Item - 2020.CC21.3

Tracking Status

CC21.3 - Creating New Affordable Housing Opportunities through Phase Two of the Housing Now Initiative

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on May 28, 2020, adopted the following:

 

Land Considerations

 

1. City Council direct the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to review, on an expedited basis, the six sites identified in Appendix 1 (the "Phase Two Sites") to the report (May 25, 2020) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services, including any prior terms of transfer that have been approved by City Council, and City Council authorize the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to determine, in consultation with the City Manager, whether such terms should be amended in order to achieve the objectives of the Housing Now Initiative.

 

2. City Council authorize the Deputy City Manager, Corporate Services, where it is determined such action is appropriate to achieve the objectives of the Housing Now Initiative, to declare all or portions of each of the Phase Two Sites surplus, and to amend any prior declaration(s) of surplus, subject to the retention of those areas and interests as have been determined critical to the operational requirements of a division or agency.

 

3. City Council amend the existing delegated approvals and signing authorities in Item 2017.EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, adopted by City Council on October 2, 3 and 4, 2017, to authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to approve any lease, transfer and other property transactions involving these Phase Two Sites for the purpose of achieving the City's affordable housing objectives notwithstanding that the related compensation may exceed $5 Million Dollars, and City Council authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to treat the estimated value of the rental savings that will be realized by tenants of the affordable housing units as compensation received by the City when assessing whether a proposed transaction reflects market value, provided that the Executive Director, Housing Secretariat and the Board of CreateTO or the Board of Directors of the relevant CreateTO corporate entity concur with the proposed transaction terms.

 

4. City Council waive the restrictions of Section 2.4(a) of the shareholder direction of Build Toronto Inc., controlled by the Board of CreateTO, solely for transactions relating to the Phase Two Sites on terms and conditions satisfactory to the City Manager and in a form approved by the City Solicitor, and allow for donations or similar contributions to any charity or charitable organization, or to a non-profit organization for the purpose of facilitating the provision of affordable housing units at the Phase Two Sites where determined appropriate by the CreateTO Board of Directors, in consultation with the Deputy City Manager, Corporate Services and the Executive Director, Housing Secretariat.

 

5. City Council authorize the Deputy City Manager, Corporate Services to approve the transfer of title to any of the Phase Two Sites, or a portion thereof to corporate entities controlled by the Board of CreateTO at nominal consideration where permitted by law, and where the Deputy City Manager, Corporate Services, the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO have agreed upon the terms of transfer that will be reflected in a Transfer Agreement between the City and the corporate entity controlled by the CreateTO Board.

 

6. City Council request the Executive Director, Housing Secretariat to consider as part of the Housing Now Initiative, the dedication of sites for Indigenous housing projects, and the ownership of land to reflect the City’s commitment to reconciliation and the commitment to support building capacity amongst Indigenous organizations and to examine existing leases where Land or building ownership might be able to be transferred to Indigenous organizations.

 

Planning Process

 

7. City Council request the Chief Planner and Executive Director, City Planning to:

 

a. provide key planning principles and guidelines for each of the Phase Two Sites to be included as part of the public market offering process;

 

b. expeditiously advance Official Plan Amendments, Zoning By-law Amendments and plans of subdivision required to prepare the properties for marketing and ensure a range of housing opportunities within each of the Phase Two Sites; and

 

c. support the Housing Now Initiative by implementing an expedited review process and setting timelines for the completion of review of the related development applications submitted by the selected developers of each site.

 

Affordable Housing Program

 

8. City Council approve an overall development target across the Phase Two Sites including a minimum of one-third affordable rental units (with average rents not to exceed 80 percent of annual Canada Mortgage and Housing Corporation average market rent), a minimum of one-third market rental housing, and a maximum of one-third ownership homes.

 

9. City Council request the Executive Director, Housing Secretariat to explore opportunities and partnerships with other orders of governments and non-profit organizations to achieve a target of 50 percent affordable housing on each of the Housing Now sites.

 

10. City Council direct the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services, in consultation with the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, to report to the June 15, 2020, meeting of the Planning and Housing Committee on measures to limit annual rent increases on market rental units in all Housing Now Initiative sites, and, as part of the annual Housing Now Initiative Update report, on any proposed changes to the current accessibility standards under the program.

 

11. City Council exempt the up to 620 affordable rental homes anticipated to be developed throughout the Phase Two Sites, from taxation for municipal and school purposes for the term of the municipal housing facility agreement, with the property tax exemption having an estimated net present value of approximately $18,093,019 over 99 years.

 

12. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related, parking amenity space on the Phase Two Sites from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees.

 

13. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, municipal housing facility agreements (the City's Contribution Agreement) with the developers chosen for each of the Phase Two Sites, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

 

14. 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 developers of the Phase Two Sites to secure construction and conventional financing and 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.

 

15. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Deputy City Manager, Community and Social Services, to provide any consent necessary to transfer or encumber the Phase Two Sites or the affordable rental housing portion thereof, and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of any of the Phase Two Sites or the affordable rental housing portion thereof, and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor.

 

16. City Council authorize City staff to cancel or refund any taxes paid after the effective date of the Municipal Housing Facility Agreement.

 

Funding and Budget Considerations

 

17. City Council direct the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services, in consultation with the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, to report to the June 15, 2020, meeting of the Planning and Housing Committee, as part of the annual Housing Now Initiative Update report, on any funding required to activate the Phase Two Sites.

 

18. City Council direct the Chief Financial Officer and Treasurer to transfer any proceeds from the sale or lease of any of the  Phase One properties identified in Appendix 3 to the report (January 11, 2019) from the City Manager, Item 2019.EX1.1, and the additional Phase Two Sites to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to be administered by the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, the Deputy City Manager, Community and Social Services, and the Deputy City Manager, Corporate Services, and be used to offset costs directly related to implementing the Housing Now Initiative including: preparing the properties for marketing including undertaking necessary environmental studies and remediation; market analyses; planning and other consultant studies; legal costs; overhead and administration costs; relocation costs; costs of on-site City programming requirements; costs of required on- or off-site infrastructure upgrades or improvements; funding shortfalls, etc.

 

19. City Council direct the Deputy City Manager, Community and Social Services to compensate CreateTO for provision by CreateTO of the services referred to in Part 18 above, with payment to be made on a cost-recovery basis from the Capital Revolving Reserve Fund for Affordable Housing, utilizing the proceeds from the sale or lease of any of the  Phase One properties.

 

Market Offering Process

 

20. City Council direct the utilization of the Phase Two Sites identified in Appendix 1 to the report (May 25, 2020) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services for the Housing Now Initiative through a market offering process with a priority of retaining public ownership through long-term land leases.

 

21. City Council direct the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief Financial Officer and Treasurer to approve the business case and marketing offering process for each property provided that the Executive Director, Housing Secretariat and the CreateTO Board of Directors or the Board of Directors of the relevant CreateTO corporate entity, concur with the proposed business case and market offering process.

 

22. City Council direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat to administer the market offering process for the Phase Two Sites and utilize its existing pre-qualified Broker roster to expedite marketing, where required, and to negotiate the leases, purchase agreements and other contracts with the successful development partners, other than the municipal housing facility agreements in Part 13 above, and subject to the approvals required in Part 21 above.

 

23. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to administer the market offering process for sites designated exclusively for non-profit participation, and to negotiate the leases, purchase agreements and other contracts with the successful non-profit development partners.

 

24. City Council request the Executive Director, Housing Secretariat to work with the Chief Executive Officer, CreateTO, the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer in overseeing the market offering process related to the Phase Two Sites including the selection of preferred proponents, and the co-ordination of government funding and financing incentives to ensure that the affordable housing projects are financially viable.

 

25. Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO to encourage the involvement and participation of non-profit and co-operative housing organizations in the market offering process for the Phase Two Sites, and to provide greater consideration to submissions that exceed the affordable rental and market rental housing delivery targets and increase supportive housing opportunities.

 

26. Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Social Development, Finance and Administration, to incorporate, in the market offering process measurable community benefits opportunities, such as social procurement and apprenticeship, training, and/or other hiring opportunities for people from equity-seeking communities.

 

27. City Council request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to ensure the Housing Now components of 1627 and 1675 Danforth Avenue have regard for, support and help advance the market offering for the overall site masterplan.

 

Other Considerations

 

28.  City Council authorize the Deputy City Manager, Community and Social Services to request the Federal Government, through the Canada Mortgage and Housing Corporation, to:

 

a. approve a portfolio approach to the funding and financing of the Phase Two Sites identified in Appendix 1 to the  report (May 25, 2020) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services; and

 

b. consider the City's previous requests for the Federal Government to dedicate surplus lands in Toronto to be utilized for increasing the supply of affordable and purpose-built rental housing.

 

29.  City Council authorize the Deputy City Manager, Community and Social Services to request the Ontario Government to support the creation of supportive housing opportunities as part of the Housing Now Initiative by providing assistance to individuals with housing and support needs through the provision of operating, and to identify surplus lands within Toronto be utilized to create new mixed-income communities, with new affordable rental homes, including supportive housing opportunities.

Background Information (City Council)

(May 25, 2020) Revised Report from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services on Creating New Affordable Housing Opportunities through Phase Two of the Housing Now Initiative (CC21.3)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147495.pdf
Appendix 1 - Housing Now Phase Two Sites (Phase Two Sites)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147529.pdf
Appendix 2- Rent and Income Mix
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147530.pdf
(May 26, 2020) Transmittal from the Aboriginal Affairs Advisory Committee on COVID-19 Recovery and Rebuild (CC21.3a)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-147565.pdf

Communications (City Council)

(May 27, 2020) Letter from Councillor Brad Bradford, Ward 19, Beaches-East York (CC.New.CC21.3.1)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-102881.pdf
(May 28, 2020) Letter from Emma Dack (CC.New.CC21.3.2)
(May 27, 2020) E-mail from Kira Heineck, Executive Lead, Toronto Alliance to End Homelessness (CC.New.CC21.3.3)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-102888.pdf
(May 28, 2020) Letter from Sonja Nerad, Executive Lead, Toronto Shelter Network (CC.New.CC21.3.4)
https://www.toronto.ca/legdocs/mmis/2020/cc/comm/communicationfile-102799.pdf

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Brad Bradford (Carried)

That City Council request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to ensure the Housing Now components of 1627 and 1675 Danforth Avenue have regard for, support and help advance the market offering for the overall site masterplan.


2a - Motion to Amend Item (Additional) moved by Councillor Mike Layton (Carried)

That City Council request the Executive Director, Housing Secretariat to explore opportunities and partnerships with other orders of governments and non-profit organizations to achieve a target of 50 percent affordable housing on each of the Housing Now sites.

Vote (Amend Item (Additional)) May-28-2020

Result: Carried Majority Required - Item CC21.3 - Layton - motion 2a
Total members that voted Yes: 22 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Gord Perks, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Stephen Holyday, Denzil Minnan-Wong
Total members that were Absent: 2 Members that were absent are Anthony Perruzza, Jaye Robinson

2b - Motion to Amend Item (Additional) moved by Councillor Mike Layton (Carried)

City Council request the Executive Director, Housing Secretariat to consider as part of the Housing Now Initiative, the dedication of sites for Indigenous housing projects, and the ownership of land to reflect the City’s commitment to reconciliation and the commitment to support building capacity amongst Indigenous organizations and examine existing leases where Land or building ownership might be able to be transferred to Indigenous organizations.


Motion to Adopt Item as Amended (Carried)

Adoption of the Item, as amended, as it pertains to 158 Borough Drive.

Vote (Adopt Item as Amended) May-28-2020

Result: Carried Majority Required - CC21.3 - Adopt Item as amended, as it pertains to property at 158 Borough Drive
Total members that voted Yes: 23 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, 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, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Stephen Holyday, Michael Thompson
Total members that were Absent: 1 Members that were absent are Jaye Robinson

Motion to Adopt Item as Amended (Carried)

Adoption of the balance of the Item, as amended.

Vote (Adopt Item as Amended) May-28-2020

Result: Carried Majority Required - CC21.3 - Adopt balance of Item, as amended
Total members that voted Yes: 24 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, 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: 1 Members that were absent are Jaye Robinson
Source: Toronto City Clerk at www.toronto.ca/council