Item - 2018.EX30.19

The Executive Committee recommends that:

1.  City Council approve the allocation of up to $2 million from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 80 down payment assistance loans of $25,000 to eligible purchasers of housing to be developed on the property currently known as 51 Panorama Court, under the terms of the City's Home Ownership Assistance Program.

2.  City Council authorize the following exemptions for the affordable rental housing to be constructed at 51 Panorama Court that provides additional affordable housing benefits beyond the requirements of Official Plan Policy 3.2.1.9:

1. exemption from the payment of development charges, building, planning and parkland dedication fees and charges; and
2. an exemption from taxation for municipal and school purposes, for the period of affordability as described in the chart in the Financial Impact section of the report (January 10, 2018) from the Director, Affordable Housing Office.

3.  City Council authorize City staff to cancel or refund any taxes paid after the effective date of the Municipal Capital Facility Agreement.

4.  City Council authorize the Director, Affordable Housing Office, to negotiate and enter into, on behalf of the City, agreements, and any security, financing or other documents required with the developers chosen for the development of the affordable housing at 51 Panorama Court, Toronto, to secure the financial assistance being provided through the Open Door Program, setting out the terms of the operation of the new affordable rental housing and the delivery of the affordable ownership housing on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager, Interim Chief Financial Officer and the General Manager, Shelter, Support and Housing Administration, and in a form approved by the City Solicitor.

5.  City Council authorize the Director, Affordable Housing Office, to execute, on behalf of the City, the affordable housing agreements, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by the developers, or their related corporations to complete construction and conventional financing, where required.

6.  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.

7.  City Council request that Infrastructure Ontario, in consultation with City Planning, the Affordable Housing Office and the Councillor for Ward 1, host a community information meeting to provide an update on the development of 51 Panorama Court as part of the Provincial Affordable Housing Lands Program.

8.  City Council request the Director, Affordable Housing Office to report to the Affordable Housing Committee in 2019 on the results of both phases of the Provincial Affordable Housing Lands Program in Toronto.

This report recommends that City Council approve proceeding with Phase Two of the Provincial Affordable Housing Lands Program (PAHLP), which will provide up to 160 new affordable rental and up to 80 affordable ownership homes on the Thistletown site to be delivered by non-profit organizations.

The Ontario Government, as part of its Fair Housing Plan, has established a program to leverage provincial land assets to develop a mix of market housing and new, permanent, sustainable and affordable housing across the province. City Council on October 4, 2017 pre-approved Open Door incentives for affordable rental homes in the first phase of the Provincial Affordable Housing Lands Program in the West Don Lands and 27 Grosvenor/26 Grenville Streets.

The second phase of the Provincial Affordable Housing Lands Program includes approximately 11 hectares of developable land, in a 19 hectares parcel, on the former Thistletown Regional Center lands at 51 Panorama Court in the Finch-Kipling area. Infrastructure Ontario on behalf of the Ministry of Housing and Ministry of Infrastructure, through a broker-led process, has issued an offering of this

site to private and not-for-profit organizations to develop approximately 800 market and affordable homes for Torontonians. Up to 70 percent of residential units are planned as market rental and/or ownership housing. A minimum of 20 percent of these homes are required to be provided as affordable rental and a minimum of 10 percent as affordable ownership. 

In proceeding with the Provincial Affordable Housing Lands Program, the Province and the City of Toronto have agreed that there is an interest in approving the financial incentives associated with the affordable components of the Thistletown project. This would also provide certainty for applicants during the provincial land offering. As a result, this report recommends the City pre-approve the Open Door Program's financial incentives to support the construction and operation of the new affordable rental and ownership housing. It also recommends that City staff report to the Affordable Housing Committee in 2019 to provide an update on both phases of the Provincial Affordable Housing Lands Program.

The Open Door Program is a five-year initiative approved by City Council in July 2016. The program is designed to complement federal/provincial affordable housing initiatives and scale up City efforts to achieve Toronto’s targets of creating 5,000 affordable rental homes and 2,000 affordable ownership opportunities for low-and moderate-income residents by 2020.