Inflation hits local agencies providing frontline support to homeless Londoners

Homeless Londoners huddle together on Dundas Street in London, Ont. on Feb. 5, 2024. (Daryl Newcombe/CTV News London)

City council is being asked to authorize a funding boost to offset rising costs impacting housing stability services for Londoners experiencing homelessness.

The Strategic Priorities and Policy Committee (SPPC) will consider a recommendation by city staff to renew funding agreements with existing service providers for a two-year period (April 1, 2024 – March 31, 2026).

The program is intended to continue essential services while the city’s long-term homelessness strategy, the Whole of Community Response to Homelessness (service hubs and supportive housing), takes shape.

The report explains, “Existing services include emergency shelters, housing first programs, outreach programs, and a variety of other services and supports designed to address the needs of vulnerable populations and priority groups.”

Currently, housing stability services are offered by seven local agencies:

• London Cares
• Mission Services of London
• St. Leonard’s Society of London
• Salvation Army Centre of Hope
• Unity Project
• Youth Opportunities Unlimited
• CMHA Thames Valley

Total cost of the current contract is $12,771,245.

The proposed single-source contract tentatively reached between city staff and the service providers would see costs rise to $17,686,414 in year one, and $18,036,377 in year two.

Inflationary impacts on food, labour, and other operating costs get most of the blame for the rising contract costs.

In a letter to the committee, Unity Project also highlights greater difficulty fundraising, “to address rising costs associated with staffing, operations, and the loss of significant revenues is proving untenable, particularly in the current challenging economic climate where donors are struggling to contribute as they once did.”

“The funding for these contracts is primarily provided through the Housing Stability Services budget utilizing available funding through Reaching Home: Canada’s Homelessness Strategy, the Ontario Homelessness Prevention Program and base municipal funding,” explained the staff report.

It is recommended that the remaining $4,599,855 (over two years) be sourced from the city’s Operating Budget Contingency Reserve Fund.

Council members will consider the funding agreement at a meeting on Tuesday.