City forecasts two-thirds drop in new rent subsidies for homeless households, budget documents show
Budget documents show Toronto expects to enroll far fewer new households in the Canada-Ontario Housing Benefit this year, limiting the city’s fastest tool to move people out of shelters.
Copy link
By Torontoer Staff
Toronto is preparing to refer far fewer homeless households to private-market rent subsidies this year, city budget documents show. Staff say the shortfall will reduce the city’s capacity to use the Canada-Ontario Housing Benefit, the program officials call the fastest route to move people from shelters into private rental units.
City forecasts expect funding to support roughly 570 new households this year, down from 1,761 households the previous year. The drop reflects how much of the annual federal-provincial funding is already committed to continuing subsidies for households enrolled in prior years, leaving a smaller allocation for new referrals.
What the Canada-Ontario Housing Benefit does and how it is allocated
Launched in 2020, the Canada-Ontario Housing Benefit provides rent supplements that help bridge the gap between what low-income and homeless households can afford and market rents in Toronto. The program has helped more than 8,100 households since inception, and officials say it has been a key mechanism to free shelter beds while the city’s public housing wait-list exceeds 104,000 households.
The program is jointly funded by the federal and provincial governments but administered by the province. A portion of yearly funds is used to maintain ongoing subsidies for existing participants. The province decides annually how much additional funding each municipality receives to enrol new households.
City officials point to rising renewal costs and funding volatility
Doug Rollins, director of the city’s housing secretariat, told councillors the program’s high rate of renewals places a large cost on higher levels of government. He said the city has limited insight into the financial arrangements between the federal and provincial governments, and that growing renewal costs may be a reason for the decreasing funds available for new households.
The ongoing cost demands may have an impact on why they 27ve seen a declining amount of money made available to help new households in recent years.
Doug Rollins, City of Toronto housing secretariat
Budget notes flag the program 27s volatility as a key challenge. Funding is delivered in annual allotments and is often spent before the next year 27s allocation arrives, prompting the city at times to seek later top-ups to maintain service levels.
Shelter operators warn reduced referrals will bottleneck the system
Shelter providers say any reduction in new subsidy referrals will make it harder to clear beds at a time of sustained demand. Fred Victor, a social agency and shelter operator, warned that shelters are full and that blocked exits prevent people from moving out of the system.
We are full. And if we are full, the sector is full, as well. And if you don 27t have movement of people out of the shelter system into permanent housing, you have a blockage right then and there, that people can 27t get off the street.
Keith Hambly, CEO, Fred Victor
City staff reported that as of November the shelter system was turning away an average of 122 people each day. Shelter operators say private-market rents are commonly far beyond the reach of people relying on ODSP or Ontario Works, with one-bedroom units cited in some cases at $2,000 to $2,500 per month without subsidy.
Responses from other orders of government
The federal government told the Toronto Star that it has increased funding for the subsidy program each year and intends to continue doing so, but it reiterated that administration and allocation of those funds is the province 27s responsibility.
A spokesperson for Ontario Housing Minister Rob Flack said the province calculates cities 27 additional funding for new enrolments through a standard formula based on population data and housing needs. The spokesperson emphasised that no household already enrolled in the program will lose funding if they remain eligible.
We calculated cities 27 additional funding to enrol new households each year through a standard formula that had not changed, which considers population data as well as housing needs.
Michael Minzak, spokesman for Ontario Housing Minister Rob Flack
Calls for more predictable and coordinated funding
Shelter providers and city staff are urging more predictable, multi-year funding and closer federal-provincial coordination to stabilise the subsidy stream. Operators say the current uncertainty slows placements and leaves people who could move into housing waiting longer in shelters or on the street.
Hambly said his agency spends staff time searching for private-market units but that without consistent top-up funding the market remains out of reach for many clients. He called for better cooperation from higher levels of government to ensure subsidies reach those in need promptly.
- Projected new households supported this year: about 570
- New households supported last year: 1,761
- Households assisted by the program since 2020: more than 8,100
- Toronto public housing wait-list: more than 104,000 households
- Average daily shelter turnaways as of November: 122
The city faces a policy choice as funding pressures grow: accept fewer new entrants to the subsidy program and risk longer shelter stays and more street homelessness, or press provincial and federal partners for stable, increased allocations that protect existing recipients while expanding access for people still waiting. City budget documents and shelter operators say the latter is necessary to keep moving people into permanent housing.
homelessnesshousingCanada-Ontario Housing BenefitToronto budgetshelters
