Move aims to increase shelter spaces, build transitional homes, and provide essential services
The federal government is committing $250 million to address the growing problem of encampments and homelessness across Canada, with an urgent call for provinces and territories to match the funding.
The move could bring the total investment to $500 million, aimed at increasing shelter spaces, building transitional homes, and providing essential services to those living without stable housing.
“As much progress as Canada makes to solve the housing crisis, it will not be over as long as there are people living in tents because they cannot afford a place to live,” said the Department of Housing, Infrastructure and Communities.
The funding builds on the existing Reaching Home program, a federal strategy that has allocated $5 billion over nine years to tackle homelessness. Budget 2024 also provided an additional $1 billion over the next four years to stabilize Reaching Home, along with $79.1 million earmarked for the Veteran Homelessness Program.
These investments are intended to address both short-term needs, like providing shelter and services to people in encampments, and long-term solutions that aim to reduce homelessness and create more affordable housing options.
The government said it intends to do this by “supplying funding and coordinating with other orders of government.”
Provinces and territories that wish to access the federal funding will need to match the investment dollar-for-dollar. The federal government will negotiate agreements with each province or territory, including decisions on how the funds will be distributed and which communities will receive support.
“Canada's housing crisis will not be solved by any one level of government, any single service provider, or any home builder alone,” the government wrote in the press release. “We must work together to put an end to encampments in our communities. Today, we are calling on provinces and territories to help us do just that.”
Read next: BC and First Nations to sell condos at 60% of market value
"Across Canada, playgrounds, parks, and public squares have become the last refuge for too many individuals,” said housing minister Sean Fraser. “The harsh realities faced by those living without stable shelter do not reflect the values we hold as Canadians. This reality divides our communities and impacts us all. We must work together to help the country's most vulnerable find safe and affordable places to call home.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
