Item - 2012.EX16.3
EX16.3 - Securing Funding to Repair Toronto Community Housing's Multi-Residential Portfolio: Sale of Toronto Community Housing Stand-Alone Units
- Decision Type:
- 1 - Etobicoke North, 5 - Etobicoke-Lakeshore, 6 - Etobicoke-Lakeshore, 7 - York West, 9 - York Centre, 10 - York Centre, 11 - York South-Weston, 13 - Parkdale-High Park, 14 - Parkdale-High Park, 15 - Eglinton-Lawrence, 16 - Eglinton-Lawrence, 17 - Davenport, 18 - Davenport, 19 - Trinity-Spadina, 20 - Trinity-Spadina, 21 - St. Paul's, 25 - Don Valley West, 28 - Toronto Centre-Rosedale, 29 - Toronto-Danforth, 30 - Toronto-Danforth, 31 - Beaches-East York, 32 - Beaches-East York, 34 - Don Valley East, 35 - Scarborough Southwest, 36 - Scarborough Southwest, 37 - Scarborough Centre, 38 - Scarborough Centre, 42 - Scarborough-Rouge River, 43 - Scarborough East
The Executive Committee deferred consideration of the item until a special meeting of the Committee at a future date to be determined.
Over the past several years, Council has been made aware of the significant and growing repair needs in the City's social housing portfolio and, in particular, the backlog of needed repairs in the Toronto Community Housing (TCH) stock of social housing. In response, Council has requested on numerous occasions that the provincial government upload the full costs of social housing and that the federal and provincial governments provide ongoing, sustainable funding for social housing repairs. The costs of social housing have not been uploaded and at the present time, there is no ongoing, sustainable program for repairs. As a result, the funding challenge in Toronto’s social housing continues to deepen. This report, therefore, recommends the sale of stand-alone dwellings to generate revenue to help fund repairs of the multi-unit buildings in TCH's portfolio.
TCH's proposal to sell stand-alone properties is part of its strategy to address state of good repair needs in its entire portfolio. The TCH Board has resolved that, as a condition of approval of sale, proceeds from the sales will be dedicated to a "State of Good Repair" fund for capital repairs to TCH's multi-residential stock.
In reviewing TCH's proposal and the impact on tenants, communities and TCH's financial situation, consideration has been given to the City's roles and responsibilities as sole shareholder of TCH and consolidated service manager under the Housing Services Act, 2011 (HSA), as well as Council positions on affordable housing including the Housing Opportunities Toronto ten year plan, Official Plan housing policy and rental housing protection and heritage preservation requirements.
To date Council has approved TCH's requests for consent to the sale of 47 stand alone properties – 20 at below market value to another social housing provider and 27 on the open market. TCH is now seeking approval to sell another 872 stand-alone properties. These properties contain 1,534 housing units.
Included in the 872 stand-alone properties TCH is requesting approval to sell are 168 properties that have yet to be approved by the TCH Board. Staff are recommending that Council not consider their sale and refer consideration of the possible sale of these properties back to TCH for further analysis.
The 704 properties approved for sale by TCH's Board of Directors include 11 properties which have previously been approved for sale by both TCH and Council. These properties do not need to be considered by Council again.
Also included in the 704 properties approved for sale by TCH's Board of Directors are 18 supportive housing properties. Through referral and head lease agreement with TCH, supportive housing agencies are able to provide special needs clients support and affordable housing in a communal setting. Staff recommend that these properties (with 81 units in total) not be approved for sale at this time and that TCH proceed with further analysis and consultation with these supportive housing agencies and their clients.
Therefore, this report recommends that Council approve the sale of 675 TCH houses containing 740 units, as listed in Appendix A, subject to a set of conditions aimed at supporting tenants and satisfying statutory and regulatory requirements. The following chart summarizes the disposition of the properties:
Total Stand-Alone Properties TCH Requested Council Approval to Sell
Properties Not Approved for Sale by TCH Board at this Time:
Part of larger developments (82)
Rooming Houses (21)
Remaining Properties for Consideration (Approved for sale by TCH Board)
Properties already approved for sale by Council in previous reports
Remaining Properties for Consideration
Properties under legal agreements with supportive housing agencies not recommended by staff for sale
Total Properties Recommended for Sale in This Report
Based on TCH estimates, these 675 properties have a combined market value of at least $222 million that can be put towards the approximately $650 million needed for capital repairs. It is understood that TCH intends to take a phased approach over a number of years to the sale of these 675 properties and develop a business case for the sale of each property. TCH will not evict tenants or withdraw rent-geared-to-income (RGI) subsidy to qualified residents as a result of Council's approval of the sales and will make reasonable efforts to relocate households to suitable alternative accommodation.
Should Council approve the sale of the 675 TCH properties, 644 of them will still need the consent of the Minister of Municipal Affairs and Housing and/or Canada Mortgage and Housing Corporation (CMHC).
Consideration by Council of the sale of any other TCH stand-alone properties may be given at a later date after TCH has concluded its analysis of the feasibility and benefits of such sales.
(January 10, 2012) Appendix A - Property Profile: 675 Toronto Community Housing Properties Proposed for Sale
(January 10, 2012) Appendix B - Unit Profile: 740 Toronto Community Housing Units Proposed for Sale
(January 10, 2012) Appendix C - List of 18 TCH Properties Under Agency Agreements
(January 10, 2012) Appendix D - List of 168 Toronto Community Housing Properties Requiring Further Analysis by Toronto Community Housing
(January 10, 2012) Appendix E - Stand Alone Units by Ward: Single Houses, Property Houses and SHOP Houses
(January 10, 2012) Appendix F - List of TCH Properties Subject to Rental Housing and Heritage Policies
(January 12, 2012) Letter from Betty Hubbard, Toronto Christian Resource Centre Advocacy Committee (EX.Main.EX16.3.2)
(January 16, 2012) Letter from Fran Perkins, Chair, Homes First Society Board of Directors (EX.Main.EX16.3.3)
(January 16, 2012) E-mail from Elizabeth Eames (EX.Main.Ex16.3.4)
(January 12, 2012) Letter from Betty Hubbard, Toronto Christian Resource Centre Advocacy Committee (EX.Main.Ex16.3.5)
(January 18, 2012) Letter from Mariana Touray (EX.Main.Ex16.3.6)
(January 16, 2012) Letter from Sharon Caride (EX.Main.Ex16.3.7)
(January 18, 2012) Letter from Thuy Nguyen (EX.Main.Ex16.3.8)
(January 15, 2012) Letter from Kathy Kunsmann (EX.Main.Ex16.3.9)
(January 17, 2012) E-mail from Joan Christensen (EX.Main.Ex16.3.10)
(January 17, 2012) E-mail from A. J. Diamond, Principal, Diamond Schmitt Architects (EX.Main.Ex16.3.11)
(January 13, 2012) Letter from Waseem Syed and Sumia Syed (EX.Main.Ex16.3.12)
(January 13, 2012) Letter from Ann Ray (EX.Main.Ex16.3.13)
(January 19, 2012) E-mail from Brenda Thompson (EX.Main.Ex16.3.14)
(January 19, 2012) Letter from Janet Davidson (EX.Main.Ex16.3.15)
(January 19, 2012) E-mail from Karen Buck (EX.Main.Ex16.3.16)
(January 19, 2012) E-mail from Karen Buck (EX.Main.Ex16.3.17)
(January 19, 2012) E-mail from Alan Demb (EX.Main.Ex16.3.18)
(January 19, 2012) E-mail from Ceta Ramkhalawansingh, Honorary Chair, Grange Residents Association (EX.Main.Ex16.3.19)
(January 20, 2012) E-mail from Anne Woolger, Founder and Executive Director, Matthew House Refugee Reception Services (EX.Main.Ex16.3.20)
(January 20, 2012) E-mail from Sandra Ryan-Cuyugan (EX.Main.Ex16.3.21)
(January 20, 2012) E-mail from Stacey Reilly (EX.Main.EX16.3.22)
(January 22, 2012) E-mail from Estelle Amaron (EX.Main.EX16.3.23)
(January 22, 2012) E-mail from David Hulchanski (EX.Main.EX16.3.24)
(January 22, 2012) E-mail from Lynn Spink (EX.Main.EX16.3.25)
(January 22, 2012) E-mail from Kevin Barrett (EX.Main.EX16.3.26)
(January 22, 2012) E-mail from Colin Ellis (EX.Main.EX16.3.27)
(January 22, 2012) E-mail from Amy Buitenhuis (EX.Main.EX16.3.28)
(January 23, 2012) E-mail from Caitlin Henry (EX.Main.EX16.3.29)
(January 23, 2012) E-mail from Joy Connelly (EX.Main.EX16.3.30)
(January 23, 2012) Letter from Liloutie Somra (EX.Main.EX16.3.31)
(January 23, 2012) E-mail from William Stringer (EX.Main.EX16.3.32)
(January 23, 2012) E-mail from Susan Crean (EX.Main.EX16.3.33)
(January 23, 2012) E-mail from Amy Steele (EX.Main.EX16.3.34)
(January 23, 2012) E-mail from Peter Rose (EX.Main.EX16.3.35)
(January 23, 2012) E-mail from John Deacon (EX.Main.EX16.3.36)
(January 23, 2012) E-mail from John Cartwright, President, Toronto and Region Labour Council (EX.Main.EX16.3.37)
(January 23, 2012) E-mail from Daryl Chong, President and CEO, Greater Toronto Apartment Association (EX.Main.EX16.3.38)
(January 23, 2012) E-mail from Maria Rocha (EX.Main.EX16.3.39)
(January 23, 2012) E-mail from Kim Li (EX.Main.EX16.3.40)
(January 23, 2012) E-mail from Peter Rose (EX.Main.EX16.3.41)
(January 23, 2012) E-mail from Lillian Carrigan (EX.Main.EX16.3.42)
(January 23, 2012) E-mail from Brian Dwyer, Coordinator, Social Justice Committee, St. Brigid's Parish (EX.Main.EX16.3.43)
(January 23, 2012) E-mail from Smadar Carmon (EX.Main.EX16.3.44)
(January 24, 2012) E-mail from Jessica Bell (EX.Main.EX16.3.45)
(January 27, 2012) E-mail from Jeremy Kerr (EX.Main.EX16.3.46)
(January 19, 2012) E-mail from Sandy Spencer (EX.Main.EX16.3.47)
(January 23, 2012) E-mail from Martine August (EX.Main.EX16.3.48)
(January 23, 2012) E-mail from Frances Sanderson, Executive Director, Nishnawbe Homes Inc. (EX.Main.EX16.3.49)
(January 23, 2012) E-mail from Alejandra Bravo (EX.Main.EX16.3.50)
(January 23, 2012) E-mail from Karl and Carol Eichler (EX.Main.EX16.3.51)
(January 23, 2012) E-mail from Maqsood Said (EX.Main.EX16.3.52)
(January 23, 2012) E-mail from Renn Scott (EX.Main.EX16.3.53)
(January 23, 2012) E-mail from Tenants for Social Housing (EX.Main.EX16.3.54)
(January 23, 2012) E-mail from Farshid Kaboli (EX.Main.EX16.3.55)
(January 24, 2012) E-mail from Trish O'Reilly (EX.Main.EX16.3.56)
(January 23, 2012) E-mail from David Walsh, Seeds of Hope Foundation (EX.Main.EX16.3.57)
(January 26, 2012) E-mail from Kim Riddle (EX.Main.EX16.3.58)
(January 23, 2012) E-mail from Kenneth Hale, Director of Advocacy and Legal Services (ACTO) (EX.Main.EX16.3.59)
(February 4, 2012) E-mail from Pastor Kesavan Balasingham (EX.Supp.EX16.3.60)
(February 8, 2012) E-mail from Majoba Feroze (EX.Supp.EX16.3.61)
(February 8, 2012) E-mail from Estelle Amaron (EX.Supp.EX16.3.62)
(February 1, 2012) Fax from Richard Drayton (EX.Supp.EX16.3.63)
(February 9, 2012) E-mail from Margaret Watson, Co-chair and Sylvia Hall, Co-chair, Canadian Pensioners Concerned, Inc. (EX.Supp.EX16.3.64)
(February 9, 2012) E-mail from Nian Ghareeb (EX.New.EX16.3.65)
(February 10, 2012) E-mail from Cathy Crowe, Voluntary Executive Director, Toronto Disaster Relief Committee (EX.New.EX16.3.66)
(February 10, 2012) E-mail from Jon Alexander (EX.New.EX16.3.67)
That consideration of the item be deferred until a special meeting of Executive Committee at a future date to be determined.
3a - Sale of Toronto Community Housing Stand-Alone Units
Letter (December 5, 2011) from the Interim Chief Executive Officer, Toronto Community Housing Corporation, forwarding the decision of the Board of Directors for the sale of Toronto Community Housing's stand-alone units which was approved at the Board meeting on October 21, 2011.
3b - Report to the City Manager on Toronto Community Housing's State of Good Repair Plan
At its meeting of January 24, 2012, Executive Committee deferred report EX15.1 from the City Manager and the General Manager, Shelter, Support and Housing Administration entitled Securing Funding to Repair Toronto Community Housing's Multi-Residential Portfolio: Sale of Toronto Community Housing Stand-Alone Units to the February 13th meeting. In response to questions raised by Councillors on the proposed sale of its stand-alone properties, the Chief Executive Officer of Toronto Community Housing (TCH) has prepared the attached report.
The report describes the background to TCH's state of good repair funding shortfall, how TCH manages capital repairs and how the proposed sale of stand-alone units would assist TCH. The report further explains how TCH will support affected tenants, maintain the same level of rent geared to income units and how the sale of units will be phased in order to best accommodate tenants.
Capital Repair Deficit $1.7 billion by 2020
Over the next several years, $45 million annually has been allocated by TCH for capital repairs. The property tax exemption will save an additional $9 million per year leaving an unfunded gap of just over $90 million per year. Without the additional investment the capital deficit of $751 million in 2012 will grow to approximately $1.7 billion by 2020 and the average state of repair for these buildings will move to "Poor" in 2015 and "Critical" by 2018.
With the investment of $222 million over five years from the sale of the stand-alone units, the primary focus would be repairs to the building envelope, the building structure and the main services in the building such as electrical, mechanical, elevators and life safety systems. Under the plan approximately 86% of TCH's portfolio would have some work done assisting approximately 55,246 or 94% of the households in Toronto Community Housing. The relocation of 2,200 tenants will repair buildings that house over 55,000 tenant households. This key investment of $222 million will maintain the condition in a "Fair" state of repair to 2015 rather than the projected "Poor" condition.
In order to bring the TCH portfolio to a "Good" state of repair by 2017 and to maintain the "Good" state of repair beyond that, additional annual funding from the federal and provincial governments of $150 million from 2013 to 2017 and $90 million a year from 2018 thereafter is required. This, combined with the investment by TCH, will reduce the annual capital deficit to $362 million by 2017.
I am forwarding the report from the Chief Executive Officer of TCH to the Executive Committee for consideration with the City staff report deferred from January 24, 2012.
(February 9, 2012) Letter from the Chief Executive Officer (Interim) forwarding Toronto Community Housing's State of Good Repair Plan
(February 9, 2012) Toronto Community Housing's State of Good Repair Plan