Region of Peel moves forward with overhaul of its asylum claimant response

Since the federal government introduced changes to its immigration policy last fall — which will lead to about 600,000 fewer temporary residents in Canada compared to current levels — a February 27 staff report revealed the Region of Peel is now serving 400 asylum claimant households as of February 3, down significantly from 1,034 households in September. With the reduction in refugees in need of support and Ottawa’s revised cost-sharing model to support municipalities, staff say “maintaining current service levels of 1,280 asylum claimant households is no longer feasible nor necessary.”

The report recommended council endorse the 2025-2027 application submitted through the federal government’s Interim Housing Assistance Program (IHAP) to continue Peel's asylum claimant response; that staff return to council to share the amount of funding received, the use of the funding and any implications to the Region; and that service levels be reduced from 1,280 asylum claimant households to 790 households (680 individuals and 110 families), “Given IHAP changes and current asylum claimant levels.”

Council also approved a request from staff to undergo a site search for securing permanent accommodations for asylum claimants should a funding agreement be reached with the federal government. Staff will bring a closed session report regarding the potential property acquisition to council at a later date. 

Aileen Baird, Director of Housing Services, confirmed to councillors during the February 27 meeting the Region’s Spectrum Way facility in Mississauga is “now functioning as a Peel reception centre and emergency shelter with the capacity to serve 680 single adults,” after the site’s initial services were significantly reduced and later opened in phases amid the coldest months of the winter. Staff are now in the process of transferring asylum claimants who were already staying in Peel to the Mississauga location. Baird said this work is not yet completed and will take a few weeks for the transition. 

While single individuals will be served at the Spectrum site, Baird told councillors “for this year and for next we will continue to serve families in hotels. At the peak of our response we were operating in 16 hotels and we now have that down to three and will continue to be operating out of three hotels for families.” The Leanne Boulevard site in Mississauga, previously opened as a dedicated dorm-style shelter for asylum claimants, will be closed before the end of April as staff transition individuals to the reception centre. 

The Region of Peel’s dedicated dorm-style facility at Leanne Boulevard in Mississauga is set to close by the end of April, according to staff.

(Paige Peacock/The Pointer) 

Staff also raised concerns around the revisions to the IHAP funding model, which provides financial assistance to lower-tier governments on a cost-sharing basis “to address extraordinary interim housing pressures resulting from increased volumes of asylum claimants.” The focus of IHAP was previously centered around providing funding to provinces and municipalities to cover a portion of expenses "related to the provision of interim housing for asylum claimants,” an IRCC spokesperson previously told The Pointer. The program, initially established in 2017 to respond to a historic influx of asylum seekers entering Canada, was previously referred to as “a very expensive stopgap measure” by Immigration, Refugees and Citizenship Canada Minister Marc Miller “to deal with large historic flows of migration.” 

But with the latest revisions, the program will instead now only allow municipalities to apply for upfront allocations, rather than using the previous reimbursement model. From now until 2027, municipalities will also be required to fund a larger share of the costs, with federal funding set to cease after March 2027. 

Staff warned the changes outlined under the amended cost sharing model for the period from January 1, 2025, to March 31, 2027 “has significant financial implications for Peel.”

Under the current model, IHAP has reimbursed 95 percent of Peel’s eligible expenses, including hotel accommodations, shelter operations, and staff costs since the Region started responding to the crisis in early 2023. The updated directives have introduced a funding model “that gradually reduces” the program’s contribution toward eligible expenses over the next two years. Through the revisions, IHAP’s contribution will decrease from 95 percent to 75 percent by the 2026-2027 funding period “for sustainable and cost-effective activities.” For hotel accommodations, which are not considered sustainable or cost-effective, the federal reimbursement rate will drop to 50 percent.

Peel staff provided regional councillors with the funding breakdown and cost sharing requirements under the revised IHAP, which will see less funding provided to municipalities.

(Region of Peel)  

Staff previously acknowledged that submitting reimbursement claims to the federal government is not sustainable, recognizing that the approach “is not cost-effective nor viable over the long-term.” The Region has also repeatedly maintained it can not move forward with a long term response without 100 percent funding from upper levels of government. 

The 2024 federal budget allocated $1.1 billion nationally over three years to extend IHAP with a renewed focus, straying away from a reimbursement model that relies on hotels and shelters, to upfront funding for municipalities to support longer term housing solutions for asylum claimants, such as reception centres and transitional housing. As part of the changes, municipalities must allocate part of their 2025-26 funding to "dedicated, permanent, and coordinated" approaches to be eligible for future funding. 

To align with Ottawa's updated funding criteria, the Region’s latest IHAP application is seeking funding for continued operations of the welcome centre on a permanent basis; ongoing asylum-specific case management services, and the capital costs associated with acquiring a new family site in an effort to wind down Peel’s reliance on temporary accommodations.

The staff report cautioned that acquiring a site dedicated to families “may face planning and development constraints, which could impact Peel’s ability to find a suitable location.” Staff also anticipate the site would require renovations, meaning Peel will continue relying on hotels for accommodation until a more permanent location is ready. 

Overall, Peel’s IHAP 2025-2027 application totals $121.5 million “to sustain an asylum claimant program that can accommodate 790 households at any one time or 3,160 households per year, assuming an average shelter length of stay of 90 days.” Larger ticket items include $37 million for the Peel Reception Centre operating and facility cost, $20.4 million for temporary accommodations, and $38.8 million for the capital costs to purchase and renovate the family site.

If the IHAP application is approved, it would leave Peel on the hook to cover $15.9 million for the period between January 2025 and March 2027. Staff say while the costs for 2025 can be funded from reserves, funding for 2026 and 2027 (totalling $12 million) will need to be determined through the annual budget process. Those projections are based on receiving 100 percent of the eligible funding requested through the program. 

“IRCC has also indicated that federal funding is limited and there is no guarantee of full reimbursement, meaning Peel will need to cover a larger share of the costs,” the staff report cautioned. “Furthermore, even if Peel’s application for IHAP funding is approved, funding in 2026-2027 is not guaranteed.”

“With reduced federal funding, Peel may need to cover a larger portion of the costs through its reserves and property tax revenues. Additionally, the possible end of federal funding in 2027 means Peel will need to be ready to pivot out of its current asylum claimant response.”

Staff are currently assessing the feasibility of several alternatives, according to the report, and will return to council with recommendations “as the longer-term intentions of the federal government become clearer.” A report outlining guidance for Peel’s ongoing role in serving homeless asylum claimants will be brought back to council in June. 

Email: [email protected] 

Twitter: @mcpaigepeacock

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