Federal government commits $526M to homelessness

(CBC) - The federal government will spend the same amount annually to combat homelessness in the next two years as the previous Liberal government did.

Over two years, the new Homelessness Partnering Strategy will provide $270 million ($135 million a year) to help people who are already homeless, and $256 million to aid those at risk of being on the streets, said Diane Finley, minister of human resources and social development.

But a spokeswoman for agencies that run such programs says that while Tuesday's announcement is a good start, the funding may not save all current programs.

Mary-Martha Hale of the Ottawa-based Alliance to End Homelessness also said agencies may still cut some jobs of people running the programs starting in December.

"In the past, when there has been an announcement, it's taken a significant length of time to get the dollars to the agencies to support the individuals," Hale said.

The new federal strategy is to go into effect on April 1, but there were no details about when the funding will reach programs for the homeless.

The agencies expected an end to their federal funding on March 31, when the National Homelessness Initiative started by the previous Liberal government expires. That program also provided $135 million per year for programs for the homeless and funded the same program for those at risk of homelessness.

Hale said she is disappointed that the new funding is for only two years instead of the five years that agencies have lobbied for, and does not include an explicit strategy to help the homeless find permanent homes.

"If we don't have housing for people to move into, then it's very hard to move them out of homelessness," she said.

The government says it will decide in the new year how it will partner with the provinces to allocate the money. It also plans to consult with private and non-profit stakeholders.

In the meantime, the federal money aimed at people who are already homeless has been earmarked for transitional and supportive housing offering temporary help. The 2001 census counted 14,150 people in temporary shelters on May 15.

Some of the new federal homelessness money will go towards programs that did not receive funding under the previous Liberal funding, including rural programs and non-housing services such as skills training and drug abuse treatment. However, no additional money has been committed.

The funding for those at risk of homelessness will extend a Canada Mortgage and Housing Corporation program that helps pay for needed repairs by low-income homeowners such as pensioners, and by landlords who provide affordable housing and housing for the disabled.

© the CBC, 2006