Territory struggling to meet housing needs
Nunavut still short 3,000 units, $1.5 billion in long-term funding
Michele LeTourneau
Northern News Services
Monday, November 21, 2016
NUNAVUT
The territory is crawling forward, trying to satisfy its critical housing needs, but is so far only keeping up with its increasing population.
As a cost-saving measure, the Nunavut Housing Corporation is focused on building multi-plexes, such as these two buildings now completed in Iqaluit containing a total of 33 social housing units. In smaller communities, the corporation builds five-plexes. - photo courtesy of Nunavut Housing Corp |
Sixteen communities are set to receive a total of 185 public housing units from 2017 to 2019, a steady production rate that barely touches on actual need.
"Nunavut's housing crisis continues to negatively affect the health and well-being of Nunavummiut, and limit the economic development of the territory," Nunavut Housing Corporation president Terry Audla told Nunavut News/North via e-mail.
"The NHC is working hard to improve Nunavut's housing situation, and is committed to systematically tackling the crisis through its programs and new housing construction."
But there's only so much the corporation can do with the funds available. There remains a 3,000-unit shortfall, with an estimated cost of $1.5 billion. Those are more or less the same numbers offered to Nunavut News/North in November 2014.
Funding is undependable from year to year, though 2013 was a banner year with a supplementary $100 million from the federal government under its Economic Action Plan.That year, 238 units were built. But a business-as-usual year, with territorial funding as well as some federal money from the Investment in Affordable Housing program, looks more like this: 2014-15, 10 units; 2015-16 (which included saving from the 2013 funds), 45 units; and in 2016-17, 40 units currently under construction.
With the help of the new Liberal government's Social Infrastructure Fund, new units will total 90 in 2017-18 and 95 in 2018-19.
As with most efforts in Nunavut, much depends on long-term, stable funding. The Canadian government, in partnership with the territories and provinces, is working on a national housing strategy. The most recent meeting was held Nov. 1.
The shared vision for the group of ministers, according to a news release, is that "Canadians have housing that meets their needs and they can afford. Housing is a cornerstone of sustainable, healthy and inclusive communities and a strong Canadian economy where we can prosper and thrive."
Consultations were held across the country, including with national indigenous organizations, municipalities, housing experts and national stakeholders - the results are scheduled to be released on National Housing Day, Nov. 22.
"A National Housing Strategy framework will be made public in 2017," states the release.
Audla has hopes, politically measured as they are.
"The NHC welcomes the development of a National Housing Strategy. The three territories will continue to work together to ensure the North remains priority in national housing within the strategy," he said.
Adding to the lack of adequate funding, mostly due to the territory's dependence on federal money, is the cost of operating public housing units.
"Just like the high costs of constructing new housing, the cost of operating and maintaining existing public housing units is very high. The yearly operating cost of just one public housing unit is approximately $26,000," said Audla.
"An underlying challenge is that there is very little opportunity for us to recover costs, as rental revenues from public housing tenants are limited by Nunavut's lack of economic opportunities. In 2014-15, 74.7 per cent of public tenants made less than $23,000 annually. Because all public housing rent is geared to income, the majority of tenants pay the minimum rent of only $60 per month."
Since 2013, the corporation did change its business practices to better use what funds it does receive.
"The NHC is concentrating on multi-unit construction, rather than single family detached houses, and on Supply, Ship and Erect (SSE) tenders, rather than separating material and labour components."
Audla adds, "combining materials and labour tenders creates significant cost savings for NHC through the elimination of multiple contracts for each project. Savings from the use of this method have allowed the NHC to build more public housing units."
Multi-plexes cost $500,000 per individual unit, rather than stand-alone units, which cost between $600,000 and $700,000.
Nevertheless, many Nunavummiut continue to live in substandard conditions. According to its most recent annual report, "the corporation currently serves 21,213 public housing tenants in 5,383 units." Many of those units remain overcrowded.
The national occupancy standard for housing is one bedroom for: each cohabiting adult couple, each lone parent, unattached household member 18 years of age and over, same-sex pair of children under age 18 and additional boy or girl in the family, unless there are two opposite-sex children under 5 years of age, in which case they are expected to share a bedroom.
How does the corporation use this standard?
"The NHC uses Canada's national occupancy standards to measure overcrowding. Nunavut's overcrowding rates are staggering, compared to the rest of Canada," said Audla.
"The severe housing shortage we are facing prevents us from enforcing the national occupancy standard in public housing units. However, we do use these standards to determine unit allocations for families."
The corporation released its long-awaited, 62-page Blueprint for Action on Housing earlier this month. In it are listed 60 actions to be taken over the next few years, including building a stronger business case for renewed long-term federal investment in housing and infrastructure and researching the viability and suitability of alternative financing options for additional housing stock.
