Toronto will begin referring refugees and asylum seekers who show up at its at-capacity shelters to federal programs as of today as it continues to call for additional funding.

Deputy Mayor Jennifer McKelvie made the announcement on Wednesday afternoon, noting that the City of Toronto essentially has no other choice but to refer refugees and asylum seekers to federal Immigration Refugees and Citizenship Canada (IRCC) programs for support, if space is not available for them in the city’s shelter system.

Starting today, the city will also begin reviewing asylum seekers already in Toronto's shelter system to determine who is eligible for IRCC services followed by referrals to IRCC hotels.

It is also returning to pre-pandemic physical distancing standards in its shelter system, which will allow it to add about 400 beds.

Those beds, however, will not come close to addressing the need for shelter spaces.

“We'd hoped we wouldn't need to take these actions, but after almost a year of requesting urgent funding assistance and logistical support, the city is required to make difficult decisions to meet these significant humanitarian needs,” Gord Tanner, the city’s director of homelessness initiatives and prevention services, said during a news conference.

Currently, Immigration Refugees and Citizenship Canada has leases and contracts with 24 hotels, with more than 2,400 rooms, across the country as well as agreements with service providers to provide temporary accommodation for asylum claimants until they secure private accommodation or while they await transfer to a provincial shelter.

But in Toronto many refugees and asylum seekers have sought out shelter at city-run facilities, putting immense strain on the already overburdened system.

“The number of asylum seekers in Toronto’s shelter system has multiplied by more than 500 per cent from a low of about 530 people per night in September 2021 to over 2800 in May 2023,” McKelvie said.

McKelvie went on to note that despite the recent closure of the unofficial Canada-U.S. border crossing at Roxham Road, south of Montreal, which has resulted in an overall decrease in the number of people seeking refuge in Canada from the United States, Toronto continues to see roughly 350 new shelter clients every month.

“Despite best efforts, new asylum seekers are outpacing access to housing. All shelter spaces available for asylum seekers in Toronto are full,” she said. “This month, as of May 23, of the 1814 people actively staying in the shelter system an estimated 3,058 are refugee claimants.”

The city funds about 500 shelter beds specifically for refugee claimants, however any services beyond that require funds from other levels of government.

In order to make ends meet, the city said it needs $97 million from the federal government in 2023. At this time, they have not committed to funding Toronto’s refugee response beyond March 31 of this year, McKelvie said.

.“We are asking the federal government to provide Toronto with the same financial considerations as other municipalities such as Peel and Niagara, where it funnels and operates refugees and asylum seekers specific hotels,” she told reporters.

“The city's emergency shelter system shouldn't be the first stop for individuals seeking a new beginnings in our country. Appropriate housing and support services should be in place and Toronto cannot do it without federal funding.”

McKelvie said Toronto is “being asked to do more than (its) fair share using city resources” and is at a “crossroads.”

In a written statement provided to CP24.com, IRCC said that it is remains “in constant communication” with the City of Toronto but it did not indicate whether any additional funding could be forthcoming.

“We deeply empathize with the motivating factors around asylum, and remain in constant communication with the provinces and municipalities, including the City of Toronto on how to best ensure asylum seekers are set up for success,” spokesperson Bahoz Dara Aziz wrote.

Aziz said that the federal government has supported municipalities through the Interim Housing Assistance Program, which so far has provided the City of Toronto with $215.4 million to offset the costs of interim housing for asylum seekers.

She also said that since April 2020, IRCC has been “providing temporary accommodations to asylum claimants, and has maintained its commitment to housing asylum claimants who entered between ports of entry when provincial capacity is limited until they find a permanent private accommodation or until a place becomes available at the provincial shelter.”

In Toronto’s case, she said that “closing the door on immigrants” is not the solution to solving the city’s housing shortage.”

“In fact, immigration is part of the solution to this problem. Our Immigration Plan selects individuals with the skills to build homes, and encourage them to settle in parts of the country that have housing capacity,” Aziz added.

“With provinces like Ontario needing 100,000 workers to meet their housing targets, and the home building sector facing immense challenges in acquiring talent, it is crucial for immigration to be factored into the overall strategy as newcomers are undeniable part of the solution.”