Item - 2017.CD19.11

The Community Development and Recreation Committee recommends that:

1.  City Council approve an in-year base budget adjustment to the 2017 Council Approved Shelter, Support and Housing Administration Operating Budget to increase the complement by 10.3 positions (from 789.1 to 799.4) and increase the salary and benefit budget by $1,047,800, thereby reinstating the positions that were identified as part of the attrition service adjustment.

2.  City Council approve an in-year budget adjustment to the 2017 Council approved Shelter, Support and Housing Administration Operating Budget to increase Shelter, Support and Housing Administration's gapping budget by $629,800, to ensure front-line staff are available to meet higher occupancy demands.

3.  City Council approve an in-year budget adjustment to reduce the Social Housing subsidy budget by $418,000 for savings realized from mortgage interest rates, property tax rate and the Social Housing Cost Factor.

4. City Council direct the General Manager, Shelter, Support and Housing Administration to respond on a immediate, emergency basis when the occupancy rate of the shelter system exceeds the 90 percent target.

5. City Council authorize the General Manager, Shelter, Support and Housing Administration to act on an emergency basis and access emergency funds from the Social Housing Stabilization Reserve Fund without requiring prior Council authority, when the occupancy rate of 90 percent in the shelter system is exceeded, for the 2017/2018 winter season.

6. City Council request the General Manager, Shelter, Support and Housing Administration and the Chief Financial Officer and Deputy City Manager to report to the Community Development and Recreation Committee on how the access to emergency funds by the General Manager, Shelter, Support and Housing Administration can be facilitated for the 2018/2019 winter season and beyond.

7.  City Council direct the General Manager, Shelter, Support and Housing Administration to report to the Community Development and Recreation Committee with a long-term sustainable plan for staffing in shelters consistent with the city average gapping rate.

8.  City Council direct the General Manager, Shelter, Support and Housing Administration to conduct an immediate review in 2017 of its shelter standards in accordance with Section 2.4.5 of the Toronto Shelter Standards due to the extraordinary crowding and increased demand for services documented this year, and report back to the Community Development and Recreation Committee in the first quarter of 2018.

9.  City Council request the Federal Government to work with the City of Toronto to explore transferring Federal lands, including the armouries, to be used as sites for affordable housing.

The Community Development and Recreation Committee:

1. Requested the General Manager, Shelter, Support and Housing Administration to report to the June 7, 2017  Community Development and Recreation Committee meeting on:

a.  increasing the number of 24-hour low-barrier cold-weather drop-ins for the 2017-2018 and successive winter seasons; and

b.  an overview of the services and locations provided during the 2016-2017 winter season; and

c.  an accounting of the spaces operated by Out of the Cold programs, overnight drop-in centres and cold-weather drop-ins, in the overall capacity level of the shelter system.

On February 15, 2017 City Council adopted the 2017-2026 Capital Plan and Operating Budgets and directed the General Manager, Shelter, Support and Housing Administration (SSHA) to report back by April 30, 2017 on a detailed assessment of the service level impact of the 2017 service adjustments. This report responds to that request.

Additionally, Community Development and Recreation Committee (CDRC) at its meeting of March 2, 2017 directed that the General Manager, SSHA report back on the actions that are being taken to adhere to the 90 percent shelter occupancy standard, as a companion piece to the report requested by City Council.

As adopted, the 2017 Approved Operating Budget for SSHA included a reduction, largely in the Homeless and Housing First Solutions service area, of 10.3 positions with an estimated savings of $1.048 million. There was no job loss associated with the reduction because the staff filling those roles were eligible for retirement. Once retired, the positions would be removed from SSHA's complement. Thus, the reduction would be accomplished through attrition.

The position deletions were put forward in early August 2016 to help achieve City Council's mandated across the board budget reduction target of minus 2.6 percent. Since that time, the City's shelter system has continued to face increased occupancy pressure primarily due to increased demand from refugees. In response, the program has added shelter beds and increased the availability of cold weather drop-ins over the winter period.  Despite these additional services, there is still steady pressure on shelter capacity.

In the eight months since the 2017 operating budget submission, SSHA now has better information on 2017 rate forecasts for social housing including mortgage renewals, property tax rate increases, and the annual Provincial Cost Factor increases. The program is therefore making the following recommendations as ways to save the $1.048 million anticipated from the deletion of the 10.3 positions adopted by City Council so that they can continue to be deployed to support the growing need of the shelter system:

-  $268,000 from revised estimates on social housing mortgage renewal rates

-  $100,000 from revised estimates on social housing property tax rate increases

-  $50,000 from revised estimates on social housing Provincial Cost Factor increases; and

-  $629,800 in increased gapping for non-front line/administrative staff
 

If these recommendations are adopted by Council, SSHA will remain within its 2017 Approved Operating Budget with no impact to service levels and standards.