Ontario’s housing crisis is worsening as the Ford government prioritizes homelessness programs over community housing, according to internal data. Since 2018, the province has increased its spending on homelessness by 80%, while cutting funding for community housing by 70%. This shift in strategy has drawn criticism from advocates, who argue that it will exacerbate the crisis in the long term.
The data, presented in a handover binder to Minister of Municipal Affairs and Housing Paul Calandra, shows that the reduction in community housing spending coincides with an increase in federal funding under the National Housing Strategy. However, the federal program does not fully compensate for the provincial cuts. Combining federal funding and provincial spending on community housing reveals an 8% decrease since 2018.
Advocates, such as Tim Richter of the Alliance to End Homelessness, emphasize the importance of investing in affordable housing to prevent homelessness. They point out that while the government increases spending on homelessness response, costs in healthcare, policing, and social services will also rise.
Timmins Mayor Michelle Boileau highlights that northern Ontario municipalities have seen a decrease in community housing funding while homelessness prevention dollars remain stagnant or have declined. This limited funding hinders municipalities’ capacity to create and maintain affordable housing stock.
The government argues that its renovations to aging housing stock address unique pressures in the province and are crucial to avoid further loss of affordable units. However, the federal government has expressed concerns that Ontario has diverted funding from new construction to renovations, violating the terms of the bilateral housing agreement.
The ongoing dispute between the provincial and federal governments over housing funding further complicates the situation. Advocates stress the need for collaboration between both levels of government to adequately address the housing crisis. They emphasize that current investments in social and affordable housing are insufficient and urge the governments to increase funding to prevent further escalation of homelessness.
