New shelter gives London residents a path toward stability

By Jaron Campbell

The City of London says its new micro-modular shelter is delivering results just weeks after opening, as it’s already near full capacity as demand for homelessness supports continues to climb.

The temporary shelter, located at 3900 Cheese Factory Rd., began welcoming its first residents in early February and is now housing about 70 people, which is its intended limit. City officials say the project is helping people get back on their feet and connect with support services, even as demand remains high.

The project is expected to operate until 2027 as part of the city’s broader response to homelessness.

Chris Green, the city’s project lead for the micro-modular shelter, says the project has not only met expectations but, in some cases, gone beyond what was initially planned.

“It is still definitely early, but I think we probably exceeded expectations,” Green said in a phone interview. “This was pulled together very quickly.”

The project, approved by council in October 2025, is designed as a temporary response to homelessness while longer-term housing solutions are developed. 

The site includes 60 small, standalone units, each equipped with electricity, heating and cooling, a bed and basic furnishings. Ten units are designed for couples, a feature not always available in traditional shelters, and residents are also allowed to bring pets. Shared amenities include washrooms, showers, laundry facilities and a dining area where meals are provided daily.

The shelter is staffed around the clock by private operator Xpera, working alongside local service providers. Residents have access to mental health and addiction support, as well as help navigating income and housing programs.

Early data suggest those supports are reaching people who previously lacked them. Green said only about 10 per cent of residents had formal case management when they arrived, but that number has since climbed to more than 80 per cent.

Green says most residents are choosing to stay, which shows the shelter is helping people find stability.

“We’ve been very happy with it so far. People are staying, and people are taking advantage of the services we’re offering.”

Green said demand for homeless support services in London has not slowed, particularly since the COVID-19 pandemic.

The micro-modular shelter is meant to complement existing options, such as emergency shelters and outreach programs, by offering an environment with more privacy and independence.

“This is really just trying to give another option to individuals because not every shelter works for everyone.” When asked what success for the program looks like, Green said “it’s really just getting people stable. Getting them on those supports, using those supports effectively and then I think over time we’ll want to see folks graduate out of this program.”

The site’s location, on city-owned industrial land, has drawn some criticism, along with concerns about cost. The project is expected to cost about $7 million to build and operate through March 2027, funded through the city’s reserve fund.

Green acknowledged those concerns but said they must be weighed against the realities of addressing homelessness.

“Yes, it is expensive. Yes, the location may not have been ideal, but I think we made the best decisions on what was available.” he said. “I think they’re fair criticisms, but again, sometimes solutions cost money. I’m kind of my own biggest critic and sceptic and I’m very impressed with what we’re seeing so far.”

In terms of the benefits, Green said it allows people to focus on themselves.

“It gives an opportunity for some folks to maybe get out and away from some bad habits they would have been in before. Having a roof over their head and a door to lock is one giant benefit.”

While early signs are positive, it is still too soon to draw long-term conclusions about the project’s overall success. Key questions remain around cost, long-term outcomes and what will happen when the current funding ends in 2027.

As the City of London continues to monitor results in the months ahead, the micro-modular shelter will serve as an early test of whether this model can move people beyond temporary shelter and into more stable, long-term living situations.

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