In reply to Mustreadthis.

I don't want to get into this too much, because it's outside the scope of my overall point. But there are a lot of reasons that Attawapiskat had these problems, and it's not necessarily immediately attributable to the action or inaction of the local government.
Key thing to remember moving forward with this: there were independent audits of the community's budget every year. They are publicly available and viewable online.
That being the case, you have to wonder why the government immediately started casting the spectre of doubt on the community's ability to handle the money and appointed an expensive third-party manager. I doubt that would be done if your town had a housing crisis. I'm guessing the first response would be "fix this", then look into what went wrong-- not look into where the money went before helping out.
In either case, there may have been a problem at a governance level. There may not have been. But it's interesting that when something like this happens in a First Nations-run community, the immediate response tends more towards "they must have been mismanaging" than it does for other communities.