Homelessness support within Muskoka is facing capacity and financial pressures due to continued increasing need.
A recent report to the Community and Planning Services Committee outlined current statistics and trends on homelessness in Muskoka. While not going into specifics about the number of homeless within the District, the report focused on financial and capacity pressures.
According to the report current pressures and demand on existing rental units have caused vacancy rates to approach 0%, a record low. This low vacancy rate fuels increases in market rents and is reflected in routine housing costs exceeding 30% of household income.
Community and affordable housing are the preferred housing outcomes for the homeless population, but the report states that waitlists for this type of housing in Muskoka are up to eight years depending on the size of the unit and location.
These housing pressures are shown by corresponding pressure on Housing Support Funding (HSF) applications submitted to the District. In the first nine months of 2023 the report states that the majority of those who have applied for assistance had rental costs exceeding 50% of their household income.
The pressures on District supports are causing financial pressures. HSF assistance for rent deposits, utility arrears, rent arrears have increased by 7.8% in volume. In the first nine months of 2023 there were 50.5 applications for assistance a month, an increase from 47 applications in 2022. According to the report, the average cost of approved applications was $928 per month, compared to $668 per month in 2022. This is a 39% increase over a single year. The report states that these changes have put pressure on the HSF budget and that there is no indication of change in current trends.
A concerning trend outlined in the report is the increasing costs surrounding District reliance on hotels and motels for shelter. With low vacancy rates and dedicated shelter options, the District remains reliant on hotels and motels for emergency shelter or transitional housing. The report states that in the first nine months of this year, 373 households stayed in hotels or motels totalling 14,407 shelter nights. This came to a total cost of $747,003, representing a 3% increase in cost and 19% increase in shelter nights compared to 2022. The report states that the reliance on hotels/motels and increase in pressure on this system is causing budget pressures.
The 2023 budget provides $2,592,927 in funding for homelessness services. It is further provided with $2,068,200 from the provincial government through the Homelessness Prevention Program (HPP). The 2023 budget increased funding by $375,000 to be able to provide the required support for homelessness in Muskoka.
The increasing reliance on District supports is also pressuring the capacity of these services. The report highlights key areas of capacity issues such as mental health and addictions support. In the last 18 months, there were 540 referrals made for mental health and addiction support. According to the report, mental health and addictions systems in Muskoka cannot meet this demand. This leads to many referrals being waitlisted or turned away. The lack of affordable housing and mental health and addiction capacities increases the duration of support required for those in the homelessness system.
According to the report further increases in support will be reflected in the 2024 operating budget. They will be allocated to client support in recognition of the increasing needs to address homelessness within the District.
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