Did London’s homeless hubs receive funding in Ontario’s fall economic statement?

The provincial government’s fall economic statement didn’t specifically include funding for London’s new Whole of Community Response to Homelessness — but the mayor remains optimistic.

The morning after the financial update was presented at Queen's Park, Mayor Josh Morgan had a phone call with Ontario Finance Minister Peter Bethlenfalvy.

Morgan emphasized the need for additional funding to operate the upcoming service hubs for high acuity Londoner’s experiencing homelessness.

“I specifically talked to him about the new money for mental health and addiction supports, the innovative solutions, and how London’s got an innovative plan. We’re looking to access that money,” the mayor told CTV News London.

Specifically, Morgan believes operating dollars for some of the first low-barrier service hubs could qualify for a share of $425 million (over three years) added to the province’s mental health and addictions strategy.

London’s Whole of Community Response to Homelessness aims to create 600 highly supportive housing units and up to 15 low barrier service hubs.

Council has approved a plan to open the first three hub locations in December, with the remaining two sites by May 2024.

Once all 73 beds are open, the operating budget will total $8.1 million each year.

The latest progress report to council about the Whole of Community Response to Homelessness suggests a growing sense of urgency, “London's advocacy efforts over the coming weeks will be dedicated to pressing for the inclusion of provincial support immediately.”

“We’re looking for, within the next few months, for [London] to be able to meet the commitments,” explained Morgan. “We have the funding we need currently for the hubs that we’re opening. To move forward to the full five however we’re going to need a little bit more.”

Elgin-Middlesex-London MPP Rob Flack is Ontario’s associate minister of housing. He said work at Queen’s Park to advocate for additional funding continues.

“More money for more hubs? I don’t have that answer today. I know the ask is in. I know the Ministry of Health and the minister of mental health and addictions are reviewing it,” he said.

Approximately 2,000 Londoners are currently experiencing homelessness, about 600 with complex needs.

Meanwhile, the status of another substantial funding request remains equally unclear.

London and other municipalities were hoping for an update about a commitment made by Steve Clark, the former minister of housing and municipal affairs, in which cities would be “made whole” for the costs associated with implementing Bill 23, also known as the Building More Homes Faster Act.

Last November, Civic Administration estimated that legislative changes to development charges will cost London $97 million over five years.

The primary financial costs would be:

• Phasing in development charges (DCs) over five years
• Growth related studies would be ineligible for DCs
• Lost opportunity to add housing services to DCs

A more refined estimate will be included in London’s draft four-year municipal budget next month.

Flack explained, “Being made whole means you have to have an audit to see where they are not whole, so we have asked all the municipalities to show us exactly where the shortfalls exist — if they do.”

Morgan said mayors from across the province are seeking a resolution before their respective budgets are deliberated, “This is a live discussion with the government. They know the position municipalities are in. The Ontario big city mayors are actively talking to them.”

In London, 2024-2027 municipal budget deliberations are scheduled in February.