Decisions

The Affordable Housing Committee received the item for information.

The Director, Affordable Housing Office gave a presentation on the 2018 Open Door Program - Progress Update.

Presentation by Director Affordable Housing Office - 2018 Open Door Program Progress Update

The Affordable Housing Committee recommends to Executive Committee that:  

1. City Council authorize the Director, Affordable Housing Office, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116), in the amounts and for the projects described in Chart A in the Financial Impact section of the report (June 11, 2018) from the Director, Affordable Housing Office and in an amount not to exceed $9,941,566, to facilitate the creation of 606 affordable rental homes through the Open Door Program.

2. City Council authorize that the projects described in Chart A in the Financial Impact section of the report (June 11, 2018) from the Director, Affordable Housing Office be exempt from the payment of development charges, building, planning and parkland dedication fees.

3. City Council authorize an exemption from taxation for municipal and school purposes for the projects and for the periods of time described in Chart A in the Financial Impact section and Appendix 1 of the report (June 11, 2018) from the Director, Affordable Housing Office.

4.  City Council authorize City staff to cancel or refund any taxes paid after the effective date of the municipal capital facility agreement, the City's "Contribution Agreement".

5. City Council authorize the Director, Affordable Housing Office, to negotiate and enter into, on behalf of the City, a municipal housing facility agreement, for the developers of the projects described in Chart A to the report (June 11, 2018) from the Director, Affordable Housing Office, or related corporations, to secure the financial assistance and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Chief Financial Officer and General Manager, Shelter, Support and Housing Administration, in a form approved by the City Solicitor.

6. City Council authorize the City Solicitor 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 the developers of the projects described in Chart A to the report (June 11, 2018) from the Director, Affordable Housing Office, or their related corporations to complete construction and conventional financing, where required.

7. Subject to the Province's approval of the City's Take-Up Plan, submitted under the Provincial Development Charges Rebate Program, and the receipt of requested funds from the Province, City Council authorize the Director, Affordable Housing Office, to advance funds to rebate the development charges levied under the City's Development Charges By-law, with respect to the mid-range rental units set out in Chart C of the Financial Impact section of the report (June 11, 2018) from the Director, Affordable Housing Office.

8. City Council authorize the Director, Affordable Housing Office to negotiate and enter into, on behalf of the City, agreements with the developers of the projects described in Chart C of the Financial Impact section of the report (June 11, 2018) from the Director, Affordable Housing Office to secure the rental tenure of the  mid-range rental units receiving the Provincial Development Charges Rebate, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Chief Financial Officer and General Manager, Shelter, Support and Housing Administration, in a form approved by the City Solicitor.

9. City Council authorize the City Solicitor to introduce such project specific bills, in order to secure rental tenure, to Council for enactment or to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the developments or the financing of the developments listed in Chart C of the Financial Impact section of the report (June 11, 2018) from the Director, Affordable Housing Office.

10. City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

11. City Council authorize the General Manager, Shelter, Support and Housing Administration to make necessary future budget adjustments to accommodate the cash flow for the funds approved in the report (June 11,2018) from the Director, Affordable Housing Office from the Development Charges Reserve Fund for Subsidized Housing.

12.  City Council request the Director, Affordable Housing Office to advise the recommended applicants for Open Door Program incentives that their Open Door Program approvals do not constitute the approval of the project for planning purposes, and that the Director, Affordable Housing Office, be authorized, upon the project receiving final planning approval, to adjust the financial and funding incentives approved through the Open Door Program to reflect the results of the planning process.
 

13.  City Council request the Director, Affordable Housing Office to make adjustments to the Open Door Program criteria in 2019 to provide recognition of the importance of non-profit and co-operative rental housing providers and public housing.

14.  City Council request the Director, Affordable Housing to support the non-profit and co-operative housing sectors in their participation in the new National Housing Co-Investment Fund, including confirming availability of waivers for Planning Application Fees and Development Charges, as well as liaising with Canada Mortgage and Housing Corporation to facilitate the approval of new affordable housing projects proposed by these sectors.

15.  City Council request the Director, Affordable Housing to consult with the non-profit and co-operative housing sectors in the development of the City’s new 10 year Housing Opportunities Toronto Action Plan 2020-2030, and report in 2019 on actions to improve non-profit and co-operative development capacity and scale up the development of new housing by these sectors.

The Affordable Housing Committee:

1.  Requested the Director, Affordable Housing Committee to report to the Executive Committee with an update on the status of the Ontario Development Charge Rebate Program and any implications with respect to the City’s administration of the Program, including the funding allocations being recommended in 2018.

This report outlines the results of the 2018 Open Door Program Call for Affordable Rental Housing Applications and recommends eight development proposals for Council approval, representing 606 affordable homes across the City. Three of these proposals include 422 mid-range rental homes that are recommended for the Provincial Development Charges Rebate program.

The report also recommends that authority be granted to Director of the Affordable Housing Office to enter into the necessary agreements to fund and secure the construction and operation of these affordable and mid-range rental housing developments.

The Open Door Program is a five-year initiative approved by City Council in July 2016. The program is designed to scale up City efforts to achieve Toronto’s targets of approving 5,000 affordable rental and 2,000 affordable ownership homes for low- and moderate-income residents by 2020.

With the approval of the affordable homes recommended in this report and other Open Door Program approvals in 2018, the City is on track to achieve its annual target of approving 1,000 affordable rental homes this year.

The recommended development projects represent the results of a competitive Call for Applications which was issued on January 17, 2018 and closed on March 22, 2018.  These applications were reviewed by an interdivisional committee of staff from the Affordable Housing Office, City Planning, City Legal, Shelter Support & Housing Administration, and Corporate Finance.

The Affordable Housing Committee recommends to Executive Committee that:

1.  City Council authorize the Director, Affordable Housing Office, in consultation with Waterfront Toronto, to offer the City-owned lands, known as R6 Bayside, the second affordable housing site in the East Bayfront district, for lease for a 99 year term, at below-market rent, through a competitive proposal call in order to stimulate purpose-built rental housing, including approximately 215 new affordable rental homes at the site to be operated by a non-profit housing provider.

2.  City Council authorize the Director, Affordable Housing Office to offer the incentives to build affordable rental housing that are offered through the Open Door Program to the Proponents responding to the competitive proposal call to be issued pursuant to recommendation #1, for approximately 215 new affordable rental housing units.

3.  City Council approve the transfer of $6,901,768.40 in capital funding from Section 37 funds account (XR-2026-3700759) to the Capital Revolving Fund for Affordable Housing (XR 1058) to be invested in the development of approximately 215 affordable rental homes on the R6 site.

4.  Upon Council approval of the  transfer of the $6,901,768.40 in Section 37 funds, to the Capital Revolving Fund for Affordable Housing (XR 1058), City Council authorize the Director, Affordable Housing Office to use up to a maximum of $1,000,000 exclusive of HST and disbursements, for pre-development work including but not limited to negotiating and entering into contracts to retain the services of architects, development consultants, cost consultants, appraisers, and such other professionals deemed appropriate to inform the City’s decisions with respect to development on the site, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

5.  City Council request the Director, Affordable Housing Office to report to City Council in 2019 on the results of negotiations with respect to the development of the affordable rental in R6.

There is an interest in planning the second affordable rental housing site in the East Bayfront district in an effort to expedite development and to ensure the inclusion of a mix of housing opportunities for low-and-moderate income residents.

This report recommends that City Council approve proceeding with an opportunity to work with Waterfront Toronto as part of the development of the second affordable housing site identified as R6 in the Bayside neighbourhood (shown in Attachment 1). The development of R6 will provide approximately 215 much-needed purpose-built affordable rental homes in Toronto's Waterfront community.

Bayside is one of the first new neighbourhoods developed in the East Bayfront. It is comprised of public lands in which Waterfront Toronto has the lead in revitalizing. The Central Waterfront Secondary Plan, the East Bayfront Precinct Plan and the East Bayfront zoning by-law require that 20% of all residential units be affordable rental housing.

In 2010, City Council granted authority for the City, as owner of the Bayside Lands, to enter into a Land Development Agreement (LDA) with the Hines Canada Management Company II ULC (Hines) for the development of the Bayside Lands. The LDA set out the terms and conditions under which the City and Hines were to work together in ensuring the development of affordable rental housing in Bayside. Under the agreement, Hines has a right of first refusal to develop R6, and if exercised, the City has the discretion to accept or reject any offer. This report seeks authority to pursue a competitive proposal call process in collaboration with Waterfront Toronto for the affordable housing on R6, and in accordance with the terms and conditions of the LDA.

Building on the success of phase one of the Bayside affordable housing development, as well as the recently implemented Provincial Lands Program model which facilitated affordable housing development through reduced land value, this report recommends that Council authorize the Director, Affordable Housing, in collaboration with Waterfront Toronto, to issue a competitive proposal call for development of the City-owned site under a 99-year lease arrangement at below-market value. The reduced land value lease will assist in realizing the development of approximately 215 affordable rental units which will be operated by a non-profit housing provider over the term of the lease.

Further to the above, this report also recommends that Council pre-approve the Open Door Program's financial incentives for the new affordable rental housing units.

Council approval of the recommendations in this report will allow staff to move ahead with the next steps towards the development of R6.

The Affordable Housing Committee recommends to Executive Committee that:  

1. City Council authorize the Director, Affordable Housing Office, to provide capital funding to Montrin Richview GP Inc., or a related corporation, in the amount of up to $648,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) through the Open Door Affordable Housing Program, to secure up to 72 affordable rental housing dwelling units to be developed on the lands currently known as 4620 Eglinton Avenue West and 250 Wincott Drive.

2. City Council authorize up to 72 affordable rental housing dwelling units to be developed on the lands currently known as 4620 Eglinton Avenue West and 250 Wincott Drive be exempt from the payment of development charges, building, planning and parkland dedication fees.

3. City Council authorize the Director, Affordable Housing Office, to negotiate and enter into, on behalf of the City, all affordable housing funding and, municipal housing facility agreements and any security, financing or other documents required with CreateTO, Montrin Richview GP Inc., the affordable housing provider to be chosen, and any other party deemed necessary to facilitate the funding detailed in this report, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

4. City Council authorize the City Solicitor, 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 Montrin Richview GP Inc., or a related corporation or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal housing facility agreement.

5. City Council exempt up to 72 new affordable rental units to be developed on lands currently known as 4620 Eglinton Avenue West and 250 Wincott Drive from taxation for municipal and school purposes for the 25-year term of the municipal capital facility agreement.

6. City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered with respect to the municipal capital facility agreement, as required by normal business practices.

7. City Council authorize staff to cancel or refund any taxes paid from the by-law exempting the property from taxation.

8. City Council authorize the Director, Affordable Housing Office to work with the General Manager, Shelter Support and Housing Administration, to secure a minimum of seven housing benefits (for 10% of the affordable rental housing), subject to available funding.

This report recommends City funding and incentives through the Open Door Affordable Housing Program for 72 new affordable rental homes at 4620 Eglinton Avenue West and 250 Wincott Drive (Richview Square Redevelopment) in Ward 4 Etobicoke Centre.

The affordable housing plan for this site is the result of a collaboration between CreateTO, the City's Affordable Housing Office and the owner of 250 Wincott Drive, Trinity Development Group Inc. (developing the site as Montrin Richview GP Inc.). Trinity Development Group Inc. acquired 4620 Eglinton Avenue West, a surplus City of Toronto site adjacent to 250 Wincott Drive, from CreateTO. The properties are located at the northwest corner of Eglinton Avenue West and Wincott Drive, east of Kipling Avenue.

The Affordable Housing Committee recommends to Executive Committee that:  

1.  City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, and any security, financing or other documents required with Options for Home Non-Profit Corporation Greater Toronto Area, or a related corporation, Home Ownership Alternatives Non-Profit Corporation (Great Toronto Area), or a related corporation, Highlands Co-Operative Development Corporation, or a related corporation, Habitat for Humanity Greater Toronto Area, or a related corporation, CreateTO, or a related corporation, and any other parties deemed necessary to facilitate the funding detailed in this report dated June 12, 2018, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Deputy City Manager and Chief Financial Officer, and in a form approved by the City Solicitor.

2.  Subject to the adoption of Development Charges Deferral Update to the City's Home Ownership Assistance Program, City Council approve the deferral of City development charges for up to 300 non-profit affordable ownership homes, to be delivered by Options for Home Non-Profit Corporation Greater Toronto Area, or a related corporation, Home Ownership Alternatives Non-Profit Corporation (Great Toronto Area), or a related corporation, Highlands Co-Operative Development Corporation, or a related corporation, Habitat for Humanity Greater Toronto Area, or a related corporation, in the form of down payment assistance loans for eligible purchasers of the homes to be developed on the properties currently known as 253 Markham Road and 12, 20 and 30 Dunelm Street, under the terms of the City's Home Ownership Assistance Program.

3.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

4.   City Council authorize the Director, Affordable Housing Office to determine when the developments at 253 Markham Road and 12, 20 and 30 Dunelm Street have reached an adequate and appropriate stage in the City Planning approvals process and construction readiness to allow the funding to be securely advanced.

This report recommends City financial support for up to 300 new affordable ownership homes to be built by the non-profit affordable housing groups, Habitat for Humanity, Greater Toronto Area, and Options for Homes/ Home Ownership Alternatives. The homes are to be built at the CreateTO site 253 Markham Road and 12, 20 and 30 Dunelm Street in Ward 36 Scarborough Southwest.

The affordable housing plan for this site was developed by the Affordable Housing Office and CreateTO, formerly Build Toronto. Habitat for Humanity and Options for Homes/ Home Ownership Alternatives are in the process of acquiring the properties from CreateTO.

City financial contributions for the 300 new affordable homes will take the form of down payment assistance loans to assist eligible purchasers moving from rental housing into homeownership. The loans will be funded from the City’s Home Ownership Assistance Program (HOAP) using the new Development Charges deferral approach.

A staff report concurrent with this report titled Development Charges Deferral Update to the City's Home Ownership Assistance Program recommends the conversion of the City's HOAP from a program funded by Development Charges Reserve Fund contributions to a new Development Charge deferral approach, as reported to City Council in April 2018 when the new Development Charge By-law was adopted. The recommendations in this report are contingent on the adoption of Development Charges Deferral Update to the City's Home Ownership Assistance Program.

The City will continue to work with Habitat for Humanity, Greater Toronto Area, and Options for Homes/ Home Ownership Alternatives to pursue Federal/ Provincial funding opportunities under the new National Housing Strategy.

The Affordable Housing Committee recommends that:  

1.  The Executive Committee receive the report (June 11, 2018) from the Director, Affordable Housing Office, for information.

This report provides a review of activities in 2017 under the City's Open Door Affordable Housing Program. Open Door has been successful in spurring affordable housing development in Toronto with Council approving 1,224 new affordable rental and 86 affordable ownership homes in 2017, for a total of 1,310 new homes. Details of the approvals are collected in the summary tables in Attachment 1 and descriptions of all government financial contributions are provided in the report.

Open Door scales-up affordable housing development by utilizing surplus public land, City incentives and expedited planning approvals. It also complements federal/provincial affordable housing program funding and assists the City in meeting the Housing Opportunities Toronto Action Plan 2010-2020 targets. The City's annual affordable housing targets are 1,000 new rental homes and 400 new ownership homes.

The program was launched in 2015 by Mayor Tory and Deputy Mayor Bailão. In July 2016, Council approved a five-year Open Door financial plan, with a target of 5,000 new affordable rental units.

This report responds to City Council's direction to provide annual updates on the progress and results of the program. The report reviews the following financial supports provided to the new affordable homes approved in 2017:

• Federal/provincial affordable housing program funding
• City capital funding and incentives
• The utilization of City and provincial lands for affordable housing development. 

There are a number of initiatives underway in 2018 to increase the pace and scale of affordable housing development. Developments resulting from this work are reported throughout the year as they come forward. This includes the results of the 2018 Open Door Call for Applications, Open Door proposals approved as part of the planning approvals process, and the Provincial Home for Good and Affordable Housing Land Programs.

While the City is now meeting and exceeding its affordable rental housing targets, affordable ownership development was below the target in 2017. To address this, under the City's new Development Charges by-law the Home Ownership Assistance Program is to be updated as a development charges deferral program, prioritizing new non-profit development.

The Affordable Housing Committee recommends to Executive Committee that:

1.   City Council approve the direction and framework outlined in this report to develop the Housing Opportunities Toronto Action Plan 2020-2030 and to execute the framework outlined in this report, including strategic public consultations.

2.   City Council request the Director, Affordable Housing Office, the General Manager, Shelter, Support and Housing Administration, and the General Manager, Long-Term Care Homes and Services to report before the end of 2019 with the final recommended Housing Opportunities Toronto Action Plan 2020-2030, together with an associated implementation strategy for Council consideration.

3.   City Council request the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to provide a progress report on the implementation of the Housing Opportunities Toronto Action Plan 2010-2020 before the end of 2019.

4.   City Council request the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to publish as part of the public engagement process and report to the Affordable Housing Committee in the first quarter of 2019 on the results of the Toronto housing market analysis.

5.   City Council request the Director, Affordable Housing Office, the General Manager, Shelter, Support and Housing Administration, and the General Manager, Long-Term Care Homes and Services to identify, through the City’s 2019 budget process, any additional financial resources required to undertake technical studies and public consultations to develop the Housing Opportunities Toronto Action Plan 2020-2030 in 2018 and 2019.

This report outlines the process to develop the Housing Opportunities Toronto (HOT) Action Plan 2020-2030, the City's new long-term housing and homelessness action plan. Following completion of the work outlined in this directions report, staff will report on a new HOT Action Plan 2020-2030 for Council consideration and approval in fall 2019.

This directions report seeks Council approval on a framework and funding requirements for staff to undertake technical studies including a Toronto housing market analysis and public consultations to develop the new Action Plan. The outlined work plan also guides staff to undertake a review of the current HOT Action Plan 2010-2020, an analysis of new housing and homelessness data, and environmental scans of federal, provincial and local housing policies.

The HOT Action Plan 2020-2030 will be a comprehensive plan addressing challenges and pressures across the housing continuum: from the need for emergency shelter beds, safe and legal multi-tenant houses, long-term care homes, supportive, transitional, social and affordable rental housing, to market affordability challenges for first-time home buyers.

This work will ensure that the HOT Action Plan 2020-2030 will be grounded in meaningful and achievable goals and targets, include a robust implementation strategy, and strategically align with existing City, regional, provincial and national strategies. The new Action Plan will also meet the requirements of the Housing Services Act, 2011.

Over the past decade, by implementing actions recommended in the HOT Action Plan 2010-2020, Toronto has taken significant steps to address a range of housing challenges faced by residents across the housing spectrum. Toronto's ongoing housing advocacy has also contributed to the introduction of a 10-year National Housing Strategy by the federal government, the provincial 10-year Long-Term Housing Strategy, and Ontario’s Fair Housing Plan.

Despite the progress in ramping up measures to address our national, provincial and local housing challenges, residents continue to struggle to secure and maintain affordable, suitable and stable housing. Toronto will continue to grow at a faster pace over the next decade with its population anticipated to reach 3.1[1] - 3.4[2] million by 2030. The growing population of seniors is expected to accelerate by 2030 along with the demand for support services including long-term care homes.

To address the diverse housing needs of Toronto residents, the new Action Plan will look to achieve bold, high-impact outcomes by leveraging new federal and provincial resources, extending City investments, and strengthening partnerships with the non-profit and private sectors.

This report is prepared in consultation with staff from the Social Development, Finance & Administration, Municipal Licensing and Standards, Revenue Services, Real Estate Services, CreateTO, Chief Resilience Office, Toronto Public Health, City Planning, Long-Term Care Homes & Services, Toronto Employment and Social Services, and staff from the offices of Deputy City Manager, Cluster A, Cluster B and the Internal Corporate Services.

The Affordable Housing Committee recommends to Executive Committee that:  

1.  City Council authorize the Director, Affordable Housing Office, to provide capital funding from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to Raising the Roof or a related corporation, in an amount not to exceed $50,000 to fund the expenses of repairs of the 212 Epsom Downs Drive property to provide transitional housing for youth at imminent risk of homelessness.

2.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to approve a one-time increase in the 2018 Approved Operating Budget for Shelter, Support and Housing Administration of $50,000 gross $0 net from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to provide funding for this initiative.

3.  City Council authorize the Director, Affordable Housing Office to negotiate, enter into, and execute on behalf of the City, a municipal housing facility agreement known as the City's "Contribution Agreement", with Raising the Roof or a related corporation, to secure the financial assistance, being provided and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

4.  City Council authorize the Director, Affordable Housing Office 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 Raising the Roof, or a related corporation or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal housing facility agreement.

5.  City Council exempt the two new affordable housing units to be developed at 212 Epsom Downs Drive from taxation for municipal and school purposes for the 25-year term of the municipal capital facility agreement.

6.  City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered with respect to the municipal capital facility agreement, as required by normal business practices.

7.  City Council authorize City staff to cancel or refund any taxes paid after the effective date of the municipal capital facility agreement.

As part of the Federal Government’s Homelessness Partnering Strategy (HPS) funding stream, the Surplus Federal Real Property for Homeless Initiative (SFRPHI) makes surplus federal properties available to community organizations, the not-for-profit sector and other levels of government for projects that help prevent and alleviate homelessness.

Raising the Roof, a national charity committed to long-term solutions for preventing homelessness through partnerships and collaboration, was recently selected through the SFRPHI proposal call process to obtain a single-family detached house located at 212 Epsom Downs Drive in Toronto for the creation of new transitional housing to assist vulnerable youth who are at imminent risk of becoming homeless.

As part of its proposed Reside program to be operated at the property, Raising the Roof will undertake a re-purposing and modernization of the asset to demonstrate that existing housing stock can be better utilized to help prevent homelessness. The new transitional homes to be created at 212 Epsom Downs Drive will be managed by Raising the Roof’s partner, Woodgreen Community Services, and ongoing case management and other support services will be provided onsite for residents.

This report recommends that City Council approve Fifty Thousand Dollars ($50,000) in financial assistance from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to be given to Raising the Roof for use towards renovation of the property to create two units of transitional housing for five youth who are at imminent risk of homelessness.

This report also recommends an exemption of property taxes for 25 years. The net present value of the requested property tax exemptions for the 25-year term is estimated at $32,655.

The Affordable Housing Committee recommends to Executive Committee that:  

1.  City Council exempt  new affordable rental homes in the Regent Park revitalization as described in the chart in the Financial Impact section of this report, from taxation for municipal and school purposes for the term of 25 years, which tax exemption is to be effective from the date the tax exemption by-law is enacted.

2.  City Council authorize the Director, Affordable Housing Office, to negotiate, enter into, and execute on behalf of the City, municipal housing facility agreements, the City's "Contribution Agreement", with Toronto Community Housing Corporation to secure the financial assistance being provided and to set out the terms of the development and operation of the new affordable rental housing located at 50 Regent Park Boulevard, 180 Sackville Street, 230 Sackville Street, 110 River Street, 150 River Street, 25 Wyatt Avenue and Block 16 North, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

3.  City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered as required by normal business practice.

4.  City Council authorize City staff to cancel or refund any taxes paid from the by-law exempting the property from taxation.

Toronto Community Housing Corporation (TCHC) is undertaking a multi-phase plan to redevelop Regent Park, the country's largest social housing community. TCHC is halfway through the revitalization that will ultimately replace 2,083 Rent-Geared-to-Income (RGI) units and develop approximately 5,417 market units within a 69-acre site.

In January 2004, Council approved a report on the financing plan for Regent Park that recommended property tax exemptions of 15 years for all new RGI homes in the Regent Park Revitalization Plan Area (shown in Attachment 1) effective from when the homes are developed and appropriate agreements signed. The business model for the revitalization was premised on developing market housing alongside social housing to help fund the development, as well as operating and capital maintenance savings, and City contributions including property tax exemptions.

In February 2009, City Council adopted a report granting authority to exempt municipal and school taxes from all units of affordable housing located in Regent Park Phase One Revitalization Plan area for a period of 25 years from the date of first occupancy of the buildings. TCHC has now completed Phases One and Two of the Regent Park revitalization, and Phase Three is well underway.

Consistent with City policy, this report recommends relief from property taxes for a period of 25 years for 1,065 new affordable rental homes (including rental replacement units) created in Phases Two and Three of the Regent Park revitalization project. Of the 1,065 new affordable homes, 267 will be rented at 80% of average market rents and the remaining 798 homes will be deeply affordable RGI homes.

The total property tax exemption recommended, estimated at a net present value of $17,850,516, will increase the affordability of the homes over 25 years and assist Toronto Community Housing in funding some of the costs associated with building the replacement rental housing.

The Affordable Housing Committee recommends to Executive Committee that:

1.  City Council delegate authority to the Director, Affordable Housing Office to:

a.   Approve as program administrator under the Ontario Development Charges Rebate Program projects eligible for funding, on terms satisfactory to the Director, Affordable Housing Office and coordinate with affected divisions including Toronto Building, Accounting Services, Legal Services and Corporate Finance to administer the program in accordance with the provincial program guidelines.

b.   Undertake appropriate measures as the Ontario Development Charges Rebate Program proceeds to adjust program parameters, recipients and year end funding among program components as required to ensure full and effective use of available provincial funds, on such terms and conditions as are satisfactory to the Director, Affordable Housing Office, and in a form approved by the City Solicitor.

c.   Negotiate and enter into on behalf of the City, agreements or documents required with other City divisions, the Province, provincial agencies, community agencies, private entities and/or individuals to allocate and deliver the Ontario Development Charges Rebate Program funding in accordance with the provincial program guidelines, to secure the financial assistance being provided and to set out the terms of the development and operation of the new rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form satisfactory to the City Solicitor.

d.   Approve the Take-Up Plan to the Province to request funding for qualifying rental housing developments and units eligible to receive rebates and any updates or adjustments required under the Ontario Development Charges Rebate Program.

2.  City Council approve the establishment of an obligatory corporate reserve fund account named the 'Ontario Development Charges Rebate Program Reserve Fund - Affordable Housing Office' in Schedule 15 of the City of Toronto Municipal Code

Chapter 227, Reserves and Reserve Funds ("Chapter 227"), the purpose of which is to receive provincial funds from the Ontario Development Charges Rebate Program and to make payments to developers eligible to receive Development Charges rebates through the program and to draw funds to cover City administration costs, with criteria as set out in Appendix A of this report.

3.  City Council authorize an increase to the 2018 Approved Operating Budget for the Affordable Housing Office by up to $120,000 gross, $0 net to support the creation of two new full time temporary positions and fund one-time ancillary set-up costs required for the administration and delivery of the program, fully funded from the administration funding component of the City's allocation under the Ontario Development Charges Rebate Program. The new positions are required from September 1, 2018 to December 31, 2020 with the option to extend their duration beyond 2020 subject to Council approval through future year budget processes.

4.  City Council authorize the Director, Affordable Housing Office, in consultation with the Chief Financial Officer, to make the necessary in-year budget adjustments to the approved annual operating budget for the Affordable Housing Office to receive and budget funding and expenditures for each year of the program, if required, and otherwise process future year requests through the annual budget process.

On April 27, 2018, the Province of Ontario confirmed Toronto's funding allocation through the Ontario Development Charges Rebate Program of $60 million over five years, beginning in 2018/2019. This represents almost half of the province-wide program funding of $125 million.

The purpose of the program is to stimulate the creation of new non-luxury rental housing in communities, such as Toronto, where suitable rental homes have become increasingly hard for individuals and families to find and afford.

The results of the 2018 Open Door Program Call for Affordable Rental Housing Applications will be outlined in a companion report at the July 2018 meeting of Council. It will recommend 422 mid-range rental homes in three mixed-income developments as eligible to participate in the first year of Toronto's delivery of the Ontario Development Charges Rebate Program. Subject to Council approval, these three developments will also contain 228 new affordable rental homes, resulting in mixed-income communities, one of the City's Housing Opportunities Toronto and Official Plan priorities.

On January 31 and February 1, 2018 City Council approved the City's participation in the province's Development Charges Rebate Program, and authorized the Director, Affordable Housing Office on behalf of the City acting as Service Manager under the Housing Services Act, 2011, to administer the province's Development Charges Rebate Program. This report seeks additional authorities including budgeting and resourcing administration of the program, utilizing the up to five per cent administration fee included in the provincial program funding envelope, with net zero impact to the City.

This report responds to direction from Council at its January 31 and February 1, 2018 meeting, to report to the Affordable Housing Committee, Executive Committee and Council in June and July, 2018 on program administration and recommended projects eligible for the province's Development Charges Rebate Program.

The provincial program will be coordinated with a new City Purpose-built Rental Development Charges Rebate Program, approved by Council on April 24, 25, 26 and 27, 2018. The City program was established to provide support for non-luxury purpose-built rental housing to mitigate the impact of rate increases to development charges approved by Council in 2018, effectively freezing development charges at 2018 rates for qualifying units. The City has committed to matching the same amount of funding, on an annual basis, provided by the Province over five years.

This report has been prepared in consultation with the Corporate Finance, Toronto Building, Accounting Services, City Legal, City Planning, Social Development, Finance and Administration and Shelter, Support and Housing Administration divisions.

The Affordable Housing Committee recommends to Executive Committee that:

1.   City Council authorize the Director, Affordable Housing, in consultation with the Chief Financial Officer and City Solicitor, to administer a Home Ownership Assistance Program Development Charges Deferral, in accordance with the following general terms and conditions:

a.  Delegate authority to the Director, Affordable Housing, in consultation with the Chief Financial Officer, to enter into appropriate agreements and administer the City Home Ownership Assistance Program Development Charges Deferral Program

b.  Home Ownership Assistance Program Development Charges Deferral Eligibility Requirements shall include:

i.    Eligible purchasers and/or housing providers/developers must provide a minimum five percent contribution;

ii.  The development charges deferral is secured by a second mortgage loan;

iii. The City's equity is ahead of the developer/housing provider and homeowners equity on an aggregate basis to ensure that the value of the development charges are appropriately secured;

iv. The development charges deferral is calculated based on the development charges rate in effect at the time building permit issuance and paid upon sale or refinancing of the unit, with interest;

v.  The development charges deferral is based on the development charges payable for a project, in aggregate, and allocated to eligible purchasers by the developer/housing provider based on eligibility and need with a minimum of $5,000 and maximum of $60,000 development charges deferred per home;

vi. The City will continue to participate in capital appreciation on the units, beyond the value of the development charges deferred, with these funds being deposited into the Development Charges Reserve Fund for Subsidized Housing (XR2116) account. The security of the development charges repayment will take precedence over the City's participation in capital appreciation.

c.  The Director, Affordable Housing, in consultation with the Chief Financial Officer and City Solicitor, be authorized to make such administrative amendments to the Home Ownership Assistance Program Development Charges Deferral, as necessary.

2.   City Council authorize the Director, Affordable Housing Office to convert the three projects listed below and previously approved under the existing grant-based Home Ownership Assistance Program to the development charges deferral program:

a.  Property currently known as 10 Wilby Crescent;

b.  Property currently known as 383-425 Old Weston Road; and

c.  Property currently known as 51 Panorama Court.

3.  City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all development charges deferral agreements, and any security, financing or other documents required with Options for Homes Non-Profit Corporation (Greater Toronto Area), or a related corporation, Home Ownership Alternatives Non-Profit Corporation (Great Toronto Area), or a related corporation, Humber Co-operative Development Corporation, or a related corporation, for the 10 Wilby Crescent affordable ownership project, Habitat for Humanity Greater Toronto Area, or a related corporation, for the project at 383-425 Old Weston Road, the developers chosen for the development of the affordable/assisted housing at 51 Panorama Court and any other parties deemed necessary to facilitate the development charges deferral outlined in this Report, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Interim Chief Financial Officer, and in a form satisfactory to the City Solicitor.

4.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

This report responds to City Council's direction of April 2018, in EX33.3, Development Charges Bylaw Review - Results of Additional Consultation, to the Director, Affordable Housing Office, to work with Corporate Finance and Legal Services to update the City's Home Ownership Assistance Program (HOAP). The direction was to report on the conversion of the HOAP from a loan program funded directly from the Development Charges Reserve Fund for Subsidized Housing (XR2116) to a development charges deferral program.

The recommended program update will assist the City in meeting its affordable home ownership targets of 400 homes annually.

HOAP was launched in 2010 and has provided funding to off-set development charges, building permit and planning fees, at an average rate of $25,000 per home and up to a total of $2 million annually. This funding is then converted by housing providers/ developers into down payment assistance loans to make the homes more affordable for eligible purchasers. City Council has approved HOAP assistance for more than 1,000 loans at 40 non-profit and seven private developments. HOAP was modelled on the terms and conditions of the federal/ provincial affordable home ownership program, including purchaser eligibility and price limits, so that funds could be combined for deeper affordability.

Staff from Corporate Finance, the Affordable Housing Office and Legal Services consulted with the non-profit affordable ownership sector on the redesign of HOAP. The proposed development charges deferral is endorsed by the sector and enables HOAP to continue to support the sector as development charges increase over time.

The updated HOAP will continue to assist non-profit groups such as Habitat for Humanity and Options for Homes in developing new affordable homes. The deferred development charges will be collected by the City with interest and capital appreciation when the homes are sold or refinanced.

The Affordable Housing Committee recommends to Executive Committee that:  

1. City Council receive Confidential Attachment 1 to the report dated June 11, 2018 for information purposes only and authorize the public release of Confidential Attachment 1 to the report following the closing of any acquisition/ expropriation, or in five years from adoption of the report, whichever occurs first.

2. City Council direct the Transition Lead, CreateTO, the Director, Real Estate Services Division and the Director, Affordable Housing Office, to develop an affordable housing real estate acquisition/ expropriation strategy and report on the strategy as part of the Housing Opportunities Toronto 2020-2030 plan in 2019.

3.  City Council request the Director, Affordable Housing Office to work with the Director, Real Estate Services in the event that the properties at 214, 218, 220, 222, 224, 226 and 230 Sherbourne Street become available for sale on the open market to make a conditional offer on the properties and report to City Council in early 2019 with a recommended course of action for the acquisition, including federal, provincial or municipal sources of funding to purchase the properties.

In May 2018, City Council directed staff, in consultation with CreateTO, to conduct the necessary due diligence on the acquisition or expropriation of the seven abutting properties at 214, 218, 220, 222, 224, 226 and 230 Sherbourne Street ("the Properties") for affordable housing purposes.

Given the preliminary assessment and due diligence work outlined in this report and Confidential Attachment 1, staff do not recommend the acquisition or expropriation of the Properties at this time.

The City of Toronto does not currently have a policy or standardized approach to the acquisition/ expropriation of properties for affordable housing development. This report recommends CreateTO, the Director, Real Estate Services Division and the Director, Affordable Housing Office, develop an affordable housing real estate acquisition/ expropriation strategy and report on the strategy in 2019 as part of the development of the Housing Opportunities Toronto 2020-2030 Action Plan.

The Affordable Housing Committee recommends to Executive Committee that:  

1.  City Council authorize the Director, Affordable Housing to issue an open and transparent competitive proposal call to experienced non-profit affordable rental housing providers and to select the best proponent, in his sole discretion, to acquire, renovate and operate an available rooming house property in Ward 14, Parkdale-High Park.

2.  City Council increase the 2018 Approved Operating Budget for Shelter, Support and Housing Administration by $1,500,000 gross, $0 net, for transfer to the Capital Revolving Reserve Fund for Affordable Housing (XR1058), to be payable to the selected non-profit organization for the purpose of acquiring and renovating a rooming house property in the Parkdale-High Park, fully funded by Section 37 (Planning Act Reserve Fund) community benefits for this purpose, once received by the City from the developments at 24-66 Howard Park, Phase 1 ($250,164.47); 24-66 Howard Park, Phase 2 ($513,684.21); 1100 King ($700,000.00); and 1100 King ($36,151.32) (source account numbers available to-date: XR3026-3700589; XR3026-3700637; XR3026-3700639; and XR3026-3700632).

3.  City Council authorize the Director, Affordable Housing Office to enter into an agreement, providing for the advance of the $1,500,000, referred to in Recommendation 2, to the successful non-profit, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form acceptable to the City Solicitor.

4.  City Council authorize the Director, Affordable Housing Office to support the selected non-profit on an application to Canada Mortgage and Housing Corporation to secure funding under the recently announced National Housing Co-Investment Fund to help fund the acquisition and/or renovation of the rooming house property and to execute any agreements or other documents required by Canada Mortgage and Housing Corporation with respect to same, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form acceptable to the City Solicitor.

5.  City Council authorize the City Solicitor 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 the successful not for profit, or its related corporation to complete construction and conventional financing and refinancing, when required during the term of the City's agreement with the successful non- profit or its successor;.

6.  City Council request the Director, Affordable Housing Office to report to City Council in 2019 on the results of this initiative including details on the selected non-profit, status of acquisition and renovation of a rooming house property in Parkdale-High Park Ward 14, and the result of the National Housing Co-Investment Fund application outlined in Recommendation 4 above.

The current real estate market is resulting in the conversion and demolition of existing rooming houses in Parkdale and other neighbourhoods, where they are permitted. It is crucial that the City look at measures to preserve and maintain this important form of affordable housing for low-income residents. Through working with the non-profit housing sector and utilizing existing funding programs, there are opportunities to address the loss of rooming houses and other low-income housing. 

City Council at its meeting on May 22, 23 and 24, 2018, directed the Director, Affordable Housing Office to report to the June 25, 2018 Affordable Housing Committee meeting on the due diligence process necessary to support the purchase, renovation and future operation ‎of an existing rooming house in Ward 14, Parkdale-High Park by an experienced non-profit organization through leveraging $1.5 million in available Ward 14, Parkdale-High Park Section 37 funds and other federal and provincial funding sources, and to seek authority to undertake this initiative through a competitive proposal call process in 2018.