Homes First

About Homes First:

Founded in 1983, Homes First develops and provides affordable housing for homeless people in Toronto. Taking a housing-first approach, the charity recognizes that the first step for people to break the poverty cycle is to give them a home of their own. Homes First also believes that addiction and mental health can not be effectively treated when a person is living on the streets. The charity estimated that the annual cost of homelessness on the Canadian economy is $7 billion. It also notes that there are approximately 5,000 people in Toronto who are homeless, with nearly 3,200 people on the waitlist for supportive housing.

Homes First currently owns and/or manages 16 buildings in Toronto consisting of approximately 455 units. These buildings provide overnight shelter, transitional housing, shared accommodation and independent living opportunities that facilitate the transition from the street to temporary shelter to permanent accommodation. Homes First provided 382 people with supportive housing and served 276,555 meals in F2017. The charity also provided emergency shelter for a total of 92,185 nights in F2017, 24,240 more than F2016.

Homes First works with the Centre for Addiction and Mental Health (CAMH) to help move patients out of the hospital and into shared apartments at Homes First. Patients continue to receive mental health support in their new residences. In F2017, 47 former CAMH patients were living at Homes First, 5 more than in F2016.

Results and Impact: Homes First reports that the cost of one year at CAMH is $250,000. It reports the cost of living at Homes First for one year is $30,000. Therefore, as a result of the 47 former CAMH patients now living at Homes First, the charity was able to save society $10.3m per year. In 2014, The Globe and Mail reported that for every $1 spent towards providing housing and supports for a homeless person with severe mental health issues, it results in $2.17 of savings.

Financial Review:

Charity Intelligence has consolidated the financial statements of Homes First Society and Homes First Foundation in the following financial analysis. The Foundation’s purpose is to support the long-term financial viability and continued housing supply for the Society.

Homes First is a medium-sized charity with donations of $1.6m in F2017, a 29% increase compared to F2016. The charity also received $9.9m in government funding in F2017 and $1.3m in fees for service revenue. Administrative costs are 10% of total revenues and fundraising costs are 14% of donations. Per dollar donated to the charity, $0.76 goes towards its programs, which falls within Ci’s reasonable range for overhead spending. Homes First’s interest-bearing mortgages of $9.7m exceed its liquid assets of $4.3m. The charity’s negative funding reserves of $5.4m indicate a need for donations.

This charity report is an update that has been sent to Homes First for review. Changes and edits may be forthcoming.

Updated on August 24, 2018 by Derek Houlberg.

This charity report and analysis is generously funded by the E.W. Bickle Foundation to share with other Canadian donors interested in helping youth in Ontario.