Item - 2014.EX43.10

City Council on July 8, 9, 10 and 11, 2014, adopted the following:

1.         City Council, in its capacity as Shareholder of Toronto Community Housing Corporation (TCH):

a.         pursuant to Section 7.4.1 (a) of the City's Shareholder Direction to Toronto Community Housing Corporation approve the Term Sheet in Attachment 1 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer (the Term Sheet) between Toronto Community Housing Corporation and Infrastructure Ontario for refinancing totalling $49.7 million in order to address the renewal of 15 Toronto Community Housing Corporation mortgages totalling $19.0 million, as well as obtaining incremental financing of $30.7 million (less transaction costs and legal fees);

b.         approve the extension of Toronto Community Housing Corporation's mortgage subsidy for 8 properties identified in Attachment 2 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer, based on the current monthly mortgage payment, until the end of 2045, 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 Corporation report annually, through Toronto Community Housing Corporation'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 Corporation and Infrastructure Ontario which provides a City guarantee for the repayment of the principal and interest on the mortgages in this proposal on terms and conditions satisfactory to the City Manager or his delegate and in a form approved by the City Solicitor;

d.         authorize the City Manager or his delegate to execute on behalf of the shareholder an amendment to the existing 2013 Shareholder Agreement amongst the City, Toronto Community Housing Corporation and Infrastructure Ontario (for the refinancing of mortgages that required renewal in 2013) which will provide for the following on conditions satisfactory to the City Manager or his delegate and in a form approved by the City Solicitor:

i.          a City guarantee for the repayment of principal and interest on the mortgage loans; and

ii.         deletion of the existing requirement that Toronto Community Housing Corporation provide Infrastructure Ontario with a Letter of Credit in the amount of $4.5 million; and

e.         deem the guarantees in Parts 1.c. and 1.d. above to be in the interests of the City.

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 Corporation pursuant to section 162(2) or 162(2) of the Housing Services Act, 2011 (the HSA), as appropriate, to mortgage those properties described in Appendix 1 to the Term Sheet in Attachment 1 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer that require Service Manager consent to secure the obligations of Toronto Community Housing Corporation 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 in Attachment 1 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer; and

ii.         provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the Housing Services Act, 2011 (the HSA).

3.         City Council consent pursuant to subsection 453.1(6) of the City of Toronto Act 2006 to any mortgage or charge given to Infrastructure Ontario (as Chargee) with respect to any of the properties described in Appendix 1 to the Term Sheet in Attachment 1 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer by Toronto Community Housing Corporation and that where required the City Clerk provide a certificate, in registerable form, to Infrastructure Ontario pursuant to subsection 453.1(9) of the City of Toronto Act, 2006.

4.         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 mortgages on the properties described in the Term Sheet in Attachment 1 to the report (June 17, 2014) from the City Manager and the Deputy City Manager and Chief Financial Officer, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation.