Council considers adding ‘Good Neighbour Clause’ to contracts funding homeless shelters

Unanswered questions about what a “Good Neighbour Clause” would require homeless agencies to do.

London city council has paused the approval of a new framework for deploying funds through City Hall’s Housing Stability Services (HSS) department until they can consider adding a so-called ‘Good Neighbour Clause’ to contracts with frontline homelessness and housing agencies.

But there remain unanswered questions about what a “Good Neighbour Clause” would require agencies to do, and what the consequences would be for violations.

On Tuesday, a motion by Coun. Susan Stevenson asked to refer the new procurement framework for HSS to the Community and Protective Services Committee meeting on January 26, “to enable councillors an opportunity to work with staff with respect to potential amendments to include ‘Good Neighbour’ agreements in the upcoming contract renewals under delegated authority.”

“Current contracts do not expire until March 2026, so no contract gap would result from a referral,” added Stevenson.

Stevenson and Deputy Mayor Shawn Lewis, who seconded her motion, said the idea came from a task force of stakeholders in the Old East Village.

“I heard really loud and clear that a Good Neighbour clause is something that they’d like us to really be moving forward with,” Deputy Mayor Shawn Lewis told Council.

“I would argue, as has the amendment is drafted, it’s vague. I’m not sure what Good Neighbour clauses are!” countered Coun. Sam Trosow.

Lewis said the agreements would ensure, “where we have business districts and residential areas (contracted agencies) are maintaining properties in a reasonable state from the exterior, so that it doesn’t cause additional neighbourhood problems.”

“Perhaps some of these changes or requests might come with some financial request (from the agencies) as well,” noted Coun. Skylar Franke. “I think this should give us some time to have those conversations.”

The referral to January 26, 2026 was approved by Council.

After the meeting, Stevenson responded to questions from CTV News about Good Neighbour clauses.

“It’s something that’s been talked about in Old East Village since I was elected,” she explained. “There’s a signed agreement with the agencies to help mitigate some of the issues that happen surrounding their establishments.”

Stevenson added that the specific expectations are still in development, “There’s a bit of a task force in Old East Village. We (met) December 4^th, and this was one of a few things that came out of that meeting.”

She says the next few weeks will include engagement with stakeholders and city staff, “I’ll be reaching out to the residents and to the shelter participants to find out what they want to see.”

Stevenson says the Good Neighbour Clause would formalize existing expectations in writing, “We can start to move the needle in a direction that will make things better for people, both for safety inside the shelter and the surrounding area.”