IQALUIT
The Nunavut Housing Corporation (NHC) is the new owner of 62 Iqaluit housing units, and it didn't need to book a sealift or lift a hammer to do so.

The Nunavut Housing Corporation recently purchased these 36 units in Iqaluit's Road to Nowhere subdivision. The $14.3 million deal with privately-owned Tumiit Development Corp. increases NHC's Iqaluit stock by 62 units. - Michele LeTourneau/NNSL photo

For a price of $14.3 million - an average of $230,000 per unit - the corporation purchased the units from Tumiit Development Corporation.

"In fall 2015, the Nunavut Housing Corporation was contacted by a representative for Tumiit Development Corporation, offering the sale of properties in Iqaluit," said president and chief executive officer Terry Audla, via e-mail.

"After completing the appropriate due diligence, the NHC purchased 62 residential housing units in two neighbourhoods in Iqaluit."

The units are in two neighbourhoods, Road to Nowhere and Plateau:

- 24 units at 4096 Aput Court

- 12 units at 4096B Aput Court

- 12 units at 5196 Qajisarvik Road

- 12 units at 5198 Qajisarvik Road

- 2 units at 5160 Qajisarvik Road

Stuart Kennedy, one of two owners of Tumiit, says the deal is a win-win.

"Tumiit Development Corporation received the market rate in terms of sale and the Housing Corp. has received quality-built constructions," he said.

Kennedy says he and his business partner are not retiring, but "we're changing our game."

"Ambrose (Livingstone) and myself are two of the five in a new brewing company, Nunavut Brewing Company."

NHC has yet to determine exactly how it will use the units, which are a mix of one-bedroom (six), two-bedroom (48) and three-bedroom (eight) residences.

"All structures have been built since 2006, so they're relatively recent construction projects," said Kennedy. "We've operated in the rental market with those units for the past 10 years."

Audla says the purchase agreement was finalized Dec. 15, 2016 for $14.3 million.

"Or what is equal to an average of $230,645 per unit. This offer represents tremendous value for the NHC. The recent 33 units constructed in Iqaluit in 2015 cost approximately $13.3 million or over $400,000 per unit," he said.

"Because of the current housing crisis in the territory, the NHC determined that this offer represented good value and is pleased with the purchase."

The housing corporation placed Nunavut communities into four levels of need, as explained in its 2015-2016 annual report. Iqaluit falls into the second-highest need level, 35 to 40 per cent, along with Arviat, Chesterfield Inlet, Kimmirut, Kugluktuk, Naujaat, Pond Inlet and Taloyoak.

According to the report, housing demand is measured using each community's public housing need as a percentage of existing public housing stock. For example, if a community with a public housing waiting list of 1,000 units currently has a stock of 2,500 units, its housing need as a percentage of stock is 40 per cent (1,000/2,500).

The communities with the highest level of need, at greater than 40 per cent, are Cambridge Bay, Gjoa Haven, Hall Beach, Kugaaruk and Sanikiluaq.