Isolated Posts and Government Housing Directive - Information Session

TOPICS

The following presentation will cover:

• The new rent structure & phase-in process;
• The new Shelter Cost Differential (SCD);
• Changes to the Rental Adjustments;
• The expanded basket of goods;
• Impact on the Living Cost Differential; and
• The Fuel and Utilities Differential.

ADMINISTRATIVE CHANGES

• Isolated Posts Directive and Living Accommodation Charges Directive – Merged
• New Name: Isolated Posts and Government Housing Directive.
• Now applies to separate employers who join NJC.

BASE SHELTER VALUE

• To ensure equity and fairness:
  • CMHC has determined BSV;
  • All Base shelter values based on local market;
  • No local market? Based on market with similar conditions and adjusted for location.
• New system: 1 August 2003
• New rent higher? Phase-in

PHASE-IN

• Annual monthly increase:
  • 25% of current occupancy charge OR $50.00, whichever is higher;
  • maximum increase of $100/month;

Example 1:
                 Current rent: $565/month
                 New market rent: $750/month
                 25% X $565 = $141.25
                 Increase capped: $100/month
                 ***********************
                 Revised rent – year 1: $665/month
                 Revised rent – year 2: $750/month

Example 2:
                 Current rent: $180/month
                 New market rent: $280/month
                 25% X $180 = $45
                 Increase: $50/month
                 ***********************
                 Revised rent – year 1: $230/month
                 Revised rent – year 2: $280/month

ALLOCATION OF ACCOMMODATION

Premise: "1 bed per head"

Normally:
     —  Employee without dependants: one-bedroom unit
     —  Employee with one dependant: two-bedroom unit

Where appropriately sized unit is not available:
     —  Employee without dependants: 60% of the rent;
     —  Employee with dependants: no adjustment when unit larger than the norm.
     —  Unit smaller than the norm: no adjustment.

ADJUSTMENTS

As before, adjustments can be made to rent ...
     —  Loss of Privacy and Quiet Enjoyment;
     —  Maintenance Problems.

The Job-Imposed Occupancy adjustment has been discontinued.

INTRUSION TYPES

• Revised Intrusion Type table
• Maximum reduction to rent: 50%.

Intrusion Type	Frequency
Availability to the Public	30%	20%	10%
Public Use of Living Facilities	20%	13%	10%
Offensive Noise	20%	13%	6%

• Intrusion types found in Definition section ...

SHELTER COST DIFFERENTIAL (SCD)

• New allowance payable where housing costs are abnormally high.
• Private market:
  • Difference between:
    • average rent for 3-bedroom detached bungalow at isolated post; and
    • national average rent for similar unit at 12 points of departure (POD).
• Government Housing:
  • Difference between:
    • average rent for 3-bedroom unit in Government Housing; and
    • national average rent at POD.

Example:

Private Market		Government Housing
Average 3-bdrm det. bungalow:	$1,300.00	Average 3-bdrm unit:	$1,100.00
—		—
National average:	$975.00	National average:	$975.00
SCD (per month)	$325.00	SCD (per month)	$125.00

The following locations presently qualify:

• Yellowknife, NWT;
• Iqaluit, NU;
• Inuvik, NWT;
• Hay River, NWT;
• Norman Wells, NWT;
• Rae (Fort), NWT;
• Fort Providence, NWT;
• Whitehorse, YT;
• Fort Simpson, NWT.

****
Total SCD paid to household capped at 100% of employee with dependants' rate.
Employee without dependants: 60% of that amount.
****

Basket of Goods & Services

A new basket of goods ...

• Used to establish the living cost differential index
• Basket of goods and services revised and expanded
• More representative of today's northern lifestyle and purchasing patterns.

Old basket of goods and services included:

• Food purchased from stores
• Household supplies and services
• Personal care supplies and services
• Transportation, both local and out-of-town
• Alcohol and tobacco

The new additions are:

• Food purchased from restaurants
• Pharmaceutical products (non-prescription)
• Household/Tenant insurance premiums
• Entertainment supplies and services
• Rental of cablevision/satellite services
• Reading materials

Living Cost Differential (LCD)

• 7.5% abatement discontinued
• Previously: 10 or 15-point ranges
• Now: 5-point ranges
• More accurately reflects cost of living in isolated posts
• ... larger basket = larger dollar value

Impact: LCD allowances will go up for all isolated posts.

LCD CEILING

• Employee couples: aggregate LCD cannot exceed the Employee with Dependants' rate.
• Change to be phased-in ...

PHASE-IN OF CEILING

LCD allowances for employee couples frozen for a FIVE YEAR period, or until future LCD rates are equal to or higher than amount household currently receives, whichever occurs first.

FUEL & UTILITIES DIFFERENTIAL (F&UD)

• Methodology has not changed
• Only one important modification ...
• 20% qualifying level is reduced to 15%.

As a result, more posts may qualify for F&UD