Item - 2011.EX11.6

Tracking Status

  • City Council adopted this item on October 24, 2011 without amendments.
  • This item was considered by the Executive Committee on October 3, 2011 and adopted without amendment. It will be considered by City Council on October 24, 2011.
  • See also By-laws 1413-2011, 1634-2012

EX11.6 - Toronto Community Housing Corporation - Declaration as Municipal Housing Capital Facilities and Exemption from Municipal and School Property Taxes

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on October 24 and 25, 2011, adopted the following:

 

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 Part 2; 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:

 

a.         To 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.         To 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, to 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.

Background Information (Committee)

(September 19, 2011) Staff Report - Toronto Community Housing Corporation - Declaration as Municipal Housing Capital Facilities and Exemption from Municipal and School Property Taxes
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-41186.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Oct-24-2011 2:10 PM

Result: Carried Majority Required - EX11.6 - Adopt the item
Total members that voted Yes: 34 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, David Shiner, Karen Stintz, Adam Vaughan
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 11 Members that were absent are Vincent Crisanti, Doug Ford, Rob Ford, Mary Fragedakis, Mark Grimes, Norman Kelly, Pam McConnell, John Parker, Jaye Robinson, Michael Thompson, Kristyn Wong-Tam

EX11.6 - Toronto Community Housing Corporation - Declaration as Municipal Housing Capital Facilities and Exemption from Municipal and School Property Taxes

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

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.

 

Origin

(September 19, 2011) Report from the Deputy City Manager and Chief Financial Officer

Summary

This report seeks Council authority to:

 

1.          adopt the necessary by-law to designate Toronto Community Housing Corporation's (TCHC) 'affordable' housing stock as Municipal Capital Housing Facilities.  This will reduce TCHC's costs through the resulting municipal and education property tax exemptions (estimated at $81.6 million and $10.2 million annually, respectively, based on 2011 taxes); and,

 

2.          direct that the annual subsidy from the City to TCHC be reduced by the amount of the net savings arising from the municipal portion of the property tax exemption.

 

The change will enable TCHC to apply the resulting savings in education taxes to the repair and maintenance of its affordable housing stock.

Background Information

(September 19, 2011) Staff Report - Toronto Community Housing Corporation - Declaration as Municipal Housing Capital Facilities and Exemption from Municipal and School Property Taxes
https://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-41186.pdf

Motions

Motion to Adopt Item moved by Councillor Giorgio Mammoliti (Carried)

Vote (Adopt Item) Oct-03-2011

Result: Carried Majority Required
Total members that voted Yes: 11 Members that voted Yes are Michelle Berardinetti, Mike Del Grande, Rob Ford (Chair), Doug Holyday, Norman Kelly, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Jaye Robinson, David Shiner, Michael Thompson
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 2 Members that were absent are Paul Ainslie, Peter Milczyn
Source: Toronto City Clerk at www.toronto.ca/council