Shelter for asylum claimants dramatically reduced; will not open with critical services despite $22M grant from Ottawa 

The 680-bed shelter that Peel officials promised last month would be ready by a November 1st deadline, ahead of another potentially deadly winter, has now suddenly been reduced to just 88 emergency shelter spots for asylum claimants. 

It’s the latest unexpected news from the Region about a project that was supposed to be completed by November 1st, ahead of winter, but appears to have been mismanaged from the beginning by Peel officials.

For years Peel’s emergency shelter system has been chronically underfunded and overcapacity. Elected officials forced a status quo approach of “managing homelessness”, ignoring badly needed investments then resorting to costly overflow hotels to house the growing number of individuals at risk of being left out in the cold of winter. 

Last fall, as the winter months loomed and the number of asylum claimants spiked, the Region scrambled to find emergency shelter options. Mississauga Councillors Joe Horneck and Alvin Tedjo proposed modular-style housing that could be erected quickly to avoid placing those in need at risk. The Region, they stressed, needed to explore every option “as quickly as humanly possible.” At the time, Tedjo cautioned, “We know that we're going to go into winter, we know that this is going to be a challenge. We know we're not going to be able to meet those needs right away.”

The two new members of council were alarmed by the shelter crisis, which had been largely ignored by Peel’s elected officials for more than a decade, but staff advised against the idea, citing time constraints, suggesting that such housing could be an option by the following winter—which is now upon us. 

Meanwhile, an explosion of asylum claimants fleeing conflicts around the world overwhelmed Peel’s shelter system, which reached 400 percent capacity with refugees making up approximately 70 percent of those who were accommodated, many in hotels.

But, tragically, it wasn’t nearly enough.

In November, an asylum seeker died outside a Mississauga shelter, waiting in a tent for a space inside to open up. Then, another refugee also passed away in the same makeshift encampment outside the same Mississauga shelter. Medical complications were partly to blame.

As the public outcry grew louder and media stories raised questions about the mismanagement by local elected officials, more Peel councillors finally joined their two new colleagues who had tried to prevent a tragic outcome. 

Stakeholders from across the GTHA put together a comprehensive people focused strategy to launch a new asylum claimant reception centre in Peel and in March the plan was approved by regional council, trumpeted as a progressive new approach instead of a BAND-AID fix. The main focus was a wrap-around triage service delivery model that would provide medical screening (which could have prevented the tragedies) immigration and housing support, employment assistance, legal aid and a range of other critical services to help ensure asylum seekers would no longer languish upon arrival in Canada. 

It was applauded by Ottawa as a critical step in a much more progressive approach to a long-term commitment to those seeking safe harbour in Canada, with the best outcomes for them in mind.

A grant application was sent to Ottawa in the spring requesting $23 million for the reception centre and an associated designated shelter for asylum claimants.

In July, Immigration, Refugees and Citizenship Canada (IRCC) Minister Marc Miller sent a letter to the Region of Peel offering $22 million in grant funding through the federal government’s Interim Housing Assistance Program (IHAP) — building on the $7 million it had announced last November — to "provide important services to asylum claimants as vital first steps on a journey to employment and housing while they await processing of their claims. The model could assist thousands of claimants over the coming years and serve as a hub for a broader asylum-related response in the Greater Toronto and Hamilton Area, and beyond." It was in response to the Region's proposal to open a facility that would provide a range of support services and triage to asylum claimants upon their arrival in the country.

As fall arrived, The Pointer sent questions to the Region about the status of the project and the November 1st deadline Minister Miller had given for the opening of the centre, which was being covered by the $22 million payment Ottawa had made to the Region upfront. 

On September 25th, the Region of Peel informed The Pointer that the intended wrap around services and triage component, which was supposed to be the main focus of the initiative supported by IRCC, would not be operationalized by November 1st because $84 million needed to "provide a subsidy for up to 1300 asylum claimants per month to...facilitate claimants’ settlement into independent housing in Peel and other municipalities across the GTHA" had not been secured from the federal and provincial governments. 

"Without this component in place, we expect that the Reception Centre will serve as a 680-bed shelter as opposed to its intended function of effectively triaging asylum claimants and moving them into independent housing," the Region confirmed. 

The Pointer reached out to IRCC for response and to get clarification around the $22 million in funding that was provided upfront by the federal government in September following the IHAP grant application for the "intended function" of a facility that would provide wrap around triage services, including legal aid support, medical checks, language services, IRCC immigration support and a range of other critical settlement services, all to be operationalized by November 1st, according to the letter from IRCC Minister Marc Miller in July offering the $22 million under the IHAP grant program.

On Friday, October 4, IRCC responded. "IRCC remains in regular contact with the Region of Peel to ensure the reception centre will continue to progress in time to operationalize on November 1st."

Ottawa and the Region appear to be at odds over the use of the $22 million in funding, with the Region making it clear that the wrap around support services and triage component—the "intended function" of the facility—will not move forward by November 1st because an additional $84 million for housing subsidies has not been secured; while IRCC has stated it expects the initiative to be launched by November 1st, which was the deadline given by Minister Miller in July when he approved the $22 million to provide "important services to asylum claimants as vital first steps". 

Ottawa made clear the $22 million was never supposed to be just for a shelter facility, it was supposed to primarily be for the critical support services and triage, including medical checks that could prevent a repeat of the tragedies outside a Mississauga emergency shelter, when the two asylum claimants died due to medical complications while waiting for space to open up. Now, these potentially life saving services along with a range of other supports meant to ensure the best possible outcome for asylum seekers, under an innovative model Miller described as a "broader asylum-related response" for the GTHA and beyond, will not move forward, despite the taxpayer dollars he provided for them.

Now, commitments made by the Region just a month ago that the project would at least launch November 1st with a full shelter element that would offer 680 beds — deflecting the failure to operationalize any of the critical support services — are also being abandoned as winter nears. 

Instead, the facility, located at 5100 Spectrum Way in Mississauga, has been reduced to 88 beds for the November 1st launch ahead of winter — a fraction of what had been promised after the Region abandoned the core services the $22 million grant was supposed to pay for.

Despite securing the majority of funding for the capital and operational costs for the welcome centre, the Region of Peel will not be pursuing the full triage component until funding for housing subsidies is secured.

(Alexis Wright/The Pointer) 

After touting a new “sustainable” and “person-centered” response, the welcome centre will instead open in phases, according to a staff report coming to council on Thursday, with only the first floor of the four-storey building opening before the end of the month, pending council’s approval. The first floor will provide shelter for approximately 88 individuals, and an interim service provider will be available to coordinate onsite housing and some settlement supports. 

It is unclear why the Region reported last month that the "intended function" of the reception centre would not move forward by November 1st, failing to explain why some of the most critical services, such as medical screening could not be offered, even if funding had not been secured to ensure each individual was provided with transitional housing upon their departure from the triage facility. 

The Pointer sent questions Monday to the Region asking if such services could still be delivered, and if not, why. A spokesperson said a response could not be provided ahead of publication. 

The second and third floors of the building, which will provide an additional 501 beds, are not expected to be operational until the end of January, after the height of winter has passed.

The report to regional council states the GTHA Reception Centre, which was meant to be the main component of the Region’s long-term response to the surge in asylum seekers, will not be ready to operate until early February, warning that “Timing and program details are contingent on federal and provincial funding decisions.” Thursday’s report says the site’s effectiveness depends heavily on receiving funding for housing subsidies and that opening the facility without that funding “could lead to significant operational strains, and a return to a surge in need that far surpasses capacity.”

It is unclear how a “surge in need” could be dependent on downstream factors, after the asylum claimants have already arrived in the country. 

“Until a solution to improving exits from shelter can be found, Peel will continue to serve the Council approved maximum of 1,280 claimants in Peel.”

Despite securing the $22 million grant from Ottawa that was supposed to cover all the wrap-around services, The Region of Peel has maintained since September that the reception centre will only be fully realized if all funding from upper levels of government is secured. To fully operationalize what Peel officials are calling a “more sustainable service model,” the Region has asked the federal and provincial governments for $157.5 million in total to cover the start-up expenses and costs associated with the first year of operations.  

“If fulsome funding is not obtained from federal and provincial governments, the GTHA Reception Centre function will not be operationalized as planned,” a report presented earlier this month to the Region’s diversity committee stated. “The site will be used as a dedicated shelter for Peel asylum claimants only, and Peel will continue to bear disproportionate financial risks in order to support asylum claimants.”

While Peel waits on additional funding to help settle asylum claimants in and out of the municipality, it is unclear what the Region will do to properly allocate the $22 million already received from Ottawa to provide the critical triage and support services.

The first floor at 5100 Spectrum Way (top photo) will open at the end of the month with council’s approval. The site at Leanne Boulevard (bottom) opened in December 2023 and will be expanded.

(Paige Peacock/The Pointer) 

The federal government has indicated it is “unwilling to provide housing subsidies to support exits out of the shelter system, citing that subsidies are not necessary to support more timely exits,” according to Thursday’s report. Peel staff have stressed that a housing subsidy would facilitate quicker exits from shelters and hotels. In a memo previously sent to councillors and shared by regional staff with The Pointer, a spokesperson explained that the combined triaging-shelter component is more cost effective for the Region compared to housing asylum claimants in hotels at a price of $220 and day (versus the $45 daily cost of a housing subsidy) and would offer “better outcomes for claimants.” Staff say that without a housing subsidy, which would help facilitate a faster turnover for asylum claimants moving out of the shelter system and into housing, “the ability to transition to independent housing becomes more challenging, resulting in longer stays in the shelter system.”

But the existing criteria under IHAP does not include funding for housing subsidies. Instead, IHAP, meant to provide financial relief to municipalities with the costs associated with operating emergency shelters for refugees, currently “provides funding exclusively for emergency shelter purposes.” A previous regional report indicated staff were aware that the federal government’s funding program “does not have mechanism to provide housing subsidies under IHAP,” meaning staff knew upon presenting the new model that they would not receive additional funding from Ottawa to cover the costs associated with providing subsidized housing to asylum claimants.

The grant request by the Region in the spring, which secured the $22 million from Ottawa, was clearly for the wrap-around settlement support services and associated shelter space, not for subsidized transitional housing. It remains unclear why the Region accepted the money under the requirement of providing the triage and wrap-around settlement support services if it had no intention of meeting the requirements including the November 1st deadline for the “intended function” of the project, as the Region itself described it.

As part of the federal government’s 2024 budget, Ottawa plans to provide $1.1 billion over three years, starting in 2024-25, to the IRCC to extend IHAP. However, in an effort to find long-term solutions to address the increasing number of asylum claimants coming to Canada, the federal government says “funding in 2026-27 will be conditional on provincial and municipal investments in permanent transitional housing solutions for asylum claimants.” Thursday’s report says staff are waiting on further details on the redesign of the program. 

The Region has been working to remove refugees from Peel’s local emergency shelter system and into designated spaces. As of the end of September, temporary housing and supports to asylum claimants are now being provided through two sites in Mississauga and nine hotels that are completely separate from the local system, according to staff. In December last year, the Region’s first site dedicated solely to asylum claimants was opened at Leanne Boulevard in Mississauga, offering 225 beds. As part of the $22 million grant from Ottawa, the Region is expanding capacity to add up to 70 beds, with construction expected to begin before the end of the year. Staff say the expansion will “reduce operating costs and support asylum claimants transitioning out of hotels.”

Of the $22 million received from the IRCC in September, approximately $900,000 in capital funding and $6.2 million for operations will be distributed to the Leanne site for 2024, with $10.5 million for capital and $4.4 million in operational funding to be distributed to the Spectrum Way site. The Region has not explained why the millions of dollars originally earmarked for the wrap-around services (which was supposed to be the core function of the centre) has now been reallocated, despite the funding agreement with IRCC.

When the Leanne and Spectrum Way sites are fully operational, they will provide an estimated 796 shelter beds for asylum claimants in Peel. If the Region moves away from its traditional response of housing overflow capacity in hotels it would save $13.8 million per year, according to the report. The upfront costs, prior to potential reimbursement under IHAP, are estimated to be $21.3 million to operate, as opposed to the approximately $35.1 million the Region would need to spend annually if it continues with the hotel response. 

When the report was written 22 percent of the 1,034 asylum claimants in Peel were living at the Leanne site and 78 percent were in hotels. The average length of stay in the asylum claimant shelter system, according to staff, is 161 days for families and 107 days for individuals. 

Pending council approval, staff will be authorized to extend contracts with hotel operators, vendors, and service providers, if deemed “necessary for the continuation of temporary hotel accommodations, meals, security services, and other associated supports for asylum claimants housed in Peel hotels,” to December 31, 2025, contingent on available funding.

Email: [email protected] 

Twitter: @mcpaigepeacock

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