Lack of funds in Ontario budget for supportive housing is a ‘glaring missing item,’ Toronto officials say

Thestar.com
March 25, 2021

City officials decried a lack of funding for badly needed social housing in Toronto while warmly receiving news of additional funds from the provincial government to manage COVID-19 pressures.

Though Toronto has recently asked the province for money to put support services into 1,248 new affordable housing units -- meant to move the chronically homeless out of shelters -- the budget didn’t specifically commit to the roughly $15.4 million Toronto says it needs this year, or $26.3 million annually moving forward. Without those dollars, the city says its plan will grind to a halt this spring, with enough money to turn just 150 of the units into full supportive housing.

Coun. Ana Bailao, the mayor’s affordable housing advocate, said Wednesday following the budget announcement she hoped that funding was buried in other spending commitments like health care dollars -- otherwise it’s a “glaring missing item” in the fiscal plan.

Coun. Mike Layton, in a statement, said that time is running out to get the units funded.

“They are desperately needed by Toronto’s residents and the city has already acquired them. We cannot let them sit empty.”

Mayor John Tory, in his own statement largely praising the provincial government for other funding commitments, agreed the city has an “urgent need for support from the provincial government for supportive housing.”

He said he spoke with Finance Minister Peter Bethlenfalvy on Wednesday afternoon and that discussions around further funds for housing would continue -- suggesting the budget does not contains funds for the supportive housing plan.

“In his budget speech, the minister spoke passionately about the government’s commitment to invest in mental health and addictions,” Tory’s statement said. “Supportive housing addresses mental health, addiction, health care and homelessness, and I’m confident we will come to an agreement on funding.”

But city officials were buoyed by about $1 billion in new funding commitments to cover operating pressures related to COVID-19, including for large sums for shelters and transit.

Toronto’s budget for 2021 still has a hole of nearly $400 million. The budget announcement did not specify how the funds would be allocated between 444 municipalities.

“I am pleased to see that today’s Ontario budget continues the commitments made previously to invest in Toronto and other municipalities to address our COVID-19 operating costs and pressures, particularly when it comes to transit,” Tory’s statement said.

Unlike provinces, municipalities are not allowed to run deficits to cover operating expenses and will need to come up with the cash by year’s end, or risk making significant cuts to planned services and capital projects.