Unsheltered Homelessness and Encampments Initiative

Summary

Launched in September 2024, the $250-million Unsheltered Homelessness and Encampments Initiative (UHEI) aims to help communities facing pressure related to unsheltered homelessness to create more transitional and supportive housing, undertake shelter transformation projects, and offer services to help people experiencing unsheltered homelessness and living in encampments find more stable housing solutions. UHEI was introduced following the notable increase in unsheltered homelessness and encampments in Canada, which was exacerbated by the COVID-19 pandemic and the housing crisis. The UHEI provides funding in the form of contributions to address unsheltered homelessness and encampments within communities from 2024-25 to 2025-26.

Under the UHEI, Housing, Infrastructure and Communities Canada (HICC) has entered into agreements with provincial and territorial governments. In some cases, agreements were reached directly with municipalities. As agreement holders, provinces, territories or municipalities are responsible for the administration of the initiative and distributing funds to ultimate recipients for eligible projects that address unsheltered homelessness and encampments, as outlined in the Community Encampment Response Plan. Federal funding must be matched by at least as much funding from provinces and territories.

The UHEI responds to several federal priorities:

• HICC’s mandate tasking to invest in housing and infrastructure that fosters more inclusive and sustainable Canadian communities and supporting efforts to prevent and eliminate chronic homelessness.
• Supporting Canada’s Housing Plan to build more homes, making it easier to rent or own a home and helping Canadians who can’t afford a home.

Key findings from the strategic environmental analysis

Given that funding under the UHEI is expected to be primarily directed towards services and supports, the environmental impact of this initiative is anticipated to be minimal. However, recipients may allocate funds to eligible capital projects based on their specific priorities, which could have environmental impacts. Funding recipients have the flexibility to allocate funding towards a diverse range of services and capital projects, including shelter renovations, building and acquisition of supportive and transitional housing, outreach services, and rent supplements.

If recipients choose to fund certain eligible capital projects based on their priorities, this could have adverse environmental impacts including:

• Increase in greenhouse gas emissions: The construction and renovation of shelters and housing would increase emissions as well as through the operation of newly constructed facilities.
• Biodiversity and habitat loss: Pending the select locations, the construction of capital on previously undeveloped land could have an adverse impact on biodiversity, species at risk and/or natural carbon sinks through land use change.
• Pollution: Construction of capital projects could also result in noise and air pollution, and potentially involve the use and disposal of hazardous materials. However, at most, this would likely be limited to local, previously developed areas and be of a very low magnitude given the size of projects (e.g., the construction of a single building).

Before any capital project work commences, such as site preparation, vegetation removal, or construction, all applicable federal environmental requirements related to the project must be met, including those under the Impact Assessment Act and any relevant agreements with Indigenous groups. Furthermore, if a project occurs on federal lands, the funding recipients  must ensure full compliance with all applicable federal environmental laws. Any projects for which potential adverse environmental effects are observed and determined to exceed environmental benefits, and/or for which there would be significant public concern, would be screened for accordingly.

Key findings from the cross-cutting considerations

Implications for Indigenous Peoples

The Government of Canada will engage with Indigenous peoples as appropriate and fulfill any legal duty to consult obligations. Some projects may be proposed on modern treaty lands, potentially giving rise to specific modern treaty obligations. Given that the location and nature of individual projects are unknown at the time of this assessment, the Department will continue to monitor program implementation to ensure that all individual projects respect and comply with any modern treaty rights and provisions that may apply.

Federal Sustainable Development Strategy (FSDS)

This initiative is expected to contribute to Goal 11 of the 2022 to 2026 Federal Sustainable Development Strategy, specifically the target to reduce chronic homelessness by 50 percent by 2028.

Implications on sustainable jobs

Funding activities under the UHEI could create sustainable jobs, contributing to the transition towards a net-zero, climate-resilient economy, either directly through job creation in green sectors or indirectly by supporting resilient communities.