Frank response from MP about London’s ‘enormous’ funding request for homeless strategy

A day after CTV News revealed the preliminary price tag of London, Ont.’s new homelessness strategy, London North Centre MP Peter Fragiskatos is calling for more details and an opportunity to get involved.

He’s been aware of the city’s preliminary cost estimates since the municipality began lobbying the federal and provincial governments in the spring.

The Whole of Community Response to Homelessness would create 12 to 15 service hubs and 600 highly supportive housing units.

It’s the result of three summits held last winter by stakeholders and frontline agencies.

On Thursday, CTV News revealed that the preliminary estimated capital cost to create the spaces was $247.5 million.

Operating costs would be $90.5 million each year for 13 hubs and 580 housing units.

“It’s an enormous sum to be very clear and frank,” Fragiskatos said about London’s funding request to the senior levels of government.

He emphasized that the city must provide a lot more detail about its funding request, and the projected impact it would have on the homelessness crisis.

“If I am going to advocate, and if councillors are going to advocate— to do our jobs in short— we have to know where this money is going,” Fragiskatos asserted. “And at this point, unfortunately, that is not very clear.”

City manager Lynne Livingstone has resisted having politicians participate in the development of the strategy— explaining that an uneven power dynamic could risk the fragile collaboration between frontline agencies.

Fragiskatos believes it’s time to have potential funders at the table.

“It’s their choice, but I would respectfully ask that elected officials, particularly from the provincial and federal levels who are being asked to fund the bulk of this response, be engaged much more. I’m ready to assist, I want to assist, but all I’ve seen right now is a [financial] figure,” he said.

On Thursday, Mayor Josh Morgan described initial lobbying efforts with senior governments, “Everything is a conversation, and I would say those conversations have been exceptionally positive, focussed around both how we would make new asks as well as how we would access existing programs.”

Fragiskatos suggested the funding request should have realistic goals.

“If there is an expectation on the part of the city that they’re going to get every single dollar that they ask for, I think that there needs to be careful thought to that reflection,” Fragiskatos added. “We do want to help, but the money is not in endless supply in Ottawa.”

The city’s goal is to open the first five hubs and 100 supportive housing units before the end of this year.

However, Fragiskatos said based on federal funding timelines, the city should be prepared to fund the first phase by itself and target its lobbying towards the 2024 federal budget next spring.

“The first phase will have to be funded by the city,” he explained. “The federal budget was long [ago] presented. There is a fall economic update, but I’m not expecting us to be putting forward many new funding initiatives.”

Morgan said on Thursday that some of the local donations may be utilized to support this year’s objectives.

“We still have the ability to access the $25 million (anonymous donation), plus the other money that the community has raised to give us that runway to get started irrespective of the commitments that we have from other levels of government,” the mayor explained.

Municipal documents obtained by CTV News estimates the following capital costs totaling $247.5 million:

• 15 Service Hubs for $30 million
• 580 Supportive Housing Units in 29 new buildings for $217.5 million

Annual operating costs are estimated at an additional $90.5 million:

• 13 Service Hubs $32.5 million/ year
• 580 Supportive Housing Units $58 million/ year

The documents state that the city has already secured funding to operate two hubs and build/operate 20 housing units.

Provincial government representatives have yet to respond to a request by CTV News to comment on the city’s preliminary funding request.