Federal funding announced for Ottawa amid homelessness crisis

In an announcement by the Government of Canada, agreements to support Canadians living without homes have been signed with nine Ontario municipalities, including the City of Ottawa.

According to the news release, this funding will be provided to municipalities through the federal Unsheltered Homelessness and Encampments initiative.

Other municipalities that will receive support include Durham, Toronto, Peel, York, Hamilton, Niagara, Waterloo and Sudbury. Two cities in Saskatchewan — Regina and Saskatoon — will also receive funding.

Housing Minister Nathaniel Erskine-Smith said the federal government couldn’t sign provincial partnerships with Ontario and Saskatchewan because those provinces wouldn’t match the federal government’s contributions.

As a part of these agreements, Canada will be providing more than $91.5 million in support, over two years, wrote the Department of Housing, Infrastructure and Communities.

Funding for this agreement is a part of a $250 million commitment by the federal government — outlined in Budget 2024 — in efforts to address the rise in encampments and unsheltered homelessness across Canada.

Additionally, municipalities will match federal funding, working to combat homelessness in their regions.

Homelessness in Ottawa

Based Ottawa’s 2024 count, there are nearly 3,000 people in Ottawa experiencing homelessness.

New data found that 2,952 people are experiencing homelessness in Ottawa — sitting above the 2021 figure, representing the last time the count took place. According to the municipality, there were 2,612 homeless individuals counted in 2021.

“The City of Ottawa applied for funding through the federal Unsheltered Homelessness and Encampments Initiative in Q4 2024,” wrote Kale Brown, Interim Director, Housing and Homelessness in an email to CityNews.

“Through the program, the City will receive a total of $10.5 million during 2024-25 and 2025-26 fiscal years,” he added.

In a statement from the city, funding received from the federal government will go towards continuing work through Ottawa’s coordinated encampment response.

“The funding plan is currently based on feedback received through our outreach coordination work with sector partners and the community,” explained Brown. “The plan focuses on creating additional capacity for low-barrier drop-in spaces with appropriate health and housing supports for those who choose not to access shelter space.”

Federal funding will be allocated to support the implementation of cities’ Community Encampment Response Plans and provide immediate support to those living without homes. While each plan is tailored to the specific needs of a community, a wide range of activities will be funded, wrote the Department of Housing, Infrastructure and Communities.

This includes creating new shelter spaces, increasing transitional housing options, and providing case management services to help people find and keep permanent housing.

Additional agreements with provinces and territories are set to be announced in the coming weeks.

“These agreements are an important part of our response, but we know there is more work to be done to expedite the development of affordable, deeply affordable, and supportive housing to ensure that all Canadians have a place to call home,” said Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities.