Canada’s social housing system is under strain. Most of the country’s social housing stock was built by the federal government decades ago, but development slowed significantly in the 1980s following federal program cutbacks. In the 1990s, responsibility for social housing shifted to the provinces, and many, including Ontario, subsequently delegated it to municipalities—many of which lack the fiscal capacity to meet growing demand. As a result, Canada now faces a shortage of social housing, with waitlists in major cities stretching for years.
Part of this challenge stems not only from limited supply but also from mismatches between household size and unit size within the existing stock. As family compositions change over time, some tenants become “overhoused”—meaning they occupy a rent-geared-to-income (RGI) unit larger than what they are eligible for, based on the number of bedrooms in the unit relative to the number of people in the household.
Municipal housing agencies have begun addressing these mismatches. The City of Hamilton, for example, has developed a new policy to guide the transfer of tenants in RGI units to homes that are appropriately sized for their households. The city reports that 236 of the 7,224 households in its housing portfolio are considered overhoused.
Although provincial regulations supporting this transfer initiative have been in place since 2011, the city argued that implementation had to wait until adequate support services—such as assistance with moving costs—were in place. Currently, more than 6,000 households are on the waiting list for subsidized units in Hamilton, and roughly 2,000 people are experiencing homelessness.
Under the new policy, tenants identified for downsizing can apply for units they want to move into and are placed on a waiting list. If they decline transfer offers for more than a year, they lose their eligibility for RGI assistance and must start paying market rent.
While this approach makes practical sense for optimizing social housing capacity, I can’t help but wonder why it wasn’t implemented sooner. Toronto Community Housing (TCH)—Canada’s largest social housing provider, with 58,000 homes—has been managing these transfers for years.
Households living in TCH units larger than they are eligible for for more than a year are classified as overhoused. Depending on the situation, they are placed either on the Transfer Waiting List at the Central Housing Registry or on an internal transfer list with their current housing provider. Overhoused tenants are offered up to four smaller units; if they decline all four offers, they may be required to pay market rent. Those identified as overhoused are given special priority on the waiting list, ensuring they are considered first when a suitable unit becomes available.
Transfers also accommodate households that grow over time, usually due to additional children. These households can apply for an internal transfer to another TCH property and must specify at least four neighbourhoods (or communities) they would consider. They can also apply for a unit through the centralized list outside of TCH. A household is considered underhoused when it requires two or more additional bedrooms than its current unit provides, assuming two people share each bedroom.
The fact that provincial regulations encouraging the transfer of overhoused tenants have been in place since 2011, yet little action has been taken, shows that cities have not treated this issue with sufficient urgency at either the provincial or municipal level. Hamilton’s recent policy is a small but meaningful step toward using limited social housing resources more efficiently. While the number of households affected may be modest, these measures show how targeted action can optimize resources and help the system function more effectively.
Independent Opinion
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