Item - 2019.PH7.5

The Planning and Housing Committee:

1.  Requested the Executive Director, Housing Secretariat and the General Manager, Shelter Support and Housing Administration to consult with the Toronto Alliance to End Homelessness on the implementation details of the expanded Housing Allowance Program.

2.  Directed the Executive Director, Housing Secretariat and the City's Chief Financial Officer and Treasurer, to include as part of the HousingTO 2020-2030 Action Plan a review of potential changes to Municipal Land Transfer Tax (MLTT) tiers, in order to align and support the goals and objectives of the City's HousingTO 2020-2030 plan, and the development of new supportive housing in Toronto.

This report responds to City Council's request, originating from a Member's Motion, that the General Manager, Shelter Support and Housing Administration report on potential measures and funding options to expand the housing allowance program, including the creation of a new upper tier of the Municipal Land Transfer Tax (MLTT). This report provides background on the City's housing allowance program, reviews the impact of expanding the program, and addresses funding options.

Housing allowances are an important tool to help address homelessness. By increasing access to affordable housing and assisting people to move out of emergency shelters more quickly, housing allowances represent a proven pathway to stable housing. The City currently administers some 5,400 housing allowances.

The provincial government recently announced funding allocations for the new three-year Ontario Priorities Housing Initiative, including $70 million for Toronto between

2019/20 and 2021/22 to address priorities in the areas of housing supply and affordability. Funding for housing allowance programs are eligible under this initiative and staff will report to Council on recommended funding allocations and priorities in July 2019.

The City is currently developing its next ten-year housing plan, HousingTO 2020-2030 Action Plan, to be presented to City Council in the fall of 2019. The public engagement phase of the plan is underway to develop a comprehensive, solutions-based plan to address housing and homelessness challenges over the next decade. Sustaining and expanding housing allowance programs will be addressed as part of the new plan.

This report was prepared in consultation with the City's Shelter, Support and Housing Administration and Corporate Finance Divisions.

This Supplementary Report to item PH6.3 Expanding the Housing Allowance Program provides program implementation details on how new federal/ provincial funding can be invested to alleviate chronic homelessness by expanding the City's current housing allowance program. Over the next three years (2019-2022) the new Ontario Priorities Housing Initiative (OPHI) can provide 100 new households a month with a housing allowance, beginning this summer. In total, some 3,200 people experiencing homelessness will be supported through this initiative.

At its meeting of May 28, 2019 the City's Planning and Housing Committee deferred consideration of item PH6.3 Expanding the Housing Allowance Program to its July 3, 2019 meeting. PH6.3 responds to City Council's request, originating from a Member's Motion, that staff report on potential measures and funding options to expand the housing allowance program, including the creation of a new upper tier of the Municipal Land Transfer Tax (MLTT). With the availability of federal/provincial OPHI funding, changes to the MLTT are unnecessary. PH6.3 provides background on the City's housing allowance program, reviews the impact of expanding the program, and addresses funding options.

Also on the July 3, 2019 Planning and Housing Committee agenda, a concurrent report titled Activating Federal/ Provincial Funding to Increase Housing Options for Toronto Residents, recommends the City participate in the new federal/ provincial Canada-Ontario Community Housing Initiative (COCHI) and Ontario Priorities Housing Initiative (OPHI). These programs have allocated $159.8 million in federal/ provincial housing funds to the City of Toronto for the three year program period of 2019 to 2022. Housing allowances are an eligible program component of the OPHI, providing a funding source which will fully fund an expansion of the City's housing allowance program. Upon adoption of the report Activating Federal/Provincial Funding to Increase Housing Options for Toronto Residents by City Council, the program delivery details in this Supplementary Report to PH6.3 will be implemented.

Toronto's competitive and inflationary rental housing market creates significant challenges for homeless or low-income households looking for an apartment, and for the delivery of the City's housing allowance programs. Toronto's rental housing vacancy rate has been at historic lows for many years, making finding an apartment to rent increasingly difficult, and the asking rents of apartments that are available for rent on the market are now significantly higher than the average rents of occupied rental homes.

This report was prepared in consultation with the City's Shelter, Support and Housing Administration Division.