WINNIPEG — Internal government documents say Manitoba First Nations live in some of the most dilapidated homes in the country and it will cost $2 billion to eliminate mould and chronic overcrowding in that province alone.

That's almost 13 times more than the $150 million the federal government has budgeted for housing on all reserves across Canada this year.

Reports from Indigenous and Northern Affairs Canada, obtained by The Canadian Press under access-to-information legislation, say the housing situation in Manitoba has worsened as infrastructure funding has been siphoned off to other areas.

"As a result, Manitoba First Nations continue to face further deterioration in infrastructure," says the internal report dated January 2015.

"We need to find a proper, sustainable solution — what is realistic in terms of how we can begin to even make a dent in this huge backlog."

"Current estimates indicate a $1.9B need to address existing overcrowding, replacement and major repairs related to mould and substandard conditions of housing units. Key challenges continue to include affordability, low income and high social assistance rates."

The report notes Manitoba has among the highest percentage at 29 of indigenous people living in poor housing in Canada. Officials say Alberta is the only other province in a similar situation.

One quarter of existing homes on reserves in both provinces need to be repaired or replaced.

Chief David McDougall said the situation is a "ticking time bomb" in his remote aboriginal community of St. Theresa Point in northern Manitoba. The waiting list for housing on the cluster of four reserves in his tribal council is 1,500. Last year, his reserve got 18 units.

They were the lucky ones. Other reserves got less than that.

Overcrowding common

It's not uncommon for 18 people to live in a small bungalow, McDougall said. Last year, there were 23 people living in a two-bedroom home.

"They had to take turns sleeping."

While the government's own estimates put Manitoba's housing needs at $2 billion, the department said $50 million is budgeted for on-reserve housing in the province this year.

That is to drop to $29 million next year.