The young person pleaded guilty to sexual assault after grabbing a stranger's buttock on a streetcar.
The Crown and defence jointly proposed an Intensive Support and Supervision Program (ISSP) given the offender's significant mental health challenges and positive response to structure.
However, evidence established a waitlist of up to a year for ISSP availability.
The court found that while the delay was unsatisfactory and undermined the objectives of the Youth Criminal Justice Act, custody would be disproportionate.
The court imposed a two-year probation order, requiring the young person to participate in an ISSP for 18 months once a placement becomes available.