Item - 2021.PH24.6

The Planning and Housing Committee recommends that:  

1.  City Council authorize up to 172 affordable rental units to be constructed on the lands known as 300-304 The East Mall to be eligible for waivers of planning application, building permit, and development charge exemptions.

2.  City Council authorize an exemption from taxation for municipal and school purposes for 40 years for the 172 affordable rental units to be constructed on the lands known as 300-304 The East Mall.

3.  City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, a municipal housing project facility agreement (the "Contribution Agreement") with KingSett Affordable Housing LP ("KingSett Capital") for the development of the affordable housing to be constructed on the lands known as 300-304 The East Mall, 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.

4.  City Council authorize City staff to cancel or refund any taxes paid after the effective date the Contribution Agreement.

5.  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 KingSett Capital to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents of any City security 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.

This report recommends that City Council approve Open Door Program incentives for up to 172 affordable rental homes, including 30 supportive housing units, to be created at 300-304 The East Mall, also known as Valhalla Village. The project is proposed to be developed by KingSett Capital's KingSett Affordable Housing LP which was established for the purpose of delivering affordable housing in major Canadian urban centres.

The new affordable rental homes to be developed at 300-304 The East Mall will remain affordable for a minimum of 40 years and will be part of a larger mixed-income, mixed-use development. The project is striving to be an energy efficient, zero carbon community and aims to include a significant number of fully accessible, supportive housing units, though building design is still being refined. KingSett Affordable Housing LP ("KingSett Capital") has proposed to partner with the Safehaven Project for Community Living to design and provide the supportive homes onsite for children with developmental disabilities and other complex needs. KingSett Capital is also exploring partnerships with other non-profit organizations for the remaining affordable rental homes. In addition to the 172 affordable rental homes, 219 market rental homes are proposed to be developed during the first phase of the development.  

The Open Door Program incentives recommended for Council approval will assist KingSett Capital in providing affordable housing options to low-and-moderate-income households, including persons with disabilities and those from equity-deserving groups. Approval of this project will also contribute towards the delivery of the City's HousingTO 2020-2030 Action Plan which aims to approve 40,000 new affordable homes, including 18,000 supportive housing units by 2030.