Item - 2017.EX24.6

The Executive Committee recommends that:

1.  City Council enact a site specific by-law amending the criteria for "Affordable Housing" in the Municipal Housing Facility By-law No. 124-2016, to exempt the one hundred and thirty-five (135) affordable rental housing units at 33 Hahn Place from the restriction that affordable rental housing units be "new" housing to meet the definition of "Affordable Housing" in the Municipal Housing Facility By-law No. 124-2016.
 

2.  City Council, conditional on the enacting of the site specific by-law amendment referred to in Recommendation 1, exempt 33 Hahn Place from taxation for municipal and school purposes for the term of the municipal capital facility agreement (Local Agency Housing Agreement) with Les Centres d'Accueil Héritage ("Les Centres"), which will be 25 years with the option to renew for a period not to exceed the remaining term in the lease to Les Centres with the City.
 

3.  City Council authorize the General Manager, Shelter, Support and Housing Administration (the "General Manager") to negotiate and enter into, on behalf of the City, a municipal capital facility agreement (Local Agency Housing Agreement) with Les Centres to secure affordable housing in accordance with By-law No. 124-2016, as amended, in return for the exemption from taxation for municipal and school purposes being provided, and containing terms and conditions addressing:

a.  payment in full of unpaid 2015, 2016 and 2017 taxes, including late payment charges (interest and penalties) and fees added to the tax account, levied up to the Effective Date of the municipal capital facility agreement (Local Agency Housing Agreement);

b.  affordability requirements to offset the property tax exemption over time, including:

i. maintaining 35 market units at or below Canada Mortgage and Housing Corporation (CMHC) average market rents;

ii. maintaining, at a minimum, 23 internally-funded subsidized units;

c.  development of a City-approved access plan for filling affordable and internally-funded subsidized units; and

d.  oversight and reporting to ensure City standards are met in the areas of governance, capital repairs, maintenance and rental levels.

 
and that are satisfactory to the General Manager, Shelter Support and Housing Administration, and in a form satisfactory to the City Solicitor.

4.  City Council authorize City staff to cancel or refund any taxes paid after the execution (the "Effective Date") of the municipal capital facility agreement (Local Agency Housing Agreement).

 
5.  City Council authorize the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any other documents required to facilitate the tax exemption process and the tax arrears repayment.
 

6.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any consents and City security documents registered to secure Les Centres obligations under the municipal capital facility agreement (Local Agency Housing Agreement) as required by normal business practices.

Les Centres d'Accueil Héritage ("Les Centres") is a registered not-for-profit organization that provides affordable housing and support services in French for seniors and for adults living with HIV/AIDS. Its building at 33 Hahn Place has 135 one- and two-bedroom units including 100 rent-geared-to-income units and 35 affordable market rent units operating under a 99 year lease with the City. Les Centres is the sole provider of community support services and subsidized housing in French across the Greater Toronto Area.

In 2013, the Municipal Property Assessment Corporation (MPAC) reclassified Les Centres as a multi-unit residential building resulting in a substantial property tax increase. This increase caused financial hardship for the organization, challenging their ability to provide affordable housing and resulting in significant tax arrears. On March 1, 2017 the Section 95 operating agreement for Les Centres expired. This ends Les Centres' obligations under that social housing program, and also ends the formal relationship between Les Centres and the City. Les Centres has made a valuable contribution to affordable housing and support services in the City over the past 35 years, and is requesting assistance to continue its mission.

This report seeks Council's authority for the adoption of necessary by-laws to designate the property owned by the City of Toronto and occupied by Les Centres at 33 Hahn Place as a municipal capital facility and to provide a property tax exemption for municipal and education purposes. The report also seeks Council's authority for the negotiation and execution of a new municipal capital facility agreement (Local Agency Housing Agreement), to set affordability and other program-related terms and conditions to secure the property tax exemption and a requirement for the repayment of unpaid tax arrears, including late payment charges (interest and penalty) and fees added to the tax account.

The recommended by-law and agreement will establish a new relationship between the City and Les Centres. Through the proposed property tax exemption, Les Centres will receive financial relief to support their mission and in return will provide ongoing affordability, including internal subsidies, ensuring they continue to contribute to meeting the City's affordable housing needs.