City Backs Shelters, Seeks Federal Funding

Summary#

This item directs immediate City support for churches and community groups that are sheltering refugee claimants and asks the federal government to step in with major funding and coordination. The main change is a one-time $750,000 City payment to help cover costs these groups incurred for temporary shelter. Council also formally requests a federal-led, regional response and full reimbursement of Toronto’s 2023 refugee shelter costs, with ongoing support in 2024.

Key points:

• City will provide up to $750,000 to faith and community groups that provided emergency shelter to refugee claimants.
• Council asks the federal government to reimburse about $200 million in Toronto’s 2023 refugee-related shelter costs (including $97 million already announced) and commit about $250 million for 2024 if demand stays high.
• Council asks for more Canada–Ontario Housing Benefit (COHB) funding, including $6.67 million for Toronto and a proportional amount for other Ontario municipalities, to move more people into permanent housing.
• Council asks the federal government to fund and run a 24/7 reception centre (with the Canadian Red Cross and Toronto-based agencies), deploy all-season mobile units to add up to 200 spaces, and buy or retrofit hotels or other buildings for accommodation.
• Council calls for a federally funded, coordinated regional response across the Greater Toronto and Hamilton Area (GTHA) and beyond.

What it means for you#

• Refugee claimants in Toronto:

  • You may see more immediate help from community shelters being supported with City funds.
  • If the federal requests are accepted, there could be more spaces (including outside Toronto), a reception centre for arrivals, and faster moves into permanent housing through added housing benefits.

• Faith groups and community organizations sheltering refugee claimants:

  • The City can compensate you for some emergency shelter costs, up to a total of $750,000 across selected organizations.
  • The General Manager of Shelter, Support, and Housing Administration (SSHA) will select recipients and sign agreements.

• People using Toronto’s shelter system (non-refugees and refugees):

  • The City states the system is full. Without added federal support, pressure is likely to continue. If federal actions proceed, additional spaces and faster housing placements could reduce wait times.

• Municipalities in the GTHA:

  • Council is asking for a federal-led regional approach. This could mean more coordinated placements and funding across municipal borders.

• Toronto residents and taxpayers:

  • The City is drawing on its reserve fund to cover the $750,000 one-time support. The City is seeking federal reimbursement for larger 2023 costs and ongoing funding for 2024.

• Health and settlement service providers:

  • If funded, a reception centre and mobile units could centralize intakes and services, which may change referral patterns and workload.

Expenses#

Estimated public cost: Toronto will spend up to $750,000 one-time from its Tax Stabilization Reserve Fund to compensate community shelter providers.

Additional requested funding (not approved within this item):

• About $200 million in federal reimbursement for Toronto’s 2023 refugee-related shelter costs (includes $97 million already announced through the Interim Housing Assistance Program, IHAP).
• An ongoing federal IHAP commitment estimated at about $250 million for 2024, with future funding until demand returns to sustainable levels.
• A federal top-up of $6.67 million to Toronto’s Canada–Ontario Housing Benefit (COHB), plus proportional COHB increases for other Ontario municipalities.
• Federal funding to:
  • Establish and operate a 24/7 reception centre (with Canadian Red Cross and Toronto-based agencies).
  • Deploy all-season mobile units to add up to 200 spaces (setup and operating costs identified, but final totals not confirmed).
  • Identify, purchase, and/or retrofit hotels or other buildings for accommodation.

What is unclear:

• Whether, when, and how much the federal government will fund.
• Which community organizations will receive the $750,000 and how much each will get.
• Exact costs for the reception centre and building purchases/retrofits.

Proponents' View#

• The item appears intended to prevent homelessness among newly arrived refugee claimants and reduce severe strain on Toronto’s shelter system, which the City reports is at capacity.
• A regional, federally funded approach could spread demand across the GTHA and beyond, instead of concentrating it in Toronto.
• Full reimbursement for 2023 and ongoing IHAP funding in 2024 could stabilize City finances and keep services running through the winter.
• More COHB funding would likely speed up moves from shelters into permanent housing, freeing space for others in need.
• A reception centre could provide a clear entry point and centralized services for arrivals, improving coordination and access to supports.
• Temporary mobile units and acquiring hotels or other buildings could quickly add shelter capacity while longer-term housing solutions are developed.

Opponents' View#

• One concern is feasibility and timing: the item depends on substantial federal actions and funding that are not guaranteed, so pressure on shelters may persist.
• Costs for key pieces (reception centre operations and building purchases/retrofits) are not fully detailed, making long-term expenses unclear.
• Using all-season mobile units as temporary accommodation may raise questions about suitability, cost-effectiveness, and how long they would be used.
• The City’s $750,000 compensation relies on selections by the SSHA General Manager; the item does not spell out selection criteria or reporting requirements, which may raise fairness and accountability questions.
• Even if funded, moving people to hotels outside Toronto could create challenges with transportation, access to services, and community integration.