Item - 2019.PH11.8

The Planning and Housing Committee recommends that:

1.  City Council authorize the Executive Director, Housing Secretariat, to exempt the developments described in Chart A in the Financial Impact section of the report (November 26, 2019) from the Executive Director, Housing Secretariat, from the payment of development charges, building, planning and parkland dedication fees.

2.  City Council authorize an exemption from taxation for municipal and school purposes for the developments and for the periods of time described in Chart B in the Financial Impact section of the report(November 26, 2019) from the Executive Director, Housing Secretariat.

3.  City Council authorize City staff to cancel or refund any taxes paid after the effective date of the municipal housing facility agreement (the City's Contribution Agreement).

5.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Executive Director, Housing Secretariat, to make the necessary budget adjustments to the Approved 2019 City Operating Budget, and recommended 2020 City Operating Budget for Shelter, Support and Housing Administration, to utilize and spend $17,922,056.00 (net $0) affordable housing funding from the capital allocation from the Ontario Priorities Housing Initiative Program, with future year requests subject to Council approval through the annual budget process.

6.  City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a pre-development agreement with Dixon Hall Neighbourhood Services for an amount not to exceed  $50,000.00 for the purpose of conducting pre-development activities from the City's Development Charges Reserve Fund for Subsidized Housing (XR2116), on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer & Treasurer and General Manager, Shelter, Support and Housing Administration, in a form approved by the City Solicitor.

7.  City Council approve an increase to the 2020 Recommended Operating Budget for Shelter, Support and Housing Administration, in coordination with the Executive Director, Housing Secretariat, cost centre FH5417, of $50,000 gross, $0 net for affordable housing at 502-508 Parliament Street, funded  from the Development Charges Reserve Fund for Subsidized Housing (XR2116).

8.  City Council authorize severally each of the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any security or financing documents or any other agreements or documents required to secure the financial assistance proposed or facilitate the funding process, for the developments described in Charts A, C and D in the Financial Impact section of the report of the report (November 26, 2019) from the Executive Director, Housing Secretariat, or related corporations for construction, renovations, and to secure conventional financing, where required, including any postponement, ,confirmation of status, discharge or consent documents where and when required during the term of the agreements with the City, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by Council.

This report provides a summary of the results of a recent Request for Proposals (RFP) process for allocation of federal/provincial funding under the Ontario Priorities Housing Initiative (OPHI). The report recommends City Council approval of incentives through the Open Door Affordable Housing Program to support the delivery and operation of the new affordable rental homes.

Through the City's 2019 OPHI funding allocation, a total of $17.9 million in capital funding will be allocated to non-profit organizations to support the development, acquisition, or renovation of 292 non-profit apartment units and rooming house dwelling rooms in 20 buildings.

The OPHI RFP process was conducted by the City's Housing Secretariat between September and October 2019. The RFP offered funding to the non-profit housing sector to support affordable rental housing development and rooming house renovations. The acquisition of existing rooming houses was also eligible under the rental housing development component. The rooming house renovation component is being delivered under the Toronto Renovates Program.

A total of 14 submissions were received and evaluated by staff from the Housing Secretariat and Shelter, Support and Housing Administration (SSHA) Divisions with support from Legal Services and City Planning. Under delegated approval authorities provided by City Council in July 2019, five proponents and projects representing 110 homes have been approved by staff under the rental housing development/acquisition component, and four proponents with 15 rooming house projects including 182 rooms will be funded under the Toronto Renovates component.

In addition to these nine approved non-profit submissions, this report recommends pre-development funding for Dixon Hall Neighbourhood Services who was unsuccessful through the RFP process. The pre-development funding will assist Dixon Hall in advancing work so that it can pursue funding through other programs, including future City proposal calls, to repair and modernize 42 rooming house dwelling units located at 502-508 Parliament Street. These properties are currently owned by Toronto Community Housing Corporation (TCHC) and are intended to be transferred to Dixon Hall in the future as part of the City's Tenants First initiative.