Dear Ministers: Increase funding for the Canada-Ontario Housing Benefit in the 2026 Ontario Budget
The Honourable Peter Bethlenfalvy
Minister of Finance
7 Queen’s Park Cres.
Toronto, ON M7A 1Y7
The Honourable Rob Flack
Minister of Municipal Affairs and Housing
777 Bay Street
Toronto, ON M7A 2J3
January 27, 2026
Re: Investing in the Canada-Ontario Housing Benefit in Budget 2026
Dear Ministers Bethlenfalvy and Flack:
I am writing on behalf of the City of Toronto’s Housing Rights Advisory Committee, a publicly appointed body made up of residents experiencing housing precarity and homelessness, advocates, academics, service providers, and community organizations. Our mandate is to advise Toronto City Council on strategies and actions to achieve the progressive realization of the right to adequate housing, as outlined in the Toronto Housing Charter and the HousingTO 2020-2030 Action Plan.
As you prepare the 2026 Ontario Budget, I urge you to consider working with the federal government to increase the investment in the Canada-Ontario Housing Benefit (COHB).
As you will know, many people across the province are struggling to find safe, secure, and affordable housing. The Association of Municipalities of Ontario estimates that nearly 85,000 people experienced homelessness in Ontario in 2025, an increase of about 50 per cent since 2021. Moreover, the Ontario government’s own data shows that, in July 2025, more than 30,000 people accessing Ontario’s social assistance programs experienced homelessness – an increase of 72 per cent since July 2019.
Under the International Covenant on Economic, Social and Cultural Rights, which all provinces in Canada have agreed to abide by, addressing homelessness is a legal responsibility. In fact, governments have an obligation to devote the maximum of their available resources to the progressive realization of the right to adequate housing. However, despite Ontario’s strong fiscal capacity, there is rising homelessness, fuelled by an inadequate welfare system. This signals that the government’s responsibility under international human rights law, and, ultimately, to people in greatest housing need, is not being met.
The long-term solution to this challenge is well known: Expand permanent, deeply affordable, and supportive housing – housing that also includes access to health and social supports. Nevertheless, people who are living outdoors need urgent support today and cannot wait for new housing to be built.
One effective tool that the Ontario government can use to support a timely response is the COHB. In Toronto, the COHB has become the leading pathway out of homelessness, helping thousands of people experiencing homelessness find rental housing. Yet we understand that COHB funding for Toronto is dropping significantly this fiscal year, limiting the number of new renters who can access the program.
While the COHB is a shared federal-provincial responsibility, greater investments are needed to keep it working. Since the Ontario government has revenue-generating tools that municipalities lack, you are well positioned to take on this task. Without additional funding, municipalities like the City of Toronto will have limited ability to support people moving from homelessness into permanent housing.
In closing, we urge you to increase funding for the COHB in the 2026 Ontario Budget and to work with the federal government to ensure that this critical program can continue to help address the scale and urgency of the homelessness crisis.
Thank you for considering our recommendation.
Sincerely,
Elizabeth McIsaac
Chair, City of Toronto Housing Rights Advisory Committee
President, Maytree