Item - 2017.EX24.7

The Executive Committee:

1.  Deferred the consideration of the item until the Executive Committee meeting of September 26, 2017 and requested Mayor John Tory to discuss with the Ontario Minister of Infrastructure, the possibility of the Province adjusting the terms of the Infrastructure Ontario loans to provide YWCA with the revenue to be able to service a portion of the City of Toronto's affordable housing loans.

This report provides amendments to the terms and conditions of two existing loans from the City's Capital Revolving Fund for Affordable Housing (CRF) (XR1058) to the YWCA of Greater Toronto (YWCA) made between 2007 and 2008. The loan funds were used for the construction of 300 units of affordable rental housing at 110 Edward Street. The City purchased the land at 110 Edward Street with funds from the federal/provincial affordable housing allocation for the development and then leased it to the YWCA of Greater Toronto.

The two loans totalling $7,500,000 contributed to the capital costs and to energy efficient technology for the development.  Repayment was to commence January 1 and February 1, 2017. Based on a staff review of the operation, there is insufficient revenue to begin repayment.

This report recommends changes to the current terms and conditions of the loans such that principal and interest payments be deferred until 2034 when a loan to the YWCA of Greater Toronto from Infrastructure Ontario (in the amount of $5.2 million) will have been fully repaid freeing up revenue to commence repayment of the two City's Capital Revolving Fund for Affordable Housing (XR1058) loans.  Additionally, it is recommended that interest payments otherwise payable to the City under these two loans be forgiven until June 1, 2034.  

The Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer have determined that these amendments will support the long-term viability of 110 Edward Street without unduly compromising the City's financial interests.