Toronto Set to Obtain $162M Federal Boost for Housing Asylum Seekers and Low-Income Renters
Deputy Prime Minister Chrystia Freeland unveiled on Friday a $162 million injection from the federal government destined for the city of Toronto. The funds aim to alleviate the financial burden of accommodating numerous asylum seekers and assisting low-income individuals with rental expenses.
Joined by Mayor Olivia Chow and a cohort of Toronto MPs at a settlement agency in North York, Freeland disclosed that $143 million of the allocated amount would reimburse the city for expenses incurred in 2023 and the initial quarter of 2024 related to housing refugee claimants in municipal homeless shelters, as per an official press release.
This allotment constitutes Toronto’s portion of a broader $362 million augmentation to the Interim Housing Assistance Program (IHAP), which was recently bolstered in response to mounting pressures from Quebec and cities grappling with the challenges of sheltering an increasing influx of newcomers.
Additionally, Freeland announced Toronto’s receipt of an extra $19.75 million through the Canada-Ontario Housing Benefit, designed to aid low-income individuals in meeting their rental obligations.
“More newcomers will have a safe and stable place to call home while they get settled in Canada,” Freeland said. “This additional support is going to help the most vulnerable people pay their rent every month.”
Since last summer, mounting pressure has been directed towards the federal government by the city to address the escalating expenses associated with accommodating numerous asylum seekers in municipal homeless shelters. With dozens more individuals finding themselves without shelter, some resorted to sleeping on the streets or seeking refuge in churches after encountering barriers within the city’s overburdened shelter system.
Previously, in July, the federal government announced a $97 million injection of funds, while the province committed $600 million over three years in its “new deal” with the city, contingent on federal support. However, the city deemed these amounts insufficient.
Toronto has persistently advocated for over $250 million to cover the operational costs of its shelters. The city’s budget chief had cautioned that without additional funding from the federal government, property taxes might need to be increased by an additional six percent. This is on top of an already unprecedented 9.5 percent increase planned for 2024.
