Item - 2025.PH20.6

The Planning and Housing Committee recommends that:

1. City Council direct that a new chapter in the City of Toronto Municipal Code titled, Toronto Municipal Code Chapter 513, Housing Programs, be established substantially in the form attached as Attachment 1 to the report (March 27, 2025) from the Executive Director, Housing Secretariat, and require that the chapter apply to all municipal housing facilities in Toronto unless otherwise exempted in the by-law.

2. City Council repeal City of Toronto By-law 713-2024 to enact a new municipal Housing Facility By-law and to repeal By-law 183-2022.

3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, Municipal Housing Project Facility Agreements for housing purposes for up to 20 years with Housing Services Act, 2011 Part VII.1 Community Housing Providers to secure affordable housing in accordance with the new Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

4. City Council authorize an exemption, for Housing Services Act, 2011 Part VII.1 Community Housing Providers who have entered into a Municipal Housing Project Facility Agreement pursuant to Part 3 above, from taxation for municipal and school purposes and authorize staff to cancel or refund any taxes paid after the Effective Date of exemption from taxation for municipal and school purposes as set out in the applicable Municipal Housing Project Facility Agreement with the Housing Services Act, 2011 Part VII.1 Community Housing Provider.

5. City Council authorize the Executive Director, Housing Secretariat to negotiate, on behalf of the City, service agreements with Housing Services Act, 2011 Part VII.1 Community Housing Providers that incorporate the requirements of a social housing program under s. 453.1 of the City of Toronto Act, 2006, upon terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

6. City Council authorize the Executive Director, Housing Secretariat, together with the Chief Financial Officer and Treasurer, to forgive, extend, or otherwise amend the financial terms and conditions of existing City loan agreements with Community Housing Providers, issued from the Social Housing Stabilization Reserve Fund (XQ1106) and Social Housing Federal Reserve Fund (XR2105) as identified in Table 2, on a case-by-case basis.

7. City Council direct the Executive Director, Housing Secretariat, together with the Chief Financial Officer, to implement a case-by-case approach, in their sole discretion, forgive, extend or otherwise amend Provincial loan agreements with Housing Services Act, 2011, Part VII Community Housing Providers that have been transferred to the City of Toronto.

8. City Council direct the Executive Director, Housing Secretariat to continue to advocate with the provincial and federal governments for increased, predictable, and sustainable funding to address the capital repair needs of Community Housing Providers.

9. City Council request the Government of Ontario to allow residents of community housing projects that are exempted from taxation for municipal and school purposes to be eligible for the Ontario Energy and Property Tax Credit component of the Ontario Trillium Benefit.

10. City Council enact a site specific by-law amending the criteria for "Affordable Housing" in the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above, to exempt a total of 142 affordable rental housing units at the addresses listed in Table 5 to this report (March 27, 2025) from the Executive Director, Housing Secretariat, owned and operated by Houselink and Mainstay Community Housing from the restriction that affordable rental housing units be “new” to meet the definition of Affordable Housing in the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above.

11. 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 “City's Contribution Agreement”) with Houselink and Mainstay Community Housing as further described in Table 4 in the Financial Impact section of this report (March 27, 2025) from the Executive Director, Housing Secretariat, to secure affordable housing in accordance with the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.

12. City Council authorize an exemption from taxation for municipal and school purposes for Houselink and Mainstay Community Housing for the properties and periods of time described in Table 4 in the Financial Impact section of the report (March 27, 2025) from the Executive Director, Housing Secretariat, with the tax exemption being effective from the Effective Date as set out in the City's Municipal Housing Project Facility Agreement.

13. City Council authorize the Chief Financial Officer and Treasurer to cancel or refund any taxes paid after the Effective Date of the Municipal Housing Project Facility Agreement with Houselink and Mainstay Community Housing.

14. City Council authorize the City Solicitor to introduce the necessary Bills and make such stylistic and technical changes to the draft Toronto Municipal Code Chapter 513, Housing Programs as may be required.

In June 2024, City Council adopted PH13.9 - Community Housing Sector Modernization and Growth Strategy (“Strategy”), which recommended a new approach to protect the City's existing community housing stock. The strategy included a focused initiative on renewing partnerships with Community Housing Providers with expiring mortgages under the Housing Services Act 2011 (HSA), Part VII.

To further advance the actions adopted by Council through the Community Housing Sector Modernization and Growth Strategy to support the operational and capital needs of Community Housing Providers, this staff report recommends Community Housing Providers to be governed under the Housing Services Act Part VII.1, enter into a Municipal Housing Project Facility Agreement to maintain units at an affordable rent, in exchange for a property tax exemption for an initial twenty-year period. The property tax exemption will continue to provide financial relief that is already provided by the subsidy paid under Part VII of the Housing Services Act funding formula.

Providing property tax exemptions to these community housing projects will help maintain over 16,000 affordable rental homes in a state of good repair, preserving some of the City’s most affordable homes for residents. This report also recommends that the City amend any existing loan agreements between the City and Community Housing Providers who enter into a Service Agreement, on a case-by-case basis where necessary.

In addition, a site-specific property tax exemption is recommended for Houselink and Mainstay Community Housing (“Houselink”) for eight buildings located at their newly acquired Finchurst site, which will ensure the on-going affordability for 142 homes of this former federal housing project that supports military veterans and their families.