Chow disappointed in feds fiscal update, says Toronto needs ‘faster action’ to address refugee crisis

Both the City of Toronto and the province of Ontario are calling on the federal government to invest more in housing and infrastructure, following the release of the Trudeau government’s fall economic statement.

Mayor Olivia Chow says the federal government’s mini-budget fails to meet the ambition of Toronto’s housing plan and argues the city needs more urgent funding to tackle an ongoing crisis, citing the hundreds of refugees currently sleeping on the city’s streets.

“It’s raining out there, there are people in tents,” said Chow, speaking with Breakfast Television on Wednesday morning. “Our need is now. We are hoping for faster action.”

“We need funds to house and shelter the refugees. It’s going to get very cold soon.”

As part of Tuesday’s fiscal update, the federal government announced $15 billion in new loan funding to build more than 30,000 new rental units in Canada, with an additional $1 billion over three years going towards the affordable housing fund to support the development of 7,000 homes.

The catch is neither of the actions will kick in until 2025, the expected year of the next federal election.

Chow says one thing that could help remedy what she calls the urgent issue, is the Trudeau government’s Housing Accelerator Fund (HAF). The HAF asks for housing plans from local governments, and once approved, provides funding upfront to ensure the timely building of new homes, as well as additional funds upon delivering results.

The City of Calgary and the federal government reached a $228 million agreement last week, which will fund initiatives to increase the city’s housing supply. Chow says Toronto is close to inking its own deal.

“It’s coming,” she says. “I just hope it comes before the holidays because we want to start building.”

Ontario’s finance minister Peter Bethlenfalvy expressed similar disappointment in the fall economic statement and is calling on the Trudeau government to offer more help to shelter asylum seekers.

“We were disappointed by the federal government’s failure to provide significant new funding for the critical infrastructure our growing communities need,” reads a statement from Bethlenfalvy. “Ontario continues to call on the federal government for a next-generation infrastructure program that aligns with provincial infrastructure priorities and is flexible, predictable and fair.”

He says the federal government “must meet its obligation to support Ontario municipalities that are struggling to cope with the record number of asylum claimants.”

On Tuesday, the federal government also announced it would rename Infrastructure Canada to the Department of Housing, Infrastructure, and Communities and clarify its powers and duties to better connect housing to infrastructure needs in Canada.

Beginning Jan. 1, 2024, the government intends to deny income tax deductions for expenses on short-term rental units, like Airbnb’s, in provinces and municipalities that have prohibited short-term rentals. It is also proposing $50 million over three years, starting in 2024, to support municipal enforcement efforts on short-term rentals.