City Facing Significant Financial Implications in Relation to Federal Government Asylum Claimant Process Changes – With changes to IHAP initiative, the federal government is requiring municipalities and the province to begin shouldering the financial and resource burdens associated with providing interim housing and related supports for asylum claimants at the local level.

Windsor Mayor Drew Dilkens and City Commissioner of Human and Health Services Andrew Daher are calling attention to significant changes coming to the federal government’s asylum claimants process, and the Interim Housing Assistance Program (IHAP).

In May 2024, City administration provided a report to City Council about asylum claimants transferred to Windsor hotels by Immigration, Refugees and Citizenship Canada (IRCC).

At the peak of operations, there were three local hotels with a total of 439 rooms being used to accommodate asylum claimants in Windsor.  From January 2023 until December 20, 2024, over 2,300 asylum claimants were transferred to the hotels and temporarily housed.

Currently, there are approximately 728 asylum claimants at the two hotels.

The federal government’s IRCC department provides all funding for the program, contracting directly with hotel owners and food providers to care for the individuals and families utilizing the program.

The City and other community organizations have also provided in-kind support for those staying at the IRCC hotels to help meet their immediate needs and find housing.

IRCC has recently issued departure notices for at least 840 asylum claimants set to take effect within the first quarter of 2025, which raises concerns about the potential rise in people experiencing homelessness and subsequent dramatic impacts on our local emergency shelter system, as well as the local rental housing market.

As part of the IRCC program, the City received $106,000 in funding under the federal Interim Housing Assistance Program (IHAP) to help cover expenses incurred by accommodating asylum claimants in the local emergency shelter system, and will apply again by January 31, 2025, to recover 2024 expenses.

The IHAP program aims to address housing needs of asylum claimants with sustainable, cost-effective solutions. However, now, with significant changes coming to the IHAP initiative, the federal government is requiring municipalities and the province to begin shouldering the financial and resource burdens associated with providing interim housing and related supports for asylum claimants at the local level.

IRCC has recently announced changes to the IHAP with $1.1 billion available over three years (2024 to 2027) for provinces, municipalities, and non-profits to address the asylum claimant situation in Canada.

There are increased cost-sharing requirements for IHAP funding that vary depending on the project’s alignment with the guidelines. There is a requirement for municipal or provincial funding in years 2025 and 2026 and full funding in 2027 and beyond.

Mayor Dilkens and City administration have explained that, with federal funding ending in 2027, municipalities will not only be required to create a long-term sustainable plan for dealing with this issue but will also be required to commit significant funding.

With the specialized needs of asylum claimants representing a potential strain to local emergency shelters, and limited housing options risking more individuals experiencing homelessness, the situation is dire.

In Windsor, 902 households are currently experiencing homelessness, an increase of 26% from 2023. There has also been an 8% increase in people using emergency shelters and a 43% increase in the length of stay. From January to October 2024, emergency shelters were operating at 95% capacity nightly.

In a report coming to City Council on January 27, 2025, City administration recommends against applying for the new IHAP funding, due to the cost-sharing requirements and lack of federal funding after 2027.

Instead, administration will suggest Council advocate for long-term federal funding that does not require municipal cost-sharing.

To help mitigate impacts over the next few months, the City will work with IRCC and its partners to minimize pressure on local shelters, and will dedicate staff resources to help asylum claimants at the IRCC hotels find alternative housing, including exploring housing solutions beyond Windsor in Essex County and other regions.