Item - 2017.EX24.13

The Executive Committee recommends that:

1.  City Council authorize the Director, Affordable Housing Office to negotiate, enter into and execute on behalf of the City, agreements or other documents with Toronto Community Housing Corporation ("TCHC") to fund, to a maximum cost of $500,000, including HST and disbursements, from the 2017 Shelter, Support and Housing Administration ("SSHA") Operating budget, Toronto Community Housing Corporation's pre-development and due diligence related matters in relation to the development of Toronto Community Housing Corporation's site at 389 Church Street, on terms and conditions satisfactory to the Director, Affordable Housing Office, and in a form satisfactory to the City Solicitor.

2.  City Council direct the General Manager, Shelter, Support and Housing Administration, and the Director, Affordable Housing Office, to report to Council by October 2017, any impacts on the Operating Budgets for Shelter, Support and Housing Administration and the Affordable Housing Office, once funding details have been identified.

3.  City Council authorize an increase to the 2017 Approved Shelter, Support and Housing Administration Operating Budget of $0.5 million gross, $0 net funded by a draw from the Social Housing Stabilization Reserve (XQ1106). The money will be provided to Toronto Community Housing Corporation pursuant to the pre-development agreement outlined in Recommendation 1 above.

4.  City Council authorize the transfer of $8.8 million in debt from capital account CHS039, 389 Church Street, to CHS040, George Street Revitalization; and the transfer of $8.8 million from CHS040 to XQ1106, Social Housing Stabilization Reserve. 

5.  City Council authorize the transfer of $1.738 million from CHS039, 389 Church Street to XR3026, the Section 37 Reserve.

6.  City Council direct the Director, Affordable Housing Office to pursue and prioritize the availability of recently announced provincial supportive housing provincial capital and operating funding to supplement the funding needs for the 389 Church initiative.

This report recommends that the City support the creation of new housing opportunities at 389 Church Street by entering into agreements with Toronto Community Housing Corporation ("TCHC") to fund pre-development work necessary to convert the property at 389 Church Street, located in Ward 27 Toronto Centre-Rosedale, into self-contained affordable rental housing. 

The report recommends reallocation of debt funding of $8.800 million for the "389 Church Street Capital Project", included in the 2017-2026 Capital Budget and Plan for the renovation and modernization of the facility, to be redirected to replace the reserve draw from the Social Housing Stabilization Reserve fund for the "GSR - Phase 2-Transition-Seaton House project". In addition, the report seeks Council's authority to amend the 2017 Approved Operating Budget for Shelter, Support and Housing Administration by up to $0.500 million gross, $0 net, with funding provided from the Social Housing Stabilization Reserve Fund to complete the necessary pre-development due diligence to be conducted by Toronto Community Housing Corporation for this facility. These activities include, but are not limited to, securing and managing consultants to undertake design development work, determining capital cost requirements and obtaining engineering and other necessary reports needed to determine a detailed capital cost for the conversion of
389 Church Street.  

Up to $500,000 will be advanced to Toronto Community Housing Corporation upon the execution of a pre-development agreement securing the City's investment in the 389 Church Street conversion project. 

Following the completion of pre-development activities, staff will report back on an action plan to initiate the creation of new affordable rental housing to serve high priority client groups.