Thank you very much, Madam Chair, vice-chairs and members of the committee. Thank you for inviting me here today.
My name is Steve Jacques. I'm the commissioner of human services in the region of Peel in Ontario, which encompasses three municipalities—the city of Brampton, the town of Caledon and the city of Mississauga. I'm here today to share Peel's response to the needs of homeless asylum claimants.
Peel reflects Canada's long-standing commitment to immigration. More than half our residents were born outside of Canada. We are home to Pearson International Airport, the country's primary gateway. As a result, Peel and the greater Toronto area receive a significant share of asylum claimants, many of whom arrive in need of immediate shelter, supports and help navigating complex systems.
Beginning in 2023, we saw an unprecedented surge in asylum claimants in need of homelessness support. By the fall, our shelter system was operating at nearly 400% capacity and nearing collapse. At the peak, nearly three-quarters of shelter residents were asylum claimants. Since then, Peel has supported 8,500 homeless asylum claimants. The surge occurred within an already strained system. Peel has more than 37,000 households on the affordable housing wait-list. Shelters were already full prior to this increase.
Since 2001 homelessness has risen 223%, with asylum claimants accounting for a significant portion of that growth. At the same time, affordability has worsened. It now takes the equivalent of three full-time minimum-wage jobs to afford the average rent in Peel. Many households remain priced out of home ownership.
While supports like the Canada-Ontario housing benefit are essential, our allocation is exhausted each year due to high demand. Additional funding of $2.1 million in 2023-24 helped approximately 180 asylum claimant households, but ongoing supports have not kept pace with need and no additional allocations for asylum claimants have been issued.
Despite these pressures, Peel has acted. As a municipality primarily funded through property tax and unable to run deficits, we are not designed to sustain a national asylum system, but between 2023 and by the end of 2026, Peel will have committed more than $13 million from local tax reserves to maintain services. Working with the federal government and community organizers, we established the Peel Reception Centre, one of the largest dedicated asylum claimant shelters in Canada. It provides wraparound supports that include settlement services, housing assistance, health services, legal aid, language training, and income and employment support, all focused on helping individuals transition to stable housing.
This model is working. With federal support through the interim housing assistance program, more than 60% of clients have moved into housing, and more than half have remained in the region of Peel. However, this work remains more difficult as mental health needs among asylum claimants are increasing, rental costs continue to rise, and affordable housing, especially shared housing, is extremely limited. At the same time, work permit delays limit employment opportunities for newcomers. Compounded, these pressures make it hard for municipalities to meet both operational demands and contractual obligations.
The evidence is clear: The current model places disproportionate operational and financial pressures on municipalities. That pressure is no longer sustainable. Therefore, we offer four recommendations for the committee's consideration.
First, supporting asylum claimants must be recognized as a coordinated national function with predictable, stable funding. Municipalities cannot continue to fund federal immigration responsibilities through local tax reserves.
Second, housing benefits must be integrated into the national housing strategy through a permanent allocation for asylum claimants. This is a structural need, not a temporary pressure.
Third, Canada needs a more balanced national hub-and-spoke system that distributes arrivals across the country based on labour markets, housing availability and community readiness. The funding should follow the claimant regardless of where they settle.
Fourth, until such a system exists, the federal government must invest in gateway communities, such as Peel, at levels that respect the scale and reality of the demand they are absorbing.
There is a growing gap between responsibility and resources. Canada is not overwhelmed by those seeking refuge. We are underinvested in the municipalities that support them every day. If we want an asylum system that is fair, effective and built to last, then closing the gap isn't optional; it's essential.
Thank you, Madam Chair.