The City of Toronto spent more than $ 13.2 million over two years on emergency hotel shelters, according to a tax audit by the city’s auditor general.
The money for housing support, on the other hand, was used to pay a number of hotel fees, says the Auditor General. This is despite the fact that the contracts exclude these rates.
In two years, $ 5.4 million was spent on vacant hotel room rates, $ 5.3 million on facility surcharges on meal bills, and $ 2.4 million was spent. they attributed the “DMF” charges, although there was disagreement among respondents during the audit as to whether this was a tourist tax or some other unclear hotel rate. The audit notes that hotels stopped including this charge in January 2022.
“Every dollar and every room is important,” Auditor General Beverley Romeo-Beehler said in her report, which is expected to be discussed by the audit committee next week. He is scheduled to arrive at City Hall on June 15.
Millions spent poorly could have covered the cost of 52,000 nights of room for homeless city residents, according to the audit, as well as meals and support services “for an entire year.”
Instead, the hotels incorporated the supplements into their bills and were paid by city officials, according to the audit. According to the audit, “some staff” who managed the invoices did not seem to know the contracts or what positions were suitable.
“My jaw dropped,” says the hotel resident
“You have to make sure that you are charged according to the contract, otherwise what sense does it make to have one,” the council said. Stephen Holyday, who chairs the audit committee.
“Everyone understands that during the COVID it was a time of coercion for the city, but there is an old saying … the hurry is wasted,” he said. “We need to understand how to better manage contracts across the city.”
While the pandemic was certainly a complicating factor, the auditor general was careful to point out that in some cases: “These incorrect amounts were being charged even before the pandemic.”
“My jaw dropped,” Gru, a hotel resident whose legal name is Jesse Allan, told CBC News.
“Fifteen million dollars get a lot of apartments for a whole year,” he said, “real apartments, which is what most people on the street need.”
Among its recommendations, Romeo-Beehler suggests that the city develop a proper system to review its invoices to make sure payments match the terms of the contract. He also suggests that the city’s corporate real estate management division take responsibility for contracting with hotels so that the shelter, support and housing management division “can focus on providing basic services.”
The audit notes that its recommendations focus on helping to “ensure that the money is spent on providing more shelter or creating permanent housing solutions for the homeless.”
‘That’s why we have an Auditor General’: Tory
In a statement, Mayor John Tory said, “That’s why we have an auditor general” and that city staff will “act” on their recommendations.
“I will make sure that … we are doing our best to recover the costs that should not have been charged to the City Council,” he said.
While the Auditor General serves as an important accountability officer, Cathy Crowe, a longtime street nurse and housing advocate, says it’s ultimately up to senior city officials to “make a living.” best job “.
Last year was one of the deadliest for homeless people in Toronto since Toronto Public Health began monitoring in 2017. In 2021, 216 people died, 132 of whom were residents of homeless shelters. home.
To meet the pandemic’s physical distancing requirements, the city opened 42 temporary shelters, including hotels.
But COVID-19 outbreaks, food quality problems and other problems made some havoc not “fit” to live, led some homeless residents to seek refuge in municipal parks. Attempts to clear some of these camps last summer he became violent.
Camp supporters defend a group of tents while Toronto police enforce an eviction order at Trinity Bellwoods Park in Toronto on June 22, 2021. (Evan Mitsui / CBC)
In early March, the audit noted that there were still about 4,000 people staying in less than 3,000 rooms in 29 hotels.
“Someone has to pay for it,” Crowe said. “We should be absolutely outraged by that.”