Agenda

Consolidated



Planning and Housing Committee


Meeting No. 28   (Special)   Contact Nancy Martins, Committee Administrator
Meeting Date Thursday, October 28, 2021
  Phone 416-397-4579
Start Time 9:30 AM
  E-mail phc@toronto.ca
Location Video Conference
  Chair   Councillor Ana Bailão  


 

Planning and Housing Committee

Councillor Ana Bailão, Chair
Councillor Paula Fletcher, Vice Chair

Councillor Brad Bradford
Councillor Frances Nunziata

Councillor Gord Perks
Councillor Kristyn Wong-Tam

 

This meeting of the Planning and Housing Committee will be conducted by electronic means and the proceedings of the Planning and Housing Committee will be conducted publicly. 

 

These measures are necessary to comply with public health guidelines and prevent the spread of COVID-19.

 

Members of Council and participating City Officials will be provided with the video conference details closer to the meeting date.

 

To provide comments or make a presentation to the Planning and Housing Committee:

 

The public may submit written comments or register to speak to the Committee on any item on the agenda.

 

Written comments may be submitted by writing to phc@toronto.ca.

 

To speak to the Committee, please register by email to phc@toronto.ca or by phone at 416-397-4579. Registered speakers will be provided with instructions on connecting to the meeting.

 

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call 416-397-4579, TTY 416-338-0889 or e-mail phc@toronto.ca.

 

Closed Meeting Requirements: If the Planning and Housing Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006).

  

Notice to People Writing or Making Presentations to the Planning and Housing Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its Committees and Boards. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

 

Many Committee, Board, and Advisory Body meetings are broadcast live over the internet for the public to view. If you speak at the meeting you will appear in the video broadcast. Video broadcasts are archived and continue to be publicly available.

 

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or call 416-397-4579. 

 


toronto.ca/council

 

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its Committees and Boards.

 

 

Declarations of Interest under the Municipal Conflict of Interest Act

 

Speakers/Presentations: The speakers list will be posted online at 8:30 a.m. on October 28, 2021

 

Communications/Reports

PH28.1

ACTION 

9:30 AM 

 

Ward: All 

Inclusionary Zoning Official Plan Amendment, Zoning By-law Amendment and Draft Implementation Guidelines
Public Notice Given
Statutory - Planning Act, RSO 1990
Origin
(October 15, 2021) Report from the Chief Planner and Executive Director, City Planning
Recommendations

The Chief Planner and Executive Director, City Planning recommends that:

 

1. City Council adopt the Official Plan Amendment included as Attachment 1 to this report from the Chief Planner and Executive Director, City Planning.

 

2. City Council adopt the Zoning By-law Amendment included as Attachment 2 to this report from the Chief Planner and Executive Director, City Planning.

 

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the Official Plan Amendment and Zoning By-law Amendment referred to above in Recommendations 1 and 2 above as may be required.

 

4. City Council endorse the Inclusionary Zoning Implementation Guidelines included as Attachment 4 to this report from the Chief Planner and Executive Director, City Planning for consultation and report back with final recommended Implementation Guidelines in the first half of 2022, including identifying the terms and conditions for a third party administrator of affordable ownership units.

 

5. City Council bring forward a zoning by-law amendment to add the Scarborough Centre Protected Major Transit Station Area delineation to the Inclusionary Zoning Overlay map no earlier than September 18, 2023, to provide additional time for the local land market to adjust.

 

6. City Council deem that a complete Site Plan application submitted under Section 114 of the City of Toronto Act, 2006 shall meet the requirements of Regulation 232/18 under the Planning Act for the purpose of an exemption based on submission of an application for approval of a Site Plan.

 

7. City Council request that the Minister of Municipal Affairs and Housing amend Section 16(5)(a) of the Planning Act to allow for Official Plan Inclusionary Zoning policies to be applied across the City and not limited to Protected Major Transit Station Areas.

 

8. City Council forward a copy of this report to the Minister of Municipal Affairs and Housing along with Attachments 1 through 10 to this report.

 

9. City Council forward a copy of this report to the Municipal Property Assessment Corporation with a request that property assessments for affordable ownership units take into account the requirements for ongoing affordability of these units over a 99 year period.

 

10. City Council request the City Manager work with the Municipal Property Assessment Corporation to identify potential options to ensure property assessments reflect the City's household eligibility, resale and price appreciation restrictions for Inclusionary Zoning affordable ownership units.

Summary

This report recommends the adoption of Inclusionary Zoning (IZ) Official Plan policies, Zoning By-law provisions and tables draft Implementation Guidelines for consultation. The recommended Inclusionary Zoning policy and zoning framework will enable the City to initially require 5-10% affordable housing and a fully phased-in requirement by 2030 of 8-22% of affordable housing units to be provided in new developments alongside the development of market housing. The introduction of mandatory affordable housing requirements will positively contribute to transforming the delivery of housing in the City by ensuring that affordable housing keeps better pace with the delivery of market housing, contributing to social and economic cohesion in the years to come.

 

Inclusionary Zoning is a widely used planning tool used in hundreds of jurisdictions in the United States, Australia and parts of Canada. Inclusionary Zoning works best in cities where there is strong demand for housing and below market rents and prices can be accommodated through absorption in land values, or in areas where revenues are continually increasing. In support of the preparation of Inclusionary Zoning policies, the City undertook a series of financial assessments in 2019, 2020 and 2021 resulting in a robust financial analysis demonstrating where Inclusionary Zoning can be implemented in the city without negatively impacting overall development activity. Peer review of this work has also been undertaken through a third-party consultant retained by the City and through ongoing consultation on the analysis with development industry analysts. An in-depth analysis of demographic and market data has also been completed to understand housing need and demand across the City and by local neighbourhood. This work, coupled with extensive public and stakeholder consultation throughout 2019, 2020 and 2021, has informed the development of an Inclusionary Zoning policy framework that is balanced, forward-looking and equitable.

 

Since the provincial Inclusionary Zoning regulation was first enacted in 2018, the province undertook legislative changes to limit the potential areas that Inclusionary Zoning may be applied. The Province narrowed the implementation of Inclusionary Zoning to those areas within a Protected Major Transit Station Area (PMTSA) or areas where a Development Permit System has been ordered by the Minister. In addition, the Province introduced new community benefits and parkland rate requirements. These changes have been factored into the financial analysis and final recommended policies.

 

The recommended Official Plan Amendment and Zoning By-law includes a number of directions that reflect the City's specific context and build upon the provincial regulation and legislative framework including:

 

1. Establishing a minimum development size of 100 units to reflect both minimum required densities that would be required on many sites within PMTSAs, while also recognizing the importance of supporting a diverse range of housing types and sizes that could become financially challenged if Inclusionary Zoning were required on smaller developments;

 

2. Establishing three distinct market areas to recognize varying market viability in different areas of the City, to be included in the Official Plan as Map 37, each area with its own requirements for condominium projects delivering affordable ownership, condominium projects delivering affordable rental housing or purpose-built rental buildings delivering affordable rental housing;

 

3. Requiring affordable units to remain affordable for 99 years, ensuring that this stock of housing is not lost over the short term;

 

4. Setting rents and prices that will reflect the needs of low and moderate income households, providing affordable housing for households for whom market rents and prices are out of reach (e.g., registered nurses, early childhood educators, dental assistants earning between $32,000 and $92,000);

 

5. Phasing-in of affordable housing requirements from 5-10% in 2022 to 8-22% in 2030 in order to provide time for land values to adjust and the amount of affordable housing required to incrementally increase;

 

6. Providing for a clear transition period to provide time for developments well advanced to move through the development review process prior to Inclusionary Zoning coming into effect; and

 

7. Ongoing monitoring and assessment of all aspects of the approach starting in 2025, including reviewing the market areas where Inclusionary Zoning applies.

 

Over the past five years, the City has taken a strong leadership role in the delivery of affordable housing to ensure new housing supply reflects the City's current and future housing needs. Bold affordable housing targets set out in the HousingTO 2020-2030 Action Plan will only be realized through this leadership and partnership with developers and housing providers. Achieving a supply of housing that meets the broad spectrum needs within the city requires multiple policy and program actions. This report highlights many of the recent housing policy, service delivery and program initiatives the City has undertaken in recent years, including the Expanding Housing Options in Neighbourhoods work, policy and zoning changes to maintain and provide for the supply of multi-tenant dwellings or rooming houses, the Concept to Keys initiative, and the Housing Now and Open Door programs, which taken together are all critical in delivering on Council's housing targets.

 

Clarity is essential if the policy framework is to be implemented successfully. As a result, this report recommends that Council endorse for consultation the accompanying draft Implementation Guidelines, which build on experience the City has had over the past 15 years securing affordable housing as a community benefit, either on large sites greater than 5 hectares, within the Central Waterfront Secondary Plan, or as part of site specific developments. This existing policy framework is often described as a voluntary Inclusionary Zoning policy as a developer can elect to provide affordable housing within their development as part of a section 37 community benefits contribution. The results of the current voluntary framework have been uneven and highlight the need for a mandatory framework, as depending on the specific context, some developments have secured affordable housing while others have prioritized other community benefits.

 

The recommended Inclusionary Zoning policy framework was developed in consultation with input from the Housing Secretariat, Shelter, Support and Housing Administration, Corporate Finance, Legal Services, and CreateTO. The background materials and proposed framework meet the provincial requirements for Inclusionary Zoning set out in the Planning Act and Ontario Regulation 232/18.

Financial Impact

The City Planning Division confirms that there are no financial implications resulting from the recommendations included in this report in the current budget year.

Background Information
(October 15, 2021) Report from the Chief Planner and Executive Director, City Planning on Inclusionary Zoning Official Plan Amendment, Zoning By-law Amendment and Draft Implementation Guidelines
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172118.pdf)

Attachment 1 - Proposed Official Plan Amendment
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172119.pdf)

Attachment 2 - Proposed Zoning By-law Amendment
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172504.pdf)

Attachment 3 - Inclusionary Zoning Market Areas Map
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172121.pdf)

Attachment 4 - Draft Inclusionary Zoning Implementation Guidelines
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172122.pdf)

Attachment 5 - Housing Need and Demand Analysis, August 2021
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172123.pdf)

Attachment 6 - Evaluation of Potential Impacts of an Inclusionary Zoning Policy, May 2021; Revised October 2021
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172124.pdf)

Attachment 7 - Peer Review of NBLC "Evaluation of Potential Impacts of an Inclusionary Zoning Policy", August 2021
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172125.pdf)

Attachment 8 - Phase 1 Consultation and Communication Summary, 2019
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172126.pdf)

Attachment 9 - Phase 2 Consultation and Communication Summary, 2021
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172127.pdf)

Attachment 10 - Jurisdictional Scan, 2021
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172128.pdf)

(October 7, 2021) Notice of Public Meeting
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172129.pdf)

Presentation from Project Manager, City Planning
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172528.pdf)

Communications
(October 15, 2021) E-mail from John MacDonald (PH.Main)
(October 23, 2021) E-mail from Steve Kalaydjian (PH.New)
(October 23, 2021) E-mail from Paul Bedford (PH.New)
(October 24, 2021) E-mail from Kate Chung, Co-chair, Accessible Housing Network  (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-137780.pdf)

(October 26, 2021) E-mail from Jacob Dawang (PH.New)
(October 25, 2021) Letter from David Strom, Collectdev (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-137978.pdf)

(October 26, 2021) Letter from Carolyn Egan and Tam Goossen, Good Jobs for All Coalition (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-137936.pdf)

(October 25, 2021) E-mail from Luke Bradley (PH.New)
(October 25, 2021) E-mail from Alexia Yates (PH.New)
(October 25, 2021) Letter from Douglas Kwan, Advocacy Centre for Tenants Ontario (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-137941.pdf)

(October 28, 2021) Letter from Right to Housing in Toronto (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138032.pdf)

(October 26, 2021) Letter from Michael Nguyen, CTN Developments (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138034.pdf)

(October 26, 2021) Letter from Joanne Knutson, Habitat Services (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138035.pdf)

(October 26, 2021) Letter from Jane Finch Housing Coalition (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138036.pdf)

(October 26, 2021) E-mail from Alex Volkov (PH.New)
(October 27, 2021) E-mail from Coleen Bailey (PH.New)
(October 27, 2021) E-mail from Shannon Griffiths (PH.New)
(October 27, 2021) Letter from Kate O'Neil, On behalf of LAHAAG - Lakeshore Affordable Housing Advocacy and Action Group (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138139.pdf)

(October 27, 2021) Letter from Adam Brown, Sherman Brown (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138177.pdf)

(October 25, 2021) Letter from Bill Worrell, Oakwood Vaughan Community Organization, Romain Baker, Black Urbanism TO (BUTO), Cheryll Case, CP Planning and Chiara Padovani, York South Weston Tenants Union (YSWTU) (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138188.pdf)

(October 27, 2021) E-mail from Alex Mlynek (PH.New)
(October 27, 2021) E-mail from Madeline Siklos (PH.New)
(October 27, 2021) E-mail from Ryan Hayes (PH.New)
(October 27, 2021) E-mail from Katie German  (PH.New)
(October 28, 2021) Letter from Adina Lebo, Vice-President, Toronto Seniors Forum (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138192.pdf)

(October 25, 2021) Letter from Tom Giancos, Senior Vice President, Kingsett Capital (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138194.pdf)

(October 27, 2021) E-mail from Camille Dziewurski (PH.New)
(October 27, 2021) E-mail from Caitlin Blain (PH.New)
(October 27, 2021) E-mail from Rupert Ong (PH.New)
(October 27, 2021) E-mail from Emily Shepard (PH.New)
(October 27, 2021) Letter from Sara Margani, Cityzen Development (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138251.pdf)

(October 27, 2021) Letter from Stephen Diamond. Diamond Corp (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138252.pdf)

(October 27, 2021) Letter from Richard Diamond, Senior Vice President, Canderel (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138227.pdf)

(October 27, 2021) Submission from Andrew Marciniak, Toronto ACORN (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138254.pdf)

(October 27, 2021) Letter from Daryl Chong, Greater Toronto Apartment Association (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138255.pdf)

(October 27, 2021) E-mail from Andrea Lothrop (PH.New)
(October 27, 2021) Letter from Andria Babbington, President, Toronto and York Region Labour Council (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138256.pdf)

(October 27, 2021) E-mail from Jacob Givertz-Steel (PH.New)
(October 27, 2021) Letter from Christine Mercado, Long Branch Neighbourhood Association (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138231.pdf)

(October 27, 2021) Letter from Andrew Duncan, Chief Investment Office, Development, RioCan (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138232.pdf)

(October 27, 2021) Letter from Josh Zagdanski, Madison Group (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138233.pdf)

(October 27, 2021) Letter from Marva Burnett, President, ACORN Canada (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138234.pdf)

(October 28, 2021) Letter from Pedro Lopez, SVP Acquisitions and Land Development, Marlin Spring (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138264.pdf)

(October 28, 2021) Letter from Councillor Mike Layton, Ward 11 University-Rosedale (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138265.pdf)

(October 28, 2021) Submission from Effie Vlachoyannacos, Director, Community Investment and Engagement, Maytree  (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138266.pdf)

(October 28, 2021) Letter from Joe Svec, Vice President, Development and Planning, Choice Properties (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138267.pdf)

(October 28, 2021) Submission from Jeremy Withers (PH.New)
(October 28, 2021) Letter from Bahar Shadpour, Manager of Policy, Communications and Engagement, Centre for Equality Rights in Accommodation (CERA) (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138270.pdf)

(October 28, 2021) Letter from Jeff Hull, President, Hullmark (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138271.pdf)

(October 28, 2021) Letter from Kira Heineck, Executive Director, Toronto Alliance to End Homelessness (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138272.pdf)

(October 28, 2021) E-mail from Ene Underwood, CEO, Habitat for Humanity Greater Toronto Area (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138273.pdf)

(October 28, 2021) E-mail from Vicki McGregor (PH.New)
(October 28, 2021) E-mail from Irmina J. Ayuyao (PH.New)
(October 28, 2021) Letter from Brooks Barnett, Director, Government Relations & Policy, Realpac (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138319.pdf)

(October 28, 2021) Letter from Geoff Kettel, Co-Chair, FoNTRA and Cathie Macdonald, Co-Chair, FoNTRA (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138320.pdf)

(October 28, 2021) E-mail from Scott Ng (PH.New)
(October 28, 2021) Letter from Councillor Josh Matlow, Ward 12, Toronto - St. Paul's (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138322.pdf)

(October 28, 2021) Letter from Katie German on behalf of the Junction Triangle Community Action Network (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138324.pdf)

(October 28, 2021) Submission from Andrew Marciniak, Toronto ACORN (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138344.pdf)

(October 28, 2021) Letter from Daniel R Bingham (PH.New)
(October 28, 2021) E-mail from Su Rynard (PH.New)
(October 28, 2021) E-mail from Cathy Tafler (PH.New)
(October 28, 2021) Letter from Alan Braodbent, Chairman and CEO of Avana Capital Corporation, Chairman and Founder of Maytree (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138328.pdf)


PH28.2

ACTION 

 

 

Ward: All 

Housing Now Initiative - Annual Progress Update and Launch of Phase Three Sites
Origin
(October 14, 2021) Report from the Executive Director, Housing Secretariat
Recommendations

The Executive Director, Housing Secretariat recommends that:  

 

Land Considerations

 

1. City Council direct the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to review, on an expedited basis, the four sites identified in Attachment 1 (the "Phase Three Sites") to this report, including any prior terms of transfer that have been approved by City Council, and authorize the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to determine, in consultation with the City Manager, whether such terms should be amended in order to achieve the objectives of the Housing Now Initiative.

 

2. City Council authorize the Deputy City Manager, Corporate Services, where it is determined such action is appropriate to achieve the objectives of the Housing Now Initiative, to declare all or portions of each of the Phase Three Sites surplus, and to amend any prior declaration(s) of surplus, subject to the retention of those areas and interests as have been determined critical to the operational requirements of a division or agency.

 

3. City Council amend the existing delegated approvals and signing authorities in Item 2017.EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, adopted by City Council on October 2, 3 and 4, 2017, to authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to approve any lease, transfer and other property transactions involving these Phase Three Sites for the purpose of achieving the City's affordable housing objectives notwithstanding that the related compensation may exceed $5 Million Dollars, and City Council authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to treat the estimated value of the rental savings that will be realized by tenants of the affordable housing units as compensation received by the City when assessing whether a proposed transaction reflects market value, provided that the Executive Director, Housing Secretariat and the Board of CreateTO or the Board of Directors of the related CreateTO corporate entity concur with the proposed transaction terms.

 

4. City Council waive the restrictions of Section 2.4(a) of the shareholder direction of Build Toronto Inc., controlled by the Board of CreateTO, solely for transactions relating to the Phase Three Sites on terms and conditions satisfactory to the City Manager and in a form approved by the City Solicitor, and allow for donations or similar contributions to any charity or charitable organization, or to a non-profit organization for the purpose of facilitating the provision of affordable housing units at the Phase Three Sites where determined appropriate by the CreateTO Board of Directors, in consultation with the Deputy City Manager, Corporate Services and the Executive Director, Housing Secretariat.

 

5. City Council authorize the Deputy City Manager, Corporate Services to approve the transfer of title to any of the Phase Three Sites, or a portion thereof to corporate entities controlled by the Board of CreateTO at nominal consideration where permitted by law, and where the Deputy City Manager, Corporate Services, the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO have agreed upon the terms of transfer that will be reflected in a Transfer Agreement between the City and the corporate entity controlled by the CreateTO Board.

 

6. Council direct the Board of Directors of Toronto Community Housing Corporation, when requested by the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management, to transfer a portion of lands located at 1080 Eastern Avenue and currently owned by Toronto Community Housing Corporation, to the City of Toronto at nominal cost to be included as part of the Housing Now site at 1631 Queen Street East, which it will thereafter form part of.

 

Planning Process

 

7. City Council request the Chief Planner and Executive Director, City Planning to:

 

a. provide key planning principles and guidelines for each of the Phase Three Sites to be included as part of the public market offering process; and

 

b. expeditiously advance Official Plan Amendments, Zoning By-law Amendments and plans of subdivision required to prepare the properties for marketing and ensure a range of housing opportunities within each of the Phase Three Sites;

 

8. City Council request the Chief Operating Officer, Development, to support the Housing Now Initiative through the Concept 2 Keys (C2K) program by continuing to expedite the review process for Site Plan Control applications submitted by the selected developers of each site.

 

Affordable Housing Program

 

9. City Council approve an overall development target across the Phase Three Sites including a minimum of one-third affordable rental units (with average rents not to exceed 80 percent of annual Canada Mortgage and Housing Corporation average market rent, a minimum of one-third market rental housing, and a maximum of one-third ownership homes.

 

10. City Council request the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to explore opportunities and partnerships with other orders of governments and non-profit organizations to exceed the one-third affordable rental housing target on each of the Phase Three Sites.

 

11. City Council exempt the up to 600 affordable rental homes anticipated to be developed throughout the Phase Three Sites, commencing from first occupancy of each site, from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $19,736,198 over 99 years.

 

12. City Council exempt the 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $15,953,427 over 99 years.

 

13. City Council authorize the Controller to cancel or refund any taxes paid for the affordable rental homes developed on Phase One, Two and Three Sites, after the effective date of the exemption for taxation for municipal and school purposes set out in the applicable municipal housing project facility agreement.

           

14. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for up to 600 affordable rental homes, for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space on the Phase Three Sites, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees.

 

15. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees.

 

16. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, municipal housing project facility agreements (the City's Contribution Agreement) with the developers chosen for each of the Phase Three Sites, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

 

17. City Council authorize the Executive Director, Housing Secretariat or her designate to execute, on behalf of the City, any security or financing documents required by the developers of the Phase Three Sites to secure construction and conventional financing and subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing project 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.

 

18. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Deputy City Manager, Community and Social Services, to provide any consent necessary to transfer or encumber the Phase Three Sites or the affordable rental housing portion thereof, and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of any of the Phase Three Sites or the affordable rental housing portion thereof, and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor.

 

Funding and Budget Considerations

  

19. City Council direct the Deputy City Manager, Community and Social Services and the Executive Director, Housing Secretariat to compensate CreateTO for the costs related to the provision by CreateTO of services directly related to implementing the Housing Now Initiative including: preparing the properties for marketing including undertaking necessary environmental studies and remediation; market analyses; planning and other consultant studies; legal costs; overhead and administration costs; relocation costs; costs of on-site City programming requirements; costs of required on- or off-site infrastructure upgrades or improvements; subsidizing projects that many not be financially feasible, etc., with payment to be made on a cost-recovery basis from the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

 

20. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to include the estimated cost of delivering the Housing Now Initiative as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process.

 

21. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to request funding to complete due diligence/feasibility work related to the five sites identified as potential future Housing Now Initiative sites in Attachment 2, as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process.

 

Market Offering Process

 

22. City Council direct the utilization of the Phase Three Sites, identified in Attachment 1 to this report, for the Housing Now Initiative through a market offering process with a priority of retaining public ownership through long-term land leases.

 

23. City Council direct the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief Financial Officer and Treasurer to approve the business case and market offering process for each Phase Three Site provided that the Executive Director, Housing Secretariat and the CreateTO Board of Directors or the Board of Directors of the relevant CreateTO corporate entity, concur with the proposed business case and market offering process.

 

24. City Council direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat to administer the market offering process for the Phase Three Sites and utilize its existing pre-qualified Broker roster to expedite marketing, where required, and to negotiate the leases, purchase agreements and other contracts with the successful development partners, other than the municipal housing project facility agreements in Recommendation 16 above, and subject to the approvals required in Recommendation 23 above.

 

25. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to administer the market offering process for sites designated exclusively for non-profit and Indigenous participation, and to negotiate the leases, purchase agreements and other contracts with the successful non-profit and Indigenous development proponents.

 

26. City Council request the Executive Director, Housing Secretariat to work with the Chief Executive Officer, CreateTO, the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer in overseeing the market offering process related to the Phase Three Sites including the selection of preferred proponents, and the co-ordination of government funding and financing incentives to ensure that the affordable housing projects are financially viable.

 

27. Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO to encourage the involvement and participation of non-profit, co-operative and Indigenous housing organizations in the market offering process for the Phase Three Sites, and to provide greater consideration to submissions that exceed the affordable rental and market rental housing delivery targets and increase supportive housing opportunities.

 

28. City Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Social Development, Finance and Administration, to incorporate, in the market offering process for all Housing Now sites, including the Phase Three Sites, measurable community benefits opportunities, such as social procurement and apprenticeship, training, and/or other hiring opportunities for people from equity-deserving communities.

 

29. City Council request the Executive Director, Housing Secretariat in consultation with the Chief Executive Officer, CreateTO, to ensure that all future Housing Now Initiative sites, including the proposed Phase Three sites, achieve the Toronto Green Standard Version 4 Tier 2 energy performance level with the exception of sites that are currently in, or have completed the market offering process including: 50 Wilson Heights Boulevard; 705 Warden Avenue; 777 Victoria Park Avenue; 140 Merton Street; 2444 Eglinton Avenue East; and Bloor-Kipling (Block One).

 

Other Considerations

 

30.  City Council re-iterate its request that the Federal Government and the Canada Mortgage and Housing Corporation (CMHC):

 

a. approve a portfolio approach to the funding and financing of all sites in the Housing Now Initiative including the new Phase Three Sites;

 

b. develop a streamlined and expedited approach to underwriting Housing Now Initiative sites, including through the Rental Construction Financing Initiative;

 

c. allocate grant funding for eligible Housing Now projects based on the growing need to increase the supply of permanent affordable housing options for residents, and reflective of the high cost of construction in Toronto; and,

 

d. identify and dedicate surplus lands in Toronto for increasing the supply of affordable and supportive housing.

 

31.  City Council re-iterate its request to the Province of Ontario to support the creation of affordable and supportive housing opportunities as part of the Housing Now Initiative by providing operating funding (for both rent supplements to deepen affordability and to provide support services), and to identify and dedicate surplus lands within Toronto for new affordable homes, including supportive housing.

Summary

The Housing Now Initiative was approved by City Council in January 2019 to activate City-owned lands to stimulate the development of affordable rental housing within transit-oriented, mixed-income, mixed-use, complete communities. This signature program is a key component of the City's HousingTO 2020-2030 Action Plan and is central to enabling the City to meet its target of approving 40,000 new affordable rental homes, including 18,000 supportive homes, by 2030. Of the overall 40,000 new affordable rental homes, the City has committed to delivering 10,000 using its own land and financial incentives.

 

In 2019, as part of phase one of the Housing Now Initiative, 11 properties were approved by City Council to create an estimated 10,000 new homes, including 3,700 affordable rental homes ("Phase One"). In May, 2020, City Council approved six additional sites to be added to the initiative as part of phase two, with the potential to create up to 1,700 additional homes, including up to 620 affordable rental homes ("Phase Two").

 

The total 17 sites across Phases One and Two are currently in various stages of development. Seven sites have progressed through the re-zoning process, three of which have development partners selected with construction estimated to begin by early-to-mid-2022. Additionally, through the planning approval process, the original residential unit targets were exceeded and the program is now on track to create an estimated 13,479 new homes, including 3,037 ownership homes and 10,142 purpose-built rental homes, of which 5,005 will be affordable. The new affordable rental homes to be created under this program will provide much-needed affordable housing options to address a wide range of housing needs and incomes.

 

This report provides Council with an update on the Housing Now Initiative including progress to-date on advancing the 17 sites. It also recommends Council approval to expand the program to add four additional sites as part of the third phase of the program ("Phase Three"). The Phase Three sites (outlined in Attachment 1) are estimated to yield between 1,150 and 1,400 new homes, including between 450 and 600 affordable rental homes. To support delivery of the Phase Three sites plus the additional units achieved in Phases One and Two, this report also recommends Council's approval of an estimated $90.61 million in Open Door Program incentives.

 

In addition to the Phase Three sites, this report recommends Council approval to create a pipeline of five sites which, subject to satisfactory feasibility assessments, can be added to future phases of the Housing Now Initiative. The creation of a pipeline of sites will enable staff to undertake early due diligence work, including identify risks and mitigation strategies, to ensure that sites can more rapidly move through planning approval and development stages. Creating a pipeline of sites will also enable the City to take advantage of any future federal and provincial funding opportunities, should they become available, to support the development of new housing.

 

The Housing Now Initiative is an example of Toronto's leadership approach to city-building and its commitment to increasing the supply of new homes for current and future residents. Across the growing portfolio of City-owned sites, a significant number of affordable rental, market rental and ownership homes will be developed within complete communities. To-date, the City has dedicated over $1.3 billion in land value, financial incentives, and staffing resources to expedite the planning approvals and development processes. These investments have made it possible for the City to achieve over 50% of its ten-year 10,000 affordable homes approval target in less than three years. However, support from the federal and provincial governments through increased investments and new policy tools is critical to delivering the Housing Now Initiative and the City's overall HousingTO 2020-2030 Action Plan. Participation and investments from the non-profit and private sectors are also essential for success.

 

Increased investments in affordable and supportive housing will support the objectives of all orders of governments to provide a range of housing to address the needs of current and future residents, plus create livable communities where stable, secure and high quality homes provide people with the opportunity to thrive. Investments in housing also support the social, economic and environmental health and resilience of communities, cities and our country as a whole.

 

The Housing Now Initiative is being implemented as a major corporate initiative and this report was developed with input and support from staff in the Housing Secretariat, City Manager's Office, City Planning, CreateTO, Corporate Real Estate Management, Legal Services, Financial Planning, Corporate Finance, Shelter, Support and Housing Administration and Concept 2 Keys.

Financial Impact

This report is based on the best available data at this time. The total number of affordable homes achieved for each site and the financial impact will be determined based on the results of the market offering process, selection of successful proponents, and the planning review and approval process.

 

Similar to the process established for Phases One and Two sites, staff will prepare a business case for each of the Phase Three sites to determine the funding and financing required to make the Housing Now projects financially viable. At that stage, development cost schedules will be detailed, land value contribution will be determined, and additional funding and financing needs along with capital and operating requirements of each of the Phase Three sites will be identified.

 

City Investments

 

It is estimated that through implementation of Phases One, Two and Three of the Housing Now Initiative, the City will be dedicating over $1.3 billion in land value, Open Door Program financial incentives, and staffing resources to expedite the planning approvals and development processes.

 

Land Value

 

Land value contribution will be determined in the business case process and will depend on various factors, such as transaction structure (lease vs. land sale), rental to ownership ratio (which might vary per site), market rents and land values at the time of offering, and costs of any additional city building needs that may be funded by land value. It is expected that other city building priorities identified on the Phase Three Sites by City divisions and agencies will be reviewed and approved through the City’s budget process.

 

Open Door Program Incentives for Affordable Rental Units

 

The City's Open Door Program financial incentives for Housing Now sites include relief from development charges, building permit fees, planning application fees and parkland dedication fees as well as an exemption from property taxes for the 99-year affordability period.

 

Through Items EX1.1, PH14.3, CC21.3, City Council has approved approximately $343.35 million in Open Door Program incentives to-date to support the creation of 4,520 affordable rental homes in Phases One and Two. As the previously forecasted affordable rental unit yield has been exceeded through the planning approvals process, and is now estimated to be 5,005, this report recommends Open Door incentives for an additional 485 affordable rental homes valued at approximately $40.5 million.

 

Additionally, this report recommends that City Council authorize a further $50.1 million in Open Door Program incentives to activate the Phase Three Sites as detailed in Table 1 below.

 

Table 1: Additional Door Incentives Proposed for Phase Three Sites

Phase

Net New Affordable Rental Homes

Estimated Affordability Period (Years)

Estimated Development Charges*

Estimated Planning Fees and Charges**

Estimated Net Present Value of Property Taxes†

Estimated Total Value of Incentives

 
 

One and Two (additional homes)

485

99

$21,342,425

$3,205,148

$15,953,427

$40,501,000

 

Three

600

99

$26,403,000

$3,965,131

$19,736,198

$50,104,329

 

Total

1085

99

$47,745,425

$7,170,279

$35,689,625

$90,605,329

 

 

**Includes estimated 2021 building permit fees of $965,094, 2021 planning fees of $780,185, and parkland dedication fees of $5,425,000.

†Calculated using 2021 property tax rates.

 

Property Tax Breakdown

 

Table 2: Property Tax Breakdown for 1,085 Additional Affordable Rental Homes

Property Tax

Annual

NPV: 99 Years

City

$     835,587

$   26,360,157

Education

$     283,287

$   8,936,815

City Building

$     12,447

$   392,653

Total:

$     $1,131,321

$   35,689,625

 

The total estimated Open Door Program contribution of $433.95 million for Phases One, Two and Three is not a direct capital payment as it represents the forgiveness of City levies and charges and is thus foregone revenue to the City. Any impact on divisional services will be considered through annual budget processes.

 

Program Delivery and Administration Costs

 

Requests for funding to continue implementation of Housing Now will made as part of the Housing Secretariat's rolling 10-Year Capital Plan and presented to Council for consideration annually through the budget process.

 

This includes costs directly related to implementing programs including to but not limited to: preparing the properties for marketing as well as undertaking necessary environmental studies and remediation; market studies and analyses; planning and other consultant studies; legal costs; relocation and temporary lease costs; costs of required on-or off-site infrastructure upgrades or improvements; and subsidizing projects that require additional contributions to be financially feasible.

 

In addition to the above, there are currently approximately 25 full time equivalent staff working on the Housing Now Initiative within CreateTO and City divisions. As new sites are added to the pipeline, additional resources will be required both during the pre-development stages and the post-construction oversight/monitoring stages.

 

Any additional resource implications related to expanding the Housing Now Initiative, including additional staffing costs, will be identified and presented for consideration by Council as part of the 2022 Budget Process.

 

Accommodating Other City-building Objectives

 

Relocation expenses related to existing tenants or City divisions and agencies, including costs of providing new accommodation, and costs associated with achieving other city-building objectives such as creating new community service facilities, will be identified in the business case for each site. These expenses will be addressed in future years' capital and operating budget cycles by impacted divisions and agencies.

 

Federal Investments

 

The National Housing Strategy Co-Investment Fund and the Rental Construction Financing Initiative (RCFI), administered by the Canada Mortgage and Housing Corporation (CMHC), are essential to support the delivery of the Housing Now Initiative. Subject to Council approval of this report, staff will engage with CMHC staff to advise them of the expansion of the Housing Now Initiative to add the Phase Three Sites. Staff will also work with federal officials, CMHC and the selected proponents to secure funding and financing to support the delivery of the rental housing (affordable and market rental) at the Phase Three Sites.

 

Provincial Investments

 

Operating funding from the Province of Ontario is necessary to create new supportive housing opportunities through the Housing Now Initiative and other City programs. This includes funding for rent supplements needed to help deepen affordability for low-and-moderate-income households, as well as funding to deliver a range of wraparound social and health supports onsite which are necessary to help vulnerable and marginalized residents successfully exit (or prevent their entry into) homelessness.

 

The Chief Financial Officer has been provided with the financial impacts associated with this report.

Background Information
(October 14, 2021) Report from the Executive Director, Housing Secretariat on Housing Now Initiative - Annual Progress Update and Launch of Phase Three Sites
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172098.pdf)

Attachment 1 - Housing Now Phase Three Sites
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172099.pdf)

Attachment 2 - Housing Now Future Phase Pipeline Sites
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172100.pdf)

Attachment 3 - Housing Now Unit Tracker
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172101.pdf)

Communications
(October 28, 2021) Letter from Laura Burnham, Executive Director, Willowdale BIA (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138323.pdf)

(October 28, 2021) Presentation from Mark Richardson, Technical Lead, Housing Now TO (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138348.pdf)


PH28.3

ACTION 

 

 

Ward: All 

New Multi-Unit Residential Acquisition (MURA) Program to Protect Existing Affordable Rental Homes
Origin
(October 14, 2021) Report from the Executive Director, Housing Secretariat
Recommendations

The Executive Director, Housing Secretariat recommends that:

 

1. City Council authorize the Executive Director, Housing Secretariat to issue an open and transparent competitive proposal call under the Multi-Unit Residential Acquisition Program (the "MURA Program" or "Program") on an annual basis to experienced non-profit and Indigenous affordable rental housing providers and to select the best proponents, in her sole discretion, to purchase or establish long-term conventional financing, renovate and operate affordable rental housing to be acquired under the MURA Program.

 

2. City Council increase the 2021 Housing Secretariat Operating Budget by $3.5 million gross and $0 net, fully funded from the City's Development Charges Reserve Fund (XR2116), for the purpose of funding the 2021 proposal call under the Multi-Unit Residential Acquisition Program, with such funding to be payable to the non-profit and Indigenous organizations selected through the process outlined in Recommendation 1 above, for the purpose of acquiring and renovating affordable rental housing under the Program.

 

3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into a municipal capital facility agreement for housing purposes ("Contribution Agreement") providing for the advance of the Program funds to the non-profit and Indigenous groups or a related corporation selected through proposal calls under the Program, whether advanced before or after the entering into of the Contribution Agreement, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form acceptable to the City Solicitor.

 

4.  City Council authorize the Executive Director, Housing Secretariat to advance a portion of the funding to be provided to the selected non-profit and Indigenous groups, for the purposes of providing funds for deposits and other pre-purchase expenses, prior to the proponent entering into a Contribution Agreement.

 

5. City Council authorize the Executive Director, Housing Secretariat to allocate 20 percent of annual funding allocations under the Program to support the acquisition of market rental properties by Indigenous housing organizations to create permanent affordable rental homes for Indigenous residents.

 

6. City Council authorize the Executive Director, Housing Secretariat to support the selected non-profit and Indigenous groups on any applications to the federal or provincial governments to secure funding to support the acquisition and/or renovation of affordable rental housing under the Program, and to execute any agreements or other documents required with respect to same, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form acceptable to the City Solicitor.

 

7. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by a selected not for profit, or its related corporation to complete third party financing and refinancing, when required during the term of the City's agreement with the successful non-profit and Indigenous groups or their successors.

 

8. City Council authorize the affordable rental units secured through the Program be eligible for Open Door Program incentives including waivers of planning application and building permit fees, as outlined in the Financial Impact Section of this report.

 

9. City Council amend Municipal Housing Facility By-law 1756-2019 to include as a category in the criteria for "Affordable Housing" units acquired pursuant to the Multi-Unit Residential Acquisition Program.

 

10. City Council, conditional on the enacting of the by-law amendment referred to in Recommendation 9 above, authorize an exemption from taxation for municipal and school purposes for up to 100 affordable rental units annually to a maximum of 500 units to be secured through the Program for the 99-year term of the Contribution Agreements.

 

11. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of a Contribution Agreement.

 

12. City Council authorize the Executive Director, Housing Secretariat to issue a Request for Proposals and to select non-profit and Indigenous housing providers to operate properties acquired by the City under the Program.

 

13. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, municipal housing facility agreements for housing purposes (the City's "Contribution Agreement") for 99 years with the non-profit and Indigenous housing providers selected through the competitive process referred to in Recommendation 12, or a related corporation, to secure the financial assistance being provided and to set out the terms of the operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

 

14. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the non-profit and Indigenous housing providers, 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.

 

15. City Council re-iterate the request that the federal and provincial governments establish acquisition programs that would support the acquisitions and renovations/ conversions for all types of private market residential properties and other properties, to create new permanent affordable and supportive homes.

 

16. City Council authorize the City Solicitor to introduce the necessary Bills to give effect to City Council's decision.

Summary

In October 2020, through Item PH17.5, City Council adopted the process developed as part of the Rooming House Acquisition Pilot Project to support the acquisition of private market rental housing by non-profit housing organizations, including co-operative housing providers. Council also directed staff to report back on establishing an ongoing rental housing acquisition program that would provide dedicated financial support to non-profit housing organizations or community land trusts, to facilitate the purchase and conversion of at-risk private market affordable housing to permanently affordable rental homes.

 

This report responds to Council's request and recommends a new program, to be called the Multi-Unit Residential Acquisition ("MURA") Program, for approval. The primary objectives of the MURA Program are to remove properties from the speculative housing market and create permanently affordable rental homes; improve housing stability for current and future tenants; improve the physical conditions of buildings; increase capacity in the non-profit and Indigenous housing sectors; and ensure the long-term financial sustainability of the homes.

 

The report recommends a number of actions to begin implementation of the MURA Program in 2021. The proposed Program will provide grant funding and Open Door Program incentives to qualified non-profit and Indigenous housing groups to support their purchase, renovation and operation of market rental properties to create permanently affordable rental homes for Torontonians with low-and-moderate incomes. The Program will also support the City's acquisition of at-risk affordable rental housing that non-profit and Indigenous organizations will operate long term.

 

The MURA Program will be implemented through an open annual proposal call process to establish a list of qualified and experienced non-profit and Indigenous housing providers. Selected proponents will be given pre-approval of available funding which would provide certainty and allow them to move quickly to secure properties available for purchase on the open market. Proponents will have up to one calendar year from the date of approval to submit properties for consideration on a rolling basis.

 

To advance the City's commitments to truth, reconciliation and justice, it is also proposed that 20% of the annual funding allocations under the MURA Program be dedicated to support acquisitions by Indigenous housing organizations for Indigenous Peoples.

 

Subject to City Council approval of this report, the first proposal call will make $10,000,000 in funding available from the Development Charges Reserve Fund (XR2116). Subsequent funding will also be available from the City's Land Acquisition Reserve Fund subject to Council's approval of the strategic disposal of the City asset at 249 Queens Quay West which will be considered by the Executive Committee in October 2021. The strategic disposal of 249 Queens Quay West supports previous Council direction in PH17.5 to establish a small sites acquisition program (now MURA).

 

Under MURA, eligible properties will include small apartment buildings (up to 60 units) and multi-tenant houses (also known as rooming houses) that are either vacant or occupied and at-risk of being lost due to conversion. Based on projects previously supported by the City and advice from the non-profit housing and financial sectors, the MURA Program proposes that apartment building acquisitions and renovations be eligible for up to $200,000 in funding per dwelling unit and multi-tenant houses be eligible for up to $150,000 per dwelling room. Any additional costs will be funded and/or financed by the housing operators. Through the 2021 proposal call, it is anticipated that between 50 and 67 rental apartments and/or dwelling rooms will be converted to permanently affordable rental homes.

 

Recognizing that most residents will have their housing needs met through the city’s existing rental supply over the next decade, it is crucial that these homes be preserved and maintained. While the City is taking a leadership role in launching MURA to protect existing rental housing, it is critical that the federal and provincial governments also support these efforts. An acquisition and renovation/conversion program from other orders of government, focused on protecting existing rental housing, could be combined with the City's MURA Program to increase grant funding and/or provide low-cost financing to support acquisitions. Alternatively, other orders of government could allocate funding to the City, to support the expansion/enhancement of MURA in the future. This would ultimately result in a greater number of properties being converted to non-profit, Indigenous and publicly-owned permanent affordable rental housing. Through the stacking of government programs, deeper levels of affordability can also be achieved for lower-income residents, including vulnerable and marginalized people experiencing or at-risk of homelessness.

 

Implementation of the MURA Program will help advance key strategic actions identified in the HousingTO 2020-2030 Action Plan. Specifically, it will help prevent homelessness and improve pathways to housing stability; maintain and increase access to affordable housing; ensure well-maintained and secure homes for renters; and increase the supply of 'For Indigenous, By Indigenous' affordable housing.

Financial Impact

The proposed MURA Program will provide City contributions and Open Door Program incentives to non-profit and Indigenous housing organizations to support their purchase and renovation/conversion of at-risk market rental housing to create permanently affordable rental homes. These homes will be secured as affordable housing for at least 99 years and will contribute towards the City's target of creating 40,000 affordable rental homes, including 18,000 supportive housing units by 2030, as established in the HousingTO 2020- 2030 Action Plan.

 

This report recommends that $10 million in funding be allocated to non-profit and Indigenous housing organizations for the purchase and renovation of at-risk market rental housing to create permanently affordable rental homes. Of the total funding available, 20% is proposed to be allocated to Indigenous housing organizations.

 

In addition, proceeds from the strategic disposal of the City asset at 249 Queens Quay West will be deposited to the City's Land Acquisition Reserve Fund (XR1012) and designated for use by the Multi-Unit Residential Acquisitions Program to allow the City to take advantage of opportunities to acquire small sites to protect, preserve and ensure the long-term stability of affordable housing in Toronto. A report on the strategic disposal of 249 Queens Quay West will be considered by Executive Committee in October 2021.

 

2021 - 2022 Program Funding

 

In 2021 (Year 1), $10 million in MURA Program funding is recommended through a combination of the following:

  • $2 million in existing 2021 approved funding within the Housing Secretariat Operating Budget for Small Sites Pre-Development and Pre-acquisition Fund (now MURA);
  • $4.5 million in existing 2021 approved funding within the Housing Secretariat Operating Budget previously earmarked for the strategic acquisition and repair of a residential property; and
  • A recommended $3.5 million gross and $0 net, increase to the 2021 Housing Secretariat Operating Budget, fully funded from the City's Development Charges Reserve Fund (XR2116).

In Year 2 (2022), $10 million in funding will also be made available to non-profit and Indigenous organizations through MURA, and funded from the City's previously committed allocation under the Ontario Priorities Housing Initiative (OPHI).

 

Program Funding for 2023 and Beyond

 

In 2023 and beyond, staff will seek continued funding from the federal and provincial governments to support continuation and enhancement of the MURA Program. The success achieved through the 2021 and 2022 Program proposal calls will be leveraged to support discussions and outline how MURA can help all orders of government meet their shared objectives of ending chronic homelessness and increasing housing stability for residents.

 

Funding Allocations

 

Non-Profit and Indigenous Housing Organizations

 

Eligible properties will qualify for up to a maximum of $200,000 per unit for apartment buildings and $150,000 per dwelling room for multi-tenant houses, with any remaining costs to be funded or financed by the selected proponents.

 

Successful proponents will be chosen through a competitive proposal call process administered annually by the Housing Secretariat. Through this process, successful proponents will be pre-approved for funding, giving them certainty to pursue acquisitions. 10% of the maximum approved funding allocation will be advanced to the successful non-profit and Indigenous proponents within 60 days to be used as deposit funding. An additional $25,000 in funding will be available to each proponent to be used for pre-acquisition services such as preparing Building Condition Assessments and Property Appraisals. These pre-acquisition expenses will be funded from the maximum Program allocations described above, and do not represent additional funding above the maximum allocation.

 

Upon identification of a suitable property, proponents will submit full project details including proposed capital and operating budgets; property management and operating plans, etc. for streamlined review by the City. Subject to the Housing Secretariat being satisfied with the submission package, and the selected proponent signing the required legal agreements, the City will confirm its full approval and advance the remaining funding within 30 days for the transaction to be completed.

 

Strategic City Acquisitions

 

In addition to non-profit and Indigenous housing sector acquisitions of affordable rental housing, this report also recommends that the City be enabled to acquire properties under the MURA Program and lease them to eligible non-profit and Indigenous housing providers under long term leases. While housing providers will be chosen through an open proposal call process administered by the Housing Secretariat, Corporate Real Estate Management support City site acquisitions under its delegated authority.

 

Open Door Program Financial Incentives

 

This report also recommends Open Door Program incentives in the form of relief from City fees and taxes for the affordable rental housing secured through the MURA Program. Although the number and type of units that will result from the Program is difficult to predict, the 2021 proposal call is anticipated to support an estimated 50 apartment units or 67 rooming house units. It is also unknown at this time whether, or to what extent, renovations will be required. The estimated financial incentives recommended for the 2021 proposal call are summarized in Table 1 below.

 

Table 1 - City Financial Incentives

Affordable Rental Homes

Estimated Affordability

Period

 

Estimated Building Permit Fees*

 

Estimated Net Present Value of Property Taxes**

Estimated Total

Value of Incentives

 

50 apartment units

 

99 years

 

$34,350

 

$1,344,447

 

$1,378,797

 

67 rooming house units/dwelling rooms

 

99 years

 

$19,585

 

$1,651,543

 

$1,671,128

* calculated using 2021 building permit fee rates and 37m2/apartment and 14m2/room. No planning or development charges are expected for these acquisitions and renovations

** calculated using 2021 rate

 

On a per unit basis, the estimated Open Door Program incentives is $27,576 for each apartment/dwelling unit and $24,942 per dwelling room. Assuming the MURA Program operates at the same level for 5 years, the respective totals without escalation would be $6,893,985 for 250 apartments or $8,355,640 for 335 rooming house units.

 

The City incentives also include relief from property taxes for municipal and school purposes for the 99 year affordability period.

 

The estimated value of the property tax exemptions for municipal and school purposes is summarized in Table 2 below. Actual exemptions will occur after acquisition and designation under a municipal housing facility by-law and will depend on the value of taxes paid on those properties.  The tax exemptions would have no net present impact to the City for the educational portion of taxes remitted to the Province.

 

Table 2 - Property Tax Exemption for 50 Apartment Units*

Property Tax

Annual

NPV: 99 Years

City

 $31,477

 $993,001

Education

 $10,672

 $336,655

City Building

 $469

 $14,791

Total:

 $42,617

 $1,344,447

*calculated using 2021 rates

 

Table 3 - Property Tax Exemption for 67 Rooming House Rooms*

Property Tax

Annual

NPV: 99 Years

City

 $38,667

 $1,219,820

Education

 $13,109

 $413,552

City Building

 $576

 $18,170

Total:

 $52,352

 $1,651,543

*calculated using 2021 rates

To enable the tax relief recommended by this report for the properties to be secured as affordable rental housing under the MURA Program, Legal Services will update the City's Municipal Housing Capital Facility By-law.

 

Subject to the availability of future federal and provincial housing program funding, the Executive Director, Housing Secretariat may re-direct an allocation of such federal and/or provincial funds towards this initiative, under existing or future delegated authorities.

 

The Chief Financial Officer has been provided with the financial impacts associated with this report.

Background Information
(October 14, 2021) Revised Report from the Executive Director, Housing Secretariat on New Multi-Unit Residential Acquisition (MURA) Program to Protect Existing Affordable Rental Homes
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172093.pdf)

Attachment 1 - Multi-Unit Residential Acquisition Program Details
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172094.pdf)

Communications
(October 24, 2021) Letter from Joy Connelly (PH.New)
(October 27, 2021) Letter from Victor Willis, Parkdale Activity-Recreation Centre (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138253.pdf)

(October 28, 2021) Submission from Melissa Goldstein (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138317.pdf)

(October 28, 2021) Letter from Dominique Russell and Kevin Barrett, Co-Chairs, Kensington Market Community Land Trust (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138347.pdf)


PH28.4

ACTION 

1:30 PM 

 

Ward: All 

Official Plan Amendment on Updating the Definitions of Affordable Rental and Ownership Housing
Public Notice Given
Statutory - Planning Act, RSO 1990
Origin
(October 15, 2021) Report from the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat
Recommendations

The Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat recommend that:

 

1. City Council amend the Official Plan in accordance with the recommended Official Plan Amendment appended as Attachment 1.

 

2. City Council authorize the City Solicitor to make such stylistic and technical changes to the recommended Official Plan Amendment as may be required.

 

3. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee in 2022 with a detailed financial impact analysis of the recommended definition on City programs such as Housing Now and Open Door, and potential program changes and/or other mitigation strategies to address the impacts.

 

4. City Council direct the Executive Director, Housing Secretariat to engage with the Government of Canada, including Canada Mortgage and Housing Corporation, and the Province of Ontario and report back in 2022 on how current or future funding and financing programs from each order of government could support implementation of the proposed new definition and also meet HousingTO 2020-2030 targets.

 

5. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee, within 12 months of the Planning and Housing Committee's consideration of the report referenced in recommendation 3 above and after the recommended Official Plan Amendment comes into effect, with recommended changes to the Municipal Housing Facility By-law, including transition provisions.

Summary

This report recommends an Official Plan Amendment which proposes to revise the following housing definitions in Section 3.2.1 of the Official Plan:

 

(1) affordable rental housing and affordable rents (affordable rental housing);

(2) mid-range rents, including adding two new mid-range rent tiers; and

(3) affordable ownership housing.

 

The recommended definitions are intended to better respond to the needs of low and moderate income households by establishing definitions of affordable housing that are aligned with incomes instead of solely on market rents/prices. The development of the definitions has been informed by extensive public and stakeholder consultation throughout 2020 and 2021 as well as through consultations on Inclusionary Zoning and the HousingTO 2020-2030 Action Plan ("HousingTO Action Plan") in 2019. During those consultations, participants felt that the City's current affordable housing definitions, which are based on average market rents/prices, had left many low-income residents unable to afford housing and that this problem would continue to worsen over time given average market rents have grown faster than incomes over the past decade.

 

This report, which proposes updates to the Official Plan's housing definitions, is the first step in moving towards an income-based approach for affordable housing, as directed by Council through adoption of the HousingTO Action Plan in December 2019. In addition to revising the Official Plan definitions, the HousingTO Action Plan provides direction for the City to adopt a new income-based approach in the administration of affordable rental housing programs. In accordance with this direction, a future report to Council will be brought forward by staff in 2022 recommending changes to City programs and support implementation of the revised definition of affordable housing.

 

The recommended revised definitions will also be used to update the City's Municipal Housing Facility By-law. The Municipal Housing Facility By-law is used to provide fee and property tax exemption for affordable housing units. Updates to the by-law, including specific transition provisions for projects that have received or initiated funding approvals, will be brought forward after the Official Plan Amendment is in effect, and within a year following the 2022 staff report.

 

In addition to Council direction and stakeholder input, the proposed revised definitions have been informed by the Provincial Policy Statement (PPS). The PPS directs that affordable rental housing should be affordable to households with incomes in the lowest 60 percent of the income distribution for renter households for the regional market area. The PPS also directs that affordable ownership housing should be affordable to households with incomes in the lowest 60 percent of the income distribution for the regional market area.

 

Furthermore, the proposed revised definitions align with the Canada Mortgage and Housing Corporation (CMHC) affordability threshold which sets affordability at no more than 30% of a household's before-tax income. This definition is currently being applied to the federal Rapid Housing Initiative (RHI) projects which provide affordable housing for people experiencing or at risk of homelessness. RHI projects set an affordability requirement whereby tenants pay no more than 30% of their gross income on rent. This level of affordability is being supported by federal investments which fund 100% of capital costs of projects under the program.

 

The recommended changes to the affordable rental housing definition in this report would lead to a reduction in affordable rents for studio units, one-bedroom units, and three-bedroom units compared to affordable rents under the current definition. These reductions in rents are the result of tying affordable rent for each unit type to the lower of average market rent or indicator household incomes. For example, affordable one-bedroom rents are recommended to be set at the lower of average market rent for a one-bedroom unit or what a one-person renter household at the 60th percentile of income can afford. The previous market based definition meant that affordable rents were out of reach for low and moderate income households. For example, under the current definition one-person households earning at or below the 60th percentile of income cannot afford either an affordable studio or one-bedroom unit.

 

Affordable rents for two-bedroom units currently remain unchanged using the recommended definition. This is because what is affordable to incomes for 2-person households in 2021 exceeds the current average market rent for two-bedroom units. However, if average market rents continue to rise faster than incomes, rents for two-bedroom units would be set at what is affordable to the 60th percentile 2-person household, instead of average market rent for two-bedroom units.

 

The recommended mid-range rents definitions in this report have been established to maintain the existing rent thresholds used when implementing rental replacement requirements and in other unique circumstances. Two bands of mid-range rents are recommended. Mid-range rents (affordable) would secure rents higher than affordable rents and up to average market rent. Mid-range rents (moderate) would secure rents up to 1.5 times average market rent. Existing social housing programs that have historically used average market rents could use the mid-range rents (affordable) definition when securing future fee exemptions.

 

As the recommended affordable rental housing definition would lead to lower affordable rents, it would also lead to lower revenues in buildings that provide affordable rental units. Staff will report to Council in 2022 with recommended policy and program changes to help support implementation of the proposed new definition and ensure the delivery of new affordable housing across the city.

 

In terms of affordable homeownership, the recommended definition will lead to changes in affordable ownership prices for all unit types. These proposed changes will tie affordable ownership prices to low and moderate income households in the City of Toronto. The recommended changes also update the total monthly shelter cost used to establish affordable ownership prices. Notably the new definition includes condominium fees as part of the monthly shelter cost. This has the impact of reducing the mortgage payments that can be supported by a given income, leading to a reduction in affordable ownership prices.

 

The affordable housing definitions recommended in this report reflect a human rights-based approach to the development of housing legislation, policy and programs. The recommended definitions which tie affordable rents and affordable ownership prices to incomes rather than market rents/prices, will help ensure that affordable housing secured or developed by the City stays affordable to low and moderate income households. The proposed affordable rental housing definitions also ensure that household sizes used to determine rents for specific unit types align with CMHC's National Occupancy Standard.

 

Increased financial investments from all orders of government and adjustments to policy and programs will be required to support implementation of the new definition as well as to offset any potential impacts to the delivery of new affordable housing. In addition, the proposed changes will help align municipal, provincial and federal housing policies and programs, and support the shared objectives of all governments to increase the supply of affordable housing, promote housing stability for residents and end chronic homelessness.

Financial Impact

There are no financial impacts to the City in 2021 as a result of approving the recommendations in this report, however financial impacts are anticipated for future years based on the recommended amendment to the affordable rental housing definition.

 

The recommended changes to the mid-range rents definition and affordable ownership housing definition have no financial implications.

 

Future Financial Impact to the City

 

The recommended affordable rental housing definition will result in lower rents for certain unit types, particularly studio and one-bedroom units. This will decrease revenues for affordable housing providers, affecting the financial viability of projects that include affordable housing in their proposed developments.

 

The Housing Now Initiative and Open Door Program

 

Staff have been consulting with the non-profit and private sectors on the impacts of the recommended definition. A detailed financial impact analysis of the recommended definition on City programs such as Housing Now and Open Door and potential program changes is underway, and will be reported to City Council in 2022. The analysis will outline the revenue gap for rental projects which will result from implementation of the new definition. The future report will also recommend options to address the gap, including requests for enhanced capital funding from other orders of government. The goal of any program changes would be to help mitigate the reduced debt service capacity resulting from the reduced revenues. The report will include the costs of such recommended options, as well as future implementation options.

 

The Chief Financial Officer and Treasurer has been provided with the financial impacts associated with this report.

Background Information
(October 15, 2021) Report from the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat on Official Plan Amendment on Updating the Definitions of Affordable Rental and Ownership Housing
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172095.pdf)

Attachment 1 - Recommended Official Plan Amendment (Housing Definitions)
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172116.pdf)

(October 7, 2021) Notice of Public Meeting
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172117.pdf)

Presentation from Graham Haines, Senior Planner, Strategic Initiatives, Policy and Analysis, City Planning Division
(http://www.toronto.ca/legdocs/mmis/2021/ph/bgrd/backgroundfile-172507.pdf)

Communications
(October 27, 2021) Letter from Gautam Mukherjee, on behalf of Houselink and Mainstay Community Housing, St. Clare’s Multifaith Housing Society, Wigwamen Inc and Community Affordable Housing Solutions. (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138248.pdf)

(October 28, 2021) Letter from Daryl Chong, Greater Toronto Apartment Associaion (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138229.pdf)

(October 27, 2021) Letter from Marva Burnett, President, ACORN Canada (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138235.pdf)

(October 28, 2021) E-mail from Ene Underwood, CEO, Habitat for Humanity Greater Toronto Area  (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138274.pdf)

(October 28, 2021) Letter from Sidonia J. Tomasella, AIRD and BERLIS LLP (PH.New)
(http://www.toronto.ca/legdocs/mmis/2021/ph/comm/communicationfile-138275.pdf)