Item - 2020.EX17.2

The Executive Committee recommends that:

Updated Mandate for Toronto Community Housing Corporation

1. City Council adopt the 2021 Mandate Direction Document for Toronto Community Housing Corporation outlined in Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services and, as Shareholder, request the Board of Directors of Toronto Community Housing Corporation to work with the Deputy City Manager, Community and Social Services to carry out the actions described in the 2021 Mandate Direction document.

2. City Council direct the City Manager to amend the Shareholder Direction to make permanent the process for selecting Tenant Board members outlined in Attachment 2 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services and originally adopted by City Council in 2018.EX30.2 as an interim procedure to select Tenant Board members.

3. City Council direct the City Manager to report back to City Council in 2021 with an updated the Shareholder Direction for the Toronto Community Housing Corporation.

Integrated Service Model Implementation

4. City Council approve the Integrated Service Model Accountability Framework in Attachment 4 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services.

5. City Council, as Shareholder, direct the Board of Directors of Toronto Community Housing Corporation to comply with the Integrated Service Model Accountability Framework requirements in Attachment 4 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services.

6. City Council, as Shareholder, direct the Board of Directors of Toronto Community Housing Corporation to support the successful implementation of the Integrated Service Model in the Seniors Housing Unit at Toronto Community Housing Corporation by completing the actions related to the Integrated Service Model in the 2021 Mandate Direction Document as listed in Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services.

7. City Council acknowledge and formally thank the leadership of the Toronto Central Local Health Integration Network for their involvement in the development and continued contribution to the Integrated Service Model for seniors-designated social housing in Toronto.

Toronto Seniors Housing Corporation Timeline

8. City Council direct the Deputy City Manager, Community and Social Services to report to the Executive Committee by the Spring of 2021 with recommended timelines for the creation of the Seniors Housing Corporation and recommendations for related approvals.

Office of the Commissioner of Housing Equity

9. City Council direct the City Manager to consider the investigation and process review functions of the Office of the Commissioner of Housing Equity in the City’s development of the future Housing Commissioner role or function, with a focus on aligning roles between these two offices, if appropriate. 

Scattered Properties Request For Proposals Process and Transfers

10. City Council direct the Board of Directors of Toronto Community Housing Corporation to negotiate an agreement of purchase and sale, with direction from the Deputy City Manager, Community and Social Services, for the sale of the 623 scattered properties containing 729 units described in Attachment 6 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services to the selected non-profit proponent(s) identified in Confidential Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services based substantially on the terms and conditions outlined in the joint City-Toronto Community Housing Corporation Request for Proposals, the submission of the selected proponent(s), and such other terms and conditions that are satisfactory to both the Toronto Community Housing Corporation and the Deputy City Manager, Community and Social Services and to complete such agreements of purchase and sale with any additional direction from the Deputy City Manager, Community and Social Services.

11. City Council approve the reclassification of the properties listed in Attachment 7 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services that were originally identified as uninhabitable in Confidential Attachment of 2018.EX34.3 to be considered scattered houses and City Council direct the Board of Directors of Toronto Community Housing Corporation to negotiate an agreement of purchase and sale, with direction from the Deputy City Manager, Community and Social Services, of those addresses to the selected proponent(s) of the Request for Proposals process identified in Confidential Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services, based on the terms and conditions outlined in the joint City-Toronto Community Housing Corporation Request for Proposals and such other terms and conditions that are satisfactory to both Toronto Community Housing Corporation and the Deputy City Manager, Community and Social Services with pricing determined by the Deputy City Manager, Community and Social Services and to complete such agreements of purchase and sale with any additional direction from the Deputy City Manager, Community and Social Services.

12. City Council direct the Board of Directors of Toronto Community Housing Corporation to negotiate an agreement of purchase and sale, with direction from the Deputy City Manager, Community and Social Services, for any remaining uninhabitable or agency houses that the Deputy City Manager, Community and Social Services deems unallocated to the selected proponent(s) of the Request for Proposals identified in Confidential Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services or with other qualified proponents identified by the Deputy City Manager, Community and Social Services, at the direction of the Deputy City Manager, Community and Social Services based on the terms and conditions outlined in the joint City-Toronto Community Housing Corporation Request For Proposals and such other terms and conditions that are satisfactory to both the Toronto Community Housing Corporation and the Deputy City Manager,  Community and Social Services with pricing determined by the Deputy City Manager, Community and Social Services, and to complete such agreements of purchase and sale with any additional direction from the Deputy City Manager, Community and Social Services.

13. City Council amend the previously approved lists of transfers of Toronto Community Housing Corporation Agency, Rooming and Uninhabitable Houses by:

a. adding the following addresses to the list of Agency Houses approved by City Council and listed in Appendix 1 to the report (January 9, 2018) from the Deputy City Manager, Cluster A of Item 2018.EX30.2: 143A Stephenson Avenue, 143B Stephenson Avenue, and 143C Stephenson Avenue;

b. adding 41 D'arcy Street to the list of Rooming Houses described in 2018.EX30.2; and

c. deleting 127 Sackville Street from the list of Agency Houses.

14. City Council direct the Board of Directors of Toronto Community Housing Corporation to negotiate an agreement of purchase and sale, with direction from the Deputy City Manager, Community and Social Services, of any additional scattered housing not identified in the Request For Proposals but identified through forthcoming due diligence with the selected proponent(s) based on the terms and conditions outlined in the joint City-Toronto Community Housing Corporation Request For Proposals and such other terms and conditions that are satisfactory to both Toronto Community Housing Corporation and the Deputy City Manager, Community and Social Services with pricing determined by the Deputy City Manager, Community and Social Services, and to complete such agreements of purchase and sale with any additional direction from the Deputy City Manager, Community and Social Services.

15. City Council direct the Board of Directors of Toronto Community Housing Corporation to transfer ownership of any agency, uninhabitable or rooming house property approved by to non-profit corporations in each case at a below market transfer price determined by the City Manager.

16. City Council acting as Shareholder, approve the sale and transfer of all the properties referenced in the Recommendations 10, 11, 12, 13, 14, and 15 above pursuant to Section 7.4.1(b) of the Shareholder Direction.

17.City Council authorize the General Manager, Shelter, Support and Housing Administration to provide, on behalf of the City acting as Service Manager under the Housing Services Act, consents pursuant to subsection 161(2) and 162(2) of the Housing Services Act, as required, to transfers by Toronto Community Housing Corporation described in Recommendations 10, 11, 12, 13, 14, and 15 above, and to mortgages by transferees, subject to such terms and conditions that the General Manager, Shelter Support and Housing Administration considers reasonable and necessary to carry out City Council's decision, including, without limitation, compliance with the Housing Services Act and the Service Manager's local rules and standards, occupancy costs, the operation of the housing project, funding, reporting and accountability, the mandate and target tenants or residents for the housing project, and tenant supports.

18. City Council authorize the General Manager, Shelter, Support and Housing Administration, on behalf of the City, to enter into one or more operating agreements and other such agreements as may be required with the selected proponent(s) and the entities that may operate the properties referenced in Recommendations 10, 11, 12, 13, 14 and 15 above to ensure the housing assets are operated as affordable housing in perpetuity and to address compliance with the Housing Services Act and the Service Manager's local rules, occupancy costs, the operation of the housing project, funding, reporting and accountability, the mandate and target tenants or residents for the housing project, and tenant supports.

19. City Council authorize the General Manager, Shelter, Support and Housing Administration acting as Service Manager on behalf of the City of Toronto under the Housing Services Act, 2011, to adjust funding and rent-geared-to-income service levels for the operating agreement with the Toronto Community Housing Corporation to reflect its reduced operating costs as a result of the transfers approved in Recommendations 10, 11, 12, 13, 14 and 15 above. 

20. City Council direct that Confidential Attachment 1 to the report (October 6, 2020) from the Deputy City Manager, Community and Social Services remain confidential in its entirety as it pertains to the pending disposition of property by the Toronto Community Housing Corporation until the Deputy City Manager, Community and Social Services authorizes its release.

Since 2016, City Council has approved a series of actions recommended through work of the Tenants First project to steer Toronto Community Housing Corporation ("TCHC") toward long-term, sustainable change in which TCHC focuses on being a social housing landlord, buildings are in a good state of repair, and tenants are connected to appropriate services.

In July 2019, City Council approved the phased implementation of a new Integrated Service Model ("ISM") for tenants in TCHC's 83 seniors-designated buildings to improve housing services and to better coordinate access to health and housing services to support seniors aging in place. It also directed staff to develop an accountability framework for the ISM to provide stronger City oversight into TCHC's delivery of the new model. In addition, City Council approved in principle the creation of a stand-alone seniors housing corporation to operate these 83 buildings subject to the completion of a due diligence review.

In conducting a due diligence review, City staff, working collaboratively with TCHC and supported through an external legal firm, examined financial, legal, and labour relations risks as well as the overall governance structure of the future corporation. Creating the seniors housing corporation will benefit from using a phased approach for start-up and implementation: Phase 1 - Establishing the corporation and appointing a board; Phase 2 - Start-up and Transition, including recruiting key corporate executives and transferring tenancies, staff and contracts from TCHC to the new corporation; Phase 3 - Full operations. Each of these three phases will require a varying amount of City resources. 

Since the due diligence review began in late 2019, the City has experienced the devastating impacts of the COVID-19 pandemic and has dedicated, and will continue to dedicate a significant amount of staffing and financial resources to its response and, going forward, its recovery and rebuilding efforts. Given that the ongoing pandemic and associated recovery and rebuild period is anticipated to extend into 2021, this report recommends that City Council delay launching the seniors housing corporation until the COVID situation has stabilized. An update will be provided to City Council by the spring of 2021 with recommended timing on creating the seniors housing corporation. Until a corporation is established, TCHC will continue to maintain a dedicated Seniors Housing Unit which reports directly the TCHC’s Chief Executive Officer, and City staff will continue to do the preparatory work required for the establishment of a separate corporation. 

The City remains committed to improving service to senior tenants in social housing through the continued roll out of the ISM which was approved by City Council in July 2019.  Additionally, the City will have increased oversight, ensuring that the ISM is being effectively implemented and is achieving its intended outcomes, through an ISM accountability framework recommended in this report (and described in Attachment 4). The ISM's key features include increased staff to tenant ratios, better coordinated access to health services and supports through the Local Health Integration Network and community partners, and seniors health and wellness hubs.

Changes to the operations of TCHC's seniors housing portfolio through the creation of a new corporation necessitates a review in the Office of the Commissioner of Housing Equity's (OCHE) structure and function related to supporting senior and vulnerable TCHC tenants. This report recommends that the City Manager consider specific roles of the OCHE in the review and establishment of a Housing Commissioner role or function within the City, with a focus on aligning OCHE and Housing Commissioner functions if appropriate. Staff anticipate reporting to Committee and Council by the end of this year on the Housing Commissioner and the OCHE.

This report also provides an update and makes recommendations with respect to an updated mandate for TCHC, and the transfer of TCHC's remaining 729-unit scattered house portfolio to the non-profit housing sector.