Sponsorship Undertaking Default

Effective: December 14, 2021

Hardship assistance is provided on a temporary basis, for only one month at a time.  If further hardship assistance is required, eligibility must be re-established each month. 

Hardship assistance may be issued under Sponsorship Undertaking Default to an applicant who meets all other eligibility criteria, but ministry staff  have been unable to contact the sponsor to verify that the sponsor is unable or unwilling to support the applicant. Hardship assistance may also be issued to an applicant while they are awaiting confirmation or verification of the sponsorship undertaking period. As long as all other eligibility criteria are met, the applicant continues to be eligible for hardship assistance under this category until the sponsor has been contacted. In cases where the sponsored individual may be experiencing abuse, see Policy - Health and/or Safety Concerns (Abuse).

Hardship assistance under this category is not repayable, except by the sponsor in cases where there is a debt due to default of a Sponsorship Undertaking. 

Once the hardship reason no longer exists, cases must be reassessed to determine if the family unit meets the eligibility criteria for income assistance or disability assistance.

Note: In these cases, debt collection will occur despite the fact that a repayment agreement was not taken, because the debt rests with the sponsor, not the client.  Debt collection will occur regardless of whether the debt relates to income assistance, disability assistance, or hardship assistance. Debt accumulated by the sponsor may be forgiven if there are any health and/or safety concerns (abuse) related to the sponsored individual [see Policy- Health and/or Safety Concerns (Abuse)].

Effective: May 1, 2022

Where the sponsor confirms that they are unable or unwilling to provide for the essential needs (including food, lodging, and clothing) of the sponsored individuals listed in the Sponsorship Undertaking, the family unit may be eligible for income assistance or disability assistance if all other eligibility requirements are met. 

Where an applicant resides with the sponsor, only the minimum shelter allowance may be provided [see Related Links - Support, Shelter & Special Care Facilities - Policy - Minimum Shelter Allowance], unless the sponsor is also receiving assistance.

When a sponsor becomes a recipient of assistance and is residing with the sponsored person, the usual practice for shared shelter costs will be followed.

For more information see Related Links – Pursuing Income – Procedures – Sponsorship Undertaking Default.

Effective: December 14, 2021

Where there are possibly any health and/or safety concerns, no contact is to be made with the sponsor, including by letter, unless the sponsored individual wants the ministry to contact the sponsor.  [For guidelines on what constitutes abuse, see Related Links- Persons Fleeing Abuse].

In cases where the sponsored individual indicates a health and/or safety concern exists due to abuse or other concerns, the sponsor is no longer a financial support. The sponsor should not be contacted until it has been determined that the health and/or safety concern no longer remains. If the health and/or safety concern remains but the sponsored individual indicates they want the ministry to contact the sponsor, the sponsor may be contacted to notify them of the debt. In these instances, the sponsor should still be considered unable or unwilling to pay for the sponsored individual’s basic needs.

Once a health and/or safety concern has been disclosed and the sponsorship undertaking period has been confirmed, the case may be assessed to determine eligibility for income assistance or disability assistance. Documentation of the health and/or safety concern may be requested by Financial and Administrative Services Branch (FASB) staff after one year and on an annual basis following thereafter.

Debt Forgiveness

In cases where the sponsor discloses that they have a health and/or safety concern related to the sponsored individual, the debt that is accumulated by the sponsor may be forgiven. These cases must be referred to FASB [see Contacts- Sponsorship Default Line] who will request substantiating documentation of the abuse from a third party in order to obtain approval from the Ministry of Finance as set out in the Forgiveness of Debts and Obligations Regulation to forgive any debt accumulated.  

If the health and/or safety concern is substantiated with documentation, the sponsor is no longer a financial support to the sponsored individual. If the sponsor does not have substantiating documentation, they can be referred to a community or government resource [see Related Links- Persons Fleeing Abuse - Additional Resources] who may provide the documentation.

[For policy and procedure on health and/or safety concerns and contacting the sponsor, or documentation see Related Links – Pursuing Income – Sponsorship Undertaking Default, Policy and Procedure]

Effective: December 1, 2003

For information on how to determine hardship assistance rates, see Related Links – Eligibility for Hardship Assistance – Policy – Amount of Hardship Assistance.

Effective: December 14, 2021

When a sponsored person (or any member in the family unit) in a Sponsorship Undertaking that is still in effect, applies for assistance, follow these steps before issuing hardship assistance:

EAW:	1.	Explain to the applicant the following:   for the period of the Sponsorship Undertaking, the sponsor is obligated to provide essential financial support (including food, lodging and clothing) to the sponsored individual as an alternative to relying upon assistance once any assistance is paid, the ministry will advise Immigration, Refugees and Citizenship Canada (IRCC) of sponsorship breakdown any assistance issued will be a debt that the sponsor (and not the sponsored individual) will have to the government  that the sponsor will incur a debt and will not be able to sponsor anyone else until the debt is repaid by assignment of the Undertaking, the provincial government, may seek recovery of the debt unless there is a health and/or safety concern (see step 5), the sponsor will be contacted to confirm whether or not they can provide financial support.  If the sponsor is willing to provide financial support, remind the client to report all money received and provide copies of receipts on the Monthly Report (HR0081) Form unless there is a health and/or safety concern (see step 5), the sponsor will be notified if the sponsored individual receives assistance and will be advised of the debt amount each month unless there is a health and/or safety concern (see step 5), every reasonable effort will be made to contact and notify the sponsor of the debt.  In cases where the whereabouts of the sponsor are unknown by the family member, Financial Administrative Services Branch (FASB) will conduct a search to attempt to locate and notify the sponsor of their obligation and debt  once the notification of debt and collections has begun, the ministry cannot suspend or cease further communications and/or collections even if there is a health and/or safety concern. the applicant's personal information is not shared with the sponsor.
	2.	Obtain documents and information relevant to the Sponsorship Undertaking (e.g., Confirmation of Permanent Residence (IMM5292) or Record of Landing).
	3.	If verification of sponsorship undertaking period is still required, contact FASB.
	4.	Obtain sponsor contact information.
	5.	Review Health and/or Safety: a) Explain to the applicant that the ministry will attempt to contact the sponsor to verify their inability or unwillingness to provide for their basic needs. b) Ask the applicant if there is a health and/or safety concern and, if yes, confirm if they do not want the ministry to contact the sponsor for that reason. c) If the applicant states that there is a health and safety concern and does not want the ministry to contact the sponsor, then follow steps for health and/or safety concerns [see Related Links - Pursuing Income – Procedures – Sponsorship Undertaking Default]. Do not continue with these steps. d) If there is no health and/or safety concern or there is a health and/or safety concern, but the applicant does want the ministry to contact the sponsor, continue to the next steps.
	6.	Contact the sponsor by telephone to confirm whether they are a financial support or not, and ensure the sponsor understands that:   for the period of the Sponsorship Undertaking, the sponsor is obligated (as per their agreement with the federal government) to provide essential support (including food, lodging, and clothing) to the sponsored individual once any assistance is paid, the ministry will advise IRCC of sponsorship breakdown any assistance issued will be a debt that the sponsor will have to the government  the sponsor will incur a debt and will not be able to sponsor anyone else until the debt is repaid. by assignment of the undertaking, the provincial government will seek recovery of the debt If the sponsor discloses they have a health and/or safety concern related to the sponsored individual, the debt may be forgiven. Refer sponsor to FASB. Once it is verified by FASB, the sponsor is not a financial support to the sponsored individual.
	7.	If the sponsor confirms that they are not a financial support and the sponsorship undertaking period is confirmed, the case can be assessed for eligibility for income assistance or disability assistance [see Related Links - Pursuing Income – Procedures – Sponsorship Undertaking Default].
	8.	If the sponsor cannot be contacted, make applicable case notes and forward to FASB.
	9.	Send the Sponsorship Obligations – Applicant (HR2771) letter