Item - 2021.PH23.7

The Planning and Housing Committee recommends that:

1.  City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, to negotiate and execute, on behalf of the City, a nominal lease agreement (the "Lease") for a term of 50 years less a day for the residential portion of 877 Yonge Street with St. Clare's Multifaith Housing Society ("the Tenant") substantially on the major terms and conditions set out in Attachment 1 and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor, and to execute the Lease, any ancillary agreements or documents, as required, on behalf of the City.

2.  City Council consider the Lease to be in the interests of the City.

3.  City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, a municipal housing facility agreement (the City's "Contribution Agreement") with the Tenant to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

 
4.  City Council authorize the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to negotiate and enter into any agreements with the Tenant, for any operating funding that may be available, including, but not limited to rent supplement or grant funding agreements, on terms and conditions agreed to by the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration and in a form approved by the City Solicitor.

 
5.  City Council authorize severally each of the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any security or financing documents required by the Tenant to secure the financing necessary for the capital requirements of the Leased Premises as well as any subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

At its meeting of October 27, 2020 City Council adopted Item MM25.32 - "Implementation of the Federal Rapid Housing Initiative" and authorized staff to enter into an agreement with Canada Mortgage and Housing Corporation to secure $203.3 million in federal capital funding to create new permanent, affordable rental homes for people experiencing homelessness. In accordance with the Rapid Housing Initiative ("RHI") program requirements, the City is investing its funding allocation to develop modular housing and acquire buildings in various wards across the city, and ensure that the new homes are ready for occupancy within twelve months.

On December 16, 2020, City Council adopted Item PH19.11 - "Emergency Housing Action" and authorized staff to implement a plan a plan for the City to accelerate 150 new supportive housing opportunities within 8 to 10 weeks, and a further 510 housing opportunities within 10 to 12 weeks thereafter for people experiencing homelessness, based on the availability of funding for supportive services. A total of 127 units at 877 Yonge Street will be renovated and prepared for occupancy beginning in June 2021 as part of the Emergency Housing Action plan.

The property located at 877 Yonge Street (the "Subject Property") was recently acquired by the City using RHI funding. The Subject Property includes a 15-storey building that was formerly operated as a 232-unit seniors' residence. The Subject Property is currently undergoing interior renovations and alterations to create up to 252 permanent, self-contained units which will provide affordable rental housing with wraparound support services for people experiencing homelessness or those at risk of homelessness, women, Indigenous and racialized people, and seniors.

Staff have identified St. Clare's Multifaith Housing Society (the "Tenant") as a suitable non-profit operator for the residential portion of the Subject Property (the "Leased Premises") based on a number of factors including, but not limited, to: the Tenant's extensive experience operating affordable rental housing with support services; the Tenant's property and tenancy management expertise; the range of partnership arrangements that will ensure the delivery of wraparound health and social supports for tenants onsite and; the Tenant's experience working in the local community.

This report recommends Council's approval for the City to enter into a nominal lease agreement with St. Clare's Multifaith Housing Society for a term of 50 years less a day for the Leased Premises (the "Lease"). Through this arrangement, the Leased Premises will be operated as safe, secure, permanent affordable rental homes with supports for a range of tenants, including vulnerable and marginalized residents from equity-deserving groups.