Kehewin faces dispute over low rental homes

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KEHEWIN - A problem in housing has arisen between Kehewin council and reserve members who built homes through the Canada Mortgage and Housing Corporation.

Last month, the CMHC checked the reserve's books to see how it was administering the low rental subsidy. What it found was that the band was letting tenants pay only the difference between their monthly payment ($150 - $30) depending on the house and when it was built, and the CMHC subsidy, which covers roughly 90 per cent of the cost.

The band was using natural gas royalties to cover the part of the monthly payment which is then returned as a subsidy by CMHC. However, according to the agreement with CMHC, the tenants must pay the full monthly amount and then wait for the subsidy. CMHC told the Kehewin band council to make the change or face paying back the full $4 million it now owes the corporation.

In complying with CMHC's request, the council came under fire from band members who now may have to make full payments. Chief Gadwa says council has no choice but to make the change if it wants to stay in CMHC's low rental housing program.

Those band members who are refusing to make complete payments every month for the homes they had built under the program are threatening it for the future, Gadwa pointed out.

There have been 84 homes built under the program since 1973 at the reserve.

"At that time the people were made aware if they bought a house they would have to pay for it," Chief Gadwa said. He said he also recalled some other bands decided not to get involved in the program because of fear members possibly couldn't make the payments.

"The intention was to give individuals a sense of pride in their homes," Gadwa noted. House buyers' were involved in the design of the houses and given $2,500 for furnishings.

The reason Kehewin decided to make an agreement with CMHC was so it could provide better quality homes than the band would receive through the Department of Indian and Northern Affairs.

To date there are 40 band members on a waiting list for new homes. In order to receive a home, an approval will depend largely on whether those who already have homes make their payments in full, stresses Gadwa.

A CMHC representative came to look at the band's books at the end of June and then turned over the subsidy cheques, he said, but there are some band members who didn't make full payments this month.

"What we're trying to do is make them understand we don't want to jeopardize this program for our future generations. If it was off the reserve these people would be evicted," Gadwa pointed out.

The natural gas revenues which was being used to cover the subsidy can now be used to repair and renovate existing homes and the band is also requesting money for a study of existing homes and cisterns to see where improvements should be made.

Right now, council is coming up with policies which will try to ensure band members make their housing payments. If the band fails to meet its agreement with CMHC it will use all future Indian and Northern affairs' housing funds to pay off its debts to the corporation, Gadwa concluded.