Per Diem Rates for Purchase of Service Shelters

STAFF REPORT
ACTION REQUIRED

2010 Per Diem Rates for the Purchase of Service Shelter System
and Results of the Review of the Per Diem Funding Model.

Date: October 23, 2009

To: Community Development and Recreation Committee

From: General Manager, Shelter, Support and Housing Administration

Wards: All

Reference
Number:

SUMMARY

This report provides recommendations on the 2010 Per Diem rates for the purchase of
service shelter system and funding levels for other operating contracts. It also includes
recommendations for changes to the existing per diem funding model, based on the
findings from the Hostel Services Funding Model Review.

RECOMMENDATIONS

The General Manager, Shelter, Support and Housing Administration, recommends that:

1. Council approve the recommended per diem rates, bed capacities and Personal
Needs Allowance rates for the shelter system as set out in Appendix A subject to
the approval of the 2010 Operating Budget;

2. the General Manager, Shelter, Support and Housing Administration, and/or his
designate be authorized to:

a. enter into purchase of service agreements with community agencies and
motel operators for the provision of shelter services and the issuance of
Personal Needs Allowance, up to the maximum contract values as outlined
in Appendix A, subject to the approval of the 2010 Operating Budget;

b. contract with and issue payments of up to $8.676 million(gross)/$1.737
million (net) to Mental Health Program Services of Metropolitan Toronto

2010 Per Diem Rates for the Purchase of Service Shelter System and Related Matters 1

(Habitat Services) for the provision of housing and supports for
psychiatric consumer survivors living in Habitat contracted boarding or
rooming houses subject to the approval of the 2010 Operating Budget;

c. contract with and issue payments to the Toronto Hostels Training Centre
for the administration and provision of training for shelter staff up to a
maximum amount of $0.198 million (gross)/$0.099 million (net) subject to
the approval of the 2010 Operating Budget;

d. purchase up to $42,000 (gross and net) in training for staff of the directly
operated shelters from the Toronto Hostel Training Centre in order to
meet the training requirements laid out in the Council approved Toronto
Shelter Standards, subject to the approval of the 2010 Operating Budget;

e. pilot a system of advance quarterly per diem payments to shelter
operators; and

f. pilot multi-year contracts with shelter providers in a form acceptable to
the City Solicitor and Director, Internal Audit, that will reduce the
administrative burden on agencies while maintaining accountability to the
City; and

3. Council approve the recommendations arising from the Per Diem Funding Model
Review, including consultations with community agencies, as outlined in
Appendix I, and instruct that these recommendations be forwarded to the
Minister of Community and Social Services, the Minister of Municipal Affairs
and Housing and the Minister of Health and Long Term Care for consideration.
.
Financial Impact

The summary of the Financial Impact from approving the service agreements outlined in
this report are noted in the following table:

Funding for the per diem and Personal Needs Allowance (PNA) payments for purchase
of service shelters, motels, and payments to Habitat Services and the Toronto Hostels
Training Centre are included in the proposed 2010 Operating Budget for Shelter, Support
and Housing Administration.


Contract 2009 Approved Budget 2010 Budget Increase/ (Decrease)
($000s) Submission

Gross Net Gross Net Gross Net

Purchase of Service 47.956 16.842 48.474 16.643 0.518 (0.199)
Shelter Provider Contracts

Personal Needs 1.911 0.382 1.961 0.392 0.050 0.010
Allowances

Habitat Mental Health 8.676 1.737 8.676 1.737 0.000 0.000
Program Services of
Metropolitan Toronto
(Habitat Services)

Toronto Hostels Training 0.198 0.099 0.198 0.099 0.000 0.000
Centre

City of Toronto Shelter 0.042 0.042 0.042 0.042 0.000 0.000
Training Needs

Motel Contracts 1.172 0.000 1.341 0.000 0.169 0.000

TOTAL 59.955 19.102 60.692 18.913 0.737 (0.189)

As per the table above, the proposed 2010 Operating Budget includes $60.692 million
(gross), $18.913 million (net), for these various contracts. Adopting the recommendations
in this report would increase the gross and lower the net budget, incrementally from the
2009 Approved Base Budget, by $0.737 million and $(0.189) million, respectively. The
increased pressure from the contract changes is partially offset by the increase in the
provincial subsidy.

As in 2009, the Provincial government has increased its capped per diem rate by 2%. As
well, 2010 will be the first year of the Provincial upload of the municipal share (20%) of
Ontario Works financial assistance and employment assistance. In 2010, 3% of the City’s
20% cost share will be uploaded to the Province. The new Provincial per diem rate for
2010 will be $42.50 (80.6% capped rate is $34.26) up from $41.60 (80% capped rate is
$33.25).

The 2% increase in the capped subsidy from the Province will increase the per diem by
$0.90. This represents an increase of $0.836 million available to the Purchase of Service
Shelter (POS) system. The City will retain 38% of this increase or $0.318 million to help
realign the City’s percentage of contribution. The Provincial contribution for the POS
system goes from $31.1 million in 2009 to $31.8 million in 2010.

There is an expected decrease in bed nights for Purchase of Services shelters from
935,735 in 2009 to 929,125 in 2010. This decrease of 6,610 bed nights (0.7%) is due to
uploading of VAW beds by the Province, bed capacity reductions, and increased efforts


to assist people to access housing. As in past years, the Division is re-investing the
available funding from the reduced service volumes to allow for some sector adjustments
to increase the per diems of shelters that remain below the average per diem for the
sector. The overall bed volume and per diem rate changes for the purchase of service
system create a net $0.199 million reduction for 2010.

The 2010 Operating Budget Submission also includes up to 8.676 million (gross)/$1.737
million (net), for Habitat Services. To date, no increases to the per diem rate have been
confirmed by the Ministry of Health and Long-Term Care for 2010.

Funding for the motel program of $1.341 million gross, with no net incremental impact,
is also recommended.

Shelter, Support and Housing Administration operates within its funding authorities up to
the approved Operating Budget. In the event that occupancy levels exceed the 2010
approved budget, Shelter, Support and Housing Administration would report out to
Community Development and Recreation Committee and to Budget Committee and seek
to mitigate cost pressures within the overall divisional envelope. Additionally, in the
event that occupancy levels go below the 2010 approved budget, Shelter, Support and
Housing Administration will re-distribute any unallocated savings directly to shelter
providers in the form of per diem adjustments up to the maximum 2010 approved
Operating Budget.

The Deputy City Manager and Chief Financial Officer has reviewed this report and
agrees with the financial impact information.

DECISION HISTORY

Shelter, Support, and Housing Administration reports annually on the recommended per
diem rates and bed capacities. The 2009 report also includes preliminary results of the
per diem funding review. A copy of the 2009 report can be found at:

http://www.toronto.ca/legdocs/mmis/2008/cd/bgrd/backgroundfile-17250.pdf

On August 5 and 6, 2009, Council approved the Housing Opportunities Toronto
Affordable Housing Action Plan 2010-2020. The HOT plan includes actions related to
shelter per diem funding.

The recommended City action items include:

“Working with the Province to establish a permanent program using flexible
shelter per diem funding to provide shelter clients with housing supports in the
community similar to the Hostels to Homes pilot. (Recommendation 5 b), and

“Working with the Province to implement a new funding model for shelters that
supports a Housing First approach.” (Recommendation 5 c).


The requests to the Provincial government include:

“Implement a new funding model for shelters which supports a Housing First
approach and provides flexibility in the use of shelter funding to establish a
permanent program to provide shelter clients with housing supports in the
community, similar to the Hostels to Homes pilot” (Recommendation 14).

A copy of the Housing Opportunity Toronto plan can be found at:
http://www.toronto.ca/affordablehousing/pdf/hot_actionplan.pdf

ISSUE BACKGROUND

Hostel Services of the Shelter, Support and Housing Administration Division is the
Consolidated Municipal Service Manager responsible for shelter development, program
delivery and system oversight. The Ontario Works Act outlines the authority for
municipalities to operate shelters or to purchase service from community agencies to
provide shelter services and personal needs allowances. The Provincial revenue funding
formula is an occupancy driven model which pays shelters on a per diem basis for beds
occupied by homeless individuals, families and children.

Council has made numerous recommendations to urge the Province to change the funding
model and increase the per diem rate. The current rate does not adequately fund the costs
of providing emergency shelters in the City of Toronto nor does it fund the services
required to assist homeless individuals to find and keep housing. In the 2010 proposed
operating budget for Purchase of Service shelters the average per diem rate is $52.13, of
which the Province pays $34.26. Although the Province has put a process in place to
upload the municipality’s share of the per diem, full cost upload will not take place until
2018. For 2010, the Provincial/ Municipal cost share should be 80.6/19.4, however based
on the 2010 proposed average per diem rate, the cost share is now 65.7/34.3. Since the
subsidy remains capped, the City will continue to fund the Provincial shortfall. The
projected system wide shortfall for 2009 is $31.4 million. In addition, previous
calculations by City staff show that the per diem rate does not even cover the basic room
and board costs, as identified in the Ontario Works Act.

COMMENTS

As of November 2009, there are 57 shelter facilities in the City of Toronto. The shelter
system is a mixed service delivery model. The City directly operates 9 shelters, the
Assessment and Referral Centre, and Central Family Intake. There are an additional 48
shelter sites operated by 30 community not-for-profit agencies funded through purchase
of service contracts with the City. All programs must meet the operating requirements as
set out in the Toronto Shelter Standards and the purchase of service operating agreements
and are evaluated using a Quality Assurance review process. In addition the City has the
ability to provide emergency shelter to families through the use of motel beds.


Appendix B - Shelter Profile Information, provides information on each agency and their
contracted services.

Occupancy Information:

Shelters provide emergency shelter, food, board, lodging and specialized counselling and
support services for thousands of people annually. In 2009 there are on average
approximately 3,800 permanent beds available nightly in the regular shelter system for
single adults, youth, and families with children. On average, there are also 405 beds in
the motel program used to provide emergency shelter to families.

The 2009 average occupancy rate from January 1st, 2009 –October 4th, 2009 for single
adult and youth shelters is 94 per cent. There are in addition an average of 1,157 persons,
including children, in the family shelters on a nightly basis. Appendix C provides a chart
showing the average occupancy trends in 2008 and 2009 year to date.

Appendix D charts the total number of different people who stayed in the shelter system
between 2000 and 2008 on an annual basis. Over this eight year period the peak use was
in 2001 when 31,175 different people used the shelter system. The total number of
different people using the shelter system in 2008 was 27,256. This represents an increase
from last year when 24,868 different people used the shelter system.

1. Purchase of Service Rates and Bed Capacities

a. 2010 Recommended Per Diem Rates, Bed Capacities and Personal Needs
Allowances

The 2010 recommended per diem rates, bed capacities, personal needs
allowances, and detailed information for each shelter are included in
Appendix A. The implementation of these rates is subject to the approval
of the 2010 Shelter, Support and Housing Administration Operating
Budget. As in previous years, the City applies increases/sector adjustments
in per diem rates using the pre-established Council reported criteria as
outlined in Appendix E. It should be noted that the majority of the 2010
recommended per diem rates provide agencies an increase that represents
a portion of the increased Provincial per diem.

Appendix F provides comparative operating budget information between
2009 and 2010 on a system and sector basis.

b. Information on In-Year Adjustments to Per Diem Rates

Changes to the Council approved per diem rates and bed capacities are
considered in-year adjustments. These adjustments can occur for a number
of reasons including a change in service provision, an urgent financial
situation that requires an increase to the per diem rate, and/or a need for


additional beds to meet occupancy demand. Hostel Services has an
established business practice that appropriately records and accounts for
any in-year per-diem adjustments. Any change in the operating agreement
must be approved by the appropriate signing authorities and Hostel
Services reports out annually to Council on any required in-year
adjustments. In 2009, adjustments were made to six contracts. Appendix
G – 2009 In-year Adjustments Report provides the detail on each of these
adjustments.

c. Other Service Contracts - Motels, Toronto Hostels Training Centre and
Habitat Services

This report seeks authorization to enter into funding contracts with Habitat
Services, the Toronto Hostels Training Centre and the City’s Motel
Program, subject to the approval of the 2010 Operating Budget. Appendix
H– Other Annual Services Contracts provides detailed information on
these programs.

Habitat Services is a housing and support subsidy program that is funded
by the Ministry of Health and Long-term Care and the City of Toronto. On
an annual basis the program provides a housing subsidy for up to 931 units
of private and not-for-profit boarding homes and rooming houses for
people with psychiatric illnesses.

So far in 2009, 2,259 shelter, drop in and other agency staff received
training and certificates through the Toronto Hostels Training Centre. The
Centre offers over 120 different training courses and six certificate
programs that support agencies in meeting the Toronto Shelter Standards
and allow staff to develop skills related to the provision of services to
homeless individuals.

The City of Toronto contracts with motels to provide spaces for families
when the regular permanent shelter system for families is at or near
capacity. The motel program is administered through two directly operated
shelters, Family Residence and Birkdale Residence. The use of motels
allows the City the flexibility to respond quickly to changes in demand
within the family shelter sector. On an average night in 2009, 405 people
are being provided shelter using the motel program.

2. Funding Model Review

a. Background

As reported out last year, Hostel Services initiated a process to review the
per diem funding model. This was in response to long standing issues with


the Provincial/ Municipal cost shared funding model which have been
noted earlier in this report.

b. Consultation Process and Feedback

As part of the process, Hostel Services initiated a consultation process
with all shelter providers in order to solicit their opinions on the
recommended options for the funding model. As directed by Council,
these consultations have included a discussion of shelter services in
relation to the City’s commitment to ending homelessness through a
Housing First approach.

Hostel Services met with the Board of Directors and senior management
staff of 20 agencies representing 34 shelter sites. As well, Hostel Services
met with the Executive from the Ontario Association of Hostels Toronto
Chapter and received correspondence from the Youth Shelter Interagency
Network.

Feedback from the meetings and correspondence indicates that there will
not be one funding model that is preferred by all agencies. The variation
in shelter sizes, the complexity of the shelter services provided and the
fact that some shelters are operated by single service agencies and others
by multi-service agencies does not lend itself to one simple solution.
However, the key findings that almost all agencies agree on include:

Eliminating the per diem system and replacing it with a form of
annualized funding that is paid out quarterly or semi annually and
reconciled at year end.

Creating contracts that set out services to be delivered with some form
of performance standards that will allow the City to address service
quality in the context of annualized payments.

Establishing multi year contracts/ operating agreements that will
reduce the paperwork required for agencies who are meeting
performance and quality assurance standards but that still recognize
the City’s requirement to set per diem rates annually.

For Multi- Service Agencies- Developing an integrated funding stream
that flows all Shelter, Support and Housing Administration funding
under a single contract.

c. Recommendations regarding the Provincial Funding Model

The current provincial funding model provides funding based on
occupancy, rather than on actual operating and support costs to provide


services to homeless people. By adopting a new funding model to create
greater flexibility and individualized supports to help shelter clients find
and keep permanent housing, the shelter system will be returned to its
original role of providing temporary emergency assistance.

The staff recommendations regarding changes to the provincial funding
model are based on the report on Alternative Model for Emergency
Shelter Funding prepared by Matrix Consulting as well as feedback from
the consultations with shelter providers. The recommendations are
attached to this report as Appendix I for approval by Council.

These recommendations are consistent with the action items detailed in
Housing Opportunities Toronto, recently approved by Council.

In the Housing Opportunities Toronto Plan, City action items include:

“Working with the Province to establish a permanent program using
flexible shelter per diem funding to provide shelter clients with
housing supports in the community similar to the Hostels to Homes
pilot. (Recommendation 5 b), and

“Working with the Province to implement a new funding model for
shelters that supports a Housing First approach.” (Recommendation 5
c).

In approving Housing Opportunities Toronto, City Council requested the
Provincial government to:

implement a new funding model for shelters which supports a Housing
First approach and provides flexibility in the use of shelter funding to
establish a permanent program to provide shelter clients with housing
supports in the community, similar to the Hostels to Homes pilot”
(Recommendation 14).

Staff of Shelter, Support and Housing Administration met with the
Assistant Deputy Minister of the Ministry of Community and Social
Services (MCSS) and also with the staff of the MCSS Toronto Region
Office to review the consultant’s report on the funding model and to brief
them on the feedback received from community agencies.

d. Administrative Changes with Existing Authority

While staff continue to work with the Province regarding the development
of a new funding model, there are a number of administrative steps that
the City can take in the interim to further reduce the administrative burden
associated with the existing per diem model. In 2008 the City established


an advanced payment process with 26 shelter providers that allowed
agencies to receive 75 per cent of their monthly per diem funding for the
coming month at the start of each month. The payment is then reconciled
at the end of each month and the remaining per diem funding that is due to
the agency is paid out.

This billing process has been extremely successful. Staff are now
recommending that this advance payment system be piloted on a quarterly
rather than monthly basis. This will provide participating agencies with
predictable, up front payments and will reduce the number of wire
transfers and cheques being issued by the city. Shelters rarely, if ever, go
out of service unexpectedly so the risk to the City is minimal. Staff will
work with Internal Audit to determine the eligibility guidelines for this
program.

Staff are also recommending that the City pilot a multi year contract/
operating agreement that will reduce the administrative burden required
for agencies who are meeting performance and quality assurance standards
but that still recognize the City’s requirement to set per diem rates
annually. Hostel Services currently requires agencies to complete an
annual funding submission, the preparation of which is time consuming
for each agency and the review of which is time consuming for City staff.
Requiring these once every two years will create administrative
efficiencies that will allow City staff to focus greater attention on quality
assurance activities. Hostel Services will work with Internal Audit and
Legal Services to determine the possible options for implementation of
this process.

CONTACT

Anne Longair
Director, Hostel Services
Tel: 416-392-5417
Fax: 416-392-8758
E-mail: ALongair@toronto.ca

SIGNATURE

_______________________________
Phil Brown
General Manager
Shelter, Support and Housing Administration


ATTACHMENTS

APPENDIX A - 2010 Recommended Per Diem Rates, Bed Capacities and Personal
Needs Allowances

APPENDIX B - City of Toronto Shelter Profile Information

APPENDIX C - 2008 vs. 2009 Occupancy Information

APPENDIX D - Total Number of Unique Individuals Using the Shelter System
From 2000-2008

APPENDIX E - Summary of Annual Criteria for Per Diem Rate Recommendations

APPENDIX F - 2009 vs. 2010 Purchase of Service Per Diem Budget

APPENDIX G - 2009 In-Year Adjustments Report

APPENDIX H - Other Service Contracts

APPENDIX I - Recommendations Regarding the Funding Model for Emergency
Shelters


2010 Recommended Per Diem Rates, Bed Capacities and Personal Needs Allowances APPENDIX A

2010 SHELTER INFORMATION 2010 BUDGET RECOMMENDATION *

SHELTER AND SECTOR WARD BED PROJECTED RECOMMENDED MAXIMUM OPERATING PERSONAL NEEDS
LOCATION CAPACITY OCCUPANCY PER DIEM RATE CONTRACT BUDGET BASED ALLOWANCES 2009
VALUE UPON RECOMMENDED
PROJECTED BUDGET (Actual
OCCUPANCY funding based on
client eligibility)

COED/MIXED SHELTERS
DIXON HALL- HEYWORTH HOUSE 31 70 100% $56.35 $1,439,743 $1,439,743 $59,021
HOMES FIRST SOCIETY- 3576 ST. CLAIR AVE. E. 35 60 100% $50.00 $1,095,000 $1,095,000 $55,188
FRED VICTOR CENTRE - BETHLEHEM UNITED 15 60 100% $63.00 $1,379,700 $1,379,700 $45,990
BETHLEHEM CHURCH 15 $270,428 $270,428 na
HOMES FIRST SOCIETY-STRACHAN HOUSE 68 100% $33.05 $820,301 $820,301 na
19
(Strachan emergency beds) 8 90% $39.35 $114,902 $103,412 $5,519
COSTI-RECEPTION CENTRE - Refugee 20 16 95% $33.05 $193,012 $183,361 $18,641
FIFE HOUSE-CO-ED Programs*** *** 16 98% $20.25 $118,260 $115,895 na
TOTAL COED SHELTERS 298 98% $42.15 $5,431,346 $5,407,840 $184,359

FAMILY/REFUGEE SHELTERS
YWCA - BEATRICE HOUSE - Family 17 80 93% $56.35 $1,645,420 $1,530,241 $74,136
CHRISTIE REFUGEE WELCOME CENTRE - Refugee
(FORMERLY WORLD VISION) 20 79 93% $46.50 $1,340,828 $1,246,970 $92,358
SOJOURN HOUSE-Refugee 50 95% $56.35 $1,028,388 $976,968 $61,897
27
SOJOURN HOUSE-Refugee Transitional 76 100% $32.20 $893,228 $893,228 na

TORONTO COMMUNITY HOSTEL - Family and Refugee 20 24 95% $56.35 $493,626 $468,945 $24,467
WOODGREEN REDDOOR - Family and Refugee 30 106 95% $65.55 $2,536,130 $2,409,323 $123,500
TOTAL FAMILY SHELTERS 415 95% $52.22 $7,937,620 $7,525,675 $376,358

Page 1 of 4



client eligibility)

MEN'S SHELTERS
SCOTT MISSION 20 45 100% $41.60 $683,280 $683,280 $44,840
CORNERSTONE PLACE 21 50 100% $41.60 $759,200 $759,200 $38,325
GOOD SHEPHERD 28 91 100% $46.05 $1,529,551 $1,529,551 $83,702
GOOD SHEPHERD-BARRETT 28 5 100% $24.15 $44,074 $44,074 na
NATIVE MEN'S RESIDENCE 21 63 100% $55.25 $1,270,474 $1,270,474 $57,947
NATIVE MEN'S RESIDENCE-SAGETAY 21 22 100% $67.00 $538,010 $538,010 $15,177
CHRISTIE-OSSINGTON CENTRE-MEN 18 45 100% $60.10 $987,143 $987,143 $31,043
SALVATION ARMY-HOPE SHELTER 20 110 100% $44.10 $1,770,615 $1,770,615 $84,315
SALVATION ARMY-MAXWELL MEIGHEN 28 260 100% $42.60 $4,042,740 $4,042,740 $199,290
SALVATION ARMY-GATEWAY 28 108 100% $45.25 $1,783,755 $1,783,755 $82,782
DIXON HALL-SCHOOL HOUSE 27 55 100% $35.25 $707,644 $707,644 na
ST SIMON'S SHELTER 28 57 100% $51.65 $1,074,578 $1,074,578 $56,798
TOTAL MEN'S SHELTERS 911 100% $46.22 $15,191,064 $15,191,064 $694,219

SEASONALHEAT ALERT BEDS - MULTIPLE SITES ARE
COLD AND SHELTERS
CONTRACTED FOR ADDITIONAL BEDS - WHEN COLD
OR EXTREME HEAT ALERTS - 90 IS THE AVERAGE
NUMBER OF BEDS - THERE ARE 22 PROJECTED
ALERTS BUDGETED FOR IN 2008 - INCLUDES
STIPEND~ 90 50% $45.55 $184,478 $182,239 $4,253
DIXON HALL - OUT OF THE COLD (average number of
beds per night) ** 90 95% $73.00 $1,189,170 $1,129,712 na
UNIVERSITY SETTLEMENT (WEEKENDS ONLY) 20 65 100% $41.60 $599,040 $599,040 na
TOTAL SEASONAL SHELTERS 245 82% $53.38 $1,972,688 $1,910,991 $4,253

Page 2 of 4



client eligibility)

WOMEN'S SHELTERS
ST.VINCENT DE PAUL-AMELIE ** 30 20 99% $75.75 $552,975 $547,445 $15,177
FRED VICTOR CENTRE WOMEN'S SHELTER 28 40 99% $57.40 $838,040 $829,660 $27,318
ST.VINCENT DEPAUL-MARY'S HOME 27 38 98% $57.40 $796,138 $780,215 $22,836
NELLIE'S WOMEN'S SHELTER *** 10 100% $62.40 $227,760 $227,760 $15,330
ST.VINCENT DEPAUL-ST CLAIRE RESIDENCE 24 30 98% $38.45 $421,028 $412,607 na
ST.VINCENT DEPAUL-ELISA HOUSE 6 40 98% $57.40 $838,040 $821,279 $30,047
SALVATION ARMY-EVANGELINE RESIDENCE 14 77 98% $57.80 $1,624,469 $1,591,980 $57,840
SALVATION ARMY-FLORENCE BOOTH HOUSE 19 60 98% $59.10 $1,294,290 $1,268,404 $45,070
STREET HAVEN 27 27 99% $64.55 $636,140 $629,779 $18,439
HOMES FIRST SOCIETY-SAVARD HOUSE 18 30 97% $66.70 $730,365 $708,454 $20,076
YWCA - FIRST STOP WOODLAWN-WOMEN 22 28 99% $57.40 $586,628 $580,762 $27,622
TOTAL WOMEN'S SHELTERS 400 98% $59.49 $8,545,873 $8,398,345 $279,755

Page 3 of 4



client eligibility)

YOUTH SHELTERS
COVENANT HOUSE 27 94 85% $57.40 $1,969,394 $1,673,985 $79,618
COVENANT HOUSE-SECOND STAGE 27 28 85% $53.60 $547,792 $465,623 na
EVA'S INITIATIVES-PLACE 34 32 90% $57.40 $670,432 $603,389 $28,698

EVA'S INITIATIVES-SATELLITE ** 23 32 95% $72.84 $850,771 $808,233 $30,292
HORIZONS FOR YOUTH 17 35 85% $57.40 $733,285 $623,292 $27,365
NATIVE CHILD & FAMILY SERVICES SHELTER 19 12 95% $57.40 $251,412 $238,841 $7,864
EVA'S INITIATIVES-PHOENIX 19 50 95% $57.40 $1,047,550 $995,173 $43,692
SECOND BASE YOUTH 35 56 85% $62.40 $1,275,456 $1,084,138 $43,782
TOUCHSTONE YOUTH + $64,000 pay direct rent for city
lease 29 32 85% $62.40 $728,832 $619,507 $27,103
TURNING POINT YOUTH 27 35 85% $57.40 $733,285 $623,292 $27,365
YMCA HOUSE 20 45 85% $61.80 $1,015,065 $862,805 $38,114
YWCA - FIRST STOP WOODLAWN-YOUTH 22 28 85% $57.40 $586,628 $498,634 $23,716
YOUTH WITHOUT SHELTER 1 50 90% $57.40 $1,047,550 $942,795 $44,840
TOTAL YOUTH SHELTERS 529 88% $59.40 $11,457,452 $10,039,707 $422,449

TOTALS 2,798 94% $52.13 $50,536,043 $48,473,622 $1,961,393

* RECOMMENDATIONS ARE SUBJECT TO THE APPROVAL OF THE 2009 OPERATING BUDGET
**RATE FROZEN
***CONFIDENTIAL ADDRESSES - LOCATION ADMINISTRATION OFFICES
~INCLUDES A $200 STIPEND PER AGENCY WHENEVER AN EXTREME WEATHER ALERT IS CALLED. THE STIPEND PAYS ADDITIONAL STAFF THAT THEY AGENCY NEEDS TO
BRING ON SHIFT ON SHORT NOTICE

Page 4 of 4

City of Toronto Shelter Profile Information, as of October 2009 APPENDIX B

SHELTER PROFILE INFORMATION

SHELTER AND SECTOR WARD COMMUNITY HOURS OF SERVICE EMERGENCY MULTI- CITY LEASED 2010
LOCATION COUNCIL (TORONTO OPERATION CONTRACT (ES) AND/OR SERVICE/SITE FACILITY - RECOMMENDED
EAST YORK - TEY) (INCLUDES ENHANCED TRANSITIONAL SHELTER MARKET RENT PER DIEM RATE
(NORTH YORK - NY) ACCESS TO CASE SHELTER (TS) (MSC) OR (MR) OR BELOW
(SCARBOROUGH - DAY MANAGEMENT STAND-ALONE MARKET RENT
SC) (ETOBICOKE PROGRAMS) - (ECM) OR BASIC (SA) (See (BMR)
YORK - EY) OVERNIGHT SUPPORT definitions
ONLY (ON) SERVICES below)
(BSS)

COED/MIXED SHELTERS

DIXON HALL- HEYWORTH HOUSE 31 TEY 24/7 ECM ES MSC $56.35

HOMES FIRST SOCIETY- 3576 ST. CLAIR AVE. E. 35 SC 24/7 BSS ES SA $50.00

FRED VICTOR CENTRE - BETHLEHEM UNITED 15 24/7 ECM ES MS $63.00
NY
BETHLEHEM CHURCH - FOOD/LEASE 15

HOMES FIRST SOCIETY-STRACHAN HOUSE BSS-NO FOOD TS MSC $33.05
19 TEY 24/7 BMR
(Strachan emergency beds) BSS ES MSC $39.35

COSTI-RECEPTION CENTRE - Refugee 20 TEY 24/7 BSS ES MS $33.05

FIFE HOUSE-CO-ED Programs*** *** 24/7 BSS-NO FOOD TS MSC $20.25


YWCA - BEATRICE HOUSE- Family 17 EY 24/7 ECM TS MSC $56.35
CHRISTIE REFUGEE WELCOME CENTRE- Family and
Refugee 20 TEY 24/7 ECM ES MS $46.50

SOJOURN HOUSE-Refugee ECM ES $56.35
27 TEY 24/7 SA
SOJOURN HOUSE-Refugee Transitional ECM - NO FOOD TS $32.20

TORONTO COMMUNITY HOSTEL - Family and Refugee 20 TEY 24/7 ECM ES SA MR $56.35

WOODGREEN REDDOOR - Family and Refugee 30 TEY 24/7 ECM ES MS $65.55

Page 1 of 4



(BSS)

MEN'S SHELTERS

SCOTT MISSION 20 TEY ON BSS ES MS $41.60

CORNERSTONE TABERNACLE 21 TEY ON BSS ES SA $41.60

GOOD SHEPHERD 28 TEY 24/7 ECM ES MSC $46.05

GOOD SHEPHERD-BARRETT 28 TEY 24/7 BSS TS MSC $24.15

NATIVE MEN'S RESIDENCE 21 TEY ON ECM ES MSC $55.25

NATIVE MEN'S RESIDENCE-SAGETAY 21 TEY 24/7 ECM TS MSC $67.00

CHRISTIE-OSSINGTON CENTRE-MEN 18 TEY ON BSS ES MSC $60.10

SALVATION ARMY-HOPE SHELTER 20 TEY 24/7 ECM ES MSC $44.10

SALVATION ARMY-MAXWELL MEIGHEN 28 TEY 24/7 ECM ES MSC $42.60

SALVATION ARMY-GATEWAY 28 TEY 24/7 ECM ES MSC $45.25

DIXON HALL-SCHOOL HOUSE 27 TEY ON BSS TS MSC BMR $35.25

ST SIMON'S SHELTER 28 TEY ON BSS ES SA $51.65
SEASONAL SHELTERS
MULTIPLE SITES ARE CONTRACTED FOR ADDITIONAL BEDS - WHEN COLD OR EXTREME HEAT ALERTS - 90 IS THE
COLD AND HEAT ALERT BEDS AVERAGE NUMBER OF BEDS - THERE ARE 22 PROJECTED ALERTS BUDGETED FOR IN 2008 - INCLUDES STIPEND~ $45.55

DIXON HALL - OUT OF THE COLD (average number of beds
per night) ON BSS ES MSC $73.00

UNIVERSITY SETTLEMENT (WEEKENDS ONLY) 20 TEY ON BSS ES MS $41.60

Page 2 of 4



(BSS)

WOMEN'S SHELTERS

ST.VINCENT DE PAUL-AMELIE 30 TEY 24/7 ECM TS MSC $75.75

FRED VICTOR CENTRE WOMEN'S SHELTER 28 TEY 24/7 ECM ES MS $57.40

ST.VINCENT DEPAUL-MARY'S HOME 27 TEY 24/7 ECM ES MSC $57.40

NELLIE'S WOMEN'S SHELTER *** TEY 24/7 ECM ES MS $62.40

ST.VINCENT DEPAUL-ST CLAIRE RESIDENCE 24 NY 24/7 BSS TS MSC $38.45

ST.VINCENT DEPAUL-ELISA HOUSE 6 EY 24/7 ECM ES MSC $57.40

SALVATION ARMY-EVANGELINE RESIDENCE 14 TEY 24/7 ECM ES MSC $57.80

SALVATION ARMY-FLORENCE BOOTH HOUSE 19 TEY 24/7 ECM ES MSC $59.10

STREET HAVEN 27 TEY 24/7 ECM ES MS $64.55

HOMES FIRST SOCIETY-SAVARD HOUSE 18 TEY 24/7 ECM ES MSC $66.70

YWCA - FIRST STOP WOODLAWN-WOMEN 22 TEY 24/7 ECM ES/TS MSC $57.40

Page 3 of 4



(BSS)

YOUTH SHELTERS

COVENANT HOUSE 27 TEY 24/7 ECM ES MSC $57.40

COVENANT HOUSE-SECOND STAGE 27 TEY 24/7 ECM TS MSC $53.60

EVA'S INITIATIVES-PLACE 34 NY 24/7 ECM TS MSC $57.40

EVA'S INITIATIVES-SATELLITE 23 NY 24/7 ECM ES MSC BMR $72.84

HORIZONS FOR YOUTH 17 ET 24/7 ECM ES SA $57.40

NATIVE CHILD & FAMILY SERVICES SHELTER 19 TEY 24/7 ECM TS MS $57.40

EVA'S INITIATIVES-PHOENIX 19 NY 24/7 ECM TS MSC BMR $57.40

SECOND BASE YOUTH 35 SC 24/7 ECM ES SA $62.40

TOUCHSTONE YOUTH + pay direct rent for city lease 29 TEY 24/7 ECM ES SA MR $62.40

TURNING POINT YOUTH 27 TEY 24/7 ECM ES MS $57.40

YMCA HOUSE 20 TEY 24/7 ECM ES MSC $61.80

YWCA - FIRST STOP WOODLAWN-YOUTH 22 TEY 24/7 ECM ES/TS MSC $57.40

YOUTH WITHOUT SHELTER 1 ET 24/7 ECM ES/TS SA $57.40

***CONFIDENTIAL ADDRESSES - LOCATION ADMINISTRATION OFFICES
~INCLUDES A $200 STIPEND PER AGENCY WHENEVER AN EXTREME WEATHER ALERT IS CALLED. THE STIPEND PAYS ADDITIONAL STAFF THAT THE AGENCY NEEDS TO BRING ON SHIFT ON
SHORT NOTICE

EACH SHELTER IS FORMALLY IDENTIFIED AS EITHER PROVIDING BASIC SUPPORT SERVICES or ENHANCED CASE MANAGEMENT SERVICES. THE OPERATING FRAMEWORK CLEARLY OUTLINES
SERVICE EXPECTATIONS AND FILE DOCUMENTATION STANDARDS FOR EACH SHELTER. THESE SERVICES INCLUDE CONDUCTING INITIAL NEEDS ASSESSMENTS WITH ALL CLIENTS WITHIN 8
DAYS OF ADMISSION; DOCUMENTED HOUSING PLANS WITH ALL SHELTER CLIENTS WHO STAY BEYOND 14 DAYS IN A SHELTER; AND DISCHARGE PLANNING SO THAT CLIENTS ARE CONNECTED
UP TO APPROPRIATE SUPPORTS IF NEEDED TO HELP THEM MAINTAIN THEIR HOUSING.

MSC - THESE ARE AGENCIES THAT OPERATE MORE THAN ONE SHELTER. IN THESE CASES THE CITY ENTERS INTO ONE CONTRACT WITH THE AGENCY - MS - ARE AGENCIES THAT ARE PART OF
MULTI-SERVICES ORGANZIAITONS BUT ONLY OPERATE ONE SHELTER LOCATION - SA - THESE ARE AGENCIES THAT ONLY OPERATE SHELTER PROGRAMS

Page 4 of 4

APPENDIX C

2008 vs. 2009 OCCUPANCY INFORMATION

The following provides an overview of the sector and system occupancy rates for 2008 and 2009, year to date:

SECTOR 2008 AVERAGE NUMBER 2008 *2009 AVERAGE NUMBER 2009 OCCUPANCY
OF BEDS OCCUPIED OCCUPANCY OF BEDS OCCUPIED RATE (%)
NIGHTLY RATE (%) NIGHTLY

CO-ED/ MIXED ADULT 289 99% 324 99%

MEN 1535 94% 1543 95%

WOMEN 517 95% 497 98%

YOUTH 469 86% 458 87%

SINGLE ADULT AND YOUTH AVERAGE 2810 93% 2822 94%

FAMILY 1069 n/a- capacity 1157 n/a- capacity
expands to meet expands to meet
increased demand increased demand

* 2009 averages are based on occupancy data received to and including the week of October 4th, 2009.

Page 1 of 1

Appendix D

35,000
Total Number of Unique Individuals Using the Shelter System 2000-2008

30,905
31,175

30,000

29,498 27,256
26,695 26,850
28,133 26,312

25,000

24,868

20,000

17,935 17,555 17,849
16,153 17,621

15,032
16,145 16,015
15,000

13,311

10,000

5,887
5,320 5,785
5,916
5,116 5,357 5,063 5,017 4,488
4,832
5,000 5,020
3,996 3,821
4,386 5,001
3,048
2,479 2,489 2,569
3,462 2,719
3,233
1,896
2,056 1,680 1,796
1,644
0
2000 2001 2002 2003 2004 2005 2006 2007 2008

Unique Individuals - Adults Unique Individuals - Youth Total Number of Families Total Number of Children Total Number of Unique Individuals

APPENDIX E

SUMMARY OF ANNUAL CRITERIA FOR PER DIEM RATE
RECOMMENDATIONS
The following outlines the criteria staff use in making per diem recommendations:

(a) Contracted Service Delivery - includes a review of contracted service provision
(e.g. Basic - board and lodging vs. Enhanced - case management services); total
number of hours of operation (overnight vs. 24 hours a day, 7 days a week
operations); client profile; built form (e.g. purpose built facility vs. church
basement); operating costs (e.g. market rent vs. no facility costs), etc.

(b) Revenue Generation Capacity - includes a review of size of agency and whether
or not it is a stand-alone or multi-service agency; total number of beds in the
shelter (economies of scale); and additional funding sources (United
Way/Salvation Army Red Shield funded vs. City of Toronto as sole funder), etc

(c) Sector Comparison Review – includes a review of per diem rates in each sector
and annually takes incremental steps to adjust any significant rate imbalances by
sector (after revenue generation and service delivery comparisons are completed).
Agencies currently receiving above sector average per diem rates are red-circled
until the other providers in that sector (with comparable programs) reach similar
rates.

(d) Agency In Difficulty Review – includes a review of agencies that are in
financial, operational, and/or agency governance difficulty. Agencies in this
category are identified in a number of different ways including but not limited to
the annual budget submission process; as well as through agency declarations; or
as a result of site visits; quality assurance reviews, and/or complaints.

Agencies in this category often have a broad range of issues. Some may have on-
going operational deficit issues from major occupancy loss, others may be not
fully meeting the service standards and the City is working with them to
remediate these services. There may be contract compliance issues including
financial reporting and/or Board and/or Management governance which may
impact on funding.

If an agency is recommended for an increase under these circumstances, it is
recommended to assist the agency to develop stabilization plans that reduce the
risk of unwanted bed closure. It is important to note that generally the rates are
temporary and will return to sector averages at the end of the contracted
stabilization period. In each of these cases Hostel Services provides enhanced
agency oversight including increased site visits and attendance at agency board
meetings. There are also a number of additional operating and reporting
requirements placed on these shelters as a condition of on-going funding.

Page 1 of 2

(e) Review of Agencies with Funding Conditions – includes a review of agencies
that have had conditions placed on their continued funding. Conditions in this
case are established when there are serious issues with the agency’s overall
performance or compliance with the Standards/Operating Agreement which
places the agency in breach of the operating agreement. A breach may occur when
there is a serious contravention of the Shelter Standards including but not limited
to substantial failure to meet the requirements related to service delivery,
reporting, board governance/agency management, financial management, etc. In
these cases agencies that have conditions placed on their on-going funding will
not receive an increase in per diem rates unless and/or until the issues have been
resolved to the satisfaction of the City.

(f) Fair Distribution of Inflationary Increases – Once the review from (a) – (e) is
completed the set recommended inflationary increase is applied equitably among
the remaining agencies.

Page 2 of 2

APPENDIX F

2009 vs 2010 Purchase of Service Per Diem Budget

2009 2010 Variance

Total Purchase of Service
Projected Bednights 935,735 929,125 (6,610)
Gross Per Diem Operating Budget $47,955,491 $48,473,622 $518,131
Net Per Diem Operating Budget $16,842,103 $16,642,699 ($199,404)
Net % Contribution 35.12% 34.33% (0.79%)
System Average Per Diem $51.25 $52.13 1.72%

Gross Personal Needs Allowance $1,910,655 $1,961,393 $50,738
Net Personal Needs Allowance $382,131 $392,279 $10,148
Co-ed Mixed Adult
Projected Bed Nights 107,712 108,069 357
Family *
Projected Bed Nights 144,176 144,129 (47)
Net Per Diem Operating Budget $2,406,513 $2,587,815 $181,302
Net % Contribution 33.42% 34.39% 0.96%
Men
Projected Bed Nights 324,084 332,515 8,431
Net Per Diem Operating Budget $3,561,318 $3,799,100 $237,782
Net % Contribution 24.84% 25.01% 0.17%
Seasonal/Part-time
Projected Bed Nights 29,981 31,901 1,920
Net Per Diem Operating Budget $823,777 $818,063 ($5,714)
Women *
Projected Bed Nights 148,465 143,464 (5,001)
Gross Per Diem Operating Budget $8,516,913 $8,398,345 ($118,568)
Youth *
Projected Bed Nights 181,323 169,051 (12,272)
Gross Per Diem Operating Budget $10,777,809 $10,039,707 ($738,102)
System Average Per Diem $59.44 $59.40 * (0.07%)

* Decrease is the result of the transfer of one shelter (Na-Me-Res Sagetay) from the youth sector to the
men's sector.

APPENDIX G

2009 IN YEAR ADJUSTMENTS REPORT

SHELTER 2009 2009 COUNCIL IN YEAR EXPLANATION
COUNCIL APPROVED ADJUSTMENT*
APPROVED PER DIEM
BED RATE
CAPACITY

COED/MIXED SHELTERS
HOMES FIRST SOCIETY- 3576 60 $48.66 Change of Shelter The previous operator, Scarborough Hope Centre Inc. advised the City they were no longer
ST. CLAIR AVE. E. Operator able to operate the shelter program. Through an Expression of Interest process, Homes
First Society was selected to be the new operator. The shelter capacity remained the same
at 60 beds.

WOODGREEN RED DOOR 120 $57.90 Shelter capacity The capacity was reduced from 120 beds to106 beds at the request of the agency. Given
reduced to 106 beds the physical layout of the building, the shelter was never able to achieve full occupancy. The
per diem rate for the shelter was increased to $65.00; however due to the capacity
reduction, there was no net impact to the 2009 approved budget.

MEN'S SHELTERS
NATIVE MEN'S RESIDENCE- 22 $71.00 Per diem rate reduced In 2009, Sagatay re-opened after undergoing renovations. This site was previously known
TUMIVUT/ SAGETAY to $54.70 as Tumivut Youth Shelter. The shelter capacity remains the same at 22 beds; however the
per diem rate was reduced, pending receipt of a business case from the operator to support
the enhanced program model.

ST. SIMONS SHELTER 57 $50.90 Shelter capacity In January 2009 at the request of the City, St. Simon’s men’s shelter expanded their
temporarily increased to program to include 30 additional temporary beds. The beds will continue to operate through
87 beds the 2009/2010 winter season and will be discontinued in April 2010.

SEASONAL SHELTERS
UNIVERSITY SETTLEMENT 65 $40.85 Shelter capacity The capacity was increased from 65 to 75 beds. The agency submitted a business case to
(WEEKENDS ONLY) increased to 75 beds Hostel Services requesting to add the 10 beds and also requesting support to enhance the
homeless services offered at the site.

WOMEN'S SHELTERS
NELLIE'S WOMEN'S SHELTER 20 $61.85 Shelter funded capacity The Ministry of Community and Social Services uploaded the funding of 10 Violence Against
reduced to 10 beds Women beds, effective November 2008.

* All increases are within the 2009 Approved Operating Budget

Page 1 of 1

APPENDIX H

OTHER SERVICE CONTRACTS
a) Mental Health Program Services of Metropolitan Toronto - Habitat Services

Habitat Services is a housing and support subsidy program that is cost-shared by the
Ministry of Health and Long-term Care and the City of Toronto. On an annual basis the
program provides a housing subsidy for up to 931 units of private and not-for-profit
boarding homes and rooming houses for people with psychiatric illnesses. The subsidy is
based upon a per diem rate which is adjusted according to each individual tenant’s
income.

The 2010 Operating Budget Submission also includes up to $8.676 million
(gross)/$1.737 million (net), for Habitat Services. To date, no increases to the per diem
rate have been confirmed by the Ministry of Health and Long-Term Care.

b) Toronto Hostel Training Centre

The Toronto Hostels Training Centre (THTC) was created in 1997, following the
recommendations made by a Coroner’s jury regarding the need for staff training in
hostels. The City of Toronto provides $198,000 in annual funding to provide specialized
training and associated services in a cost effective manner for the staff and board
members of shelters and others working with homeless people. The Centre offers all of
the mandatory training required in the Toronto Shelter Standards.

On an annual basis City operated shelters purchase training from the Toronto Hostels
Training Centre in order to meet the training requirements under the Shelter Standards.
The rates are reasonable and range from $35-$55 per day, per person, per course. Given
the specialized training, purchasing limits and requirements related to sole source
contracts, Hostel Services is seeking the authority to continue to purchase training from
the Centre subject to the approval of the 2010 Operating Budget – up to $42,000.

b) Motel Contracts

The City of Toronto contracts with motels to provide spaces for families when the regular
permanent shelter system is at or near capacity. The motel program is administered
through two directly operated shelters, Family Residence and Birkdale Residence. At the
present time the City works with four motels in Scarborough (3 in Ward 44 and one in
Ward 36). In 2008 and year to date (as of October 19th, 2008) the average number of
people staying in the motels including children on a nightly basis was 405.
The costs for this program up to $ 1.341 million, are included in the 2010 Shelter,
Support and Housing Administration Operating Budget Submission, and subject to
Council approval.

APPENDIX I

RECOMMENDATIONS REGARDING THE FUNDING MODEL FOR
EMERGENCY SHELTERS
The Housing Opportunities Toronto Affordable Housing Action Plan, approved by Council on
August 5, 2009, requests that the Provincial government “implement a new funding model for
shelters which supports a Housing First approach and provides flexibility in the use of shelter
funding to establish a permanent program to provide shelter clients with housing supports in the
community, similar to the Hostels to Homes pilot” (Recommendation 14).

The following recommendations regarding the funding model are consistent with the HOT plan
actions. These recommendations were developed through the review of the per diem funding
model and are based on the Alternative Model for Emergency Shelter Funding report, produced
by Consulting Matrix in 2007 as well as feedback from the consultations with shelter providers.

1. The Province should eliminate the per diem model of funding and replace it with a
flexible, uncapped annualized funding program that supports a Housing First approach
and enables people to move more quickly from shelters into housing.

2. The new provincial funding model should be designed to cover actual shelter operating
costs and not be occupancy driven.

3. The new provincial funding model should retain the open-ended nature of current shelter
funding so that municipalities have the flexibility to respond to unexpected increases in
demand due to increased homelessness or unforeseen emergencies that result in
homelessness.

4. The new provincial funding model should provide ongoing stable funding at a level that
adequately covers the costs of food, board and lodging as well as the specialized
counseling, mental health, addiction and other support services required by homeless
single adults, youth and families with children.

5. The new provincial funding model should provide permanent, sustainable funding for a
program similar to the Hostels to Homes pilot, to enable agencies to provide clients with
housing supports in the community.

Per Diem Rates for Purchase of Service Shelters

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