Item - 2022.PH33.7

The Planning and Housing Committee recommends that:

1. City Council approve the work plan ("Work Plan") as outlined in Attachment 3 to the report (April 25, 2022) from the Executive Director, Housing Secretariat, and direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, Chief Planner and Executive Director, City Planning, the Executive Director, Environment and Energy, and the Executive Director, Corporate Real Estate Management, to report back with an update to Planning and Housing Committee by the fourth quarter of 2023.

2. City Council authorize the 'Mass Timber Affordable Housing Program', as described in the body of this report, and direct the Executive Director, Housing Secretariat in consultation with the Chief Executive Officer, CreateTO, the Chief Planner and Executive Director, City Planning, the Executive Director, Environment and Energy, and the Executive Director, Corporate Real Estate Management, to report back to the Planning and Housing Committee by the fourth quarter of 2023 on the potential to expand this Pilot Program to include and identify additional City-owned real estate assets.

3. City Council authorize the transfer of $459,745.00, inclusive of the Harmonized Sales Tax and disbursements, from the Section 37 Reserve Fund to the Capital Revolving Reserve Fund for Affordable Housing (XR1058), fully funded from the following developments:

a. 324, 326, 328, and 332 Richmond Street West, secured for community facilities, in the amount of $278,198.00 (Source Account: XR3026-3701078); and

b. 357-363 King Street West and 62 Peter Street, secured for public housing improvements in the Ward, in the amount of $181,547.00 (Source Account: XR3026-3701039).

4. City Council amend the Approved 2022-2031 Capital Budget and Plan for Housing Secretariat through an increase of $459,745.00 in the project cost and 2022 cash flow for the Rental Development Project (CAF003-03-00), to support the work plan at 1113 and 1117 Dundas Street West fully funded from the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

5. City Council direct the Executive Director, Housing Secretariat to compensate CreateTO for provision of services directly related to implementing the Mass Timber Affordable Housing Program, with payment to be made to CreateTO on a cost-recovery basis from the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

6. City Council authorize the City Solicitor to introduce the necessary Bills in City Council to amend City of Toronto Municipal Code Chapter 950, Traffic and Parking to remove 1117 Dundas Street West from the Schedule of Municipal Parking Facilities upon disposition of the site, including by way of a long-term lease.

The Executive Director, Housing Secretariat gave a presentation on Delivering Affordable Rental Housing at 1113-1117 Dundas Street West.

The City's HousingTO 2020-2030 Action Plan ("HousingTO Plan") includes a range of key strategic actions across the housing continuum aimed at improving housing outcomes for current and future residents. The HousingTO Plan recognizes that the city's housing challenges are multi-faceted and dynamic, and require a wide range of solutions to be addressed.

On July 14, 2021, through Item PH25.20, City Council directed the Executive Director, Housing Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning, and the Chief Executive Officer, CreateTO to report to a future meeting of the Planning and Housing Committee with an update, a work plan, and funding requirements to activate the City-owned site at 1113-1117 Dundas Street West to create new affordable rental housing.

This report responds to Council's requests and seeks Council authority to use $459,745.00 in Section 37 funds to support the due diligence and pre-development work necessary to advance the development of 1113-1117 Dundas Street West. A future report to the Planning and Housing Committee in the fourth quarter of 2023 will outline the results of the due dilgence work.

The City's HousingTO 2020-2030 Action Plan ("HousingTO Plan") includes a range of key strategic actions across the housing continuum aimed at improving housing outcomes for current and future residents. The HousingTO Plan recognizes that the city's housing challenges are multi-faceted and dynamic, and require a wide range of solutions to be addressed. The HousingTO Plan also aligns with and supports various other City policies, including the TransformTO Net Zero Strategy which is aimed at reducing local greenhouse gas emissions. Together, these policies provide direction to support climate change action in the delivery of new housing to support Toronto's residents, the environment, and our economy.

On July 14, 2021, through Item PH25.20, City Council directed the Executive Director, Housing Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning, and the Chief Executive Officer, CreateTO to report to a future meeting of the Planning and Housing Committee with an update, a work plan, and funding requirements to activate the City-owned site at 1113-1117 Dundas Street West to create new affordable rental housing.

This report responds to Council's direction and recommends a new climate action approach to deliver affordable housing at 1113-1117 Dundas Street West using mass timber and other low carbon materials for building consutrction. The approach and opportunity were identified by CreateTO and City staff to explore and implement an innovative construction method using mass timber, which has the potential enhance the delivery of both affordable and market housing. Through this Pilot Program, it is anticipated that a new and scalable affordable and market housing solution will be developed, with the objective of replicating across multiple City-owned sites in the future.

The anticipated benefits of this approach to residential/mixed-use development include: faster construction timelines; reduced cost due to efficiencies; reduced greenhouse gas and material (embodied carbon) emissions from the housing, transportation, and construction sectors; and improved quality of life for future residents, all while optimizing the density of affordable housing on targeted City-owned real estate assets.

Through the Pilot Program, staff will continue to assess the viability of delivering new affordable rental housing using mass timber and other low carbon materials for building construction, starting with the City-owned site at 1113-1117 Dundas Street West, and to potentially include two additional sites currently within the Housing Now Initiative portfolio. The goals and objectives of this Pilot Program are identified in this report, and CreateTO will also report to its Board of Directors, CreateTO, in June, 2022 with further details on these sites.

This report also recommends a work plan to advance this site-specific project at 1113-1117 Dundas Street West, and seeks Council authority to use $459,745.00 in Section 37 funds to support the due diligence and pre-development work necessary to advance the initiative. A future report to the Planning and Housing Committee will outline the results of the pre-development work, the feasibility of establishing a new permanent 'Mass Timber Affordable Housing Program', and additional City-owned sites that could be activated in the future.

Mass timber construction, utilizing cross-laminated timber, presents an opportunity to rapidly scale up the supply of affordable housing in response to Toronto's housing challenges. Developing a scalable development model will add a new tool to the City's 'affordable housing solutions toolkit' and help position the City to move quickly to optimize any future federal and provincial funding opportunities that may become available.

Enhanced investments in affordable housing and climate action initiaitives are not only essential to help respond to the city's housing challenges, they will also support equity and climate justice, create new jobs, improve resident health and wellbeing, as well as open up numerous innovative economic opportunities for years to come. Additionally, these investments will help propel Toronto, Ontario and Canada's recovery from the pandemic and attract and retain workers needed to grow local economies.

This Pilot Program proposed in this report,supports various City goals and policy objectives, and will be continue to be advanced as a corporate initiaitve through a team of Housing Secretariat, CreatTO, Environment and Energy Management, City Planning, and Corporate Real Estate Management ("CREM") staff.