October 22, 1998

To:Community and Neighbourhood Services Committee

From:Commissioner of Community and Neighbourhood Services

Subject:Report of the Provincial Task Force on Homelessness

Purpose:

The purpose of this report is to provide an analysis of the report of the Provincial Task Force on Homelessness and to identify implications for the City of Toronto.

Financial Implications:

A total of $4 million in a new Homeless Initiatives Fund is available to municipalities across Ontario from the Ministry of Community and Social Services to support the recommendations of the Provincial Task Force on Homelessness.

Recommendations:

It is recommended that:

(1)this report be forwarded to the appropriate provincial officials including the Chair of the Provincial Task Force on Homelessness, Minister of Community and Social Services, the Minister of Health, the Minister of Municipal Affairs and Housing, the Solicitor General, the Minister of Correctional Services, the Minister Responsible for Native Affairs, and the Minister of Citizenship and Culture;

(2)this report be forwarded to the appropriate federal officials including the Minister of Citizenship and Immigration and the Minister Responsible for Canada Mortgage and Housing Corporation;

(3)Council request that the Province initiate ongoing consultations with municipalities and community-based service providers on issues of service management and coordination, provincial program and funding rationalizations to ensure an effective service system is in place to respond to the needs of people who are homeless with priority given to housing, health care and emergency shelter;

(4)Council request the Minister of Community and Social Services forward the terms and conditions of the $4 million Homeless Initiatives Fund to municipalities as soon as possible and confirm that this is an annualized funding increase;

(5)Council request that the Province recognize the actual costs to the City for the provision of emergency hostel services and that the City receive the full 80 percent cost-sharing on the actual system per diem;

(6)Council request that existing hostel programs (e.g. Housing and Employment Connections, Project Going Home) now funded 100 percent by Toronto, be cost shared with the province at the 80:20 level as a first step in the redirecting of emergency shelter dollars;

(7)Council urge the Province to reinstate full provincial funding for non-residents for their first year of residency in Ontario thereby reducing the costs to the municipality for both hostel accommodation and social assistance benefits;

(8)Council support the provincial government's recommendation urging the federal government to assume responsibility for costs afforded to the province, and its municipalities, for social assistance benefits provided to refugee claimants and to immigrants as a result of sponsorship breakdown and for hostel services provided to refugee claimants;

(9)Council join the province in urging the federal government to ensure immigrant and refugee settlement and integration programs are adequately funded;

(10)Council urge the Ministry of Health immediately convene a meeting with health care providers and homeless service providers to develop strategies to ensure homeless people have needed access to health care;

(11)Council ask the Province to proceed immediately on implementing mental health reforms especially with respect to the funding and expansion of community-based mental health services;

(12)Council request that the Province immediately convene a meeting between municipal, provincial and federal officials to discuss respective roles for encouraging the development of affordable rental housing, particularly for people who are homeless or at risk of becoming homeless;

(13)Council call upon senior levels of government to support and develop demonstration projects toward the creation of a national affordable housing policy; and

(14)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

On January 29, 1998, the Hon. Janet Ecker, Minister of Community and Social Services, announced the formation of a Provincial Task Force on Homelessness. The Task Force was comprised of five Parliamentary Assistants and Chaired by the Hon. Jack Carroll. The Task Force held locally organized consultations with nine representative municipalities, provided an opportunity for all MPPs to bring forward local issues and accepted written submissions from community agencies across the province.

The mandate of the Task Force was to develop recommendations on how best to support municipalities in improving their response to homelessness, to build on community partnerships with all sectors and on initiatives to help keep public areas and streets safe.

When the Task Force was announced, the Ministry of Health formally also announced allocations of $2.5 million for mental health outreach programs in Toronto, Ottawa, London and Hamilton. An additional $4 million was announced by the Ministry of Community and Social Services to implement the Task Force recommendations and is now available to municipalities across Ontario. These dollars must be targeted toward initiatives which foster self sufficiency and prevent homelessness. In addition, municipalities have been granted the option of redirecting a portion of emergency shelter dollars toward programs which help people find and maintain housing.

This report provides an analysis of the report of the Provincial Task Force on Homelessness, released on October 9, 1998, and identifies implications for the City of Toronto (An executive summary of the Provincial report is attached, a full copy of the report is available in the Clerks office.)

Comments and/or Discussion and/or Justification:

Given the key role the Province has to play in developing an effective response to the homeless crisis in Ontario, their decision to establish a task force on homelessness is encouraging.

In their report, the Task Force acknowledges the complexity of homelessness which often involves a combination of individual and societal factors. Their key finding is that homelessness is about lost connections - from family, friends, employment and the community. Based on this awareness, they recommend increased coordination between all levels of government to achieve three broad objectives: to move people from the street to emergency shelters, from shelters to permanent homes and to prevent people from becoming homeless in the first place.

Historically, Toronto has taken a broader, systemic approach to the issue of homelessness. This includes an understanding of contributing individual factors such as abuse, family breakdown, health, mental health and addiction issues. However, the role of societal factors is seen as key to understanding the dynamics of homelessness and in the development of sustainable solutions. These factors include unemployment levels, poverty, housing vacancy rate declines, long social housing waiting lists, the possibility of another economic recession and the impact of policy changes by government's in the areas of income assistance, housing, health and mental health.

The Provincial Task Force does not address the systemic causes of homelessness in detail. The Task Force clearly identifies the responsibility of municipalities to maintain an effective service system and to lever the development of affordable rental housing. They also highlight the neglected responsibilities of the federal government. What is missing, however, is an analysis of the linkages between poverty and homelessness and recent policy changes in the areas of social assistance and social housing, which are provincial responsibilities.

The Provincial Task Force developed five key recommendations which touch on:

(a)the role of municipalities as managers of local service systems, including service coordination;

(b)early identification, prevention of homelessness and support for people to retain their rental housing;

(c)the federal role in relieving Ontario, and its municipalities, of substantial social assistance costs resulting from federal immigration policies; and

(d)improving the climate for private rental housing development.

The Task Force report summarizes a number of provincial initiatives, some related directly to homelessness (i.e. Community Partners Program, new initiatives in Community Health Centres and continued cost sharing of domiciliary hostels) as evidence of their response to homelessness. However, the key initiative in the report is a commitment to continue with the current 80:20 cost share arrangement with municipalities for emergency hostels.

The following discussion is organized around the key issues and recommendations contained in the provincial report.

(1)Municipalities as Managers of the Local Service System

The main goal of the Task Force was to identify ways in which the province could better support municipalities in improving their response to homelessness. In this regard, they have acknowledged the vital role municipalities, such as Toronto, have played as service managers. They also express concern about how municipal responses to the problem vary widely across the province. Toronto is the city with the highest number of people who are homeless and while most are current residents of Toronto, many arrive from other areas of the province and, indeed, the country. Although there will always be people who come to Toronto in search of employment and housing opportunities, it is essential that people have the option of staying in their own communities. As the largest provider of services for homeless people in Ontario, Toronto would support provincial initiatives which increase the capacity of municipalities to address the needs of people who are homeless in their own communities.

The Task Force also comments on the lack of a designated municipal lead to oversee the development, management and funding of the service system. The Mayor's Homelessness Action Task Force has been given the mandate to recommend a comprehensive municipal strategy for Toronto. Solutions will focus on a range of strategies including those targeted toward the systemic causes of homelessness - poverty and the lack of affordable housing. The final report of the Mayor's Task Force is expected in January 1999.

Service Coordination:

The Task Force recommends improved service coordination and delivery as key to improving municipal responses to homelessness. This issue has received considerable attention by City of Toronto for many years. Appropriate, collective responses in the City are continuously reviewed through standing committees, inquests and other collaborative means. The Mayor's Homelessness Action Task Force is currently revisiting the area of service coordination and will likely address it in their final report. It is important to note that in Toronto there is an issue of capacity as well as coordination.

Service Provision:

In terms of service provision, the Provincial Task Force recommends a number of initiatives to help people move from the street to hostels (e.g. outreach workers, drop-ins and hotlines), from hostels to homes (e.g. housing registries, housing help workers, trusteeship programs, transportation) as well as strategies targeted toward prevention (e.g. crisis support, rent banks, mediation, and economic development initiatives.)

We agree that these initiatives are important. Similar initiatives are already underway in Toronto and many have been active for several years with proven track records. The majority of programs and services have been targeted toward people who are already homeless, however, concerted effort is being made to channel resources to prevention which includes affordable housing creation strategies. The City relies heavily on partnerships with community-based agencies to ensure appropriate and responsive services are in place.

The Provincial Task Force recommends a shift in service focus to emphasize reconnecting homeless people with personal supports to help them get back on their feet. This is clearly an essential part of resolving a homeless experience. Many people benefit from renewed contact with a positive support network. For others however, the assumption that independence is possible in the short term is unrealistic. Shelter, health care and food programs, which often require alternative service models, will continue to be in demand for this specific population. While Toronto is committed to providing these type of programs, an investment by the Province is necessary to ensure their sustainability.

Service Funding:

A key concern for municipalities is reduced funding levels at a time when service demand continues to rise. The $4 million attached to the Provincial Task Force's recommendations is welcome, however, it represents only a fraction of the dollars cut by all levels of government to housing support services in recent years. In 1996, the City of Toronto responded to growing needs by establishing a $6 million Survival Fund. Unfortunately, this fund was only available for two years. The Ministry of Municipal Affairs and Housing, Community Partners program, supports housing help centres across Ontario, however, since 1994 this fund has been cut from $8.3 million to $2.3 million. One consequence has been fewer housing support workers helping people with low incomes find and maintain housing.

The Task Force acknowledges that there are provincial barriers with respect to funding (i.e. unclear expectations and complicated requirements favouring short-term crisis services) and recommends that the relevant ministries work together to develop more flexible program and funding requirements to enable innovative responses at the municipal and community levels. A consultation process involving municipal and community stakeholders is recommended as an essential part of this process.

There is also a critical need for interministerial collaboration at the provincial level in terms of policy development to ensure a comprehensive, holistic approach is applied to policies which directly affect people who are homeless or who are at risk of becoming homeless. For instance, we agree with the Task Force's observation that there is a lack of discharge protocols from correctional facilities leaving people without resources to find housing, and as a result they are at risk of ending up in the emergency shelter system.

Funding for Emergency Shelters:

The Provincial Task Force recommends that the Province continue to provide 80 percent cost sharing with municipalities for the provision of emergency hostel services. This is extremely important at a time when Toronto's hostel system is expanding to meet the growing demand for these services.

However, the Province has a ceiling of $34.50 on the hostel per diem. The City of Toronto currently has an averaged per diem rate slightly above the provincial cap with the result that the Province funds only about 73 percent of the City's actual costs. This discrepancy is primarily due to the fact that the provincial cap has remained frozen for the past five years while occupancy and supply costs continue to rise. It is therefore recommended that the province raise the per diem ceiling so that the actual costs of providing emergency shelter in Toronto are recognized.

The Task Force also suggests that the Province allow municipalities to redirect a portion of emergency hostel dollars, cost-shared at the 80:20 level, to programs aimed at helping people find and maintain housing. This proposal is welcome. Currently, the municipality provides 100 percent funding for several innovative homeless programs. Project Going Home and Housing and Employment Connections are two new programs with the specific goal of reconnecting people to family, housing and employment supports. Given that these goals are consistent with those of the Provincial Task Force, it is appropriate that the Province cost-share these programs at the 80:20 level as a first step in redirecting emergency hostel dollars.

The Task Force raises the issue of "double dipping" referring to people who, in the same month, receive a welfare cheque and also stay in a shelter. As a service of last resort, emergency shelter is provided to people who are homeless regardless of whether they have received a social assistance cheque (which includes a shelter allowance) earlier in the month. There are many legitimate situations in which an individual or family might require emergency shelter, even though they have already received income assistance. Shelter staff ensure that upon admission social assistance recipients inform their workers that they are staying at an emergency shelter.

(2)Early Identification and Prevention Strategies

New strategies aimed at stemming the tide of people who have reached a critical point and are headed into homelessness are obviously necessary and the Provincial Task Force acknowledges this reality. In Toronto, several pilot projects are underway which help people hold on to their housing thus diverting them from the hostel system (e.g. Rent Bank Pilot Project) and provide transitional accommodation for youth who need to develop skills which help them to stay housed (i.e. Ordnance Youth Shelter.) Provincial support through the flexible use of hostel dollars is key to expanding these kinds of housing support initiatives with other high risk groups.

A major thrust of the Mayor's Homelessness Action Task Force will be on preventing homelessness and creating alternatives for people who are at risk of losing their housing. The Province's support for these efforts is positive and in line with the direction the City is likely to continue to take.

The special needs of Aboriginal peoples are highlighted by the Province in recognition of their disproportionate representation among people who are homeless. Toronto has placed a high priority on the needs of Aboriginal people, providing support and funding for hostel programs, street outreach, drop-in and resource centres. The Mayor's Homelessness Action Task Force will recommend a strategy, in consultation with the Aboriginal community, to address the specialized needs of these groups.

Health Issues:

In response to health care issues for people who are homeless, the Task Force points to the recent Ministry of Health initiative to enhance health care services for the homeless through Community Health Centres -three of which are in Toronto. While this initiative is welcomed as a positive step, the dollars allocated ($6 million across the province) are unlikely to cover identification costs let alone meet the primary health care needs of homeless people. In addition, this initiative is attached to Community Health Centres and not all homeless people use this type of health service.

Research has consistently shown that people who are homeless suffer disproportionately from multiple acute and chronic illnesses. They are also vulnerable to health card loss or theft, which now seriously jeopardizes their ability to access health care. As of March 1, 1998, the Ministry of Health requires that people have their health card in hand to receive health care. When pressed on this issue, ministry officials contend that a health card number is all that is required. However, this does not bear out in practice. Street health care workers give accounts of people who are afraid or who think they cannot receive health care unless they have a health card. Some people have been refused health care even though they were able to provide their health card number verbally. These examples illustrate the serious communication issues existing between the Ministry of Health, health care providers and the general public which need to be addressed immediately.

Given the critical link between health and homelessness, the Ministry of Health must be encouraged to work with health care providers and homeless service providers to develop strategies to ensure homeless people have needed access to health care.

Mental Health Issues:

The Provincial Task Force acknowledges serious concerns arising from the fact that past reforms to the mental health system, specifically deinstitutionalisation, have not coincided with an increase in community-based mental health support services. This lack of support increases the vulnerability of people with mental health issues living on their own often placing them at considerable risk of losing their housing. This is true especially for people with concurrent disorders (i.e., mental health and addictions.)

As identified earlier in this report, when the Provincial Task Force was formed, the Ministry of Health announced allocations of $2.5 million across the province for mental health outreach programs. While these funds are desperately needed to augment this part of the service sector, additional dollars are required for the range of services which help people with mental health issues to both find and keep their housing.

Toronto, therefore, recommends that the Province proceed immediately on implementing mental health reforms especially with respect to the funding and expansion of community-based mental health services.

(3)Immigrant and Refugee Issues

The Provincial Task Force calls upon the federal government to relieve Ontario, and its municipalities, of the substantial social assistance costs that result directly from federal immigration policies. In particular, to assume responsibility for income support for refugee claimants, and introduce tighter sponsorship criteria and more effective monitoring and enforcement measures to reduce sponsorship default. These recommendations echo those made in the federal legislative review document, "Not Just Numbers: A Canadian Framework for Future Immigration.".

The federal government sets the policies and practices with respect to immigration, however, it is often the provinces and municipalities which absorb these considerable associated costs. In Toronto, an estimated 6,000 social assistance cases per month are the result of sponsorship breakdown. This costs the province an estimated $49 million per year of which the City pays 20 percent. In 1996, the provincial costs of social assistance benefits for refugees were $133million. Toronto's share of this bill was $25.5 million (note: refugees and refugee claimants are not differentiated in this total.)

Toronto regularly provides emergency shelter to refugees on an interim basis until they are able to secure permanent housing. Toronto used to receive 100 percent funding from the Province for refugees, who fall under the classification of "non-residents", for the first year, however, as of January 1, 1998, all costs are shared at the 80:20 level. These expenditures should be covered 100 percent by the federal government as the level of government responsible for immigrants and refugees. Therefore the City should join the province in encouraging the federal government to assume responsibility for these social assistance and hostel accommodation costs.

Settlement Services:

The Provincial Task Force also calls upon the federal government to ensure that immigrant and refugee settlement and integration programs are adequately funded. As the major immigrant settlement centre in Canada, Toronto is dependant upon stable and responsive immigration and settlement services for newcomers. Since 1995, the federal government has attempted to devolve the management of settlement programs to the provinces. Ontario, however, is only willing to discuss the devolution as part of broader negotiations on a bilateral agreement on immigration. To date, a federal-provincial agreement has not been reached.

Toronto should support the Provincial Task Force in calling upon the federal government to ensure stable funding for the settlement services sector. This same message must also be communicated to the province in light of the ongoing negotiations on Settlement Renewal. In particular, that funding for the financially vulnerable community-based settlement services is maintained.

Funding of Non-Residents:

The issue of financial responsibility also extends to services provided by municipalities to non-residents of Ontario (i.e., less than one year residency in Ontario, whether arriving from out of province or out of Canada.) Prior to January 1, 1998, Toronto received 100 percent funding from the Province for non-residents. However, these costs are now cost shared on an 80/20 basis. This funding change is especially significant for Toronto as an estimated 19 percent of hostel users come from outside of Ontario. The estimated costs to Toronto's hostel system for non-residents are $1.7 million for 1998.

As well, the City feels the financial impact of non-residents as a provider of social assistance benefits. The average number of non-resident cases per month in 1998 is 4,200. Toronto's 20 percent share for 1998 is estimated at $7 million (this is a net expenditure and does not include possible revenues, i.e., earned income from a client).

The municipality has consistently opposed this new cost-share arrangement with the Province. Given the recent hostel's data, and the identification by the Provincial Task Force of jurisdictional responsibilities, it is appropriate for the City to reiterate its opposition regarding the payment of non-residents for hostel accommodation and social assistance benefits.

(4) Improving the Climate for Private Rental Housing Development

It is clear to the City of Toronto that any strategy which seriously aims to eliminate homelessness must have a primary goal of increasing the affordable rental housing stock. The Mayor's Homelessness Action Task Force, in their interim report, estimates that a minimum of 4,000 new affordable units must be built in Toronto, every year for the next five years, simply to keep up with demand.

The Provincial Housing Role:

We agree with the Task Force that all levels of government need to be involved in improving the climate for private rental housing development. The main thrust of their housing supply strategy lies in removing barriers to new construction; a strategy which relies on the private sector to develop, build, and manage housing. The Task Force suggests that the investment climate for new construction has improved through streamlining planning and regulations in development approvals, reforms to rent regulation (i.e. Tenant Protection Act) and opportunities for municipalities to reduce multi-residential taxes.

To further promote rental housing supply the Provincial Task Force recommends: a review of federal housing and tax policies, increasing opportunities for public/private sector partnerships and measures that municipalities can take in the areas of zoning, building and property taxes. We agree that such mechanisms are needed to encourage rental housing development. However, they are unlikely to produce housing which is affordable to the estimated 20 percent of the population who cannot financially compete in the traditional private rental market.

Further government intervention is required to address the needs of this population. Such mechanisms could include social assistance shelter allowance benefits which more closely approximate actual rents, rent supplements and other supply strategies that bring rents below market levels.

The Federal Housing Role:

We agree with the Provincial Task Force that a returned involvement by the federal government to housing supply is needed. The Task Force suggests that future federal involvement include tax incentives, lowered Canada Mortgage and Housing insurance fees and a replacement for the Multiple Unit Residential Building (MURB) program offered in the 1970s. We agree that these incentives will provide some of the necessary encouragement to the private sector. There are limitations however, if federal action is not also associated with other policy objectives to direct a portion of the new construction to low income households.

For instance, over its seven year existence, the MURB program, together with provincial construction loan programs, produced about 195,000 units across the country. The buildings could be registered as condominiums, there were no rent targets and no restrictions on the incomes of the tenants who live in the building. As a result, the housing supply increased but not at the lowest end of the market, precisely the level needed by people trying to prevent or escape homelessness. Without additional government incentives, (e.g., shelter allowances) private rental housing will only be produced at market rent levels.

The Municipal Housing Role:

In general, municipalities have a limited capacity to protect existing affordable stock or to create new affordable supply without supportive provincial legislation or programs. In the past, this has included protecting existing rental stock, using planning powers to require and encourage affordable housing and providing financing support for affordable housing development. Low cost housing stock, such as Toronto's rooming houses, is vulnerable to loss and conversion without protections.

Recently, Toronto City Council adopted an affordable housing strategy which capitalizes on the various "tools" available to the municipality, for example, making city-owned land available for demonstration projects. The City is also considering the use of the special property tax class for new multi-residential rental housing. Despite its best efforts however, the municipality simply cannot generate the significant number of affordable units required without provincial and federal support.

Supportive Housing:

The City welcomes the Province's recent announcement on retaining funding responsibility for the existing dedicated supportive housing units. However, there is a need to increase the number of supportive housing units for the chronically homeless who often require support services to maintain their housing. This need is well documented. In their interim report, the Mayor's Task Force reveals that people considered to be "chronically homeless" represent about 17 percent of all hostel users. What is most alarming however is that they use almost 50 percent of the existing emergency hostel services. Clearly, supportive housing represents a more cost-effective approach for this "hard to serve" group of people.

The Mayor's Homelessness Action Task Force recommends that a minimum of 5,000 supportive housing units need to be built in Toronto to meet the need. As the level of government responsible for social housing, the Province must take the lead in this area.

Conclusions:

The Provincial Task Force has issued its report at a time when homelessness is considered by many to have reached crisis proportions. The Task Force has made recommendations which will help municipalities to improve their response to homelessness in their communities. The additional $4 million from the newly created Homeless Initiatives Fund, along with the recommendation that the Province allow municipalities to redirecting emergency shelter dollars into creative housing support programs, is welcome.

Toronto is committed to working together with the community and all levels of government to develop solutions to the rapidly growing homeless crisis in Toronto. However, the reality is that homelessness will continue to rise until there is a commitment and a financial investment from both the provincial and federal governments to fundamentally address the root causes of homelessness - poverty and the lack of affordable housing.

Contact Names:

Joanne Campbell Eric Gam

Phone: 392-7885/Fax: 392-0548 Phone: 392-8238/ Fax: 392-8403

Commissioner of Community and Neighbourhood Services