Item - 2020.CC20.6

Tracking Status

CC20.6 - Implementing the Toronto Modular Housing Initiative as an Urgent Response to the COVID-19 Pandemic

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on April 30, 2020, adopted the following:

 

Implementation Considerations

 

1.  City Council authorize the Deputy City Manager, Corporate Services, in consultation with Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat to negotiate and enter into a non-competitive agreement with Horizon North Inc. (or its affiliate NRB) for the design, delivery and installation of up to 110 modular rental units ("Phase One") to be used as permanent supportive housing on sites to be identified and based on terms and conditions satisfactory to the Deputy City Manager, Corporate Services, and in a form satisfactory to the City Solicitor.

 
2.  City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO and the Executive Director, Corporate Real Estate Management to conduct a Request for Proposals process and to select a manufacturer to design, build, and install modular homes for subsequent phases of the modular housing initiative.

 
3.  City Council authorize the Executive Director, Housing Secretariat to issue an Request for Proposals and to select non-profit housing providers to operate the supportive housing units to be developed under Phase One of the modular supportive housing initiative.

 
4.  City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, a municipal housing facility agreement (the City's "Contribution Agreement"), with the non-profit housing providers selected through the competitive process referred to in Part 3 above, or a related corporation, to secure the financial assistance being provided and to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

 
5.  City Council authorize the General Manager, Shelter, Support and Housing Administration to negotiate and enter into any agreements with the non-profits housing providers selected to operate the modular housing projects, for any operating funding that may be available, including, but not limited to rent supplement or grant funding agreements, on terms and conditions agreed to by the General Manager, Shelter, Support and Housing Administration and in a form approved by the City Solicitor.

 
6.  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 required by the non-profit housing providers selected for each of the modular supportive housing sites to secure the financing necessary to acquire the leasehold interest in the land and modular units, as well as any subsequent refinancing, 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 City Council.

 
7.  City Council authorize the Chief Executive Officer, CreateTO to act as the City's agent and to submit all required applications required to obtain required planning approvals.

 
8.  City Council request the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Housing Secretariat, the Executive Director, Corporate Real Estate Management and the Chief Building Official and Executive Director, Toronto Building, to:

 
a.  prioritize Phase One and future modular housing sites, identifying ways to expedite the necessary building and planning approvals; and

 
b.  develop design guidelines for subsequent phases of the modular housing initiative in consultation with the General Manager, Shelter, Support and Housing Administration and non-profit operators.

 

Funding and Financing Considerations

 
9.  City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into any agreement with Canada Mortgage and Housing Corporation for any funding and financing available to support the modular housing initiative, substantially on the terms outlined in Confidential Attachment 1 to the report (April 29, 2020) from the City Manager, and on such other or amended terms and conditions as may be acceptable to the Chief Financial Officer and Treasurer and in a form approved by the City Solicitor.

 
10.  City Council authorize the Deputy City Manager, Community and Social Services to urgently request the Ontario Government to make available operating funding to support the City's modular supportive housing initiative and authorize the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to negotiate and enter into any agreements necessary to secure such funding.

 
11.  City Council amend the 2020 - 2029 Capital Budget and Plan for Shelter Support and Housing Administration by adding a new capital project called "Modular Homes Project" with a total project cost of $47.5 million and cash flows of $20.9 million in 2020 and $26.6 million in 2021, with budgeted funding of $28.75 million provided from the Development Charges Reserve Fund for Affordable Housing (XR2116), and the balance in grant and re-payable loans from Canada Mortgage and Housing Corporation and recoverable debt from non-profit housing providers by way of lease payments to the City, subject to finalizing negotiations with Canada Mortgage and Housing Corporation.

 
12.  City Council approve the establishment of an obligatory reserve fund account called the "Modular Housing Reserve Fund" in Schedule 15 - Third Party Agreements Obligatory Reserve Funds, of the City of Toronto Municipal Code Chapter 227, the purpose of which is to receive funds from Canada Mortgage and Housing Corporation for the design/purchase/installation of modular housing as well as lease payments from non-profit operators to repay the Canada Mortgage and Housing Corporation loan, as set out in Appendix A to the report (April 29, 2020) from the City Manager.
 

13.  City Council authorize the City Solicitor to complete the transactions provided for in City Council's decision on behalf of the City, including making payment of any necessary expenses related to finalizing the funding and financing agreements with Canada Mortgage and Housing Corporation, and amending or waiving the terms and conditions, as the City Solicitor may from time to time consider reasonable.
 

14.  City Council authorize the Executive Director, Housing Secretariat to compensate CreateTO on a direct cost-recovery basis for provision of the following goods and services to be performed by CreateTO and its contractors, with prior approval from the Executive Director, Housing Secretariat for such expenses:

 

a.  preparing the identified sites for construction, including undertaking necessary environmental studies and remediation, community consultations, planning and other consultant studies to support expedited delivery of the identified sites for modular supportive housing; and

 
b.  entering into and administering the contract or any other agreements required to be entered into with the manufacturer of modular units, for the manufacture and installation of the modular units.

 
15.  City Council exempt the 250 modular affordable rental homes to be developed in Phases One and Two of the modular housing initiative from development charges, planning and permit fees, and parkland dedication all units as outlined in Table 1 in the report (April 29, 2020) from the City Manager.

 
16.  City Council exempt the 250 modular affordable rental homes to be developed on the identified sites in Phases One and Two, from taxation for municipal and school purposes for the term of the municipal housing facility agreement as outlined in Table 2 in the report (April 29, 2020) from the City Manager.

 
17.  City Council authorize City staff to cancel or refund any taxes paid after the effective date of the municipal housing facility agreement.

 
18.  City Council direct that Confidential Attachment 1 to the report (April 29, 2020) from the City Manager remain confidential in its entirety until such time as the Canada Mortgage and Housing Corporation advises the Executive Director, Housing Secretariat that the same may be disclosed to the public.

 

Confidential Attachment 1 to the report (April 29, 2020) from the City Manager remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to information explicitly supplied in confidence to the City of Toronto by the Canada Mortgage and Housing Corporation.  Confidential Attachment 1 to the report (April 29, 2020) from the City Manager will be made public at such time as the Canada Mortgage and Housing Corporation advises the Executive Director, Housing Secretariat that the same may be disclosed to the public.

Confidential Attachment - Information explicitly supplied in confidence to the City of Toronto by the Canada Mortgage and Housing Corporation

Background Information (City Council)

(April 29, 2020) Report from the City Manager on Implementing the Toronto Modular Housing Initiative as an Urgent Response to the COVID-19 Pandemic and Appendix A (CC20.6)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147170.pdf
(April 29, 2020) Confidential Attachment 1
Attachment 2 - Site Selection Criteria
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147172.pdf
Attachment 3 - Input from Supportive Housing Charrette
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147173.pdf
Attachment 4 - Anticipated Modular Project Timeline
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147154.pdf
Attachment 5 - Best Practices from other Jurisdictions
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147174.pdf
Attachment 6 - Letter of Support from Canada Mortgage and Housing Corporation (CMHC)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147175.pdf
(April 27, 2020) Report from the City Manager on Implementing the Toronto Modular Housing Initiative as an Urgent Response to the COVID-19 Pandemic - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147168.pdf

Communications (City Council)

(April 29, 2020) Letter from Kira Heineck, Executive Lead, Toronto Alliance to End Homelessness (CC.New.CC20.6.1)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-101789.pdf
(April 29, 2020) E-mail from Steve Lurie, Executive Director, Canadian Mental Health Association Toronto (CC.New.CC20.6.2)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-101792.pdf
(April 29, 2020) Letter from Victor Willis, Executive Director, Parkdale Activity-Recreation Centre (CC.New.CC20.6.3)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-101794.pdf
(April 30, 2020) E-mail from Jennifer Sully-Ferraro, Senior Director, Programs and Client Care, Evangel Hall Mission (CC.New.CC20.6.4)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-101774.pdf

Motions (City Council)

1 - Motion to Refer Item moved by Councillor Stephen Holyday (Lost)

That City Council refer the Item to the City Manager until such time that community consultation at the locations has been completed.

Vote (Refer Item) Apr-30-2020

Result: Lost Majority Required - CC20.6 - Holyday - motion 1
Total members that voted Yes: 2 Members that voted Yes are Gary Crawford, Stephen Holyday
Total members that voted No: 22 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that were Absent: 2 Members that were absent are Shelley Carroll, Jaye Robinson

Motion to Adopt Item (Carried)

Vote (Adopt Item) Apr-30-2020

Result: Carried Majority Required - CC20.6 - Adopt the item
Total members that voted Yes: 23 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Stephen Holyday
Total members that were Absent: 2 Members that were absent are Shelley Carroll, Jaye Robinson
Source: Toronto City Clerk at www.toronto.ca/council