Item - 2020.PH15.12

The Planning and Housing Committee recommends that:

1. City Council authorize the transfer of $4,846,556.00 from Section 37 (Planning Act Reserve Fund - Source Account Number XR3026-3700879) to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) for the purpose of developing, non-profit co-operative, affordable housing at 685 Queen Street East.

2. City Council increase the 2020 Approved Operating Budget for Shelter, Support and Housing Administration by $4,846,556.00 gross, $0 net, fully funded from the Capital Revolving Reserve Fund for Affordable Housing (XR1058), for transfer to Riverdale Co-operative Homes Inc. to support the redevelopment of 685 Queen Street East, from the developments at 77-79 East Don Roadway and 661-677 Queen Street East.

3. City Council authorize the Executive Director, Housing Secretariat to provide $4,846,556.00 in funding from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to Riverdale Co-operative Houses, Inc. subject to the following conditions:

a. the transfer of the designated funds from XR3026 to XR1058; and

b. fulfillment of all applicable conditions governing the release of the designated funds set out in the City's executed Contribution Agreement with Riverdale Co-operative Houses Inc.

The Planning and Housing Committee:

1. Requested the Chief Planner and Executive Director, City Planning in consultation with the Executive Director, Housing Secretariat to report directly to City Council at its meeting on July 28 and 29, 2020, on a plan to ensure that a number of the new affordable rental units to be developed at 685 Queen Street East are designated for artists, and include the number of units and the tenant access plan and that staff work with the Co-op Housing Federation, Riverdale Co-op and the local Councillors in developing this plan.

This report recommends City Council approval of $4,846,556 in Section 37 funds to be provided to Riverdale Co-operative Homes Inc. ("Riverdale Co-operative") for the redevelopment of 685 Queen Street East in Ward 14. The report also provides an update on pre-development work completed to-date.

City Council, at its meeting of June 18 and 19, 2019, authorized the Executive Director, Housing Secretariat, to provide $500,000 in funding to Riverdale Co-operative to be used for pre-development work at 685 Queen Street East. Council also directed the Housing Secretariat to report to the Planning and Housing Committee on the results of the pre-development work, including any capital and operating funding required to undertake the redevelopment project.

Riverdale Co-operative is a non-profit corporation that provides affordable housing for its members. The Co-operative owns the 685 Queen Street East property, which is in need of substantial capital repairs. The redevelopment plans for 685 Queen Street East involves the renovation of nine units in the existing heritage structure, plus an addition of 17 units at the rear of the building, for a total of 26 units.

Riverdale Co-operative has partnered with Streetcar Developments ("Streetcar"), a well-established private sector developer, who is developing the adjacent site, to deliver this project on their behalf. This partnership will leverage Streetcar's development expertise plus take advantage of economies of scale due to their active development project next to the building. With Streetcar's help, the pre-development work has now advanced to the point where Site Plan Control and Minor Variance applications will be submitted to the City shortly.

By securing the $4,846,556 City contribution recommended in this report, the Co-operative will be able to proceed with the redevelopment and intensification of the existing building. Advancing this project will help preserve the existing supply of co-operative housing and create additional affordable homes for low-and-moderate-income residents in the city. The redevelopment of the site will also increase accessibility for residents and improve the energy efficient of the building.