Item - 2020.PH15.11

The Planning and Housing Committee recommends that:  

1. City Council declare the properties municipally known as 11 Macey Avenue and a portion of 150 Harrison Street (as outlined in Attachment 2) (the "Sites") surplus, with the intended manner of disposal to be by way of a long-term lease to successful non-profit housing providers, and direct staff to take all steps necessary to comply with the City's real estate disposal process set out in Municipal Code Chapter 213, Real Property, Sale of.

2. City Council authorize the City of Toronto to accept an offer to lease (the "Offer to Lease") from, and enter into a lease (the "Lease") with, the non-profit modular housing operator selected through the request for proposals process for 11 Macey Avenue (the "11 Macey Successful Proponent") and 150 Harrison Street (the "150 Harrison Successful Proponent"), substantially on the major terms and conditions set out in Attachment 3 to the report (June 26, 2020) from the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Deputy City Manager, Corporate Services, or designate, and in a form satisfactory to the City Solicitor.

3. City Council authorize severally the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to accept the Offer to Lease from the 11 Macey Successful Proponent and from the 150 Harrison Successful Proponent on behalf of the City and to execute the Lease for 150 Harrison Street and the Lease for 11 Macey Avenue, and any ancillary agreements or documents, as required, on behalf of the City.

4. City Council authorize the Executive Director, Corporate Real Estate Management, or his/her designate, in consultation with the Executive Director, Housing Secretariat to administer and manage the Leases including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

5. City Council consider the Leases to be in the interests of the City.

In response to the ongoing COVID-19 pandemic and the urgent need to provide safe and secure accommodation for the City's homeless population, on April 30, 2020, Council approved the purchase and installation of 250 modular homes. The modular homes will be delivered in two phases with an initial 100 homes ("Phase One") ready for occupancy in the Fall and the remaining 150 homes ("Phase Two") ready for occupancy by April 2021. These modular homes will be used to provide permanent affordable housing with supports for individuals who are currently experiencing homelessness.

On April 30, 2020, City Council also authorized the Executive Director, Housing Secretariat to issue a Request for Proposals ("RFP") to select non-profit housing providers to operate the supportive housing to be developed in Phase One. The RFP has been issued and will close at the end of July 2020.

This report recommends Council approval for staff to enter into lease agreements with the selected non-profits that will be identified through the RFP process. Approval of the recommendations in this report will allow staff to meet the expedited timelines to have the Phase One modular homes fully staffed and ready for occupancy in the Fall.

By implementing modular supportive housing, the City is creating permanent housing solutions to help some of our most vulnerable and marginalized residents live in dignified housing with appropriate supports. During the ongoing COVID-19 pandemic, this life-saving initiative will provide individuals with safe spaces to exercise physical distancing and self-isolation. In the longer term, this approach will result in substantial cost savings to the public sector while improving the health and housing incomes of individuals who are currently within the shelter system. Advancing this initiative will also help build resilience within the City's housing and homeless systems.

The modular supportive homes created through this fiscally and socially responsible approach to housing and homelessness will also contribute to the targets set under the City's HousingTO 2020-2030 Action Plan. These targets include the approval of 40,000 new affordable rental units with 18,000 supportive homes (including 1,000 modular homes), and increasing housing stability for Toronto residents over the next ten years.