Item - 2021.EX23.4

The Executive Committee recommends that:  

Creation of a new City Services Corporation

1. City Council authorize the City Solicitor to establish on behalf of the City the "Toronto Seniors Housing Corporation" pursuant to section 148 of the City of Toronto Act, 2006, and Ontario Regulation 609/06, the City Services Corporation Regulation to the Business Corporations Act (Ontario) to manage social housing designated for seniors in the City of Toronto.

2. City Council authorize the Deputy City Manager, Community and Social Services, to provide written consent as may be required by Ontario Regulation 62 to the Business Corporations Act (Ontario), as the name Toronto Seniors Housing Corporation suggests that the corporation is connected to the City of Toronto.

3. City Council, as Shareholder, approve the shareholder direction to the Toronto Seniors Housing Corporation attached as Attachment 1 to the report (April 15, 2021) from the Deputy City Manager, Community and Social Services, subject to such editorial amendments as may be required to satisfy the City Solicitor, and City Council authorize the Deputy City Manager, Community and Social Services to sign such direction on behalf of the City.

4. City Council, as Shareholder, direct the respective Boards of Directors of the Toronto Community Housing Corporation and the Toronto Seniors Housing Corporation to negotiate and enter into one or more agreements for the transfer and assumption of the operational responsibility of 83 seniors-designated buildings owned by the Toronto Community Housing Corporation and listed in Attachment 2 to the report (April 15, 2021) from the Deputy City Manager, Community and Social Services in 2022. 

5. City Council direct the General Manager, Shelter Support and Housing Administration, as Service Manager for the City of Toronto under the Housing Services Act, to enter into an operating agreement with Toronto Seniors Housing Corporation based upon the principles set forth in the shareholder direction, including provisions related to the oversight of social housing units and an operating subsidy determined by a prorated allocation of the operating subsidy approved by City Council for the Toronto Community Housing Corporation.

6. City Council, as Shareholder, direct the Board of Directors of the Toronto Seniors Housing Corporation to undertake a process to appoint a Chief Corporate Officer and Transition Lead, which consists of:

a. the Deputy City Manager, Community and Social Services, creating a shortlist of qualified prospective candidates;

b. the Deputy City Manager, Community and Social Services, confidentially distributing candidate resumes to the Toronto Seniors Housing Corporation's Board of Directors; and

c. the Toronto Seniors Housing Corporation's Board of Directors evaluating and selecting a preferred candidate.

7. City Council, as Shareholder, direct that the Board of Directors of Toronto Seniors Housing Corporation preclude the chosen candidate for the Chief Corporate Officer and Transition Lead role from being eligible for the Corporation's Chief Executive Officer role. 

8. City Council, as Shareholder, request the Board of Directors of Toronto Community Housing Corporation and the Board of Directors of Toronto Seniors Housing Corporation to adhere to the following principles in the negotiation of agreements to support the transfer and assumption of operation of seniors-designated buildings in Attachment 2 to the report (April 15, 2021) from the Deputy City Manager, Community and Social Services to the Toronto Seniors Housing Corporation:

a. promote the common interests of tenants and City objectives;

b. minimize disruption to tenants;

c. minimize financial impacts on the City;

d. ensuring compliance with existing Toronto Community Housing Corporation capital funding and borrowing agreements;

e. mitigate business and operational risks for both corporations during a transition period; this may include the Toronto Community Housing Corporation supporting the Toronto Seniors Housing Corporation administrative functions in the short term where feasible, as Toronto Seniors Housing Corporation builds capacity; and

f. ensure the capital needs of seniors-designated buildings are assessed and resourced at a level similar to that of comparable buildings in the Toronto Community Housing Corporation's portfolio.

Office of the Commissioner of Housing Equity

9. City Council request the respective Boards of Directors of Toronto Community Housing Corporation and Toronto Seniors Housing Corporation, in consultation with the Office of the Commissioner of Housing Equity, to enter into a shared service agreement, with respect to reporting procedures, resources, and funding requirements for a transitional period of two years to enable the Office of the Commissioner for Housing Equity to continue providing services to tenants of Toronto Seniors Housing Corporation in accordance with the Office of the Commissioner for Housing Equity Terms of Reference approved by the Toronto Community Housing Corporation Board of Directors from time to time.

10. City Council request the Chief Executive Officer of Toronto Seniors Housing Corporation, once appointed by the Board of Directors for Toronto Seniors Housing Corporation, to review arrears and eviction data of  Toronto Seniors Housing Corporation for the transition period referred to in Recommendation 9 above and develop recommendations to the Board of Directors regarding a mechanism to oversee compliance with policies and procedures as they relate to evictions for arrears and loss of eligibility prior to the end of the two-year transition period referenced in Recommendation 9 above.

Additional Authority as Needed

11. City Council authorize the Deputy City Manager, Community and Social Services, and/or their delegate, to execute all notices, agreements, consents or approvals and any other such actions as may be necessary on behalf of the City as shareholder to achieve the transfer of operations from the Toronto Community Housing Corporation to the Toronto Seniors Housing Corporation.

12. 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 to Toronto Seniors Housing Corporation, 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; rent; the operation of the housing project; funding; reporting and accountability; the mandate and target tenants for the housing project; and tenant supports.

Following a review of Toronto Community Housing Corporation's challenges by an independent Task Force established by the Mayor, as well as an assessment of the Task Force's recommendations and findings by City staff, City Council, since 2016, has approved a series of actions to steer Toronto Community Housing Corporation towards long-term, sustainable change. The intended outcomes of those actions, which include transitioning a portion of Toronto Community Housing Corporation's portfolio to a new non-profit corporation, are for Toronto Community Housing Corporation to be appropriately funded and focused on being a social housing landlord with a reputation for providing clean, safe, well-maintained, affordable homes for residents, and where tenants are actively engaged and connected to appropriate services.

As part of this transformation, in July 2019 City Council approved in principle the establishment of a new, wholly-owned City services corporation to manage and operate Toronto Community Housing Corporation's 83 designated seniors buildings, and directed staff to complete a due diligence process to ensure an appropriate understanding of the legal, financial and labour implications. City Council considered the findings of the due diligence review in October 2020, and directed staff to report on recommended timelines for the creation of a seniors housing corporation by the spring of 2021. In February 2021, City Council approved the composition and Terms of Reference for the Board of Directors for the Seniors Housing Corporation and directed the City Clerk to immediately initiate the recruitment process for the Board.  

This report recommends the formal incorporation of the new Toronto Seniors Housing Corporation as well as a series of actions to support the creation of the corporation, including the adoption of a shareholder direction for Toronto Seniors Housing Corporation, recruitment of a Chief Corporate Officer and Transition Lead, principles to guide negotiations between Toronto Seniors Housing Corporation and Toronto Community Housing Corporation, and a process to enable the Office of the Commissioner of Housing Equity to continue to provide services to tenants of Toronto Seniors Housing Corporation.