Item - 2017.EX26.2

The Executive Committee recommends that:

1.  City Council approve the strategic integration of City programs and services for seniors and responsibility for management of the 83 seniors-designated buildings within the Toronto Community Housing Corporation portfolio under a new Seniors Housing and Services entity that is separate from Toronto Community Housing and more directly accountable to City Council.

2.  City Council request the City Manager and the Deputy City Manager, Cluster A to report to Committee and Council on a recommended governance structure for the new Seniors Housing and Services entity by the end of 2017.

3.  City Council direct the City Manager and the Deputy City Manager, Cluster A in consultation with Toronto Community Housing Corporation, to review the governance structure of Toronto Community Housing Corporation pursuant to the adoption of Recommendation 1 and prepare an amended Shareholder Direction and other program and accountability instruments as required, that includes:

a.  a revised tenant-focused service delivery model providing housing to families, individuals, youth and vulnerable tenants including seniors;

b.  improved integration and accountability with the City of Toronto as Service Manager and Shareholder; and

c.  a strengthened system of tenant engagement, including tenant representation on the Board of Directors of Toronto Community Housing Corporation.

4.  City Council direct the Deputy City Manager and Chief Financial Officer and the Deputy City Manager, Cluster A to:

a.  report on an interim operating and capital funding model for Toronto Community Housing Corporation to address the current and short-term Toronto Community Housing Corporation operating and capital funding shortfalls projected for 2018 and 2019, as part of the 2018 budget process;

b.  report to Council in 2019 on a permanent funding formula, including operating and capital, for the New Toronto Community Housing Corporation and the new Seniors Housing and Services entity, to launch in 2020; and

c.  request Toronto Community Housing Corporation to continue to present its annual Business Plan to Budget Committee during the annual budget process.

5.  City Council direct the continued implementation of strategies and directions adopted in 2012.EX23.4 "Putting People First, Transforming Toronto Community Housing - Special Housing Working Group's Report", and authorize the Deputy City Manager, Cluster A to issue a Request for Expressions of Interest (REOI) to the non-profit, co-op and land trust sectors seeking interest, service models and business cases for the operation of the 684 scattered social housing properties, including Agency Houses and Rooming Houses and report with a recommended strategy by the end of 2017.

6.  City Council direct the Deputy City Manager, Cluster A to report to Committee and Council with an update on the following initiatives by December 2017:

a.  a local service model pilot program at Toronto Community Housing Corporation to focus on decentralizing property/housing management services and innovative approaches to community development, including local action plans; and

b.  rooming house revitalization projects.

7.  City Council direct the Deputy City Manager, Cluster A to develop and report to Committee and Council by December 2017 on a public consultation process to provide for continued engagement of tenants and other stakeholders in the implementation of the recommendations approved by Council in its consideration of the report (June 7, 2017) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer.

8.  City Council request the Government of Ontario to amend the Housing Services Act to support Rent-Geared-to-Income (RGI) Reform, including reducing barriers to Rent-Geared-to-Income tenants who participate in employment programs, and simplifying Rent-Geared-to-Income calculations, and authorize the Deputy City Manager, Cluster A to engage the Ministry of Housing to propose legislative changes including:

a.  allow social housing service managers discretion with respect to exempting income from service manager endorsed or approved employment and skills training, and employment programs, from the Rent-Geared-to-Income rent calculation; and

b.  simplify Rent-Geared-to-Income rules and calculations.

9.  City Council request the Federal and Provincial governments to confirm shared funding commitments proposed in their 2017 Budgets and other announcements that will directly support the social housing capital and operational priorities of the City, and request that the emerging National Housing Strategy provides a clear commitment to maintain existing social housing, and to build new social and affordable housing units.

10.  City Council request the Mayor and the City Manager to advance discussions with Ontario and Canada on funding that will benefit Toronto Community Housing Corporation and to negotiate funding agreements and report back to City Council on the outcome of these discussions.

11.  City Council thank the members of the Tenants First Tenant Advisory Panel for the hard work, commitment and invaluable contribution they have made toward the creation of this Implementation Report.

12.  City Council direct the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer to review Appendix 5 - List of Seniors High Rise Apartment Buildings to the report (June 7, 2017) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, and report on the seniors buildings that have become mixed buildings (for example, 61 Pelham Park Gardens, 1901 Weston Road), and a strategy to determine which buildings should be included in the new Seniors Housing and Services entity.

13.  City Council, while recognizing the value of ensuring the continuity of staff, direct the Deputy City Manager, Cluster A, and the Executive Director, Human Resources, to engage in discussions with labour representatives regarding employment issues, including impacts on pensions, collective agreements, any considerations pursuant to the Employment Standards Act, and other relevant labour and employment statutes, and report on these discussions in the forthcoming "Tenants First - Phase 2 Implementation Plan" report to the Executive Committee in fall 2017.

The Executive Committee:

1.  Requested the Chief Executive Officer of Toronto Community Housing to report directly to Council at its meeting on July 4, 5 and 6, 2017 on Toronto Community Housing's capacity to deliver capital repairs, and specifically on:

a.  the amount of capital repairs budgeted and delivered in 2015 and 2016;

b.  the projected amount of capital repairs to be delivered in 2017; and

c.  the projected amount of capital repairs that can be delivered in 2018.

This report requests City Council to support a set of recommendations designed to improve the lives and homes of current and future tenants of city owned social housing.

In July 2016, City Council approved the report, Tenants First, which built on the work of the Mayor's Task Force on Toronto Community Housing Corporation, and proposed a strategic transformation process for Toronto Community Housing Corporation (TCHC).

Phase 1 of the Tenants First Implementation Plan is presented here, supported by a financial review of Toronto Community Housing Corporation conducted by City divisions and an analysis by PricewaterhouseCoopers Inc. (PwC), of Toronto Community Housing Corporation's operating, development and capital expenditure cash flow forecast for the next ten years.  Based on this financial assessment and on consultations and engagement with the Tenants First Advisory Panel and stakeholders, this report recommends two major strategic directions to improve the quality of housing as well as the quality of life for social housing tenants living in Toronto Community Housing Corporation:

-  the creation of a new Seniors Housing and Services entity that is more directly accountable to City Council, that strategically aligns City programs and services for seniors, including coordinating the provision of services by community and provincial agencies, and is responsible for management of the 83 seniors-designated buildings currently within the Toronto Community Housing Corporation portfolio; and

-  the redefinition and revitalization of Toronto Community Housing Corporation (the New Toronto Community Housing Corporation) as a landlord with a smaller housing portfolio and a more focused mandate. The New Toronto Community Housing Corporation will provide housing to families, youth and vulnerable tenants, including singles and seniors in mixed buildings. With appropriate funding, the New Toronto Community Housing Corporation will be able to focus on its core responsibilities as a social housing landlord: operating and maintaining better buildings, planning for the future and connecting tenants to social and economic opportunities so they can thrive.

The report also calls for development of an interim 2018-2019 funding model, to be submitted through the 2018 budget process; and development of a permanent, sustainable funding model for the New Toronto Community Housing Corporation and the new Seniors Housing and Services entity.

Finally, the report also summarizes a review of innovations in social housing and recommends reforms to the provincial Housing Services Act, as requested by Council as part of the 2016 Tenants First report.

Phase 2 of the Tenants First Implementation Plan will be submitted to City Council by the end of 2017.

The recommendations in this report offer an opportunity for Council to set Toronto Community Housing Corporation on the path to providing quality housing to thousands of Torontonians across the Toronto Community Housing Corporation portfolio. Providing Toronto Community Housing Corporation with the tools and resources to be a successful and innovative social housing landlord will be a multi-year process and will require continued commitment of City Council and the attention of other levels of government. Torontonians who are Toronto Community Housing Corporation tenants deserve no less.