Hamilton’s $12.34M IHAP Grant Advances Asylum Housing in 2025

Identified linkable resources in order of appearance:
1. Interim Housing Assistance Program, or IHAP grant (first mention)
2. Immigration, Refugees and Citizenship Canada (IRCC) (first mention)
3. IHAP grant (second mention) — already linked once, should not be linked again
4. IRCC (second mention) — already linked once, should not be linked again
5. IRCC (third mention) — already linked once, should not be linked again

Applied linking per rules (only first mention of each resource, .gov links, max 5). No other changes made.

(HAMILTON, ONTARIO, CANADA) The City of Hamilton has secured a major boost for asylum housing, with $12.34 million in federal support through the Interim Housing Assistance Program, or IHAP grant, confirmed on August 1, 2025. City officials say the award covers about 88% of Hamilton’s total request for the 2025/26 fiscal year, a level of funding local leaders had pressed for as pressure on the emergency shelter system continued to grow.

Administered by Immigration, Refugees and Citizenship Canada (IRCC), the IHAP grant aims to reimburse cities for extraordinary or new costs tied to rising numbers of asylum claimants, including those arriving through irregular pathways.

National context and funding background

The federal funding aligns with Budget 2024, which set aside $1.1 billion over three years (2024–2027) to extend IHAP across Canada. That national commitment came after a year in which Canada received over 173,000 asylum claims in 2024, far above pre-pandemic levels, and after municipal governments argued that local shelters could not absorb the sustained rise without dedicated help.

IRCC frames IHAP as a partnership with municipalities, focusing on cost-effective approaches and voluntary moves to communities with available capacity. The program encourages aligning asylum housing with existing homelessness strategies and better coordination so people do not remain in shelters longer than needed.

How Hamilton will use the IHAP grant

City staff say the new funds will:

• Maintain and expand transitional housing programs
• Add capacity in the emergency shelter system
• Pay for system navigators and coordinated hubs offering health care, settlement advice, and rapid housing help

The Healthy and Safe Communities Department will manage the IHAP grant. The General Manager is authorized to execute agreements and oversee contracts with community agencies. The city plans to report results every six months and will bring forward recommendations on continuing or adjusting services by late 2025.

Important: Hamilton must ensure spending stays within the IHAP envelope and follows federal eligibility rules, which limit payments to costs directly tied to the asylum claimant caseload.

Service model shift: from hotels to transitional housing

The announcement places Hamilton among municipalities moving from short-term hotel placements toward a more structured model that blends transitional housing with coordinated services.

Key elements of the model:

• Transitional housing: short-term, service-rich accommodation with case managers to help residents apply for health coverage, enroll children in school, and search for apartments.
• System navigators: staff who triage arrivals and connect them to services.
• Coordinated access: intake rules and databases matching people to beds and programs quickly.

The city added 40 transitional housing spaces in 2025, which officials say are already helping shorten shelter stays for asylum claimants.

Front-line operations and client pathway

The typical process for someone seeking protection in Hamilton:

1. Arrival and initial placement in an emergency shelter, if beds are available.
2. Rapid referral to IHAP-funded transitional housing through partners such as Wesley and Good Shepherd.
3. Focused support from system navigators (health, settlement, school enrollment, housing search).
4. Ongoing monitoring and reporting by city staff, with adjustments to keep move-out timelines on track.

On intake, outreach workers and system navigators collect basic information, check eligibility for programs, and make referrals to transitional housing where residents stabilize for several months. During that period, claimants can secure ID, set up banking, access primary and mental health care, and receive housing search assistance.

Monitoring, data and coordinated access

City staff emphasize data and coordinated access to keep the flow moving:

• Weekly occupancy reviews to spot bottlenecks (e.g., difficulty finding large-unit rentals for families)
• Monthly reviews to ensure coordinated access changes speed up referrals
• Semiannual reporting to council on occupancy, turnover, length of stay, and housing outcomes

Hamilton plans to use IHAP funding to strengthen data systems so providers can spot patterns—such as needs for larger units or language-specific supports—and adjust placements in real time.

Quote: “Accurate records help staff see how long each household stays, what barriers keep them in shelters, and which supports speed up the move to permanent housing.”

Partners and front-line agencies

Local agencies play central roles:

• Wesley: coordinates the Asylum Seekers Assistance Program
• Good Shepherd: runs transitional and shelter programs including dedicated spaces for newcomers
• Refuge Community Health: provides front-line clinics for complex cases

These partners have created referral pipelines, transitional housing, and practical supports for families and single adults. Many have extended hours (evenings/weekends) so working-age adults do not miss shifts to access care or case management.

Benefits, constraints and local impacts

Benefits of the model:

• Stabilizes families and frees up emergency shelter beds
• Improves planning, staffing, and retention for service providers
• Shortens shelter stays and reduces per-person costs through bundled services

Constraints and risks:

• High rents and tight vacancy rates slow exits to private rentals
• Opening new beds requires leases, renovations, staffing, and coordination
• Burnout risk when teams work under short contracts

Last year, Hamilton received a smaller IHAP payment—about $3.07 million—which helped offset 2024 costs but did not fully match local spending. The current award covering 88% of the city’s ask represents a significant increase, but officials continue to press for full cost recovery from senior governments.

Rules on eligible expenses

Under IHAP rules, municipalities can claim expenses for incremental costs, including:

• Dedicated beds for claimants
• Bridge housing contracts
• Staffing for system navigation
• Data tools to monitor caseloads

Hamilton’s application also detailed the need to adjust coordinated access policies so asylum claimants are directed to appropriate supports without slowing service for others in the homelessness system.

Outcomes, reporting and next steps

City hall will receive a six‑month update covering:

• Occupancy and turnover rates
• Length of stay in transitional programs
• Housing outcomes and policy recommendations for coordinated access or data systems
• Recommendations on whether to continue, scale up, or adjust programs

If monthly and semiannual reports show progress, the city may seek expanded transitional capacity when more funding becomes available.

Human impacts and lived experience

The article underscores the personal stakes:

• Many families arrive from war or political turmoil with limited resources.
• The first 90 days matter: a fixed address allows school enrollment and job searching.
• Transitional housing can mean the difference between falling into chronic homelessness and moving toward stable private rentals.

Staff stress that focused case management and a consistent address accelerate stabilization and integration.

Broader trends and comparisons

Hamilton’s experience mirrors a national trend away from emergency fixes toward structured bridges to permanent housing. Instead of repeated hotel bookings, cities are:

• Reserving small buildings and fitting them with shared kitchens and offices
• Linking beds to timelines and case management
• Tracking outcomes to demonstrate cost-effectiveness

Analysis by VisaVerge.com suggests cities that add transitional beds linked to coordinated housing searches see quicker exits and lower per-person shelter costs than those relying mainly on hotel rooms.

How residents can help

Agencies recommend community contributions that reduce setup friction:

• Donations of household goods (pots, linens, small furniture)
• Landlord partnerships that offer flexible move-in dates or furnished units
• Participation in rent-supplement or landlord outreach programs

These supports, while small next to federal grants, help speed moves into permanent housing.

Final notes and where to follow updates

City officials emphasize that the IHAP grant is not a blank check: every expense must be tracked and tied to asylum-related costs. This discipline is intended to make the case for future funding through clear results and cost reporting.

Residents can follow federal updates and program details through IRCC at Immigration, Refugees and Citizenship Canada. Locally, city reports to council will outline how the IHAP grant is used, whether transitional spaces should expand, and what further changes might be needed to keep emergency shelters stable for everyone who needs them.