The federal and Yukon governments announced $16 million in new funding for affordable housing in Yukon on Thursday, a month after Yukon cancelled a $13 million program to create subsidized rental units in Whitehorse.
The decision to cancel the program, made at the request of Yukon landlords and realtors, angered other business people who had spent time and money on proposals to build affordable housing.
Housing minister Brad Cathers says the decision was justified because vacancy rates have gone up in the city.
"You will see very clearly the market starting to correct itself," he said. "Landlords at a seven per cent vacancy rate will have to start making decisions to lower the rental prices."
Federal cabinet minister Candice Bergen, in Whitehorse for the announcement, says she's not concerned about the Yukon's government record on housing.
"We trust that the provinces and territories are consulting and are making their decisions based on their priorities," she said, "and I think there's a pretty extensive list of projects and affordable housing needs that have been met and have been addressed with that, so, we're satisfied."
The ministers say the money will be used for housing for seniors, people with disabilities and others in need.