Auditor General of Newfoundland and Labrador, Denise Hanrahan, today delivered a performance audit report to the House of Assembly on Supply Management of Social Rental Housing Inventory of the Newfoundland and Labrador Housing Corporation. Today’s report contains findings and recommendations regarding systematic issues, insufficient policies and procedures, as well as inadequate oversight of the Corporation and the 5,500 plus units under its care.
“I have deep concerns about the Newfoundland and Labrador Housing Corporation’s ability to effectively carry out its mandate with respect to social rental housing. More importantly, I am extremely concerned about the Corporation’s ability to support the people and families it serves. For example, the demand for housing grew from 1,523 households on the waitlist to 2,603 households during our four-year audit period – that’s a 71 per cent increase. Yet, at the same time, the supply of housing units actually decreased by 57 units, with the inventory at the same level as it was in 2008,” commented Denise Hanrahan, Auditor General of Newfoundland and Labrador.
As the province’s sole housing authority, the Newfoundland and Labrador Housing Corporation is responsible for administering and managing over 5,500 social rental housing units that house several thousand families. At the end of June 2025, the Corporation’s housing portfolio consisted of 5,248 units housing 12,198 clients, 222 vacant units, and 72 units unavailable for use. The Corporation’s policies are outdated or insufficient to address the issues identified in the audit with respect to housing demand and supply, inventory management and oversight. Additional findings from the report can be found in the Backgrounder below.
“The Corporation failed to consistently monitor and manage its housing inventory, with inspections not completed as required, and gaps between occupancy taking months,” continued Auditor General Hanrahan. “Without significant work to strengthen governance, data quality, as well as planning and demand forecasting, I am afraid the Corporation will remain limited in its ability to provide timely and appropriate social rental housing to those residents who rely on this essential service.
The full report as well as an audit overview can be found by visiting. www.ag.gov.nl.ca.
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BACKGROUNDER
Supply Management Performance Audit
Demand Management
Demand for Social Rental Housing
- 361 of the 2,603 households (13.9 per cent) on the waitlist had been waiting for 2 years or longer, with one household waiting for 2,733 days – almost 7.5 years.
- While the Corporation’s waitlist grew, the Corporation’s total number of units declined between April 1, 2021, and June 30, 2025, and remained almost unchanged from its 2007-08 Annual Report.
- The Corporation had only 71 per cent of the units needed to accommodate tenants and waitlisted families as of June 30, 2025.
Waitlist Management
- Waitlist policies were incomplete and did not always reflect the processes that were carried out.
- The Corporation failed to keep its waitlist current in accordance with its policies.
- Waitlist codes used to prioritize households were potentially inaccurate, relying on applicants to self-identify relevant information.
Supply Management
Supply Management
- The Corporation was unsuccessful in repeated attempts to implement a comprehensive social rental housing inventory plan.
- Total inventory of social rental housing units decreased between April 1, 2021, and June 30, 2025.
Reconfiguration of Housing Units
- The Corporation did not have a policy or formal process to direct and manage reconfiguration of its social rental housing units.
- The Corporation had insufficient one and two-bedroom units for its needs.
- Tenants in 55 per cent of occupied units were over‑housed.
- The Corporation did not have plans to remediate misconfigured units and did not perform formal analysis on reconfiguration as a general approach, comparing cost to potential benefit.
Sale of Housing Units
- The Corporation did not have a plan to guide the sale of vacant units. The Corporation sold units in areas where there was clear demand for social rental housing, which went against its own policy.
Placement Management
- Acceptance dates in the housing management system were not accurate, making it impossible to assess whether offers were accepted in accordance with policy.
Utilization
- The Corporation did not follow its policy or procedures for identifying and addressing over or under-housing.
- As of June 30, 2025, 37 per cent of leases were overdue for renewal.
Transitioning Out Ineligible Tenants
- The Corporation’s Lease Renewals Policy did not have policies, procedures, or programs to address tenants who were no longer eligible for housing.
- The number of households over income thresholds increased each year between April 1, 2021, and March 31, 2025, from 316 in 2022 to 429 in 2025.
- The household income information used by the Corporation to determine eligibility for social rental housing was not reliable.
Inventory Management
Policies and Procedures
- The Corporation’s five inspection policies and procedures (move-in, move-out, vacancy, cyclical, and building condition reports) were incomplete and did not contain guidance in key areas.
Operations
- The Corporation did not complete move-in, move-out, or vacancy inspections according to its policies.
- 33 per cent of properties (15 of 45) had gaps between occupancy longer than three months.
Oversight
Governance Structures
- The Board of Directors did not provide effective oversight to ensure the Corporation fulfilled its social rental housing mandate.
- Corporation management made decisions, such as the purchase and sale of social rental housing units, without this documented delegated authority.
- As of June 30, 2025, all 10 Board members were past due for replacement or reappointment, including the Chair, who had served as a board member for over 18 years.
Policies
- 81 per cent of its policies had not been updated in five or more years.