Item - 2017.EX26.16

The Executive Committee recommends that:

1.  City Council authorize the Director, Affordable Housing Office, to submit a request to the Ministry of Housing for funding in the amount of $6,000,000 from the 2017-2018 allocation of the Social Infrastructure Fund/Investment in Affordable Housing (SIF/IAH) Program.

2.  City Council authorize the Director, Affordable Housing Office, to negotiate and enter into and execute the municipal capital facility agreement with the owner of the Mirvish Village Redevelopment or its successor corporation, to secure 60 affordable rental homes at or below 80 percent of average market rents for a minimum of 25 years, and any security, financing or other documents required, as well as any amendments thereto on terms and conditions acceptable to the Director, Affordable Housing Office, and the Deputy City Manager and Chief Financial Officer, in a form satisfactory to the City Solicitor.

3.  City Council authorize the Director, Affordable Housing Office, to provide Open Door Program incentives to the 60 affordable rental housing units under at the Mirvish Village Redevelopment and work with the General Manager, Shelter Support and Housing Administration, on securing Housing Benefits, subject to available funding.

4.  City Council exempt the 60 new affordable homes at the Mirvish Village Redevelopment from taxation for municipal and school purposes for the 25-year term of the municipal capital facility agreement.

5.  City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered as required by normal business practices.

6.  City Council authorize staff to cancel or refund any taxes paid from the by-law exempting the property from taxation.

This report makes recommendations to secure new affordable rental housing opportunities in an important and unique city building initiative in downtown Toronto.

City Council at its meeting of April 26, 27 and 28, 2017 requested the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer to report to the June 19, 2017 Executive Committee meeting on the creation of 60 affordable rental homes in Part One of the Affordable Rental Housing Plan for 571 to 597 Bloor Street West, 738 to 782 Bathurst Street, 26 to 38 Lennox Street, 581-603 and 588 to 612 Markham Street ("Mirvish Village Redevelopment").

Council also requested that the Director, Affordable Housing Office, negotiate with the owner of the Mirvish Village Redevelopment to prioritize the delivery of affordable rental units by providing funding from federal/provincial sources as well as the City's Open Door Program, subject to the receipt of a satisfactory business plan.

Westbank Projects Corporation ("Westbank") submitted a business plan which has been deemed satisfactory by the Director, Affordable Housing Office, and the Deputy City Manager and Chief Financial Officer.

This report recommends Council approve a comprehensive funding and incentive package to deliver 60 affordable rental homes under Part One of the Affordable Housing Plan at the Mirvish Village Redevelopment and provides details on implementation.

Westbank will be making a $4,000,000 Section 37 contribution.  Federal/ provincial funding of $6,000,000 from the Social Infrastructure Fund/ Investment in Affordable Housing (SIF/IAH) Program will also be provided, along with City incentives including relief from planning fees, development charges and municipal taxes.  In return, rents will be set at 80 percent of the average market rent for the 60 homes, which will remain affordable for 25 years, inclusive of a 5-year phase out.

Westbank is also committed to working with the City and non-profit organizations on additional affordable housing rental opportunities including, but are not limited to, considering referral agreements and head-lease arrangements.

Sixty affordable rental homes represent seven percent of the homes in the redevelopment.  The units will be confirmed through the execution of a Contribution Agreement, currently under negotiation between the City and Westbank.

As directed by Council, Part Two of the Affordable Housing Plan will work to achieve up to 20 percent of the total dwelling units as affordable rental housing.

Part Two of the plan will be subject to the principals of a Memorandum of Understanding ("MOU") currently under negotiation with Westbank.  It is anticipated that the Memorandum of Understanding will be executed by June 30, 2017.