Item - 2011.EX11.6

The Executive Committee recommends that:

1.         City Council grant authority to the Deputy City Manager and Chief Financial Officer to negotiate a municipal capital facility agreement with TCHC to secure the ongoing affordability of the rental housing units identified in Schedule "A" of the report (September 19, 2011) from the Deputy City Manager and Chief Financial Officer, and for the affordable housing portion of units of the premises identified in Schedule B of the report( September 19, 2011) from the Deputy City Manager and Chief Financial Officer, on such terms and conditions as the Deputy City Manager and Chief Financial Officer considers appropriate, and in a form satisfactory to the City Solicitor.

2.                  City Council pass a by-law pursuant to section 252 of the City of Toronto Act, 2006, and the City's Municipal Housing Facility By-law (By-law No. 282-2002) providing authority to:

a.                   Enter into a municipal capital facility agreement with Toronto Community Housing Corporation (TCHC) for the premises identified and described in Schedule "A" of this report, and for the affordable housing portion of units of the premises identified in Schedule "B" of the report (September 19, 2011) from the Deputy City Manager and Chief Financial Officer, on such terms as have been negotiated pursuant to Recommendation 1 above; and,

b.                  Exempt the premises or portions of premises described in Recommendation 2a. above from municipal and education property taxation, which tax exemption is to be effective from the latter of January 1, 2012, the date the tax exemption by-law comes into force, and the date the municipal capital facility agreement is signed. 

3.                  City Council authorize the Deputy City Manager and Chief Financial Officer to report directly to Council at its meeting of October 24-25, 2011, on any technical amendments to the properties identified in Schedule "A" and Schedule "B" of the report (September 19, 2011) from the Deputy City Manager and Chief Financial Officer, if necessary.

4.                  City Council direct the City Clerk to give written notice of the by-law to the Ministers of Finance, Education and Municipal Affairs and Housing, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, the Conseil Scolaire de District du Centre-Sud-Ouest, and the Conseil Scolaire de District du Catholique Centre-Sud.

5.                  City Council direct the General Manager, Shelter, Support and Housing Administration to:

a.                   Reduce the annual subsidy provided by the City to TCHC by the amount of municipal property tax savings to TCHC generated through the property tax exemption recommended by this report, to ensure that there is no net impact on the City's operating budget;

b.                  Make the necessary amendments to the Operating Agreement between the City and TCHC pursuant to clause 7.3.2 of the City's Shareholder Direction to TCHC to give effect thereto; and,

c.                   In consultation with the Deputy City Manager and Chief Financial Officer,  report through the First Quarter Operating Variance Report, once the final impacts have been confirmed, on the necessary budget adjustments to the 2012 Approved Operating Budget for Shelter, Support and Housing Administration and to the Non Program Accounts. 

6.                  City Council request TCHC to provide a funding plan satisfactory to the General Manager, Shelter Support and Housing Administration and Deputy City Manager and Chief Financial Officer on the use of any savings from the education portion of property taxes through the property tax exemption recommended by this report towards maintaining TCHC's housing stock in a state of good repair.

7.                  City Council grant authority for the introduction of the necessary bills to give effect to these recommendations.