Item - 2022.PH30.8

The Planning and Housing Committee recommends that:  

Affordable Rental Housing

1. City Council authorize the Executive Director, Housing Secretariat to provide Section 37 funds from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) in the amount of $1,981,260.00 to Toronto Community Housing Corporation (TCHC) to facilitate the creation of four new affordable rental units in the rental replacement building at 130 Augusta Avenue to be owned by TCHC and rented at 80 percent Average Market Rent in perpetuity.

2. City Council authorize the Executive Director, Housing Secretariat to exempt the four new affordable rental units in 130 Augusta Avenue from the payment of development charges, and provide a waiver of all building permit and parkland dedication fees.

3. City Council authorize an exemption from taxation for municipal and school purposes for the four new affordable rental units in 130 Augusta Avenue for a period of ninety-nine (99) years.

4. City Council authorize the Controller to cancel or refund taxes paid after the effective date of the Municipal Housing Facility Agreement (the City's Contribution Agreement) for the four new affordable rental units in 130 Augusta Avenue.

5. 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 Toronto Community Housing Corporation to secure the financial assistance and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer and the General Manager, Shelter, Support and Housing Administration, 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 or any other documents required to facilitate the funding process, including any documents required by Toronto Community Housing Corporation to complete construction and secure conventional financing, where required, 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.

Affordable Ownership Housing

7. City Council authorize the Executive Director, Housing Secretariat to negotiate agreements of purchase and sale, with Dundas Alexandra Park Residences Inc. for the purchase by Habitat for Humanity Greater Toronto Area and/or the City of Toronto for up to six affordable ownership housing units to be developed on the property currently known as 115 Denison Avenue (the "Habitat Units") with a  purchase price for all six units of $4,787,549.00, with standard closing costs to be the responsibility of the individual home buyers.

8. City Council authorize the City to be a party to the agreements of purchase and sale contemplated to be entered into for the Habitat Units as a contingent transferee, in order to ensure the benefit of the Habitat Units is secured for the intended purposes, until Habitat for Humanity Greater Toronto Area is able to complete the transactions.

9.  City Council authorize  the Executive Director, Housing Secretariat to execute the agreements of purchase and sale and any other documents required to complete the purchase of the Habitat Units, including an assignment of the agreements of purchase and sale for the Habitat Units to Habitat for Humanity Greater Toronto Area or another non-profit housing provider.

10. City Council authorize the City Solicitor to complete the purchase of the Habitat Units on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as the City Solicitor considers reasonable.

11. City Council authorize the Executive Director, Housing Secretariat, to negotiate, enter into and execute, on behalf of the City, all development charges deferral agreements, and any security, financing or other documents required with Dundas Alexandra Park Residences Inc. and Habitat for Humanity Greater Toronto Area, and any other parties deemed necessary to facilitate the development charges deferral outlined in this report, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer, and in a form satisfactory to the City Solicitor.

12. City Council approve the deferral of development charges for the Habitat Units under the terms of the City's Home Ownership Assistance Program, with the exception that on the sale or refinancing of a unit, the deferred amount will be re-invested by Habitat for Humanity Greater Toronto Area as down-payment assistance loans under a long-term Alexandra Park affordable home ownership program, until the term of the agreement with Habitat for Humanity Greater Toronto Area ends.  

13. City Council authorize $3,837,207.00 in Section 37 funds in the Capital Revolving Reserve Fund for Affordable Housing approved for the creation of affordable ownership units in Alexandra Park revitalization be provided to Habitat for Humanity of Greater Toronto towards the purchase price of up to six condominium units at 115 Denison Avenue.

General

14. City Council increase the 2022 Operating Budget for the Housing Secretariat by $2,235,938.00, $0 net, on a one-time basis, and transfer to the Capital Revolving Reserve Fund for Affordable Housing (XR1058), for the purpose of creating new affordable rental housing and/or home ownership opportunities in Phase 2 of the Alexandra Park Revitalization, fully funded by Section 37 (Planning Act Reserve Fund) community benefits collected from the following developments: 

a. 102-118Peter Street and 350-354 Adelaide Street West, secured for the provision of affordable housing in Ward 10, in the amount of $352,698.00 (XR3026-3701120;

b. 489-539 King Street West, secured for the provision of new affordable housing units in Ward 10, in the amount of $1,204,762.00 (XR3026-220096);

c. 40-58 Widmer Street, secured for the provision of new affordable housing units in Ward 10, in the amount of $174,869.00 (XR3026-3701105); and

d. 99 Blue Jay Way, secured for the provision of new affordable housing units in Ward 10, in the amount of $167,468.00 (XR3026-3701161).

15. City Council authorize the Executive Director, Housing Secretariat, to make any necessary future budget adjustments to accommodate the funds approved in the report (December 21, 2021) from the Executive Director, Housing Secretariat from the Capital Revolving Reserve Fund for Affordable Housing (XR1058). 

This report recommends City financial contributions and incentives to support delivery of new affordable rental and ownership homes in Phases 2A and 2B of the ongoing Toronto Community Housing Corporation (TCHC) revitalization of Alexandra Park. An initial 10 homes (4 affordable rental and 6 affordable ownership homes) will be delivered in Phase 2A, with a yet to be determined number to be provided in Phase 2B. The number of units to be delivered in Phase 2B will be determined by the cost of construction for rental units at the development stage. (See Attachment 1 - Alexandra Park Master Plan Map 2021 for map of phases).

It is recommended that $7,674,414 in Section 37 funds be allocated towards delivery of the new affordable homes. Approximately half of the funds will be used to support delivery of affordable rental units to be co-located within new TCHC rental replacement buildings and dedicated for Atkinson Housing Co-operative Inc. (Atkinson Co-op) members. Four affordable rental homes will be secured in Phase 2A, with additional affordable rental units to be secured in Phase 2B. The other half of the Section 37 funds will support the purchase of up to six condominium units in Phase 2A to be operated under a new long-term affordable ownership program delivered in partnership with Habitat for Humanity Greater Toronto Area (Habitat), specifically for Atkinson Co-op members and TCHC tenants of Alexandra Park.

In addition to capital funding, this report recommends City Council approval of $356,940 in Open Door Program incentives for the four affordable rental units to be delivered in Phase 2A. These incentives include waivers of building permit and parkland dedication fees plus exemptions from development charges and property taxes for up to 99 years.

The report further recommends deferral of development charges through the City's Home Ownership Assistance Program (HOAP) for the six affordable home ownership units in Phase 2A. Deferral of development charges will make the homes more affordable for purchasers and support a new long-term affordability model managed by Habitat. Additionally, $50,000 per unit in affordable ownership loan funding will be allocated by the City from federal/ provincial housing programs.

The ongoing revitalization of Alexandra Park will add new community amenities and a range of new homes for low-and-moderate-income residents within a complete community. To support revitalization efforts, TCHC and City staff and the local Councillor continue to actively engage with community members. This includes engagement with the Alexandra Park Revitalization Working Group (APRWG) which has provided input into and supports the housing plan outlined in this report.