IRCC Minister Transition Binder 2025-03

Asylum Housing

March 2025

Purpose

• Provide information and context on the federal role in Asylum Housing
• Highlight upcoming key issues that will require a decision

The federal government supports provinces and municipalities in the housing of asylum claimants in three ways:

• directly through IRCC-funded temporary accommodations (hotels),
• through the Interim Housing Assistance Program (IHAP), and
• in supporting voluntary relocation efforts of claimants.

Context

Increasing Asylum Volumes

• Canada is not immune to rising global displacement and, more than ever before, people come to Canada in search of safety and stability. In 2024, Canada received over 173,000 asylum claims, far exceeding pre-COVID levels of 64,000 in 2019 and increasing from 144,000 in 2023.
• While the provision of housing and supports to asylum claimants falls under provincial/territorial (PT)/municipal responsibility, as an emergency response, the federal government began to backstop overwhelmed shelters by directly running hotels in 2017.
• It also launched the Interim Housing Assistance Program (IHAP) in 2019 to reimburse provincial and municipal governments, on a cost-sharing basis, costs related to interim housing resulting from increased volumes of asylum claimants.

Historical Asylum Housing Funding

Since 2017, the Government of Canada has spent more than $2B to help address the interim housing needs of claimants.

• Pre-budget 2024, IHAP funding was mostly used to expand municipally run shelters and hotels. Since 2017, the Department has disbursed over $1.2B to jurisdictions through IHAP to support provinces and municipalities.
• Earlier this month, reimbursements to jurisdictions for a total of approximately $300M were approved. This amount represents the remainder of the envelope for 2024.

The largest recipients include the City of Toronto ($455.4M), the province of Quebec ($440.9M), and Ottawa ($65.3M). (see Annex B).

$1.1B has been expended on IRCC-run hotels. At its peak in late 2023, the federal hotel footprint included 46 sites from Vancouver to St. John’s at an average cost of $205 per night. While stays were inherently temporary, there was no enforcement on length of stay.

Moving Towards Sustainable Housing

In Budget 2024, the federal government committed another $1.1B over three years, starting in 2024-2025, to extend IHAP, with a renewed focus on sustainable and cost-effective solutions.

Program Renewal:

While historically IHAP has been a cost reimbursement program, the renewal allows for upfront provision of funding to jurisdictions as well as the inclusion of capital costs and services that support housing independence.

• Early wins include new reception centers in Peel and Ottawa

Relocation:

Immigration, Refugees and Citizenship Canada (IRCC) is also working with new jurisdictions to arrange voluntary relocation of asylum claimants from Ontario and Quebec to other areas in the country. Relocation efforts aim to help support claimants’ housing independence and fill labour market gaps. 

• PTs that have committed to relocation include Newfoundland and Labrador, New Brunswick, [Redacted]

Case Management:

Implementation of a needs-based strategy and consistent follow-ups and referrals to partners. Notices to vacate have also been distributed to further incentivize clients to actively search for accommodations within communities.

• This approach has resulted in over 13,000 departures since January 2024 and significant cost savings

Vision for Interim Housing and Services

1. Arrival - Most asylum claimants arrive in Ontario or Quebec, in particular Toronto and Montreal.
2. Reception Centres provide immediate short-term housing and a suite of services from all levels of government and service provider organizations (SPOs) to achieve housing independence.
3. Relocation to other jurisdictions, including to neighbouring communities with transitional housing or to other provinces with interim or more affordable housing and jobs, will be offered as a part of process to establish housing independence.
4. Housing Independence - At the end of their stay, claimants transition out of the services they relied upon and into the receiving communities and jobs they connected with.

Current Status

Hotels

• As of March 14, 2025, IRCC is accommodating 1,474 asylum claimants in 7 active hotels across Quebec and Ontario.
• $66.6M has been secured to continue hotel operations until September 30, 2025.
• The Department is currently maintaining ~ 3,500 beds for contingency purposes.

Relocation

• Newfoundland and Labrador is the furthest along and is planning to relocate a first wave of 50 people, out of 290 they have committed to, by the end of March 2025.
• [Redacted]

IHAP

• The official intake window for new applications has closed, though additional jurisdictions are still developing proposals, namely the several provinces interested in the voluntary relocation of asylum claimants.
• The Department is in the process of reviewing proposals to prepare funding recommendations based on the available funding envelope. [Redacted]

Upcoming Decisions and Milestones

• Newfoundland and Labrador requires an urgent signature on the IHAP agreement to enable relocation of 50 claimants in the last week of March. Delaying this agreement risks having claimants wait in limbo as they wait to be relocated and risks damaging PT relationship.
• Decisions on the allocation of the remaining envelope will be required in the coming weeks to enter into agreements with remaining jurisdictions. [Redacted]
• [Redacted]

Annex A: Key Engagements & Milestones

2024 January – December

January: 7600 claimants, 34 active sites
March: IRCC begins issuing departure notices
Avril: 6,733 clairmants, 29 active sites
June: Start of Relocation Working Group
August: 5,684 claimants, 24 active sites
September: End of relocation working group (no national consensus)
October: Renewed IHAP TB submission approved
November: Ottawa 40.4M IHAP investment
December: 4,134 claimants, 11 active sites, IHAP renewal launch

2025 January to March

February: Opening of spectrum reception centre in Peel
March: 1,474 claimants, 7 active sites, interim lodging site TB sub approved ($66M), tentative relocation to Newfoundland and Labrador

Annex B: Historical IHAP Funding

Historical Funding under IHAP

[Redacted]

[Redacted]