Federal government strengthens support for municipalities in Ontario to tackle unsheltered homelessness and encampments

OTTAWA, ON, Aug. 17, 2026 /CNW/ -- Far too many people across Canada are experiencing homelessness or are at imminent risk of losing a safe place to live. Addressing homelessness requires immediate action to expand supportive and deeply affordable housing, reduce barriers, and deliver solutions faster for those who need them most.

The Government of Canada is taking action to help communities respond to the urgent challenge of unsheltered homelessness and encampments by supporting 10 municipalities across Ontario through the Unsheltered Homelessness and Encampments Initiative (UHEI).

In April, the Government of Canada announced a $125 million investment to extend the Unsheltered Homelessness and Encampments Initiative (UHEI) by one year, following two years of initial funding from 2024 to 2026. Of this additional funding, up to $45.5 million has been allocated for proposed agreements with 10 Ontario municipalities.

The funding will help communities strengthen local responses to unsheltered homelessness, enhance outreach and support services, and create pathways to safer, more stable housing for people experiencing, or at imminent risk of, unsheltered homelessness.

UHEI supports more stable housing, enables outreach staff to connect people experiencing unsheltered homelessness with the services they need, and helps fund the creation or expansion of transitional and supportive housing and shelter spaces.

UHEI complements broader federal efforts to address homelessness and increase housing stability, including investments through Reaching Home: Canada's Homelessness Strategy, which supports community-based responses to homelessness across Canada, the Veteran Homelessness Program, and Build Canada Homes. These initiatives help prevent and reduce homelessness, support vulnerable populations, expand supportive and transitional housing, and create pathways to more stable housing for Canadians experiencing or at risk of homelessness.

Quotes 

"Every Canadian deserves a safe place to call home. Through the Unsheltered Homelessness and Encampments Initiative, we are working with municipalities across Ontario to deliver practical, community-driven solutions that connect people with housing, supports and services."
-- The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

"Communities know best where support is needed on the ground. This funding will help municipalities across Ontario strengthen local responses to unsheltered homelessness and encampments while advancing housing-first solutions that provide people with the dignity, safety and supports they need."
-- Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure

"Every resident deserves a safe place to call home, and addressing homelessness requires strong collaboration across all levels of government. This federal investment will help Ottawa continue to provide outreach, shelter, supportive housing and wraparound services for residents experiencing unsheltered homelessness. Together, we are working toward safer communities, better outcomes for vulnerable residents, and a housing system that offers people the stability and support they need to rebuild their lives."
-- His Worship Mark Sutcliffe, Mayor of the City of Ottawa

"Homelessness is a challenge that no order of government can solve alone. In London, we've been working closely alongside community partners to make sure people experiencing homelessness are connected to the supports they need, with a real pathway to stability through housing. This investment will help us build on that work, strengthen our collective response to unsheltered homelessness and deliver more support to Londoners as they progress toward permanent housing. I'm grateful to the Government of Canada for hearing the needs of municipalities and stepping up through this funding."
-- His Worship Josh Morgan, Mayor of the City of London

"I want to thank the Federal government for its continued partnership and for recognizing that municipalities like Greater Sudbury need support to respond to the complex mental health, addictions and homelessness challenges we face today. This funding supports important frontline services for some of our most vulnerable residents while we continue working with our community partners to connect people with the housing, health and other supports they need."
--  His Worship Paul Lefebvre, Mayor of the City of Greater Sudbury

"Thank you to the Government of Canada for this important investment to help people experiencing homelessness in Toronto. This funding will strengthen outreach, connect people with the supports they need and help create pathways to safer, more stable housing. This is care in action, and our federal partners are helping us build a city where everyone has a safe place to call home."
-- Her Worship Olivia Chow, Mayor of the City of Toronto

"Peel Region greatly appreciates the federal government's continued funding through the UHEI, which will deliver meaningful results for Peel residents experiencing homelessness. This investment will provide measurable outcomes, while reducing downstream pressures in healthcare, emergency services and shelter systems."
-- Nando Inannicca, Regional Chair & Chief Executive Officer, Peel Region

"We are seeing a growing number of residents at risk of or losing their home and addressing homelessness remains an important priority for York Regional Council. We are committed to working with our municipal, community and senior government partners to expand access to housing and the supports people need to remain housed. This funding will help us reach more residents with housing and critical supports needed to regain stability, build a better future and thrive in our communities."
-- Eric Jolliffe, Chairman and CEO, Regional Municipality of York

"Homelessness is one of the most complex challenges facing communities across Canada, and no municipality can address it alone. The Unsheltered Homelessness and Encampments Initiative funding provides critical support to help Durham Region expand housing and shelter options and connect people experiencing homelessness with the services they need to overcome barriers to stable housing. This investment will make a meaningful difference in the lives of residents while helping us build a stronger and more inclusive community."
– John Henry, Regional Chair and CEO, Region of Durham

"This funding supports the continuation of much-needed services for community members who are experiencing homelessness to build safe and stable lives. It provides for ongoing investments into Emergency Shelter, Transitional Housing, and Supportive Housing programs and we are grateful to Housing, Infrastructure and Communities Canada for continuing to partner with us as we work with the community towards the goal of everyone having a place to call home."
--  Karen Redman, Chair of the Region of Waterloo

"Federal investments in affordable housing make a real difference here in Hamilton. This $2.7-million investment is another important step toward creating safe, stable, and affordable homes for Hamiltonians who need them most. When all levels of government come to the table and work together, we can turn investments like this into meaningful housing solutions and stronger communities. We will continue working with our federal partners to leverage every available resource to address Hamilton's housing needs."
-- Her Worship Andrea Horwath, Mayor of the City of Hamilton

Quick facts

• Approximately $45.5 million (M) has been allocated for proposed agreements with 10 municipalities in Ontario. Final funding agreements are currently being negotiated.
• The 10 municipalities include: City of Toronto ($13.2M); Regional Municipality of Peel ($6.8M); Regional Municipality of York ($5.5M); City of Ottawa ($5.3M); Regional Municipality of Durham ($3.3M); Regional Municipality of Niagara ($2.2M); Regional Municipality of Waterloo ($2.7M); City of Hamilton ($2.7M); City of London ($2.5M); City of Greater Sudbury ($0.8M)
• UHEI supports projects that address unsheltered homelessness and encampments through a human-centered, housing-first approach.
• Eligible activities include transitional and supportive housing, shelter transformation, case management, and support services.
• UHEI was introduced in 2024 in response to the rise in unsheltered homelessness and encampments across Canada. Housing, Infrastructure and Communities Canada enters into agreements with provincial, territorial and municipal partners to support projects identified through Community Encampment Response Plans.
• The UHEI complements Reaching Home: Canada's Homelessness Strategy, which is investing $5 billion over nine years through 2027-28 to support communities in preventing and reducing homelessness.
• Launched on September 14, 2025, Build Canada Homes is Canada's federal Crown Corporation dedicated to building and financing affordable housing at scale. It will invest
  $1 billion to build supportive and transitional housing for people experiencing homelessness.

Note: Allocations are rounded and subject to the negotiation and finalization of contribution agreements and required approvals.

Associated links

Reaching Home: Canada's Homelessness Strategy
Unsheltered Homelessness and Encampments Initiative
National Housing Strategy

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SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Arianna Durgerian, Press Secretary, Office of the Minister of Housing and Infrastructure, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]