Advocates concerned as Alberta changes funding model for homelessness agencies

A former president of the Calgary Homeless Foundation says he is deeply concerned by the Alberta government's recent decision to overhaul the funding scheme for organizations providing services to homeless people.

Tim Richter, who served as the foundation's president from 2008 to 2012 and who now leads the Canadian Alliance to End Homelessness, a national charity, says the change is dangerous and will lead to more people falling through the cracks.

Under the current model, the foundation and six other non-profit and other organizations act as local hubs and receive a lump sum of government money, which they distribute to smaller organizations in their area.

But provincial Community and Social Services Minister Jason Nixon announced Friday that the government plans to ditch that model, and distribute the funding itself through existing government grants.

Richter says under the current model, hub organizations like the foundation and Edmonton's Homeward Trust ensure that smaller organizations within the same city work together to ensure needed services are available, and gaps are filled.

He worries that under the new model, that unity and communication will be lost.

"This turns back the clock on the homelessness response in Alberta 15 years," he said.

"It is a terribly dangerous move that will cost more, hurt people in the long run, and leave homelessness to explode across the province."

However, Nixon said Friday that the agencies receiving funding to dole out are essentially acting as middlemen, and it will be more efficient to eliminate that step.

He also said the new process would improve "accountability and oversight" of the programs and services made available through the funding, and gave a couple of examples of funds being used in ways that didn't align with the government's goals.

"We've seen evidence in the past of organizations distributing tents out into the community," he said. "That would be a great example of where our government is focused on shelter and housing, not on providing encampments."

In an interview late Friday Nixon dismissed Richter's concerns.

"[Funding] will continue to be based on community need, and continue to go to frontline services associated in those communities," he said.

He also said the government provides a combined $101.5 million annually to the seven hub organizations and the new model is anticipated to increase the funding available.