Tensions Rise Between Toronto Mayor and Federal Government Over Housing Funding

Strategic Insights -

Toronto Mayor Olivia Chow says she's not looking for a fight with the federal government, despite rising tensions over funding for housing and refugee supports. The two leaders met at city hall on Thursday, but a planned joint press conference was cancelled. Instead, the mayor spoke to reporters alone, saying that the discussion was "very, very productive" and that they had agreed on several key issues, including the purchase of new TTC subway cars. However, the contentious issue of sixplexes, which the federal government has made a condition of its $471-million Housing Accelerator Fund (HAF) agreement with Toronto, was also discussed. Chow downplayed the importance of the issue, saying that even if sixplexes were approved everywhere in Toronto they would result in the construction of only a few hundred more housing units.

Key Takeaways:

  • Toronto Mayor Olivia Chow met with Housing and Infrastructure Minister Gregor Robertson to discuss housing and refugee supports, but a joint press conference was cancelled.
  • Chow said the discussion was "very, very productive" and that they had agreed on several key issues, including the purchase of new TTC subway cars.
  • The issue of sixplexes, which the federal government has made a condition of the HAF agreement, was also discussed.
  • Chow downplayed the importance of the issue, saying that even if sixplexes were approved everywhere in Toronto they would result in the construction of only a few hundred more housing units.
  • The mayor showed Robertson a list of major developments that "can proceed today" if they received federal support, and which would create more than 20,000 units.
  • The federal government will review the HAF agreement in January, and Chow said the city was in a difficult spot because it has already spent much of the money it's hoping Ottawa will compensate it for.
  • The current federal funding period for refugee supports started in January, and the deadline for the mayor to agree to the offer is Monday.

Statistics:

  • The federal government has agreed to cover only 26% of Toronto's estimated costs for housing asylum seekers in its shelter system this year.
  • This would leave the municipality $107 million short.
  • The federal government has covered 95% of Toronto's spending on refugee shelter through its Interim Housing Assistance Program (IHAP) in the past.
  • The ministry has provided almost $670 million in IHAP funding to Toronto since 2017.
  • The demand for shelters is falling, with the number of asylum seekers declining since last year.

Sources:

  • Toronto Star (no date)
  • Press secretary for Housing and Infrastructure Minister Gregor Robertson (no date)
  • Immigration, Refugees and Citizenship Canada (no date)
  • Toronto Mayor Olivia Chow's letter to councillors (no date)