Item - 2022.PH34.8

The Planning and Housing Committee recommends that:  

1. City Council authorize the Executive Director, Housing Secretariat, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116) in the amounts and for the developments described in Chart A in the Financial Impact section of the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat and in an amount not to exceed $10,049,900 to facilitate the creation of up to 919 affordable rental homes through the Open Door Affordable Rental Housing Program.

2. City Council authorize the Executive Director, Housing Secretariat, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116), in the amounts and for the developments described in Chart C in the Financial Impact section of the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat and in an amount not to exceed $300,000 for the purpose of conducting pre-development activities including addressing issues identified by City staff to facilitate the creation of affordable rental homes through a future Open Door Affordable Rental Housing Program application.

3. City Council authorize the affordable rental homes located within the developments described in rows 4 to 17 of Chart A and all of Chart D in the Financial Impact section of this Report to be eligible for waivers of fees for planning application, building permit, parkland dedication and development charges exemptions, unless already paid.

4. City Council authorize an exemption from taxation for municipal and school purposes under the terms of the Open Door Affordable Rental Housing Program for the affordable rental homes located within the developments and for the periods of time described in rows 3 to 17 of Chart B and all of Chart E in the Financial Impact section of the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat.

5. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the applicable municipal housing facility agreement (the City's Contribution Agreement).

6. 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"), or amendments to existing Contribution Agreements, where applicable, with the appropriate legal entities for the developments listed in Chart A and D in the Financial Impact section of this Report, or related entities, 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, in a form approved by the City Solicitor.

7. City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a pre-development agreement with the appropriate legal entities for the developments listed in Chart C in the Financial Impact section of the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat from the Executive Director, Housing Secretariat, or related entities, to secure the financial assistance, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, in a form approved by the City Solicitor.

8. City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security or financing documents, or any other documents required to facilitate the funding process, including any documents required by the developers of the developments described in Chart A and D in the Financial Impact section of the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat, or their related corporations, to complete pre-development activities, 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 Council.

9.  City Council authorize the Executive Director, Housing Secretariat, to make any necessary future budget adjustments to accommodate the funds approved in the report (April 8, 2022) from the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat from the Development Charges Reserve Fund for Subsidized Housing (XR2116).

10. City Council authorize the transfer of $3,600,000 from the under listed Section 37 (Planning Act Reserve Fund) community benefits collected accounts to the Capital Revolving Reserve Fund for Affordable Housing (XR1058), for the purpose of creating new affordable rental housing at 938-950 King Street West:

a. 220 and 234 Simcoe Street and 121 St. Patrick Street, secured for the provision of new affordable housing in Ward 10, in the amount of $317,278.99 (XR3026-3701129);

b. 23 Spadina Avenue, secured for the provision of new affordable housing in Ward 10, in the amount of $796,105.25 (XR3026- 3701140);

c. 99 Blue Jays Way secured for the provision of new affordable housing units and community services and facilities in Ward 10, in the amount of $678,947.37 (XR3028-4500234);

d. 102 -118 Peter Street and 350-354 Adelaide Street West, secured for Toronto Community Housing Corporation repairs but given the funds have not been used for the intended purpose within three (3) years of the by-law coming into full force and effect, the by-law permits the cash contribution to be redirected for the provision of new affordable housing, in the amount of $353,346.49 (XR3026-3701121);

e. 156-174 Front Street West and 43-51 Simcoe Street, secured for Toronto Community Housing Corporation facilities but given the funds have not been used for the intended purpose within three (3) years of the by-law coming into full force and effect, the by-law permits the cash contribution to be redirected for the provision of new affordable housing, in the amount of $477,656.23 (XR3026-3701063);

f. 40-58 Widmer Street, secured for capital repairs to Toronto Community Housing Corporation facilities but given the funds have not been used for the intended purpose within three (3) years of the by-law coming into full force and effect, the by-law permits the cash contribution to be redirected for the provision of new affordable housing, in the amount of $175,190.16 (XR3026- 3701106); and

g. 165 East Liberty Street, secured for community service and/or facilities, in the amount of $801,475,517 (XR3026-3701057).

11. City Council recognize the Open Door application for the Learning Enrichment Foundation’s mixed use, mixed income affordable rental housing development at 1240, 1246 and 1250 Weston Road as supporting the affordable housing objectives of the Picture Mount Dennis Planning Framework Study and the City's broader social and economic priorities.
 

12.  City Council request the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat to prioritize the review of the Learning Enrichment Foundation  development application, when received, and subject to Learning Enrichment Foundation submitting a complete planning application that also meets the City's Open Door program requirements, co-ordinate reporting to the same meeting of City Council for both the development application and the Open Door incentives.
 

13.  City Council authorize the Executive Director, Housing Secretariat to support any applications made by Learning Enrichment Foundation for federal and provincial funding and financing, recognizing that the forthcoming Learning Enrichment Foundation development application would contribute to new affordable housing and non-residential space with public benefits to the Mount Dennis community.

The Open Door Affordable Rental Housing ("Open Door") program is a key program under the HousingTO 2020-2030 Action Plan ("HousingTO Plan") and offers capital grants and financial incentives to encourage non-profit and private sector housing developers to create new affordable rental housing for low-and-moderate-income households. These new homes are critical to help the City meet its target of approving 40,000 affordable rental homes (including 18,000 supportive homes), by 2030.

On November 24, 2021, the Housing Secretariat launched the annual Open Door Affordable Rental Housing Call for Applications process. The Call for Applications closed on February 3, 2022. To support the City of Toronto's commitments to Indigenous Peoples, 20% of the funding allocated under the 2021 Call was dedicated to projects led by Indigenous housing organizations for Indigenous residents.

This report outlines the results of the 2021 Open Door Call for Applications and recommends City Council approval of 17 projects, representing a total of 919 affordable rental homes, for capital funding and/or Open Door financial incentives. Thirteen of the recommended affordable rental housing projects will be developed by non-profit housing providers, and of these, two will be Indigenous-led, and three will create new supportive housing.

The report recommends that the City invests a total of $10,049,900 in capital funding, and $64,979,296 in Open Door incentives in the form of waived development charges, building permits, parkland levies, and property taxes to support the 17 projects. Approximately 29% of the capital funding proposed will be dedicated to supporting the two Indigenous projects, exceeding the City's commitment to Indigenous Peoples.

In addition, six non-profit applications, representing a total of 483 homes, are recommended for pre-development funding of $50,000 each, to advance these projects that are in the early stages of development and create a pipeline of future affordable homes. All homes to be created through this program will remain affordable for a minimum of 40 years, and in many cases, in perpetuity.

Further, this report recommends City incentives for 25 additional affordable rental homes to be created at 155-65 Elm Ridge Drive by Reena, a non-profit organization that provides housing with a range of supports for people with disabilities. The project was initially approved for incentives in 2021 through Item PH21.4 to support 81 affordable rental homes, and with the additional 25 homes, a total of 106 affordable rental homes will be created. Additionally, the report recommends that $3,600,000 in Ward 10 Section 37 funds be committed to the affordable housing component of the redevelopment of the Palace Arms Hotel at 938-950 King Street West, as previously directed by Council through Item TE23.12, and the approval of an additional 10 years for the property tax exemption (for a total 50 year affordability period).

City Council's approval of the recommendations in this report will support the creation of a range of new affordable rental homes, for a range of people and incomes, all across the city. These much-needed homes will help address the needs of current and future residents, plus create more mixed-income, inclusive and livable communities where people have the opportunity to thrive.