Item - 2014.AH8.3
Tracking Status
- This item was considered by Affordable Housing Committee on May 15, 2014 and was adopted with amendments.
AH8.3 - Affordable Home Ownership Assistance Program Adjustments
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Decision
The Affordable Housing Committee recommends to the Executive Committee that:
1. City Council authorize the Affordable Housing Office to increase the average loan amount from the Council approved funds for the Home Ownership Assistance Program (HOAP) from $15,000 to $25,000 to better reflect the cost to pay the City’s planning and development fees and charges paid by non-profit partners.
2. City Council defer the Additional Home Ownership Assistance Program (HOAP) Funding of $90,000 for 357 Birchmount Road until a decision has been reached regarding Item SC32.19, titled "357 Birchmount Road - Zoning Amendment Application - Final Report" which Scarborough Community Council, on May 13, 2014 referred back to the Director, Community Planning, Scarborough District, for further review with consideration being given to all potential options related to the best use of this site including, but not limited to, a possible land exchange.
3. City Council approve $2,130,000 in additional financial assistance under the City's Home Ownership Assistance Program in the form of grants by way of forgivable loans from the Development Charges Reserve Fund (2009) for Subsidized Housing (XR2116) for the following not-for-profit affordable home ownership initiatives selected through Request for Proposal No. 9155-13-7046 and approved by Council in 2013 up to the following amounts, as amended by Recommendation 2, above:
Proponent | Address | Number of Units | Previously Approved HOAP Funding | Additional HOAP Funding | Total HOAP Funding |
Habitat for Humanity Toronto Inc. | Brimley Road between Lawrence Ave. E. & Britwell Ave. | 15 | $225,000 | $150,000 | $375,000 |
Habitat for Humanity Toronto Inc. | 357 Birchmount Rd. | 9 | $135,000 | $90,000 (recommended for deferral in Recommendation 2) | $225,000 |
Home Ownership Alternatives Non-Profit Corporation (Greater Toronto Area) | 1340-1360 Danforth Rd. | 171 | $2,565,000 | $1,710,000 | $4,275,000 |
Toronto Artscape Inc. | 210 Simcoe Ave. | 4 | $60,000 | $40,000 | $100,000 |
Toronto Artscape Inc. | 155-163 Dundas St. E. | 14 | $210,000 | $140,000 | $350,000 |
Totals: | 213 | $3,195,000 | $2,130,000 | $5,325,000
|
Decision Advice and Other Information
The Affordable Housing Committee requested:
1. The Director, Affordable Housing Office to report to the Affordable Housing Committee on results of the next Request for Proposals under the Home Ownership Assistance Program in 2015.
Origin
Summary
The City of Toronto provides funding under the Home Ownership Assistance Program (HOAP) to eligible non-profit housing providers to reduce the upfront costs of building new affordable ownership homes for Toronto residents. The funds, delivered through a competitive request for proposals process, help offset City fees and charges and pre-construction costs. The savings are then passed onto the eligible home purchasers in the form of forgivable down payment assistance loans.
Under the City's new Development Charges By-law, on average development charge rates will increase by approximately $10,000 per unit over two years. Planning and building permit fees are also gradually increasing. This report recommends HOAP funding be increased by $10,000 per unit to off-set these rising costs.
HOAP funding is currently $15,000 per unit and would rise to $25,000. The increase would apply to previously-approved developments that have yet to pay their fees and charges, and to future Council-approved non-profit affordable ownership developments.
When the HOAP was established in 2010, Council approved up to $2.0 million annually in funding from the Development Charge Reserve Fund (2009) for Subsidized Housing (XR2116). The increase of $10,000 per unit will be drawn from this annual allocation. There are no additional funds required to support the recommendations in this report, but there will be fewer loans available due to the higher loan amount.
Since 2010, the HOAP has made over $8.425 million available to reduce costs for 690 non-profit affordable home ownership homes for eligible Toronto families and individuals.
Background Information
https://www.toronto.ca/legdocs/mmis/2014/ah/bgrd/backgroundfile-68995.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2014/ah/comm/communicationfile-47515.pdf
(May 14, 2014) E-mail from Jens Lohmueller and Michel Labbe, Home Ownership Alternatives (AH.New.AH8.3.2)
https://www.toronto.ca/legdocs/mmis/2014/ah/comm/communicationfile-47610.pdf
(May 14, 2014) Letter from Ene Underwood, Habitat for Humanity (AH.New.AH8.3.3)
https://www.toronto.ca/legdocs/mmis/2014/ah/comm/communicationfile-47614.pdf
Speakers
Mr. Geoffrey McGrath, Habitat for Humanity
Councillor Pam McConnell
Councillor Paula Fletcher
Motions
That the additional HOAP funding of $90,000 for 357 Birchmount Road be deferred until a decision has been reached regarding Item SC32.19, titled '357 Birchmount Road - Zoning Amendment Application - Final Report" which Scarborough Community Council, on May 13, 2014 referred back to the Director, Community Planning, Scarborough District, for further review with consideration being given to all potential options related to the best use of this site including, but not limited to, a possible land exchange.
Vote (Amend Item) May-15-2014
| Result: Carried | Majority Required - Berardinetti - motion 1 |
|---|---|
| Total members that voted Yes: 3 | Members that voted Yes are Michelle Berardinetti, Vincent Crisanti, Mark Grimes |
| Total members that voted No: 2 | Members that voted No are Ana Bailão (Chair), Joe Mihevc |
| Total members that were Absent: 1 | Members that were absent are Maria Augimeri |
That City Council approve the increase for 357 Birchmount Road subject to the outcome of the referral of Item SC32.19, titled "357 Birchmount Road - Zoning Amendment Application - Final Report" by Scarborough Community Council.