Secure Funding for Asylum Seeker Shelters

Summary#

This item directs the City of Toronto to step up its advocacy to the federal and provincial governments about shelter and housing supports for asylum seekers (refugee claimants). The main change is not a new local program or by-law. It is a set of formal requests for sustained federal funding, a joint plan across governments, and faster processing of refugee claims. The goal is to keep shelter services stable and reduce pressure on Toronto’s full shelter system.

• City Council asks the Government of Canada to extend the Interim Housing Assistance Program (IHAP) past March 31, 2023, and to fund Toronto’s asylum-seeker shelter costs through predictable, pre-set budgets (not after-the-fact reimbursements).
• Council repeats its request that the federal and provincial governments create a joint strategy for large, sudden arrivals of asylum seekers and build shelter/support capacity in locations across Ontario.
• Council repeats its request for additional dedicated Canada–Ontario Housing Benefit (COHB) allocations for refugee claimants to help them move into permanent housing.
• Council repeats its request that the federal government take urgent steps so refugee protection claims are processed within legislated timelines.
• The City notes $97 million is in the 2023 budget for the Refugee Response Initiative, with full federal reimbursement expected; without continued federal support, services may need to be reduced and City reserves could be depleted.

What it means for you#

• Asylum seekers in Toronto

  • No immediate change to services from this motion alone.
  • If the federal government extends funding and adds COHB allocations, this could mean more stable shelter and quicker paths to housing.
  • If funding is not continued, the City warns programs may be reduced in advance of 2024.

• People using Toronto’s shelter system (not seeking asylum)

  • A dedicated refugee shelter stream already operates in parallel to the base system. Continued funding could help keep pressure off the base system. If funding stops, overall shelter strain could worsen.

• Toronto residents and taxpayers

  • No direct new taxes or fees are set by this item.
  • The City flags a financial risk: without sustained federal reimbursement, reserves may be used and other City services in 2024 could be affected.

• Non-profits and service providers (settlement, legal, housing help)

  • If higher governments respond with funding and a joint plan, providers could see more stable funding and clearer roles. If not, program adjustments or reductions are possible.

• Municipalities across Ontario

  • If the requests are accepted, more shelter and supports for asylum seekers could be created outside Toronto, spreading demand more evenly. Details on locations and funding are not provided.

Expenses#

Estimated public cost: $97 million in 2023 for Toronto’s Refugee Response Initiative, with full federal reimbursement expected, according to the City’s report.

• The motion itself does not authorize new spending; it requests sustained federal funding and a joint strategy.
• IHAP reimbursements previously received: $127.1 million (2018–2021) and $71.3 million confirmed for 2022.
• If federal funding does not continue in 2023 and beyond, the City states it may need to reduce programming and/or use limited emergency reserves, which could affect other 2024 services.
• Administrative or compliance costs for other governments and municipalities are not specified.
• No publicly available information on any additional costs tied specifically to “Motion 3” beyond the above.

Proponents' View#

• The item appears intended to stabilize shelter funding for asylum seekers by moving from uncertain, after-the-fact reimbursements to predictable budgets.
• A formal intergovernmental strategy could improve planning for sudden, large arrivals and clarify roles between federal, provincial, and municipal partners.
• Adding dedicated COHB allocations for refugee claimants could help more households move from shelters into permanent housing, easing shelter crowding.
• Meeting legislated timelines for refugee claim processing could reduce long stays in shelters by shortening the time people wait for decisions.
• Early and sustained funding flows would likely help the City maintain current capacity in its dedicated refugee shelter system and manage cash flow pressures.

Opponents' View#

• Outcomes depend on actions by the federal and provincial governments; the motion alone does not guarantee funding or new capacity.
• The item does not set specific targets, timelines, or contingency plans if higher-level funding is delayed or denied.
• The scale and source of “additional dedicated” COHB allocations are not detailed, so potential impacts on overall housing benefit budgets are unclear.
• Building more capacity across Ontario may shift responsibilities and costs to other municipalities; how those costs would be funded is not explained.
• Moving to pre-set, sustainable federal budgets would require detailed intergovernmental agreements; the report does not outline how these would be achieved.