Peel says centre for asylum claimants will not open without federal funding; Ottawa says it already provided $22M 

As a wave of newcomers seeking asylum began flooding Peel’s emergency shelters more than a year ago, the already stretched system was pushed way beyond its breaking point. 

Decision makers began searching for long-term solutions, with more and more asylum seekers and refugees arriving in Peel each week, as conflicts continue to spread around the world. 

The federal government recently responded, informing the Region in a letter received at the end of July (published on last week’s council agenda) that it would be handing over $22 million of the $23 million necessary to open a welcome centre for asylum seekers to provide them initial support and housing to help get settled. 

On Tuesday, September 17, Ottawa told The Pointer the $22 million has been handed over to the Region, and earlier communication between the federal government and Peel suggested the facility is to be operational by November 1, as part of the funding conditions.

The Region of Peel, earlier in the day, September 17, told The Pointer it can not move forward until Ottawa and Queen’s Park provide the required funding for the welcome centre.

“The Regional Reception Centre is not yet operational and Peel’s position has not changed. The Reception Centre will only move forward once the federal and provincial governments commit to its (Sic) full funding.”

It is unclear why, if Ottawa has already provided the required $22 million for the project, the Region is delaying progress to get it opened by November 1, ahead of winter, when more and more individuals could once again be put in harm’s way without proper support. 

One asylum seeker died last November waiting in a tent outside a Mississauga shelter that was already beyond capacity. 

Peel Region staff have highlighted that the measures needed to respond to the influx of asylum claimants requires a new service approach as it is “no longer a short-term crisis, but rather a longer-term issue.” In March, as part of this new approach staff developed a new model for operating and improving Peel’s shelter system. It was built around the establishment of a permanent regional reception centre near Pearson International Airport and the creation of dedicated shelter facilities for asylum claimants.

The response was meant to alleviate crushing pressure on the region’s emergency shelters, as asylum claimants were accounting for 67 percent of occupants in the system. A spokesperson from the Region recently told The Pointer that staff are making progress on separating asylum claimant sites and hotels from local homeless shelters/hotels. As of September 13th, the spokesperson said 84 of 1,674 (7 percent) asylum claimants remain in Peel’s homeless shelter system, while Peel’s asylum claimant-specific shelters have an occupancy rate of 89 percent.

In the recent letter from Immigration, Refugees and Citizenship Canada (IRCC) Minister Marc Miller indicated the Liberal government was prepared to provide Peel with $22 million in funding under the Interim Housing Assistance Program (IHAP) to help cover the costs of the welcome centre. However, the financial gift came with a caveat: that the interim site and reception facility be up and running by November 1st.

It remains unclear if the Region is prepared to meet that deadline.

“At this time, we cannot comment on an anticipated opening date or location for the Reception Centre,” a spokesperson from the Region told The Pointer. “We are working closely with all levels of government to ensure the required funding is secured.

“Without this funding, Peel will not proceed with the Reception Centre."

With Ottawa confirming Tuesday that $22 million has already been given to Peel for the project, it’s unclear what the discrepancy is. It’s possible that a $1-million gap in funding exists (the Region had sought $23 million for capital and operational costs to open the centre) but it seems unreasonable that such a small amount, considering the scale of the problem, would prevent the initiative from moving forward. 

Earlier this year regional staff cautioned Peel councillors that it would be “inappropriate” for the municipality to fund the services needed to respond to the asylum claimant surge and that the Region would prefer to act as the “delivery arm of a properly funded program by the federal and provincial governments.” The proposed funding model for the latest response was “premised on the fact that immigration policy and supports to newcomers are the shared responsibility of the federal and provincial governments.” The assumption contrasted remarks made earlier in 2024 by the federal government, which declared that, “housing and supports for asylum claimants are the responsibility of provinces and municipalities.”

Staff recommended against opening the reception centre until funding could be secured.

The federal government says it is prepared to fund $22 million of the $23 million in operational and capital costs estimated for the regional centre and interim site, provided they are operationalized by November 1.

(Lumi W/Unsplash)

Although the federal government committed $7 million in November last year for the centre, Minister Miller’s earlier letter noted the funds had not yet been provided because no spending had been claimed by the Region. Since the announcement for the regional reception facility was made nearly a year ago, the Region has provided few details on what work has been done in preparation for the project.

An IRCC spokesperson confirmed to The Pointer on Tuesday that the federal government received a revised proposal from Peel Region in July for the Peel reception centre and dedicated shelter “to receive, triage, temporarily house and offer important services to asylum claimants.” They explained that the IRCC is instead now building on the $7 million that was initially promised and “has provided Peel Region with a total upfront payment of $22 million under the IHAP, to be put toward the 2024 costs of establishing and launching the project.” 

With the confirmation from Ottawa Tuesday, The Pointer asked Regional staff to clarify what funding Peel is waiting on to move forward with the project but did not receive a response ahead of publication. 

The IRCC spokesperson explained that, “To ensure that federal funding builds on investments from partners, IHAP funding in 2026-27 will be conditional on provincial and municipal investments in permanent transitional housing solutions for asylum claimants.” The IRCC will be working closely with the Region of Peel “to transition from an emergency response to building longer-term temporary housing for asylum claimants and helping this population access the services they need through sustainable models.”

The letter and the latest response from the Region suggest the two levels of government appear to be stuck in a game of political chicken, meanwhile colder months are approaching and asylum claimants in desperate need of shelter might once again be left out in the cold.

Reporting from The Pointer over the past year has highlighted how dire the crisis has become. The Region has been seeking financial assistance from the federal government to help fund the response needed to address the current crisis, which reached an alarming point about a year ago when two deaths were reported by the Region, both outside Mississauga’s Dundas Shelter, within a three-month period. It marked a tragic illustration of the life or death impact of the decision by Peel’s elected officials to continuously ignore the necessary funding for these emergency systems.

One of the Peel hotels and motels being used to house the influx of asylum seekers.

(Alexis Wright/The Pointer)

When other municipalities began to receive pools of funding from Ottawa earlier this year upon the IRCC’s announcement of additional funding under IHAP, Region of Peel staff and elected officials demanded more financial attention from the federal government through motions and letters sent to Minister Miller. Those missives explained that given its close proximity to the airport where these claimants are arriving, Peel should receive a large pot of the funding. Staff warned that if more assistance was not provided, the Region’s services could be cut back.

“If Peel does not receive the appropriate level of funding from the federal and provincial governments, Peel may need to limit its response, which could result in more street homelessness and encampments, and negatively impact or stall an asylum claimant’s settlement journey,” the March report stated.  

Despite this stance, the Region released a report in February acknowledging that relying on funding from Ottawa for refugees and asylum seekers was not sustainable. As Peel continued to submit claims for financial aid to Ottawa for the accumulated costs associated with trying to respond to the growing homelessness situation, the report recognized “this approach is not cost-effective nor viable over the long-term.”

The Region has been unable to keep pace with the financial strain sustained by the increasing numbers of individuals seeking emergency shelter support. Numbers released in June revealed the shelter was operating at 350 percent capacity. While these emergency shelters can not bear the burden of the growing pressure alone, the Region expanded its capacity in June 2023 adding 123 beds and six overflow hotels, bringing its total to 11 hotels and motels to manage the overflow. 

The approach cost the Region an additional $26.9 million in 2023, costs that were partially offset by the federal government's IHAP funding. The IRCC spokesperson previously told The Pointer the federal government would be reimbursing the Region $12.4 million, on top of the $10 million provided in December, bringing Peel’s total reimbursement under the program to $22.4 million for 2023. The financial aid provided by elected officials on Parliament Hill covered 95 percent of the funds spent by the Region last year. But staff have predicted that number — already a shocking increase from the $2.5 million that was spent just a few years ago, will rise to $68 million for 2024.

In June, the Region secured a new facility at 5100 Spectrum Way in Mississauga to use for emergency shelter space instead of costly overflow hotels.

(Google Maps) 

To alleviate the mounting pressure on Peel’s shelter system, while reducing the dependence on overflow hotels, the Region transitioned earlier this year towards using dorm-style facilities specifically to house asylum claimants, one of which opened up 228 additional beds in December. Later reports revealed that by mid-January the side was already operating at 100 percent capacity. The March staff report highlighted plans were underway to expand the facility to accommodate an additional 80 people.

In June the Region secured a new 74,000-square-foot facility at 5100 Spectrum Way, rumoured to be where the reception centre is located although the regional spokesperson would not confirm, in Mississauga to fortify the services Peel is able to provide to asylum claimants. 

While the Region continues to juggle how it plans to pool together more funding and resources to house asylum claimants, Minister Miller’s letter explained that any future grants towards costs associated with providing temporary housing to asylum claimants in 2024 will be addressed in subsequent agreements.

Email: [email protected] 

Twitter: @mcpaigepeacock

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