Seventeen units at a housing co-op in Yellowknife will no longer be part of the city’s public housing system.

That  means the people living in those units will lose a subsidy from the Northwest Territories Housing Corporation. They can either move into housing that’s still subsidized or stay in their current homes and pay full rent.

David Stewart, the president of the housing corporation, said the changes are needed because the city had to reduce its housing costs.

"So it's something we have to manage very carefully. Every year, our funding from the federal government goes down, so we really can't afford to have too many extra units in the system,"  Stewart said.

This means the territorial government had to cut 19 units from public housing. They include the 17 in the Inukshuk Co-op.

Stewart said the federal government has reduced funding by about $1 million.He said three tenants from Inukshuk have already moved out of their units. The last tenant is expected to move out closer to the end of summer.