Ontario Invests $75.5M to Address Homeless Encampments

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Ontario is allocating $75.5 million to municipalities to dismantle public encampments and provide housing alternatives. The funding will support emergency shelter expansions and ready-to-build affordable housing projects.

Encampments
Photo via Surja Sen Das Raj / Unsplash

Breakdown of the $75.5M Investment

The funding is distributed as follows:

  • $50 million for affordable housing projects near completion.
  • $20 million to increase shelter capacity and create temporary housing.
  • $5.5 million to top up the Canada-Ontario Housing Benefit (COHB), helping shelter residents transition to permanent housing.

Housing Minister Paul Calandra emphasized that this investment responds to requests from mayors across Ontario.

“We can no longer accept encampments as a place to deal with mental health and addiction issues,” Calandra stated.

Homelessness Crisis and the Need for Action

A report from the Association of Municipalities of Ontario (AMO) highlights that more than 81,000 people in Ontario experienced homelessness last year. This marks a 51% increase since 2016 and a 25% jump since 2022.

According to AMO, Ontario requires an $11 billion investment over the next decade to develop 75,000 affordable housing units. Additionally, $2 billion is needed to house those living in encampments.

Government Measures and Enforcement

Beyond funding, Ontario has introduced a bill—pending approval—that will:

  • Strengthen penalties for repeated trespass violations.
  • Grant police and provincial officers the authority to ticket or arrest individuals using illegal drugs in public.
  • Impose fines up to $10,000 or six months in jail for those violating trespass laws.

Long-Term Impact on Ontario’s Public Spaces

The Ontario government views this initiative as the first step in ensuring public safety while transitioning vulnerable individuals into stable housing. By expanding shelter capacity and accelerating affordable housing projects, the province aims to restore safety and order to parks and shared spaces.

The government’s approach aligns with previous investments, including the $400 million spent on COHB between 2023 and 2024 to support housing stability.

As municipalities receive funding, Ontario will monitor progress and prioritize communities demonstrating effective use of resources.

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