City Hall considers potential property tax increase to address housing funding gap
Toronto officials are grappling with a significant shortfall in housing funds as they face reduced allocations from both the provincial and federal governments. Mayor Olivia Chow has revealed that Ontario will provide under $8 million to the city under the Canada-Ontario Housing Benefit (COHB) for the upcoming year, a sharp decline from the nearly $20 million received in 2025.
Expressing concern, Mayor Chow emphasized the critical role of the COHB in freeing up shelter spaces and transitioning people from the streets to homes, highlighting the adverse impact of inadequate support from higher government levels.
The COHB plays a vital role in subsidizing rent for shelter residents, enabling them to secure rental housing promptly and alleviate pressure on the shelter system.
Furthermore, the city is facing a shortfall of $107 million in refugee shelter funding from the federal government, exacerbating the financial strain. Mayor Chow raised the dilemma of potentially halting shelter support for refugee claimants or burdening taxpayers with a property tax increase to bridge the funding gap, emphasizing the need for equitable solutions.
Councillor Shelley Carroll echoed concerns about the immediate and long-term financial challenges posed by funding cuts, projecting a significant deficit of $153 million for the upcoming year. Proposals for a three percent property tax hike as a potential solution have been met with resistance, as city officials strive to urge higher government levels to fulfill their funding obligations.
The repercussions of funding cuts were underscored by advocates at a recent executive committee meeting, with Reverend Eddie Jjumba and housing advocate Diana-Chan McNally expressing alarm over the government’s shifting responsibilities onto municipalities and citizens.
Amidst disputes over funding justifications, the Office of the Minister of Municipal Affairs and Housing maintained that funding calculations remain consistent, despite opposition claims of misrepresentation.
As Toronto grapples with budgetary challenges, the need for sustainable funding solutions to support vulnerable populations remains a pressing priority for city officials and advocates.