Ottawa to reimburse Toronto with $143 million for costs associated with housing asylum claimants
Ottawa is boosting funding to Toronto by $162-million, mostly for housing asylum claimants, ending a standoff with Mayor Olivia Chow about the rising cost of the city’s shelter system.
The federal government said Friday that Ottawa will send $143-million to Toronto to reimburse the city for costs associated with housing asylum claimants in 2023 and the first quarter of 2024. The money is in addition to $97-million provided to Toronto last summer, which totals $240-million. Ms. Chow had been demanding $250-million from Ottawa.
Deputy Prime Minister and Finance Minister Chrystia Freeland made the announcement in Toronto on Friday alongside Ms. Chow and Minister of International Development, Ahmed Hussen.
Ms. Chow said last month that Toronto needed at least $250-million from Ottawa to cover the rising cost of the thousands of asylum seekers in its strained emergency homeless shelter system.
If the money didn’t come, the city planned to add six percentage points to its proposed 10.5-per-cent property tax hike. This week, Ms. Chow shaved a percentage point off the originally proposed increase to make it 9.5 per cent. Ms. Chow told CBC on Friday prior to the announcement that in anticipation of increased funding, she is confident taxes won’t need to rise an additional six per cent.
The federal money is part of an additional $362.4-million for the Interim Housing Assistance Program announced by Immigration Minister Marc Miller earlier this week, with $100-million of the funds already earmarked for Quebec. The federal government had previously topped up Toronto’s funding through the program by $97-million last summer.
“Our government is delivering for Torontonians, including those who need it most. This very much includes supporting our most vulnerable neighbours who have come to Canada fleeing violence and persecution,” Ms. Freeland said in a news release.
The federal government is also providing a $19.75-million top-up to the city’s share of the Canada-Ontario Housing Benefit, which gives direct financial support to low-income renters to help them cover the cost of rent. Ottawa said it will soon announce details on a national top-up to the program.
In her remarks, Ms. Chow said she is grateful for the federal government which has now “fully delivered” for Toronto and the city has been made whole for the 2023 fiscal year.
Ms. Chow added that because the start of the city and federal government’s fiscal calendars don’t align, Ottawa is providing $40 million for the first quarter of this year as a “down payment” in funding “because they know our financial plight.”
“The federal government has been a great partner on this file, a great partner for Toronto,” she said.
Ms. Chow said that every night in Toronto, nearly 6,000 refugee claimants sleep in the city’s shelters, warming centres and community agencies.
This article was reported by The Globe and Mail
