Item - 2019.PH5.4

The Planning and Housing Committee recommends that:  

1.  City Council exempt the four new affordable rental homes to be developed at 203 College Street (being units 503, 601, 603 and 701) from taxation for municipal and school purposes for the term of 30 years.

 
2.  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 Cawthra Mansions Co-operative Inc., 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 in a form satisfactory to the City Solicitor.

 
3.  City Council authorize severally each of the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any City security documents including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, 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.

 
4.  City Council authorize City staff to cancel or refund any taxes paid from the by-law exempting the property from taxation.

As a result of a Section 37 Agreement between the City and Parallax (203 College) Development Inc., four barrier-free one-bedroom units within the new condominium development at 203 College Street will be conveyed at nominal cost to the neighbouring Cawthra Mansions Cooperative Inc. ("Cawthra Co-operative"). The units will be used by Cawthra Co-operative to provide affordable rental homes at or below 80% of average market rents.

Consistent with City policy, this report recommends that City Council exempt the four new affordable rental homes at 203 College Street, Ward 11-University-Rosedale from property taxes for 30 years beginning at occupancy which is expected to be in the summer of 2020.

The property tax exemption represents a net present value of $61,809 over the 30-year term and will assist Cawthra Co-operative in providing rents at deeper levels of affordability to lower-income households.