Toronto Mayor Olivia Chow says Toronto taxes might have to go up "at least two per cent" to cover shelter spending if the federal and provincial governments don't reinstate funding for refugee housing that's left the city with a $107-million deficit.

"We've been taking money from the reserve funds in order to continue the services to shelter these refugee claimants," said Chow at a news conference on Monday.

Toronto's portion of the Interim Housing Assistance Program (IHAP), a federally-funded program backing municipalities' efforts to house refugees, was significantly rolled back this year. The IHAP cuts also include a country-wide end to a program that housed asylum seekers in hotels across Canada on Sept. 30, the federal government has said.

The city will only receive

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