Thirty-six public housing units will not be built in Nunavut this summer because of high construction costs due to COVID-19. 

Delayed builds dominated discussion during the spring sitting of the legislature that ended June 9. 

The minister in charge of the Nunavut Housing Corporation, Margaret Nakashuk, said the price of building material has increased 40 to 50 per cent from last year. 

“Every housing unit we postpone represents a great burden for a family that might otherwise have a place to call home,” said Nakashuk during her opening statement while taking questions from the standing committee on legislation.

“It saddens me greatly to do this. However, cost overruns leave us with no other choice.”

Nakashuk said the tenders for these projects were 30 to 40 per cent over budget — a budget calculated when the price of building materials was lower. 

Similar concerns are being raised in the Northwest Territories. That territory’s housing corporation recently said the cost to address its ongoing housing crisis has now doubled. 

To build 16 public housing units in Iqaluit, the lowest bid was $15 million, said Terry Audla, president of the Nunavut Housing Corporation. These units were to be four public housing four-plexes. 

Two public housing five-plexes were postponed because the contractor was unable to secure insurance in Taloyoak. One public housing five-plex was postponed in Rankin Inlet, but, Nakashuk said this project will go ahead when the land is developed.

In Pangnirtung, one staff housing five-plex was postponed and will be reviewed.

These projects will need to go out for tender at a later date. 

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