Auditor General Criticizes Management of Supportive Living Initiative at 106 Airport Road

Auditor General Denise Hanrahan released a performance audit Tuesday examining the Newfoundland and Labrador Housing Corporation’s Transitional Supportive Living Initiative at 106 Airport Road, finding the project was not adequately planned, procured, managed, or overseen.

The report, tabled in the House of Assembly, reviewed whether contracts related to the initiative were properly handled and whether sufficient oversight measures were in place throughout the project.

Hanrahan said comprehensive planning and adherence to the Public Procurement Act were critical given the scale of the initiative, the number of contracted partners involved, and the high-risk population being served.

“Since this initiative involved significant public spending, multiple contracted partners, and a high-risk population, I expected the Corporation to have effective systems in place to manage risks, monitor performance, and demonstrate the project was meeting its objectives cost effectively,” Hanrahan said.

According to the audit, early involvement of the nonprofit operator blurred roles and responsibilities and contributed to what the Auditor General described as a reactive operational process that did not follow the Housing Corporation’s Supportive Living Program Policy.

Despite the concerns raised, the report noted the initiative helped 34 people secure independent housing.

However, Hanrahan said poor planning and ineffective contract management undermined accountability and value for money. By December 2025, the initiative had incurred approximately $24 million in costs, including at least $1.5 million annually spent on vacant rooms.