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DEH CHO
NWT residents living in public housing have received long-awaited changes to the government's rent structure.

Minister Robert C. McLeod holds a copy of Building for the Future-Northern Solutions for Northern Housing, the new strategic framework for the Northwest Territories Housing Corporation. - photo courtesy of the Government of the Northwest Territories

As of July 1 the Northwest Territories Housing Corporation's public housing rent scale will go into effect and many, particularly seniors, are going to be seeing changes in their monthly costs.

On April 16, Robert C. McLeod, the minister responsible for the Housing Corporation, released the corporation's new strategic framework for housing delivery in the territory. The framework includes a new rent scale.

Starting in July, rent in the public housing program will be based on a household's gross income and which of three new zones the home is in. New minimum and maximum rent levels mean that no household will pay less than $70 per month or more than $1,625.

For residents earning in the same monthly income range, the rent will vary slightly in each of three zones.

At the lowest level, residents earning less than $1,667 will pay $80 in Zone A which includes six communities such as Yellowknife, Hay River and Fort Simpson; $75 in Zone B which includes all of the other Deh Cho communities; and $70 in Zone C in communities such as Fort McPherson, Fort Good Hope and Deline.

McLeod said the new rent scale will make rents simpler and more predictable and increase self-reliance.

"They'll know from one month to the next what the rent is going to be," he said.

Under the current system rents, which are based on a number of factors, are not predictable, said McLeod. The result is a wide range of rent being charged for households with similar income levels.

The system created a disincentive for people to work because they didn't want their rent payments to increase, said McLeod. Under the new system, McLeod said it's expected people will feel more comfortable taking employment because they will know exactly how it will affect their rent.

The new rent scale also takes seniors into account.

Seniors currently live rent free as long as there is no one else in their household who is eligible to pay. This system is no longer sustainable, said McLeod.

Seniors' rent levels will also be based on their household's gross income but because many seniors live on a fixed income, $1,000 a month of their earnings will be exempt, McLeod said. The corporation estimates that 90 per cent of units where one or more seniors live alone will pay the minimum rent.

Approximately 30 to 35 senior households will pay $100 or more in rent.

"Obviously there will be some concern from seniors," said McLeod.

McLeod added, however, many seniors have said they don't mind paying their own way and would feel more comfortable asking for help with repairs if they paid rent.

The changes to the rent scale and the new strategic framework were based on the findings of the Shelter Review Policy. The review included consultations with territorial residents, an independent evaluation of the existing homeownership programs, a rent scale review and a review of best practices elsewhere.

"We believe the changes we've made address the concern from residents," said McLeod.

The changes to the rent scale will result in rent decreasing by more than $100 per month for 675 households. Rental cost for approximately 262 households will increase $100 or more.

McLeod said the average operating costs for a public housing unit are approximately $1,400 per month. For tenants paying the minimum rent their rent is being subsidized by approximately $16,000 a year while those at the maximum rent will, on average, be covering the operating costs.

One other change public housing clients will see is to their electricity bills.

Currently tenants pay six cents per kilowatt hour (kWh). That amount is being increased to nine cents. It's hoped the increase will encourage people to conserve more energy, said McLeod.

Nahendeh MLA Kevin Menicoche said he still needs to learn more about the changes but one of the biggest benefits is the cap on the maximum amount of rent that can be paid. The cap is something that people have wanted, Menicoche said.

Menicoche said, however, that he's not in favour of charging seniors rent and had opposed that change.

"It's just an additional expense that our seniors in the small communities can't afford at this point," he said.

Menicoche said he hopes no cases will arise where seniors will fall into arrears. For now Menicoche said he will be monitoring the effects of the changes and talking to residents. If serious issues develop Menicoche said he will press for amendments to the rent scale.

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