Property taxes must rise unless Ottawa steps up efforts to cover asylum seekers' costs: councilor

As Toronto receives new federal money to house asylum seekers, Peel Region wants the same from Ottawa, whose shelter system is already over capacity, officials say. Otherwise, the tax will increase, says the regional council.

The federal government recently allocated $143 million to help Toronto cover the cost of housing thousands of asylum seekers.

Mississauga is dealing with a similar issue, and on Thursday the council moved to ask Ottawa for $85 million.

“I don't understand why Mississauga and Peel Region are treated any differently than Toronto,” Kuhn said. Deepika Damerla, representing Ward 7. “We are also under such pressure. “Our shelter system is now at 400 percent capacity.”

Without the money requested by the regional council, Damerla says the council will be forced to raise the regional property tax by six percent. This is on top of the five percent increase approved in this year's budget, he said.

“That's impossible,” Damerla said.

The feds faced pressure from the cities

The federal government has faced criticism for months that cities are struggling to deal with newcomers. That pressure has led to financial aid, including new money Toronto will receive, part of a $362 million addition to the federal Interim Housing Assistance Program (IHAP). The program went online last summer with $212 million in funding.

Peel Region submitted an IHAP request last fall for $16.9 million. The proposal passed Thursday would add $68.4 million to that request, which would be earmarked for “estimated costs for resettlement and integration of asylum seekers in Peel.”

Damerla says the money will eventually cover the cost of sheltering refugees in the Peel region.

Ottawa says it will share the costs

Immigration, Refugees and Citizenship Canada (IRCC) said in a statement that IHAP is a cost-sharing program that reimburses provinces and municipalities for a portion of their “temporary accommodation costs.”

“Immigration, Refugees and Citizenship Canada (IRCC) continues to have ongoing discussions with the Region of Peel regarding the scope of their applications and expenditures,” the statement said. “Amounts are determined based on these requests and the overall program funding envelope.”

The federal government announced last fall that it would provide Peel Region with $7 million to open a new reception center for asylum seekers near Pearson International Airport. The opening of this center is still months away.

Thursday's council proposal asked the federal government to revamp IHAP so municipalities don't compete for funding through bids, but funds are allocated based on a “formula-based” process.

The petition also sought $9 million in compensation for Ukraine's humanitarian response to the Pil region.