Item - 2016.CD14.14
Tracking Status
- City Council adopted this item on October 5, 2016 with amendments.
- This item was considered by Community Development and Recreation Committee on September 20, 2016. It is being forwarded to City Council without recommendations. It will be considered by City Council on October 5, 2016.
CD14.14 - Update on the Settlement with Christie Gardens
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 21 - St. Paul's
City Council Decision
City Council on October 5, 6 and 7, 2016, adopted the following:
1. City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, and the Deputy City Manager and Chief Financial Officer, to secure interim funding up to $2,500,000 from the Social Housing Stabilization Reserve Fund (XQ1106), to permit Humewood House to complete the purchase of 55-57 Humewood Drive in advance of the settlement funds being received by the City, subject to the execution of a settlement agreement between the City and Christie Gardens Apartments and Care Inc.
2. City Council amend the 2016 Approved Operating Budget for Shelter, Support and Housing Administration by $2,500,000 gross, zero net.
3. City Council direct the General Manager, Shelter, Support and Housing Administration, to aggressively pursue the settlement with Christie Gardens and repay $2,500,000 to the Social Housing Stabilization Reserve Fund (XQ1106), once the City receives the settlement money from Christie Gardens.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2016/cd/bgrd/backgroundfile-96425.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2016/cc/bgrd/backgroundfile-97018.pdf
Motions (City Council)
That City Council adopt the following recommendations contained in the supplementary report (October 4, 2016) from the General Manager, Shelter, Support and Housing Administration and the Deputy City Manager and Chief Financial Officer [CD14.14a]:
1. City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, and the Deputy City Manager and Chief Financial Officer, to secure interim funding up to $2,500,000 from the Social Housing Stabilization Reserve Fund (XQ1106), to permit Humewood House to complete the purchase of 55-57 Humewood Drive in advance of the settlement funds being received by the City, subject to the execution of a settlement agreement between the City and Christie Gardens Apartments and Care Inc.
2. City Council amend the 2016 Approved Operating Budget for Shelter, Support and Housing Administration by $2,500,000 gross, zero net.
3. City Council direct the General Manager, Shelter, Support and Housing Administration, to aggressively pursue the settlement with Christie Gardens and repay $2,500,000 to the Social Housing Stabilization Reserve Fund (XQ1106), once the City receives the settlement money from Christie Gardens.
CD14.14 - Update on the Settlement with Christie Gardens
- Decision Type:
- ACTION
- Status:
- Without Recs
- Ward:
- 21 - St. Paul's
Committee Recommendations
The Community Development and Recreation Committee submits the Item to City Council without recommendation.
Decision Advice and Other Information
The Community Development and Recreation Committee:
1. Directed the General Manager, Shelter, Support and Housing Administration to report to the October 5, 2016 City Council meeting on the status of the settlement negotiations with Christie Gardens, and recommend any additional authority required to complete the settlement.
2. Directed the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, and the Deputy City Manager and Chief Financial Officer, to recommend a source of interim funding to permit Humewood House to complete the purchase of 55-57 Humewood Drive in advance of the settlement funds being received by the City.
Origin
Summary
City Council at its July 12, 13 and 14, 2016 approved the acceptance of $5.5 million from Christie Gardens' as a one-time payment in settlement of their obligation to provide rent-geared-to-income assistance under the terms of an existing Social Housing Agreement.
City Council also directed that up to $2.5 million of the settlement funds be directed to support the creation of affordable housing for young mothers by Humewood House through the purchase 55-57 Humewood Drive.
Since the July Council decision Humewood House has made a successful offer to purchase 55-57 Humewood Drive. They have now completed their due diligence, including a building condition report, architectural plans and developed a full business case to support the project. As a result the property sale was scheduled to close on September 30th.
However, at the present time City staff continue to work with Christie Gardens' but have not have not yet finalized the settlement agreement.. As a result of delay, the settlement funds to pay for the purchase of 55-57 Humewood Drive are not yet available.
I am requesting the Committee to have City staff report directly to the October 5, 6, and 7 Council meeting to provide an update on the settlement and to recommend an interim source of City funding to provide Humewood House the interim funds to complete the purchase of 55-57 Humewood Drive. Given the circumstances Humewood House has negotiated an extension on the closing from September 30 to October 21.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/cd/bgrd/backgroundfile-96425.pdf