Item - 2016.CD13.2

The Community Development and Recreation Committee recommends that:

1.  City Council approve the acceptance of $5,500,000 from Christie Gardens as a one-time payment in settlement of Christie Gardens' obligation to provide rent geared-to-income (RGI) assistance under the terms of an existing Social Housing Agreement (the "Christie Gardens Settlement.)

2.  City Council direct the settlement amount of $5,500,000 be transferred as outlined below to the following reserve funds:

a.  $1,000,000 as a one-time contribution to the Housing Allowance Reserve Fund (XQ1112) with the 2016 Approved Operating Budget for Shelter, Support and Housing Administration to be amended to that effect by $1,000,000 gross, $0 net; and

b.  The residual of $4,500,000 as a one-time contribution to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) with the 2016 Approved Operating Budget for Shelter, Support and Housing Administration to be amended to that effect by $4,500,000 gross, $0 net.

3.  City Council direct the General Manager, Shelter, Support and Housing Administration, to reallocate or redirect settlement funds received from Christie Gardens for housing allowances and social or affordable housing purposes as outlined below:

a.  $1,000,000 from the Housing Allowance Reserve Fund (XQ1112) to be allocated to housing allowances, with the 2016 Approved Operating Budget for Shelter, Support and Housing Administration to be amended to that effect by $1,000,000 gross, $0 net;

b.  Up to $2,500,000 from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to support the purchase and closing costs of the YWCA property at 55-57 Humewood Drive by the non-profit organization known as Humewood House, with the 2016 Approved Operating Budget for Shelter, Support and Housing Administration to be amended to that effect by approximately $2,500,000 gross, $0 net; and

c.  Consistent with the City's five-year affordable housing capital investment planning, the residual to be invested in new affordable rental housing in Ward 21 St. Paul's, in consultation with the ward councillor, through a business case in the 2017 or subsequent years Operating Budget(s) for Shelter, Support and Housing Administration to include the residual of approximately $2,000,000 gross, $0 net.

4.  City Council authorize the Director, Affordable Housing Office, in consultation with the General Manager, Shelter, Support and Housing Administration, to allocate up to $2,500,000 derived from the Christie Gardens Settlement to the non-profit organization Humewood House, or a related corporation to fund the purchase of 55-57 Humewood Drive from the YWCA, for the purpose of expanding Humewood House's program to empower vulnerable young pregnant and parenting women to make positive life choices for themselves and their children.

5.  City Council authorize the Director, Affordable Housing Office, in consultation with the General Manager, Shelter, Support and Housing Administration, to negotiate, on behalf of the City an agreement and any subsequent amendments thereto, to secure the City's contribution towards the purchase of 55-57 Humewood by Humewood House, or a related corporation, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form acceptable to the City Solicitor.

6.  City Council authorize the Director, Affordable Housing Office, to execute, on behalf of the City, the agreement, any amendments thereto, security or financing documents or any other documents required to facilitate the funding of the purchase of 55-57 Humewood Drive by Humewood House or a related corporation.

7.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the City Solicitor, to enter into an amended Social Housing Agreement with Christie Gardens based on the terms and conditions set out in the attached Appendix A to the report (June 9, 2016) from the General Manager, Shelter, Support and Housing Administration in a form satisfactory to the General Manager, Shelter, Support and Housing Administration, and City Solicitor.

Christie Gardens Apartments and Care Inc. ("Christie Gardens") has requested revisions to its Social Housing Agreement with the City with respect to the social housing building located at 600 Melita Crescent. This report recommends approval of the acceptance of $5,500,000 from Christie Gardens as a one-time payment in settlement of its obligation to provide rent geared-to-income (RGI) assistance under the terms of an existing Social Housing Agreement (SHA). Approval would direct $1,000,000 of the proceeds to the Housing Allowance Reserve Fund (XQ1112) with the residual of $4,500,000 directed to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to be invested in affordable housing in Ward 21 St. Paul's, in consultation with the ward councillor. This will help create and preserve more affordable housing in the same ward where there is a reduction in RGI units through the changes to Christie Gardens' existing SHA.