Item - 2018.EX30.2

The Executive Committee recommends that:

1.  City Council direct the Board of Directors of Toronto Community Housing Corporation to instruct its Chief Executive Officer to work with the Deputy City Manager, Cluster A, to initiate a process, satisfactory to the Chief Executive Officer and the Deputy City Manager, Cluster A, to transfer ownership of the Toronto Community Housing Corporation Agency House and Rooming House portfolio to non-profit corporations, ensuring that:

a.  the portfolio is maintained for its current housing purposes;

b.  the portfolio continues to be operated by non-profit corporations;

c.  any transferred asset will revert to the City in the event of any future transfers to a transferee that is not a non-profit or any change in use;

d.  the transaction is structured to support the result of an aggregate net neutral financial impact to Toronto Community Housing Corporation following transfer of the ownership of the entire portfolio;

e.  Toronto Community Housing Corporation Agency Houses, listed in Appendix 1 to the report (January 12, 2018) from the Deputy City Manager, Cluster A, are to be offered to interested and qualified existing operators at a value determined by a formula that considers the outstanding mortgage on the entire Agency House portfolio and the assessed value of the individual house; and

f.  Toronto Community Housing Corporation Rooming Houses, listed in Appendix 1 to the report (January 12, 2018) from the Deputy City Manager, Cluster A, are to be transferred to qualified and interested operators at a value through a Request for Proposals process based on criteria contained in Appendix 2 to the report (January 12, 2018) from the Deputy City Manager, Cluster A.

2.  City Council acting as Shareholder consent to transfer all properties referenced in Recommendation 1 according to Section 7.3 (e) of the Shareholder Direction.

3.  City Council authorize the General Manager of Shelter Support and Housing Administration (SSHA), to provide, on behalf of the City acting as Service Manager under the Housing Services Act (HSA), consents pursuant to subsection 161 (2) and 162(2) of the Housing Services Act, as required, to transfers by Toronto Community Housing Corporation, and to mortgages by transferees, subject to such terms and conditions that the General Manager, Shelter Support and Housing Administration, considers reasonable and necessary to carry out the recommendations adopted by City Council, including, without limitation, compliance with the Housing Services Act and the Service Manager's local rules; rent; the operation of the housing project; funding; reporting and accountability; the mandate and target tenants for the housing project; and tenant supports.

4.  City Council direct the Board of Directors of Toronto Community Housing Corporation to instruct its Chief Executive Officer to work with the Deputy City Manager, Cluster A, to  jointly issue a Request for Proposals (RFPs) in 2018 to transfer the remaining scattered housing portfolio, listed in Appendix 1 to the report (January 12, 2018) from the Deputy City Manager, Cluster A, including those not addressed in Recommendation 1. Results and recommendations of the Request for Proposals are to be considered by Council along with a full risk and financial assessment of the transfer.

5.  City Council adopt an interim process to appoint tenant representatives to the Toronto Community Housing Corporation Board for the 2018-2020 Board term, consistent with the current Public Appointments Policy as follows:

a.  Toronto Community Housing Corporation (TCHC) to conduct outreach and promotion to TCHC tenants inviting applications for appointment to the Board of Directors;

b.  Toronto Community Housing Corporation and City staff will hold information sessions for tenants interested in appointment to the Board of Directors;

c.  the City Clerk's Office will take in applications and screen candidates for eligibility; and

d.  a selection panel composed of two City staff and one Toronto Community Housing Corporation tenant appointed by the Deputy City Manager, Cluster A, will shortlist, interview and recommend candidates to the Corporations Nominating Panel for appointment by City Council including addressing any vacancies as they arise.

6.  City Council direct the Deputy City Manager, Cluster A and the Executive Director, Human Resources to consult with the Toronto Community Housing Corporation and labour representatives regarding employment issues, including impacts on pensions, collective agreements, any consideration pursuant to the Employment Standards Act, and other relevant labour and employment statues, with the objective of eliminating labour relations impacts arising from the transfer of Toronto Community Housing Corporation units to the non-profit housing sector.

In July 2017, City Council approved Tenants First: Phase 1 Implementation Plan to restructure the operation, governance and funding of Toronto Community Housing Corporation (TCHC).

This report outlines the next set of recommendations to implement the Phase 1 Implementation Plan.  In the second quarter of 2018 a report on the steps required in the creation of a Seniors Housing and Services Entity will be presented for Council consideration.

Proposed actions are summarized below:

Action 1 - Transfer ownership and operation of Toronto Community Housing Corporation's Agency Houses and Rooming Houses to qualified non-profit housing operators with expertise in providing vulnerable tenants, including people with a history of homelessness, with the supports they need for successful tenancies.

Action 2 - Transfer the balance of Toronto Community Housing Corporation's scattered portfolio to non-profit housing providers, co-ops and community land trusts that are qualified to engage with tenants, improve the condition of the properties and retain the properties as affordable housing in perpetuity.

Action 3 - Ensure effective governance and facilitate ongoing tenant representation by implementing an interim process to appoint Tenant Directors to the Toronto Community Housing Corporation Board, ensuring a tenant voice in the governance of Toronto Community Housing Corporation.

The recommendations in this report and the steps proposed are designed to improve and transform the delivery of housing and services to the 110,000 residents who live in the City’s diverse housing portfolio. 

At the same time it is recognized and recommended that many of the changes require multi-year planning and implementation.

To be successful in implementing the proposed recommendations it is also essential that there be ongoing active participation from Toronto Community Housing Corporation tenants and staff, City residents, non-profit organizations, City Divisions, as well as other orders of government.