May 06, 2025

Homelessness Planning in Small Canadian Cities: Service Provider Needs for Organizational Change

Homelessness is not just an issue affecting large urban centres – small and medium-sized cities across Canada are also increasingly facing challenges addressing homelessness. However, these cities often lack the resources, skilled labour force, and funding necessary to effectively implement homelessness strategies. In our recent study published in the International Journal on Homelessness, we interviewed service providers to garner an understanding of how three smaller Canadian cities – Lethbridge (Alberta), Kelowna (British Columbia), and Sherbrooke (Quebec) – are adapting to, and implementing provincial and federal multi-year plans to end homelessness.

Our research highlights key barriers and opportunities in smaller city homelessness planning and suggests practical ways forward to improve service coordination, communication, and overall system effectiveness in these locales.

The Challenge: Limited Resources, High Demand

Smaller cities are often uniquely positioned as regional hubs connecting rural and urban communities. Despite their critical role in homelessness response, they often lack the stable funding and policy attention that larger cities receive. Our study found these cities to have the following challenges when attempting to scale down homelessness plans developed with larger cities in mind:

  • Jurisdictional Issues – Federal and provincial policies are often developed with an assumed “universality” while being urban-focused. Because small cities are larger than “rural” communities, the expectations placed on these jurisdictions become similar to those placed on larger urban cities by default. Such policy framing routinely misaligns with the local realities of smaller jurisdictions, making implementation difficult.
  • Unstable and Inflexible Resources – Funding is routinely short-term, inconsistent, and tied to specific program models that may not fit community needs. Insufficient funding also fosters wage-related issues. The staff turnover created by workers being overworked and underpaid poses unique challenges for small to mid-size cities as they have smaller populations and, therefore, less skilled hiring pools. Top-down approaches to funding allocation often force service providers to conform to funding requirements rather than create innovative programs that respond more effectively to local needs.
  • Communication and Data Gaps – The increasing prevalence and complexity of homelessness in smaller cities, combined with inadequate resources and staffing shortages, means that agencies are consistently unable to prioritize data tracking and sharing. As a result, service providers often operate in silos, limiting their ability to share knowledge and collaborate effectively.
  • Attitudes towards Change – Service providers’ attitudes towards changes resulting from homelessness planning are tied to their degree of inclusion in the planning process, resources to implement stipulated program changes, and communication flow across all levels of government. Positive attitudes towards organizational change are imperative for a change’s success. However, service providers in smaller cities largely felt underrepresented and unsupported in homelessness plan development and implementation.

These challenges mean that even well-intentioned plans to reduce homelessness can fall short, as agencies lack the tools to translate policy into action.

Bridging the Gaps: What Needs to Change?

Drawing on systems change theory and organizational change theory, we propose three actionable strategies to strengthen homelessness planning in mid-sized Canadian cities:

  • Develop Stronger Coordination Mechanisms – fostering open channels of communication across all orders of government will help service providers in smaller cities to feel represented and supported in homelessness plan development and implementation. Further, establishing centralized communication platforms, such as “homelessness tables”, ensures service providers are aligned, even in more decentralized models of service delivery. This de-siloing is imperative for avoiding service duplication, allowing for limited funding to stretch further in supporting community needs.
  • Ensure Funding Stability and Flexibility – Long-term, adaptable funding allows smaller cities to respond to changing needs and invest in more sustainable solutions. Increased autonomy in funding allocation facilitates the successful scaling down of provincial and federal homelessness plans to meet smaller cities’ unique needs.
  • Embed Cultural Competency and Inclusivity – Service providers and homelessness planners must acknowledge the unique challenges faced by Indigenous peoples, LGBTQ2S+ individuals, women, immigrants, people with disabilities, and those with substance use issues. Tailored supports are crucial.

These steps will help small to mid-size cities move beyond emergency responses and toward long-term prevention and systemic change.

Final Thoughts: Why Small Cities Matter

Our research underscores the urgent need to center small and mid-sized cities in homelessness policy discussions. Despite facing significant constraints, these cities are sites of innovation and collaboration – however, they need to right tools to succeed.

By breaking down silos, strengthening coordination, and ensuring stable funding, small cities can implement more effective strategies that truly serve their communities.

Read the complete study here: https://ojs.lib.uwo.ca/index.php/ijoh/article/view/17759

 

Disclaimer
The analysis and interpretations contained in these blog posts are those of the individual contributors and do not necessarily represent the views of the Canadian Observatory on Homelessness.