No new money for housing in Hamilton coming from Trudeau or Ford

As city councillors discussed what temporary solutions it will offer to address Hamilton's growing encampment crisis, staff made one thing clear: the city needs help from Prime Minister Justin Trudeau and Ontario Premier Doug Ford to get people out of tents and into homes.

The cost of the plan council endorsed Monday to allow some encampments around Hamilton will be $2.9 million in 2024 and $255,000 in capital costs.

During that Monday meeting, Mike Zegarac, general manager of finance and corporate services, said Hamilton will empty its reserve funds in three years if it uses that cash to fund homelessness efforts.

But the city isn't getting new money from either level of government.

Michelle Baird, Hamilton's director of housing services, said the federal government gives Hamilton $10 million annually for housing and that amount hasn't increased.

Ward 2 Coun. Cameron Kroetsch recently noted how Trudeau's visit to Hamilton on July 31 about $45 million toward housing projects in the city wasn't new money but actually funding approved in the previous term of council.

Hamilton is getting less money from the province than it used to because it stopped offering COVID-19 funding to the city.

Baird said while the province gave Hamilton $4 million more toward housing, for a total of nearly $28 million, it doesn't offset the cost of the clawed back pandemic funds.

What do the province and feds have to say?

The federal and provincial governments didn't deny what Baird said.

A spokesperson from the federal Office of the Minister of Housing and Infrastructure and Communities said in an email it is "absolutely unacceptable" anyone, in Hamilton or elsewhere, experiences homelessness.

The office says federal homelessness funding is just over $4 billion right now and has given the city roughly $7.5 million over two years to "generally maintain elevated funding levels" during the pandemic.

It also said Hamilton will see $427 million in investments through its National Housing Strategy and launched a housing fund for which Hamilton has applied.

"We know the federal government can't solve the housing crisis alone. We need everyone at the table with us on this," the office said.

"We will not rest until everyone in Hamilton and right across the country has access to the affordable housing they need. Canadians expect no less."

Melissa Diakoumeas, a spokesperson for Ontario's ministry of municipal affairs and housing, said in an email the city has the flexibility to choose how to best use provincial funding to address homelessness, which could include rent supplements, homeless shelters, and supportive housing.

The province also touted how it provided over $123 million under various housing programs to support Hamiltonians and laid blame on the federal government for not providing more money.

"Unfortunately, the federal government is underfunding Ontario by about $490 million overall for housing and homelessness for the duration of the National Housing Strategy," Diakoumeas said.

"These are dollars that are urgently needed to fund housing and homelessness programs. Ontario continues to advocate for and alongside municipalities and our most vulnerable by calling on the federal government to pay their fair share."

The province's 2023 budget stated next fiscal year is forecast to have a $4.4-billion surplus and the Financial Accountability Office says a look at the province's spending plan shows there will be $22.6 billion in "excess funds" over the next few years.

The feds, meanwhile, had a $90 billion deficit in the 2021-22 fiscal year and the deficit is projected to stay until at least the 2026-27 fiscal year.

Councillor Clark says Ford government is underfunding Hamilton 'dramatically'

During Monday's general issues committee meting, Ward 9 Coun. Brad Clark, a former Conservative member of provincial parliament, expressed his frustrations with the Premier Doug Ford's Conservative government. 

He noted how Hamilton shelters are facing staffing issues that range from low wages to high turnover rates.

That, along with a lack of beds, is causing shelters to turn away families.

"They're literally saying 'no' to hundreds of people every night ... and all we're getting from the province is that small pittance of money and ignoring the real demands happening in our communities," he said.

"Staff experience violence frequently. They're not getting paid what they should be getting paid. They're doing it because they see it as a calling and then we can't get the additional funding that we need from the province.

As he spoke, many councillors and staff in the room nodded in agreement.

Clark said Ontario is underfunding Hamilton "dramatically."

"If they were funding based on needs, there would be way more money coming into this municipality and we would have more buildings with more shelter beds," he said.

"We keep paying out of our pocket, out of the property taxpayer's pocket, to keep this system from sinking and we're not getting the help from the provincial government."