Item - 2018.EX30.22

The Executive Committee recommends that:

1.  City Council authorize the Director, Affordable Housing Office to provide funding in the form of a capital grant by way of a forgivable loan in the amount of $8,800,000 from the Social Housing Stabilization Reserve (XQ1106), $1,738,000 from the Section 37 Reserve Fund (XR3026) and $3,700,000 from the Development Charges Reserve Fund (XR2116) to Toronto Community Housing Corporation or a related corporation, to fund the construction activities at 389 Church Street.

2.  City Council authorize that the development at 389 Church Street be exempt from the payment of development charges and be exempt from the payment of planning and parkland dedication fees and building permits under existing City policy.

3.  City Council exempt the new affordable housing units to be developed at 389 Church Street from taxation for municipal and school purposes for the term of the municipal capital facility agreement.

4.  City Council authorize the Director, Affordable Housing Office to submit a request to the Ministry of Housing for funding though the Province of Ontario's Home For Good program, in the amount of $17,850,000 to be used by Toronto Community Housing Corporation to pay the construction loan for the development of the affordable housing units at 389 Church Street.

5.  City Council authorize the Director, Affordable Housing Office to negotiate, enter into, and execute on behalf of the City, a municipal housing facility agreement  (the City's Contribution Agreement), with Toronto Community Housing Corporation, to secure the financial assistance, being provided and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration in a form approved by the City Solicitor.

6.  City Council authorize the Director, Affordable Housing Office to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by Toronto Community Housing Corporation, a related corporation or the assignee of the municipal capital facility agreement or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal housing facility agreement.

7.  City Council authorize the City Solicitor to execute, on behalf of the City, any postponement, confirmation of status, discharge or consent documents relating to the security given to secure the Contribution Agreement entered into with Toronto Community Housing Corporation, a related corporation, or the assignee of the municipal capital facility agreement, for the construction and operation of affordable rental housing at 389 Church Street, Toronto, as required by normal business practices.

8.  City Council delegate authority to the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to approve the Affordability Payment Schedule and any updates required under the Home for Good program.

9.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to allocate an amount, not to exceed $350,000, of the capital funding, for which authority is being sought in Recommendation 1, to the Fred Victor Centre for relocation costs to be incurred by it as a result of the modernization of 389 Church Street.

10.  City Council authorize the Director, Affordable Housing Office, in consultation with Toronto Community Housing Corporation and Shelter, Support and Housing Administration, to issue a competitive proposal call to non-profit housing with supports providers and to select the most qualified proponent to own and operate 389 Church Street, under transfer from Toronto Community Housing Corporation and in accordance with the Home for Good operating funding program guidelines.

11.  City Council authorize the Director, Affordable Housing Office to negotiate and enter into, on behalf of the City, an assignment of the municipal capital facility agreement, to be entered into by Toronto Community Housing Corporation to the non-profit selected through the competitive proposal to be issued by the City.

12.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to make the necessary budget adjustments to the Approved 2018 City Operating Budget for Shelter, Support and Housing Administration, to utilize and spend (net $0) affordable housing funding from the capital and operating allocation from the Home For Good Program, with future year requests subject to Council approval through the annual budget process.

13.  City Council authorize the General Manager, Shelter, Support and Housing Administration to provide as required such Service Manager consents pursuant to the Housing Services Act (HSA), 2011 as may be necessary to carry out the foregoing recommendations.

This report seeks funding authority for the modernization of an under used building at 389 Church Street ("the Property"), owned by Toronto Community Housing Corporation (TCHC) and recommends approval of a combination of City funding, together with capital funding from the Province of Ontario's Home For Good  program.

On December 11, 2017, the TCHC Board approved in principal the modernization and financing requirements to facilitate the transformation of 389 Church Street into self-contained affordable housing and authorized the Chief Executive Officer to execute the necessary agreements to implement the modernization program and transfer the building to a non-profit housing provider.

Operating funding will also be provided annually, once the modernization is complete, from the Home For Good program for comprehensive staff supports and housing subsidies.

The report also seeks authority for the Affordable Housing Office, in consultation with TCHC and Shelter, Support and Housing Administration, to issue a request for proposals seeking a qualified non-profit housing provider who, upon completion of the modernization, will own 389 Church Street and operate the 120 affordable rental homes with supports for women. The operator will also assume the TCHC Home for Good loan and be the recipient of the provincial affordability payments.

Approval of the recommendations in this report support the objectives of providing affordable housing, reducing emergency shelter use and reducing the financial pressures impacting TCHC. It also fulfills the commitment to assist 69 former female residents to return to 389 Church Street under the terms of the tenant relocation plan.