Item - 2024.EX19.1

The Executive Committee recommends that:  

1. City Council, as the sole Shareholder, request the Board of Directors of Toronto Community Housing Corporation to direct the Chief Executive Officer, Toronto Community Housing Corporation to work with the Deputy City Manager, Development and Growth Services to advance housing development projects under the City's Public Developer Model, including providing development and construction management services and acting as a development partner and housing provider for projects on City lands, as well as continuing to undertake the development and redevelopment of their own lands in alignment with the City's housing priorities and housing targets as set in the HousingTO 2020-2030 Action Plan and revised in Item EX9.3 adopted by City Council in November 2023.

2. City Council direct the Deputy City Manager, Development and Growth Services to negotiate and execute a Master Service Agreement between the City of Toronto and Toronto Community Housing Corporation to support Recommendation 1 above, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

3. City Council request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to continue to bring forward potential housing sites and opportunities to the City of Toronto, for consideration and decision, and advance work on housing opportunities at the direction of the City.

4. City Council direct the Deputy City Manager, Development and Growth Services and the Deputy City Manager, Corporate Services to negotiate and execute a Master Service Agreement between the City of Toronto and CreateTO to support Recommendation 3 above, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services and the Deputy City Manager, Corporate Services, and in a form approved by the City Solicitor.

Toronto continues to face an unprecedented housing affordability crisis across the housing continuum, with a lack of deeply affordable and supportive homes for those with low-incomes, and high rents affecting middle-income earners who aspire to live and work in the city.

In Fall 2023, City Council adopted two key reports related to housing delivery:

- Item EX9.3, which set the stage for the generational change to transform and strengthen Toronto’s housing system and expedite delivery of the HousingTO and Housing Action Plan targets.

- Item EX10.2, which aligned the mandates of CreateTO and Toronto Community Housing (TCHC) and directed these organizations to work with the City on the delivery of the City's housing plans and targets, including new and explicit language on expectations and scope for greater alignment.

This report outlines additional steps to advance the City’s role as a Public Developer and supporter of partner projects, by bringing a singular focus to City-led and supported housing development, and strengthening coordination between the City, CreateTO and TCHC to achieve the City's affordable rental housing goals. Specifically, the City will increase its capacity to lead housing development, by establishing a Housing Development Office, reporting to the Deputy City Manager, Development and Growth Services, that will focus exclusively on advancing and accelerating the delivery of housing on City-led and City-supported sites. The City targets having a leader in place to lead the Office by Q2 2025, following a formal, competitive recruitment process.

Through this new Office, the City will either lead projects directly or leverage TCHC and CreateTO on a project-by-project basis, based on each organization’s unique expertise and best practices. Staff are recommending updated direction to both organizations, followed by a negotiated Master Service Agreement with the City for each respectively. While work is underway to establish the new Housing Development Office, it is critical that housing projects continue to move forward under the current project leadership structure to ensure no delay in the delivery of housing.

The Executive Committee:  

1. Received the report (November 26, 2024) the City Manager for information.

Toronto continues to face a housing affordability crisis across the housing continuum, with a lack of deeply affordable homes for low-incomes households, a lack of supportive housing, and high rents affecting middle-income earners who aspire to live and work in the city.

The City Manager will be submitting a report to the December 10, 2024 meeting of Executive Committee outlining additional steps to advance the City as a Public Developer, to expedite the delivery of critically needed housing on City-owned and City-supported sites.