N.S. splits from non-profit operator of supportive housing sites in Halifax

The Nova Scotia government has suddenly severed ties with a non-profit group that was operating two modular housing sites in the Halifax area.

The Department of Opportunities and Social Development confirmed to CBC News that it ended its contract with Out of the Cold on Tuesday, citing "serious and persistent concerns related to safety, infrastructure, and the quality of services and supports available to residents."

The department did not explain the concerns in detail, except to say they spent "several years" trying to work with Out of the Cold to address them before arriving at the decision to part ways.

"Ending the contract was not a decision made lightly — it reflects our responsibility to act in the best interests of the people we serve and to ensure accountability for the taxpayers' investment," the department said.

Out of the Cold has run two modular, supportive housing sites since they opened in 2022 in response to surging rates of homelessness, rising rents and a low vacancy rate. 

The Halifax site, next to the Centennial pool on Cogswell Street, has capacity for 38 people, and the Dartmouth site, on Church Street near Alderney Landing, has capacity for 26.

Halifax Regional Municipality owns the land, paid for construction of the units and continues to cover in-kind services such as utilities and building maintenance. The province is responsible for supporting residents, including providing meals and mental health and addiction support. 

New operator, new model

The province has replaced Out of the Cold with the Atlantic Community Shelter Society, which runs some of the other supportive housing sites that have been built in recent years, including the Pallet shelters.

"ACSS has a strong track record for service delivery in Nova Scotia and brings a compassionate, sustainable approach that aligns with our commitment to the well-being and long-term success of Nova Scotians experiencing homelessness," the province said in a statement.

The change in service providers is coupled with a change in how the two sites will function.

Suzanne Ley, the executive director of employment support and income assistance with the Department of Opportunities and Social Development, sent an email to some local housing support organizations Tuesday notifying them of the change.  A copy of that email was shared with CBC News.

Ley said the two sites are transitioning to a "temporary supportive housing model." 

"This model provides short-term, low-barrier, and flexible accommodations that help residents take meaningful steps toward stable, permanent housing," Ley said.

According to Out of the Cold's website, the sites have, until now, been operating as "permanent housing."

The department did not respond before publication to a request for more information about how long residents can stay under the new model.

In her email, Ley said the province has given funding to Out of the Cold "to ensure appropriate compensation for all staff." She said Out of the Cold staff will be able to apply for positions with the new operator.

No one from Out of the Cold or the Atlantic Community Shelter Society was available for comment Wednesday.