's made a huge difference," said Elkin.