Almost $2 million is available to expand the inventory of affordable rental accommodations in the Yukon over the next two years, says the Yukon Housing Corporation's director of corporate services.

Don Routledge explained this week that while the funding is federal, the Affordable Housing Initiative is being managed by the housing corporation.

The intent is to recruit non-government organizations to build new rental units based on a 50-per-cent federal contribution to a maximum of $75,000 per unit, he explained.

Landlords will also be required to keep the rent in the middle of the road for 10 years, according the median (near average) monthly rent established by the Yukon Bureau of Statistics for each category.

A request for proposals will be posted April 1 and will run to April 30, though Yukon Housing is already advertising the program in advance of the call for proposals.

Routledge emphasized private sector developers are not eligible, nor are government agencies like Yukon Housing.

Though he was not free to speak specifically about individual non-government organizations which may be interested in the initiative, some have already made inquiries about it, he said.

Routledge said under the program, the non-government organizations may provide new units in any category – one bedroom, two bedroom, condos and such.

Renovated units do not qualify.

But converting an old commercial retail building into an apartment complex would qualify, as would adding another unit onto a duplex to make into a three-plex, he said.

Routledge said until they see the proposals, it's difficult to comment on whether the availability of building lots will be an issue.

Organizations may already have their own property available, or at least have a line on some options, he said.

Statistics compiled by the bureau show the vacancy rate in Whitehorse has dropped steadily in the last decade as the economy has picked up.In December 2001, for instance, the vacancy rate was just under 10 per cent. Three months ago, it was 2.6 per cent, which means of the 838 apartments surveyed in the capital, 22 were available, according to the statistics.

The median rent for Whitehorse last December – the point where exactly half of the rents are lower and half are higher – was $750.

The median rent for a bachelor apartment in Whitehorse was $650 in December, compared to $600 in Dawson City and $675 in Watson Lake.

A one-bedroom unit in Whitehorse was going for $750 three months ago, compared to $700 in Dawson City and $625 in Watson Lake.

A two-bedroom unit in Whitehorse was renting for $800 and $875 in Watson Lake. There were no comparative statistics for Dawson.

Routledge explained if you were to divide the maximum matching federal contribution of $75,000 per unit into the $1.97 million available, the housing initiative would result in approximately 26 units for the territory.

Individual unit costs, however, may not require the full matching federal contribution in each case, he noted, adding project proposals may differ in size and configuration.

Routledge said the federal initiative dictates that construction must be complete by March 2012.

He expects Yukon Housing's board of directors to review the proposals in May.