Item - 2014.EX43.11

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 6.3.1 (a) of the City's Shareholder Direction to Toronto Community Housing approve the term sheet substantially in the form attached in Attachment 1 to the report (June 17, 2014) from the Deputy City Manager and Chief Financial Officer (the Term Sheet) between Toronto Community Housing and the City for refinancing totalling $52.4 million in order to address the renewal of 55 Toronto Community Housing mortgages with a total outstanding balance of approximately $19.4 million, as well as obtaining incremental financing of approximately $33 million (less transaction costs and legal fees); and

b.         approve the extension of Toronto Community Housing's mortgage subsidy for 47 identified properties, based on the current monthly mortgage payment, until the end of 2044, 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 report annually, through Toronto Community Housing's Annual Report to Council, on the status and use of funding deposited to such special reserve.

2.         In order to provide the credit facilities to Toronto Community Housing, City Council:

a.         authorize a loan to Toronto Community Housing in the amount of $52.4 million in accordance with the terms and conditions set out in the Term Sheet attached in Attachment 1 of the report (June 17, 2014) from the Deputy City Manager and Chief Financial Officer;

b.         authorize the City Manager or his delegate to execute a new loan agreement between the City and Toronto Community Housing substantially on the terms and conditions set out in the Term Sheet attached in Attachment 1 to the report (June 17, 2014) from the Deputy City Manager and Chief Financial Officer and on such other terms and conditions that are satisfactory to the City Manager or such delegate and in a form approved by the City Solicitor;

c.         authorize the drawing of the incremental financing amount of approximately $33.0 million from working capital; and

d.         deem the loan in Part 2.a. above to be in the interests of the City.

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

4.         City Council consent pursuant to subsection 453.1(6) of the City of Toronto Act, 2006 to any mortgage or charge given to the City (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 Deputy City Manager and Chief Financial Officer by Toronto Community Housing, and that where required, the City Clerk provide a certificate, in registerable form, pursuant to subsection 453.1(9) of the City of Toronto Act, 2006.

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

6.         City Council request the Federal Government to enable the refinancing of Toronto Community Housing’s high interest social housing mortgage loans held by Canada Mortgage and Housing Corporation without penalty in order to assist the City and Toronto Community Housing to generate much needed funding to address the $2.6 billion in new capital repairs that will be required at Toronto Community Housing over the next ten years.

7.         City Council direct the City Clerk to forward the request in Part 6 above to the Federal Minister responsible for social housing.

8.         City Council direct the City Manager to write to the President and Chief Executive Officer of Canada Mortgage and Housing Corporation to request the refinancing of Toronto Community Housing mortgage loans with Canada Mortgage and Housing Corporation.

9.         City Council direct the City Manager to report back to Council through the Executive Committee in the first quarter of 2015 with an update on the Federal Government’s response to the City’s request in Part 6 above.