Item - 2013.EX29.2
Tracking Status
- City Council adopted this item on April 3, 2013 without amendments.
- This item was considered by the Executive Committee on March 20, 2013 and adopted without amendment. It will be considered by City Council on April 3, 2013.
EX29.2 - Infrastructure Ontario Refinancing of Toronto Community Housing Mortgages
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on April 3 and 4, 2013, adopted the following:
1. City Council, in its capacity as Shareholder of Toronto Community Housing Corporation (TCH):
a. pursuant to Section 6.3.1 (a) of the City's Shareholder Direction to Toronto Community Housing (TCH) approve the term sheet attached as Attachment 1 to this report (March 6, 2013) from the City Manager (the Term Sheet) between Toronto Community Housing (TCH) and Infrastructure Ontario for refinancing totalling $154,703,882, in order to address the renewal of 18 Toronto Community Housing (TCH) mortgages totalling $60,447,135, as well as obtaining incremental financing of $94,256,747 (less transaction costs and legal fees);
b. approve the extension of TCH’s mortgage subsidy for 13 identified properties, based on the current monthly mortgage payment, until the end of 2043;
both on condition that:
i. the net amount of incremental financing be deposited to a new special reserve other than the State of Good Repair Fund dedicated to the repair or replacement of building components with a useful life of at least 30 years; and
ii. Toronto Community Housing (TCH) report annually, through TCH's Annual Report to Council, on the status and use of funding deposited to such special reserve; and
c. authorize the City Manager or his delegate to execute on behalf of the shareholder an agreement among the City, Toronto Community Housing (TCH) and Infrastructure Ontario providing lender security over City subsidies payable with respect to the mortgaged properties as described in the Term Sheet on terms and conditions satisfactory to the City Manager or such delegate and in a form approved by the City Solicitor.
2. City Council, in its capacity as Service Manager under the Housing Services Act, 2011 (the HSA):
a. grant Service Manager consent to Toronto Community Housing (TCH) pursuant to section 162(2) of the HSA to mortgage those properties described in Appendix 1 of the Term Sheet that require Service Manager consent to secure the obligations of Toronto Community Housing (TCH) to Infrastructure Ontario described in the Term Sheet; and
b. authorize the General Manager, Shelter, Support and Housing Administration to:
i. request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the Term Sheet; and
ii. provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the HSA.
3. City Council authorize the City Manager to execute and deliver such other notices, consents, authorizations and agreements on behalf of the City a shareholder or Service Manager in order to facilitate the refinancing of the Toronto Community Housing Corporation (TCH) mortgages on the properties described in the Term Sheet, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation (TCH).
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-56572.pdf
Attachment 1 with Appendix 1 - Infrastructure Ontario Toronto Community Housing Mortgage Refinancing Proposal (Term Sheet)
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-56573.pdf
Motions (City Council)
Vote (Adopt Item) Apr-04-2013 2:19 PM
| Result: Carried | Majority Required - EX29.2 - Adopt the item |
|---|---|
| Total members that voted Yes: 38 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Anthony Perruzza, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 7 | Members that were absent are Michelle Berardinetti, Josh Colle, Doug Ford, Mark Grimes, Giorgio Mammoliti, James Pasternak, Jaye Robinson |
EX29.2 - Infrastructure Ontario Refinancing of Toronto Community Housing Mortgages
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council, in its capacity as Shareholder of Toronto Community Housing Corporation (TCH):
a. pursuant to Section 6.3.1 (a) of the City's Shareholder Direction to Toronto Community Housing (TCH) approve the term sheet attached as Attachment 1 to this report (March 6, 2013) from the City Manager (the Term Sheet) between Toronto Community Housing (TCH) and Infrastructure Ontario for refinancing totalling $154,703,882, in order to address the renewal of 18 Toronto Community Housing (TCH) mortgages totalling $60,447,135, as well as obtaining incremental financing of $94,256,747 (less transaction costs and legal fees);
b. approve the extension of TCH's mortgage subsidy for 13 identified properties, based on the current monthly mortgage payment, until the end of 2043,
both on condition that:
i. the net amount of incremental financing be deposited to a new special reserve other than the State of Good Repair Fund dedicated to the repair or replacement of building components with a useful life of at least 30 years and
ii. Toronto Community Housing (TCH) report annually, through TCH's Annual Report to Council, on the status and use of funding deposited to such special reserve;
c. authorize the City Manager or his delegate to execute on behalf of the shareholder an agreement among the City, Toronto Community Housing (TCH) and Infrastructure Ontario providing lender security over City subsidies payable with respect to the mortgaged properties as described in the Term Sheet on terms and conditions satisfactory to the City Manager or such delegate and in a form approved by the City Solicitor.
2. City Council, in its capacity as Service Manager under the Housing Services Act, 2011 (the HSA):
a. grant Service Manager consent to Toronto Community Housing (TCH) pursuant to section 162(2) of the HSA to mortgage those properties described in Appendix 1 of the Term Sheet that require Service Manager consent to secure the obligations of Toronto Community Housing (TCH) to Infrastructure Ontario described in the Term Sheet; and
b. authorize the General Manager, Shelter, Support and Housing Administration to:
i. request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the Term Sheet; and
ii. provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the HSA.
3. City Council authorize the City Manager to execute and deliver such other notices, consents, authorizations and agreements on behalf of the City a shareholder or Service Manager in order to facilitate the refinancing of the Toronto Community Housing Corporation (TCH) mortgages on the properties described in the Term Sheet, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation (TCH).
Origin
Summary
The Council approved final report of the Special Housing Working Group, chaired by Councillor Ana Bailão, Putting People First – Transforming Toronto Community Housing made 19 recommendations to address the significant capital repair backlog at Toronto Community Housing (TCH). Included in the report's recommendations was a direction to investigate the potential of leveraging equity through the refinancing of TCH mortgages.
A significant amount of work has occurred as a result of the report and its recommendations, the bulk of which will be reported to Council through the Affordable Housing and Executive committees later this year. This report deals exclusively with a time sensitive opportunity related to the refinancing of TCH social housing mortgages and recommends that Council approve an Infrastructure Ontario mortgage refinancing proposal that will unlock $93.5 million of TCH equity.
The proposal developed by TCH and Infrastructure Ontario would result in the refinancing of 18 TCH properties with mortgages scheduled for renewal in 2013. Upon approval by Council, TCH will receive mortgage refinancing totalling $154.7 million. Of this total, $60.4 million will be used to pay out the existing social housing mortgage. The balance of $93.5 million represents incremental financing of which $11.8 million will be restricted for investment in future capital repairs within the 18 refinanced properties and $81.7 million which will be invested to address capital needs throughout the entire TCH social housing portfolio.
The refinancing proposal will have no immediate financial impact to the City but will require a City commitment to extend subsidy funding of mortgages for 13 of the 18 properties, at current levels, to the end of the new 30-year mortgage amortization term. The extended mortgage subsidy funding has a total nominal value of $105.1 million and a present value of $50.8 million.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-56572.pdf
Attachment 1 with Appendix 1 - Infrastructure Ontario Toronto Community Housing Mortgage Refinancing Proposal (Term Sheet)
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-56573.pdf