Item - 2021.PH26.6

The Planning and Housing Committee recommends that:  

1. City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a Memorandum of Understanding with the Miziwe Biik Development Corporation ("MBDC") substantially on the major terms and conditions set out in Attachment 1 to the report and on such other or amended terms and conditions acceptable to the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor.

2.  City Council authorize the Executive Director, Housing Secretariat to execute a non-binding letter of intent with the Miziwe Biik Development Corporation and/or an Indigenous housing provider identifying a site, a proponent, estimated number of units and funding amounts (where available)  for affordable rental housing development.

3. City Council authorize the Executive Director, Housing Secretariat, to waive the planning applications fees for up to 5,200 affordable rental housing units identified through the Memorandum of Understanding with the Miziwe Biik Development Corporation upon the execution of the non-binding letter of intent outlined in Recommendation 2 above.

4. City Council authorize up to 5,200 affordable rental housing units, to be constructed on sites to be identified through the planning approval process, to be eligible for waivers of building permit fees and parkland dedication fees, and development charge exemptions, through the Open Door program.

5. City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, any agreements or documents necessary including contribution agreements, with the Miziwe Biik Development Corporation and/or an Indigenous housing provider, or related corporations, to secure the financial assistance being provided through the Open Door Program, for the affordable housing to be developed at the sites to be identified, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, 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, consents, approvals, agreements or other documents that are ancillary to the any security or financing documents required by the developers of the site 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 Council.

7. City Council authorize the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to provide any consent necessary to transfer or encumber any of the identified sites and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of any of the identified sites 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.

The HousingTO 2020-2030 Action Plan ('HousingTO Plan') established a target of approving 40,000 new affordable rental homes, including 18,000 supportive homes by 2030. In October 2020, City Council approved an allocation of 5,200 of these new homes for Indigenous Peoples to be directly delivered by Indigenous housing providers and supported by the City and other orders of government. Staff were also directed to work with an Indigenous agency with experience in facilitating housing development to support these efforts. The 5,200 new homes allocation was co-developed with Indigenous housing providers in an effort to end chronic homelessness for Indigenous residents who are over-represented among Toronto's homeless population, and to improve housing stability for those at risk of homelessness.

To achieve this shared objective, over the past few months staff worked with a number of Indigenous housing providers, including those with lived experience, to identify a lead Indigenous organization with the capacity to support housing development activities. A delivery process consistent with the right to self-determination was also co-designed by Indigenous housing partners and City staff. The recommendations in this report are reflective of these actions.

This report seeks Council authority for the City to enter into a Memorandum of Understanding (MOU) with Miziwe Biik Development Corporation (MBDC) to support the creation of 5,200 new affordable rental and supportive homes for Indigenous residents across the city.

MBDC was established in 2004 by Miziwe Biik Aboriginal Employment and Training. The mission of MBDC is to serve as a vehicle for the economic advancement and self-sufficiency of the Aboriginal community in the Greater Toronto Area (GTA). MBDC engages in activities that focus on access to business development initiatives and training, and affordable housing.

As part of the proposed MOU, MBDC will act as the main intermediary between the City of Toronto and Indigenous housing providers. It will assist in managing the flow of funds to Indigenous-led housing providers, troubleshoot issues as they arise, and facilitate the development and operation of affordable rental and supportive housing. The City and MBDC will collaborate to identify land and capital and/or operating funding opportunities, including investments from other orders of government, to support delivery of the new homes.

To support the creation of the new affordable rental homes, provide funding certainty and help expedite future development, this report recommends that City Council approve an estimated $265.8 million in Open Door Program incentives for up to 5,200 affordable rental homes. The affordable housing projects to be supported through the partnership will be the subject of future reports to Council, and all projects will be subject to the regular planning approvals and public consultation processes once identified.

As an additional material step to realizing the 5,200 homes target, approximately 27% of the City's $132 million capital allocation (approximately $36.1 million) under Phase Two of the federal Rapid Housing Initiative (RHI) is being recommended by staff to support the creation of affordable and supportive homes by Indigenous organizations. It is proposed that MBDC will work with the City to allocate the funds to CMHC-approved projects, and oversee the delivery of the new homes to be completed by end of 2022. This recommendation is contained within another report titled, 'Implementing the Federal Rapid Housing Initiative - Phase Two' which is also before Committee and Council for consideration at the same meeting.

Entering into the proposed MOU, providing the financial incentives recommended in this report, and dedicating funding through RHI for Indigenous-led projects advance delivery of the HousingTO Action Plan. These tangible, meaningful actions also help to advance the City's commitments to truth, reconciliation and justice with Indigenous Peoples.