Based on coverage from CBC and Nunatsiaq News.
In the vast, icy expanse of Nunavut, where the northern lights dance across the sky, a housing crisis is unfolding that’s as complex as the territory’s rugged landscape. The Nunavut 3,000 initiative, a bold plan to build 3,000 new homes by 2030, is facing a storm of challenges, as revealed by a recent Auditor General's report.
The report paints a picture of a housing strategy beset by delays, budget overruns, and a lack of transparency. Premier P.J. Akeeagok and Nunavut Housing Corporation President Eiryn Devereaux have stepped up to defend the initiative, emphasizing the transformative potential of the project. Devereaux argues that even if the ambitious target isn't met, the strategy will still mark a significant improvement over the status quo. "If we had kept doing everything the same, building a hundred units a year over nine years, we would have seen 1,000 units come into the territory," he noted, highlighting the plan's aim to double or even triple the housing supply.
Yet, the Auditor General’s report raises serious concerns. It points out that more than 60% of Nunavummiut rely on public housing, with 45% of these homes being overcrowded. The audit also criticizes the housing corporation for not ensuring that publicly funded units are allocated to those who need them most. In response, Devereaux has promised new systems to improve maintenance and tenant relations, aiming to centralize data and streamline operations across local housing authorities.
Central to the Nunavut 3,000 initiative is NCC Development Ltd., tasked with building a significant portion of the new homes. However, the company has faced its own set of hurdles. CEO Clarence Synard admitted that when the agreement was signed, NCC lacked a full team to handle the massive project. Since then, efforts have been made to bolster their workforce, including training Inuit workers and addressing unexpected construction challenges, such as hidden electrical cables that have caused delays.
Financially, the project is also under strain. The cost of the initial agreements has ballooned by 12.5%, with the average price per square foot soaring to about $750. This increase is attributed to various factors, including site work challenges and high shipping costs to remote communities. Despite these setbacks, the Nunavut Housing Corporation has opted to forgo performance bonds for NCC Development’s contracts, a decision that has raised eyebrows given the potential risks involved. Performance bonds typically provide a safety net, ensuring that projects are completed even if a contractor defaults. However, the housing corporation, backed by a cabinet exemption, has decided that the cost of bonding is not justified given the current housing supply challenges.
As of now, only a single 18-unit complex in Iqaluit is complete, with other projects at various stages of construction. The completion dates for some units stretch as far as mid-2027, far beyond initial expectations. The housing corporation has paid NCC Development $187.7 million for 316 units, with more agreements under negotiation.
The Nunavut 3,000 initiative is a testament to the territory's urgent need for housing and the complexities of delivering such an ambitious project in one of the most challenging environments on Earth. While the road ahead is fraught with obstacles, the commitment to improving living conditions for Nunavummiut remains steadfast. As the Auditor General’s report suggests, the real test will be in how effectively the Nunavut Housing Corporation implements its recommendations and adapts to the evolving challenges of this monumental task.
