Item - 2019.EX7.1

The Executive Committee recommends that:

Creation of New Seniors Housing Corporation

1.  City Council approve in principle the establishment under section 148 of the City of Toronto Act, 2006, of a wholly-owned City services corporation to manage and operate Toronto Community Housing Corporation's 83 seniors-designated buildings, as listed in Attachment 1 to the report (June 21, 2019) from the City Manager and the Deputy City Manager, Community and Social Services, and City Council direct the Deputy City Manager, Community and Social Services, to complete a due diligence process to ensure an appropriate understanding of the legal, financial and labour implications and report back with the results of the due diligence process in the first part of 2020.

Implementation of the Integrated Service Model

2.  City Council, as sole shareholder, direct the Toronto Community Housing Corporation Board of Directors to direct the President and Chief Executive Officer, Toronto Community Housing Corporation to implement the integrated service model for seniors as described in Attachment 5 to the report (June 21, 2019) from the City Manager and the Deputy City Manager, Community and Social Services, beginning with 10 sites selected from the 83 designated seniors-designated buildings in 2020 in partnership with the City and the Toronto Central Local Health Integration Network until such time as the new City services corporation (referenced in Recommendation 1 above) is established.

3.  City Council direct the Deputy City Manager, Community and Social Services, to oversee the implementation of the integrated service model for seniors beginning with 10 sites selected from the 83 designated seniors buildings in 2020 in partnership with Toronto Community Housing Corporation and the Toronto Central Local Health Integration Network and submit a business case as part of the 2020 budget for any additional resources and funding required.

4.  City Council direct the General Manager, Seniors Services and Long-Term Care to develop and report to City Council in 2020 on a new accountability framework and a corresponding implementation plan for the integrated service model.

5.  City Council request the Deputy City Manager Community and Social Services, in consultation with the President and Chief Executive Officer, Toronto Community Housing Corporation to pilot a modified integrated service model for implementation in the former seniors buildings identified in Attachment 2 to the report (May 2, 2018) from the Executive Director, Social Development, Finance and Administration in Item 2018.EX34.3 starting with 1901 Weston Road and 10 Glen Everest Road and to identify the required resources and timing schedule through the 2020 Budget Process.

Creation of a City Housing Corporation Relationship Unit

6.  City Council direct the Deputy City Manager, Community and Social Services, to design and implement a new accountability framework including the creation of a City Housing Corporation relationship unit reporting to the Deputy City Manager, Community and Social Services, that coordinates the City's relationship with Toronto Community Housing Corporation and the proposed seniors housing corporation.

7. City Council authorize the City Solicitor to augment internal resources as necessary by retaining external legal services specializing in:

a.  the establishment and governance of public service corporations and associated board governance to expedite the process of establishing and forming a wholly-owned City services corporation to manage and operate Toronto Community Housing's 83 seniors designated buildings; and

b.  legal, financial and labour implications of the transfer to Toronto Community Housing Corporation's real estate development functions to CreateTO on the City in alignment with the City-wide real estate model.

Transition of Toronto Community Housing Corporation's Development Functions to CreateTO

8.  City Council approve in principle the transfer of Toronto Community Housing Corporation's real estate development functions to CreateTO and/or the City in alignment with the City-wide real estate model, including infill housing opportunities, the functions related to treatment of property and property related transactions and direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer, CreateTO and the Chief Executive Officer and President, Toronto Community Housing Corporation to complete a due diligence process to ensure an appropriate understanding of the legal, financial and labour implications of the transfer and report back by the end of 2019 with a transfer plan including governance.

9.  City Council direct that all proposals relating to future revitalizations and redevelopment opportunities of Toronto Community Housing assets, including any demolition and reconstruction of multiple buildings and infill opportunities, be directed to the Executive Director, Housing Secretariat, for review and recommendation working, in consultation with the Chief Executive Officer, CreateTO and the Chief Planner and Executive Director, City Planning prior to being recommended to City Council for approval.

10.  City Council, as sole shareholder, direct the Toronto Community Housing Corporation Board of Directors to direct the President and Chief Executive Officer, Toronto Community Housing Corporation to co-ordinate through the Executive Director, Housing Secretariat, who will work in consultation with the Deputy City Manager, Community and Social Services, Chief Executive Officer, CreateTO and the Chief Planner and Executive Director, City Planning, to identify opportunities for new affordable rental housing units on Toronto Community Housing Corporation lands through a program of infill construction.

11.  City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, CreateTO, to review potential infill projects on Toronto Community Housing Corporation lands on an accelerate basis through the Housing Now approval process.

Continue to Transfer Uninhabitable Houses to Non-profit Organizations

12.  City Council direct the City Manager to expedite the transfers of Toronto Community Housing Corporation Uninhabitable Houses by adding the houses listed in Confidential Attachment 1 to the report (June 21, 2019) from the City Manager and the Deputy City Manager, Community and Social Services to the list of Uninhabitable Houses approved by Council in 2018.EX34.3.

13. City Council direct the Executive Director, Housing Secretariat to work with the President and Chief Executive Officer, Toronto Community Housing Corporation and the Chief Executive Officer, CreateTO to meet with the current long term leaseholder of 45 Canyon, to explore all opportunities and options, including consideration of the transfer of land and/or air rights, to intensify the site with rental housing which will include consideration of providing an element of seniors housing [and/or affordable housing] on the property at 45 Canyon Road and report back to the Executive Committee by the fourth quarter of 2019.

14.  City Council direct that Confidential Attachment 1 to the report (June 21, 2019) from the City Manager and the Deputy City Manager, Community and Social Services remain confidential in its entirety as it pertains to the security of the property of the municipality or one of its agencies or corporations.

Tenants First is implementing a plan in which Toronto Community Housing Corporation focuses on being a social housing landlord, where buildings are in a good state of repair, and tenants are connected to appropriate services. As part of the Tenants First Phase One Implementation Plan, Council tasked Tenants First to review governance, mandate and accountability for Toronto Community Housing Corporation's key business areas. This report recommends changes to the governance of Toronto Community Housing Corporation's business areas to increase its collaboration with the City, while also increasing City oversight of its activities, mitigating legal and financial risk, containing costs, and minimizing disruption to tenants.

Specifically, this report recommends City Council approve in principle the creation of a new, City-owned seniors housing corporation whose mandate is to operate 14,000 units in 83 seniors-designated Toronto Community Housing Corporation buildings. This recommendation is subject to the results of a due diligence process. It also recommends that the City and Toronto Community Housing Corporation in partnership with the Toronto Central Local Health Integration Network begin implementation in 2020 of the co-developed integrated service model in 10 seniors-designated buildings to improve services to senior tenants.

Toronto Community Housing Corporation will remain a City corporation whose mandate is to operate the 43,000 units in mixed and family buildings. This report provides an overview of the work to clarify the Corporation's core mandate, including six focus areas identified as joint responsibilities of the City and Toronto Community Housing Corporation. This work will be finalized in 2020 and inform the update of the Shareholder Direction.

As part of the work to redefine Toronto Community Housing Corporation's core mandate, this report recommends that City Council approve in principle the transfer of Toronto Community Housing Corporation's real estate development functions to CreateTO and/or the City in alignment with the City-wide real estate model. This recommendation is subject to the results of a due diligence process.

As a critical step in a new accountability framework, the report recommends City Council approve the creation of a City Housing Corporation relationship unit to better coordinate the City's relationship with Toronto Community Housing Corporation and the future seniors housing corporation. This City-staffed relationship unit will provide strategic oversight of the corporations, support the Seniors Services and Long-Term Care division to provide oversight for the delivery of the integrated service model in seniors housing and support Shelter, Support and Housing Administration to enhance their Service Manager's role under the Housing Services Act.

The transformation of Toronto Community Housing Corporation is a long-term process. This report recommends critical steps in transforming the governance, legal structure, mandate, and accountability framework for both seniors housing and the mixed and family portfolios. The recommendations in this report focus Toronto Community Housing Corporation on its core mandate of delivering services to tenants in mixed and family buildings, through creating a separate seniors housing corporation, and consolidating revitalization expertise in CreateTO. Work also continues on the process to transfer the scattered housing portfolio to not-for-profit providers.