Item - 2019.PH11.7

The Planning and Housing Committee recommends that:  

1. City Council adopt the Community Housing Partnership Renewal Program Goal, Guiding Principles and Implementation, as set out in Attachment A to the report (November 26, 2019) from General Manager, Shelter, Support and Housing Administration. 

2. City Council authorize the General Manager, Shelter, Support and Housing Administration, or designate, to develop an implementation plan for the Community Housing Partnership Renewal program in line with the overall direction and guiding principles outlined in Attachment A to the report (November 26, 2019) from General Manager, Shelter, Support and Housing Administration. 

3. City Council adopt the updated Municipal Housing Facility By-law attached as Attachment C to the report (November 26, 2019) from General Manager, Shelter, Support and Housing Administration and repeal Municipal Housing Facility By-law 124-2016.

Canada Mortgage and Housing Corporation (CMHC) developed a number of housing programs for the federal government between 1946 and 1986. Over the past 35 years, non-profit housing providers have served as valuable partners to the City through their commitment to operating these affordable rental housing programs across Toronto.

Under federal housing programs, non-profit housing providers entered into operating agreements with CMHC, outlining how the subsidy would be calculated and the housing provider’s obligations. The City assumed responsibility for the administration of these operating agreements in 2002 following the transfer of federal social housing programs from CMHC to the Province and download to municipal governments. Operating agreements have expired for over half of the non-profit housing developments built, with the remainder set to expire by 2032. In the absence of new agreements, this will result in over 8,500 rental units no longer secured by terms that protect their rental affordability.

Recognizing the many challenges in maintaining and creating affordable rental housing in Toronto, this report seeks Council approval of the overall direction of the Community Housing Partnership Renewal (CHPR) program. This program provides an opportunity for housing providers to enter into new agreements with the City that will maintain or improve levels of affordability; secure and potentially expand access to the supply of affordable rental housing; and strengthen the capacity of non-profit housing providers in the community.

To achieve these objectives, it is recommended that the City offer eligible housing providers a property tax exemption for the affordable units that they secure. This will require updating the Municipal Housing Facility By-law 124-2016, which grants City Council the authority to provide property tax exemptions to rental housing that meets the definition of "Affordable Housing", as set out in the by-law. This report recommends adopting a new updated by-law that adds to the definition of "Affordable Housing" to allow for the inclusion of rental units that were developed under federal social housing programs and which are no longer subject to an operating agreement.

The majority of federal housing providers are concerned about their future as their buildings are aging and they may lack the resources in the future to undertake capital repairs and/or maintain their housing as affordable. A property tax exemption will encourage participation in CHPR by relieving existing and emerging operating and capital costs.

Another key component of the program will be a requirement for housing providers to provide a portion of their affordable units to tenants in receipt of a housing benefit. This will deepen affordability for low-income households and promote mixed-income housing. CHPR will also include a range of supports to assist housing providers in achieving their long-term objectives, while aligning with and supporting the City's housing priorities.

Preserving existing affordable rental units is a viable and cost-effective approach to maintaining the supply of affordable rental housing in Toronto, while the City also works to increase the supply of new affordable rental housing. New agreements will allow the City to maintain access to rental housing stock, presenting opportunities to maintain or deepen levels of affordability; promote the preservation and/or expansion of good quality mixed-income housing; and ensure that the multi-million dollar investment made through decades of public sector funding continues to provide affordable housing.