Thank you very much.
Before I begin, I want to say thank you very much for coming and thank you very much for inviting us. We don't have many opportunities like this. This is very helpful for us.
In the presentation I'm going to give today I'd like to highlight some of the accomplishments our respective governments have achieved in the last couple of years. I'd like to conclude with a couple of areas in which we could improve our working relationship in our programs and maybe give you some ideas to take back to Ottawa.
As the government agency responsible for housing, Yukon Housing Corporation plays a supporting role in addressing homelessness and poverty issues. We contribute by providing social housing to people in need. Affordable housing is an important factor in the fight against poverty. The social housing portfolio managed by Yukon Housing Corporation is approximately 575 units. With current and projected construction, we expect to add an additional net 100 units to our portfolio by the end of 2011.
We are creating employment through the construction and maintenance of our housing stock through Canada's economic action plan and with funding from the Government of Yukon. Our projects are currently providing year-round employment for over 100 Yukoners, which leads to more indirect jobs and benefits the economy.
In 2009, Yukon signed on with Canada, through Canada's economic action plan, for approximately $60 million in economic stimulus funding to build and retrofit social housing. Yukon was the first jurisdiction to fully commit all the funding in the current fiscal year. Yukon Housing Corporation extends its appreciation and gratitude to officials at Canada Mortgage and Housing Corporation for its assistance and to the Government of Canada for its financial assistance.
Our Department of Economic Development has calculated that current contracts will create over 100 person-years of direct employment and 22 person-years of indirect employment. With this funding we are already building affordable housing for seniors in the communities of Watson Lake, Teslin, and Faro. In addition, two family housing projects are under way in Whitehorse. With this federal funding we will create approximately 95 new units, and this construction is under way. We will have more social housing and seniors housing starting in 2010.
Over the next two years, Yukon Housing Corporation will be constructing approximately 130 new affordable housing units throughout Yukon. Although some of these units will replace aging housing stock, there will be a net increase to the portfolio of approximately 100 housing units. With these significant investments, both present and future, by Yukon and Canada, the housing corporation's portfolio of 575 units will increase by 100 to 675, which is an overall increase of about 17%. Therefore, together we are helping Yukoners who are most in need.
Previously, through the Canada-Yukon affordable housing initiative, we built a new nine-unit facility to house seniors in the community of Haines Junction. In Whitehorse, we built the athlete's village project, including a 48-unit seniors building and a 24-unit family residence for Yukon College students, as part of the 2007 Canada Winter Games. Altogether, with funding from the Government of Canada and the Government of Yukon, we added 81 units of affordable housing for seniors, college students, and families. With that particular investment, we increased the social housing portfolio by 11%, and we increased the number of affordable housing units for Yukon College by approximately 35%.
While we are making improvements in social housing in Yukon, it is important that we present to this committee an appreciation of some of the major problems the Yukon faces with regard to sustainable funding for affordable housing.
In 1998, Canada and Yukon signed the social housing transfer agreement. This provides Yukon with greater flexibility in the delivery of housing; however, there is a descending funding formula, and by 2029-30, Canada will no longer contribute any funds to the delivery of social housing in Yukon.
The affordable housing initiative is very difficult to implement in Yukon. The current program allows for 50-50 cost-sharing up to a maximum of $75,000 per unit. However, it costs approximately $300,000 to build a new unit in Yukon. Instead of a 50-50 partnership, it becomes a 25-75 relationship, plus Yukon is responsible for all lifetime O and M costs associated with the unit.
Current funding from Canada--be it from the northern housing trust, the affordable housing initiative, or Canada's economic action plan--is limited to simply capital expenditures. Jurisdictions such as Yukon are required to bear the sole financial responsibility for O and M costs, and this is difficult.
Yukon needs a comprehensive and sustainable long-term funding approach with Canada that reflects the cost of construction and the O and M requirements associated with the delivery of affordable housing.
In conclusion, Yukon is doing its best to maximize federal funding, yet a strengthened partnership that is more reflective of the housing needs of Yukoners will better assist in the delivery of affordable housing.
Thank you, Mr. Chair.