New City Rule Set To Add $ 1m to Homeless Shelter Agency’s Contract

A proposed new contract for a london shelter agency to provide 92 beds for the homeless will cost an extra $ 1 million because of a new city coucil rule.

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City Council’s Community and Protective Services Committee unanimously Endorsed Using $ 5.2 Million in Federal Funding to Allow Ark Aid Street to Provide 70 Shelter Beds at 430 William St., 10 Supportive Housing Units Around the City, and 12 Spaces for Women at my Sister ‘ March 2026.

The extra $ 1 million is needed to secure Two new sites to meet ark aid’s 90-bed pleclowing, following A City Council Rule Approved in November 2024 that bars use of funding from the province or federal goverment for resting space on the main street of a business district, which means the agency can’t use the money from the contract to host people in Its Old East Village Headquarters We Dundas Street.

“I did assure Council that yes, we would be able to find a way to deliver the services, but that there would be budgets Impacts since we could not use our own,” Sarah Campbell, Ark Aid’s Executive Director, Told Councillors During A Virtual appearance at Monday Committee Meeting.

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Before Council Adopted the New Rule, Ark Aid’s Pitch was to Operate 60 Beds at the Cronyn-Warner Building on William Street and 30 Beds at its 696 Dundas St. Headquarters at a cost of $ 4.2 million a year.

Despite the New Council Rule, the agency has committed to raise funds to keep 30 beds open at its dundas street building, meaning ark aid will operate a total of 122 shelter space if the contract is approved by city council.

A Council Rule Driving Up the cost of Offering the same number of Beds Irked Some Politicians, Particularly Those Who Voting Against the Rule in the First Place.

Ward 7 coun. Corrine Rahman, who is not a member of the commotee, pointd out the city is paying more, but the old east village resting space coucillors took Issue with Will Remain.

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“I’m just Wondering How. . . We will anticipate dealing with that conversation and criticism, ”she said. “One, we Asked for the Resting Spaces to Come Out of the Bia, and Two, Now We have an Additional Cost Because we Wanted Those Spaces Off the Main Street.

“It’s important that we understand the decisions that we make maker as we are making them,” she said.

Ward 6 coun. Sam trosow asked if it would be possible to change coucil’s rule to save money.

Tucked Away in the Staff Report Laying Out the Contract is a Direction for Staff to Find Other Funding, Beyond the Federal Dollars Being Doled Out, To Cover A $ 1.1-Million Shortfall.

“I do think that we might be able to love some money if we revisited, at Least for the time Being, that decision that we previously made,” Trosow Said. He was told Changing the Rule Would Have To Be Done at Council, to Let Staff Review it in Detail.

Coun. David Ferreira, The Committee Chairperson, Recognized the “Clunky” path to what eventually turned into an increed offering from ark aid.

“Extra cost, It Hurts, Obviously,” He Said. “I do see the Silver Lining. . . Council is continually look out to look for more capacity to open up, so this is kind of that synergy coming together. ”

The Contract Goes to Full Council for Approval Feb. 11.

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