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SOMBA K'E/YELLOWKNIFE
The GNWT is proposing to change its long-standing policy that seniors do not pay rent in public housing.

Barb Hood: executive director of NWT Seniors' Society says seniors are generally prepared to pay minimal rent. - NNSL file photo

The change, which is part of a shelter policy review, is targeted to take effect on July 1.

Robert C. McLeod, the minister responsible for the NWT Housing Corporation, thinks that, while there will be some concern, the overall changes in rent scales will be well received, including by seniors.

"Seniors for the most part are fairly independent people. They've always paid their way and they don't mind paying their way," he said.

Currently, anyone 60 years of age and older does not pay rent in public housing in the NWT.

McLeod gives an example of how unfair that can be.

"I always use the illustration of two tenants in public housing living in a duplex side by side," he said. "One is 59 and he's working the same job as his neighbour who's 60 and they're getting paid exactly the same amount of money. Under the way we have it now, the 59-year-old will pay rent based on his income. The 60-year-old working right next to his neighbour pays zero."

The principle of rent based on income will remain in the new rent scales.

"The same thing will apply to seniors, but what we're proposing is an exemption that's a little higher than regular public housing clients because we understand that a lot of seniors are living on a fixed income," McLeod explained, noting the first $400 of income is currently not assessable for monthly rent.

There are 768 seniors in about 400 public housing units in the NWT, which is the only jurisdiction in Canada that does not charge rent to seniors.

The proposed rent scales have not yet been made public, but are expected to be released in March.

Barb Hood, executive director of the NWT Seniors' Society, said the organization has suggested for years that seniors are proud people and, generally speaking, would be prepared to pay minimal rent.

"That has always been what we have given as advice to the government and, in fact, we gave it to the minister responsible for seniors in November when we met with him and we'll be talking to him again in March when we get together again," she said, referring to cabinet minister Tom Beaulieu.

However, Hood expects there will be some objections among seniors to paying rent.

"I think that when any person is told that they need now to pay for something that they've never paid for there's going to be opposition, and that's fair, and it is also fair to say that people will be impacted by this," she said.

Hood noted the unknown amount of rent and the suddenness in which it will be applied are concerns the society has heard from seniors. "It's only four months away or so that this is going to be applied and we don't know exactly how much the rent is going to be."

She added the senior's society would like the opportunity to discuss the issue with McLeod. "We've never met with him about this."

The NWT Seniors' Society is expected to release an official statement on the proposed rent change this week.

McLeod said the overall revised rent scales will be more consistent, simpler, more predictable and fairer for everyone living in public housing, not just seniors.

"I think for the most part people are going to be very pleased with the proposed changes," he said.

The proposed changes are currently with the Standing Committee on Social Programs and the minister is waiting for feedback.

"What I can tell you is they're going to address a lot of concerns that people have had across the territories for a number of years, like the disincentive to work and not knowing from one month to the next what your rent may be, especially if you work seasonally or if you get a spike in income from one month to the next," he said.

McLeod noted that, under the proposed changes, over 675 households would see their rent decline by more than $100 a month.

"We'll have some households where their rent will increase and a good portion of those are seniors, even though a lot of them will be paying the minimum," he said.

The proposal would also attempt to eliminate large regional variations in rent by creating three different zones – market housing communities, semi-market housing communities and more isolated communities where the cost of living is higher.

The GNWT has 2,400 public housing units and 67 per cent of tenants pay $32 or less in monthly rent.

The NWT Housing Corporation spends $16,000 to $24,000 annually to maintain each unit.

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