$50M anticipated for housing project.

A project aimed at bringing new housing developments to 10 First Nation communities could spur economic growth for private industry and academic institutions, while at the same time provide skilled trades opportunities for band members.

Some of the 28 First Nation communities represented in Treaty 3 in northwestern Ontario reached a housing crisis several years ago. As a result, representatives entered into a pilot project with Indian and Northern Affairs Canada (INAC) to establish new housing on 10 band territories. Land responsibility and segregation for housing were outlined in the agreement, says Don Jones, president of the Anishinabe Lands and Housing Pilot Project and former chief of the Nicick-ousemenecaning First Nation.

The intention is to build 10 houses per community, or 120 per year. Dwellings will range from one- to four-bedroom homes at 1,100 square feet.

Through the INAC project, band members negotiated with government agencies like Canadian Mortgage and Housing Corp. (CMHC), responsible for on-reserve housing, Human Resource Development Corp. (HRDC), an agency which focuses on skill development, and Infrastructure Canada for water, sewer and electrical applications. Jones has received positive feedback from their business plan, but CMHC and the First Nation group have yet to find common ground on the social housing component.

The project, now into its third year, has been stalled by the federal election. Ministerial approval is a must for the initiative to move forward.

In Prime Minister Paul Martin's campaign promise, First Nation housing appeared to be an integral part of establishing the North's economy, Jones adds.

They are seeking an estimated $50 million from Indian Affairs in order to move ahead with the housing project, Jones says. That money will be used as a revolving loan. Money from mortgages would go toward loans given by the government and private industry. Jones notes the project is still in its infancy and talks with private sector industries are too premature to be announced.

"We are optimistic and have already partnered with the Assembly of First Nations to push the issue politically," Jones explains. "The bureaucracy sometimes is pretty cumbersome, especially with four government departments."

Some ongoing discussions have already taken place with the Royal Bank and CIBC.

"It looks positive," Jones comments. "The bank(s) will take a certain amount of risks and we take certain amount of risks to pull in a business plan, which will be acceptable to government and to the First Nation members."

The banks, as well as a steering committee, will be set up to determine which families will be eligible to purchase a house, based on family size, income and credit rating.

Should the project be realized, it means new direct job growth for an estimated 70 band members. Individuals will have an opportunity to train in the trades to become plumbers, carpenters, general carpenters or electricians.

"We have a commitment from CMHC to endorse a training package for four First Nation members out of the 10 communities. We have also approached HRDC for the funding of the training for the individuals." CMHC is considering an estimated $27-million investment toward the training, he adds.

Experienced tradespeople and contractors will be needed to oversee certain segments of the project. Although Jones says he would like to see a bulk of the work go to First Nation people, he welcomes contractors with expertise in supervision, architectural design, including blueprint and perhaps masonry, to help mentor First Nations students through the Seventh Generation Institute.

The 10 First Nation communities involved in the program are the Nicick-ousemenecaning First Nation, Big Island First Nation, Big Grassy First Nation, Onegaming First Nation, White-fish Bay First Nation, Northwest Angle 33, Dalles First Nation, Shoal 39, Shoal Lake 40 and Rat Portage.

By KELLY LOUISEIZE

Northern Ontario Business