While the Yukon government says its mortgage program's money for this year is committed, one Whitehorse applicant says the housing corporation told him the program had been cancelled.

Kluane MLA Gary McRobb, meanwhile, believes the government is sending mixed messages.

Yesterday in the legislature, McRobb slammed Jim Kenyon, minister responsible for the Yukon Housing Corp., for shutting the door on several potential homeowners.

"Can the minister explain why Yukoners were told more money would be available in the new fiscal year only to now be told, ‘Sorry, there is no money?'" asked McRobb, a Liberal.

It was the second day McRobb pressed the minister on the $7 million in funding budgeted for the housing corporation's home ownership program, which Kenyon indicated is "fully committed" for 2009/2010.

As the fiscal year began April 1, McRobb says it's a hard pill to swallow that the money had already been meted out.

The program enables those who cannot qualify for a bank mortgage to borrow money from the housing corporation. McRobb wants the government to dip into its $150-million surplus to make up the shortfall.

"There are officials and politicians telling them all the good things they were going to do for them and then the whole program dries up in three weeks," said McRobb.

"Now, there's a number of quite upset Yukoners out there who were relying on this for construction this spring."

One of those Yukoners is Geoff Sicotte, a 32-year-old tradesman who already invested $20,000 in a down payment for land being offered by the housing corporation in the Whitehorse Copper subdivision.

"Basically, (the housing corporation) assured us that we would qualify," said Sicotte. "And I've been calling them since the beginning of January and they said, ‘Wait 'til April, we'll get our (new) money then.'

"Now, they've said, ‘Sorry, we don't have any more funding, the program is going to be cancelled, it doesn't look like it's going to be renewed.' Those those were the exact words from the (housing corporation)."

But Ron MacMillan, the housing corporation's president, said there is a backlog of applications.

"I would say there are a lot of requests ...more than we can handle, so the demand for loans greatly exceeds the funding capacity that Yukon Housing Corporation has," said MacMillan, adding that to his knowledge nothing has been cancelled.

"I don't take (the funds running out) as the program being cancelled. What will happen next fiscal year, I can't say, ...(but) a decision on whether the program would be offered for next year would be made in due course."

As for providing applicants with assurances they would qualify, MacMillan said the housing corporation's commitment comes when parties sign on the dotted line.

"If there's mortgages signed and commitments made with the signing of mortgages, those would be followed through on," he said. "In cases of mortgage documents that haven't been completed and put in place, we wouldn't be advancing funding."

Back in the legislature, the exchange between McRobb and the housing minister degraded into cheap shots after Kenyon spoke of home repair initiatives before asking where additional funding for the home ownership program should be derived.

"If the member opposite is suggesting that we should be diverting money from other programs into mortgage programs, then I kind of wish he'd give us some suggestions of what we should cut - education, health?" asked Kenyon.

McRobb replied that the minister appeared confused and suggested he was distracted.

"Obviously, the minister doesn't know the difference between a home improvement loan and a loan to buy a home," McRobb said.

"Perhaps the minister was too busy sightseeing at the Great Wall or writing more letters of resignation."