March 21, 1997
(Municipal and Provincial Affairs)

The following is being distributed by the Newfoundland and Labrador Housing Corporation:

Agreement being finalized that would see transfer of responsibility for federal social housing to province

Negotiations are currently under way that would see the transfer of administrative responsibility for federal social housing in the province to Newfoundland and Labrador Housing Corporation (NLHC). Information regarding the plan was released by Art Reid, minister responsible for housing, along with other comments regarding the provincial budget.

"This transfer of responsibility for social housing from Canada Mortgage and Housing Corporation (CMHC) to the provincial housing corporation will result in more efficient operation of social housing," Mr. Reid said. "It will cut down on overlap and duplication between the two levels of government and will ultimately provide greater flexibility to deliver housing programs suited to the specific needs of the people of Newfoundland and Labrador."

The minister said the federal portfolio consists of co-op housing, municipal non-profit housing, private non-profit housing administered by community groups, and nursing home beds. It will add roughly 3,800 dwellings and beds to NLHC's portfolio, bringing total individuals served by the housing corporation's social housing accommodation programs to more than 30,000.

CMHC will provide ongoing funding for its housing as well as for the current NLHC portfolio of social housing which is cost-shared with the province, the minister said. Similar negotiations are under way with other jurisdictions across the country.

The province expects to finalize negotiations with CMHC by the end of April.

Contact: Karen Humphreys Blake, NLHC, (709) 724-3054.