Item - 2025.PH21.4

The Planning and Housing Committee recommends that:

Toronto Builds Policy Framework

1. City Council approve the Toronto Builds Policy Framework as outlined in this report, to harmonize the development of a range of rental homes and mixed-income communities on public land, and apply this framework to all projects on City-owned land listed in Attachment 1 to the report (May 1, 2025) from the Deputy City Manager, Development and Growth Services, (collectively, the “Toronto Builds Portfolio”) and any future City-owned housing development sites added to the Toronto Builds Portfolio (each a “Toronto Builds Project”) in accordance with Recommendation 6 below.

2. City Council request the Board of CreateTO to consider adopting the Toronto Builds Policy Framework described in this report to guide the redevelopment of public land managed by its holding corporations, Build Toronto and Toronto Port Lands Corporation.  

3. City Council request the Board of Toronto Community Housing Corporation to consider adopting the Toronto Builds Policy Framework described in this report to guide the Toronto Community Housing Corporation revitalization projects on its land where a development partner has not been selected.

4. City Council direct the Deputy City Manager, Development and Growth Services to report to City Council by the third quarter of 2025 with a proposed delivery and governance framework to implement the policy direction in this report and deliver Toronto Builds Projects, including alignment of mandate, roles, and responsibilities across City Divisions, CreateTO, and Toronto Community Housing Corporation, and in accordance with applicable intergovernmental agreements, funding arrangements and other shared objectives.

5. City Council direct the Deputy City Manager, Corporate Services and request the Board of CreateTO to direct the Chief Executive Officer, CreateTO, when assessing new development and/or redevelopment opportunities on land owned by the City to first consider inclusion of the site in the Toronto Builds Portfolio to develop and/or co-locate a range of new rental housing while also considering market conditions and other City building priorities.

6. City Council authorize the Executive Director, Housing Development Office and the Deputy City Manager, Corporate Services, to add or remove development sites to or from the Toronto Builds Portfolio, subject to the concurrence of the applicable City Agency or Corporation with the decision as described in Recommendations 2 and 3 above, where the land is owned by a City Agency or Corporation.

7. City Council direct the Executive Director, Housing Development Office, to report to City Council annually on properties included in the Toronto Builds Portfolio, including any changes, additions, or removals arising from program and project due diligence.

8. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the General Manager, Parks and Recreation, to permit, where applicable, entering into licences or other arrangements for up to ten (10) years, at nominal value in respect of new or existing parkland, or to waive in full the following fees for requests directly related to Toronto Builds Projects that are to be offered for development solely to the non-profit sector, and are subject to a City-initiated re-zoning: 

a. all fees related to tieback encumbrances which impact new or existing parkland and construction staging which impacts new parkland and 

b. crane swing agreements over any new or existing parkland. 

9. City Council waive in full all application and permit fees required under City of Toronto Municipal Code Chapter 743, Streets and Sidewalks, Use of, and City of Toronto Municipal Code Chapter 441, Fees and Charges, for Street Work Permits and Temporary Street Occupation Permits for Toronto Builds Projects that are to be offered for development solely to the non-profit sector, and are subject to a City-initiated re-zoning. 

10. City Council direct the Deputy City Manager, Development and Growth Services, in consultation with the General Manager, Parks and Recreation and Chief Planner and Executive Director, City Planning, to report back on amendments to the City of Toronto Municipal Code, Chapter 415, Development of Land, Article VI, to exempt Toronto Builds Projects from the application of parkland dedication requirements and payment of community benefits charges.

11. City Council direct the Chief Financial Officer and Treasurer, in consultation with Deputy City Managers of Development and Growth Services and Corporate Services, to ensure that capital funding for all community amenities, facilities, city-building and civil infrastructure required as part of Toronto Builds Projects are included in the relevant Divisional budgets and considered by City Council for approval as part of the annual budget process.

Partnerships and Intergovernmental Requests

12. City Council request the Executive Director, Housing Secretariat, to engage with the Indigenous and community housing sector including Miziwe Biik Development Corporation, the Toronto Alliance to End Homelessness, the Community Housing Transformation Centre, and Cooperative Housing Federation of Toronto, to facilitate the inclusion of Indigenous and community housing partners (including community land-trusts, non-profit and co-operatives housing providers, Black-led housing organizations, and the Accessible Housing Working Group), in the implementation of the Toronto Builds Policy Framework and to build the capacity of the sector.

13. City Council direct the Executive Director, Housing Secretariat in consultation with the Executive Director, Corporate Real Estate Management, to consider options for the conveyance, for nominal value, of City-owned land to Indigenous non-profit organizations, to advance the City’s commitment to truth, justice and reconciliation and report back to City Council with any authorities required to undertake the conveyance.

14. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City of Toronto, a non-binding Memorandum of Understanding with the Toronto District School Board, as represented by its Manager and Agent, Toronto Lands Corporation, substantially on the major terms and conditions set out in Attachment 2 to the report (May 1, 2025) from the Deputy City Manager, Development and Growth Services to advance mutually beneficial City-building solutions 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.

15. City Council exempt up to 2,100 affordable rental housing units subject to the non-binding Memorandum of Understanding referenced in Part 14 above, to be constructed on lands owned by Toronto District School Board, from the payment of development charges, parkland dedication requirements, community benefits charges, if not exempted by provincial legislation, and planning application and building permit fees.

16. City Council authorize the Executive Director, Housing Secretariat, and Executive Director, Housing Development Office, to negotiate and enter into, on behalf of the City, any agreements or documents necessary including municipal housing facility agreements, with Toronto District School Board, or a related entity, as represented by its Manager and Agent, Toronto Lands Corporation to secure the financial assistance for the affordable housing to be developed on lands owned by Toronto District School Board, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.

17. City Council request the Government of Canada to join the City and launch a Canada-Ontario-Toronto (COT) Builds program to align land, funding, financing, approvals, and partnerships across all three orders of government to build more affordable and purpose-built rental housing in new development and revitalization projects, including:

a. Provide a portfolio-based allocation of $150 million in funding and $5 billion in low-cost financing for 26 rental housing projects in Toronto, including City-led projects on public land and City-supported non-profit projects, starting construction within the next two years.

b. Align Federal land initiatives, including Build Canada Homes, for sites in Toronto with the Toronto Builds program and with CMHC funding and financing programs to realize objectives of COT Builds to build more homes faster

c. Through the COT Builds partnership, explore innovative ways to expand and accelerate supply, for example through providing loan guarantees, preferential financing rates and flexible funding for non-market led development projects

18. City Council request the Government of Ontario to join the City and launch a Canada-Ontario-Toronto (COT) Builds program to align land, funding, financing, approvals, and partnerships across all three orders of government to build more affordable and purpose-built rental housing in new development and revitalization projects, including:

a. Align Provincial land initiatives for sites in Toronto with the Toronto Builds program and CMHC funding and financing programs to realize objectives of COT Builds to build more homes faster

b. Provide sufficient funding to enable the City to indefinitely defer development charges on purpose-built rental homes within projects eligible under the Rental Housing Supply Program to unlock the remaining $4.75 billion out of $7.3 billion in federal financing commitment that has been set aside for the City of Toronto over the next three years, conditional on the City receiving provincial support.

Advancing Three Toronto Builds Projects in 2025

19. City Council direct the Deputy City Manager, Development and Growth Services, Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer to approve, in accordance with the Toronto Builds Policy Framework, a business case and market offering process for the Toronto Builds Projects at 970 Kipling Ave. (Bloor-Kipling Block 5), 158 Borough Drive, and 931 Yonge Street, provided that the Executive Director, Housing Secretariat, Executive Director, Housing Development Office, and the CreateTO Board of Directors concur with the proposed business case and market offering process.

20. City Council request the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat, and Executive Director, Housing Development Office, to administer the market offering process for the sites referenced in Part 19 above, and to expedite the market offerings where possible, such as through utilizing its existing pre-qualified Broker, and to select proponents and negotiate the leases and other agreements for the project (other than the City Contribution Agreement in Recommendation 26 below) with them in accordance with the terms of the approved business case and market offering process.

21. City Council request the Chief Executive Officer, CreateTO and Executive Director, Housing Secretariat, and Executive Director, Housing Development Office, in consultation with the Chief Financial Officer and Treasurer, to allow, as part of the market offering process described in Part 19 above, proponents to request an indefinite deferral of development charges for the purpose-built rental housing units in the Toronto Builds Projects where proponents can demonstrate the deferral would contribute to greater affordable housing outcomes, or support achieving other policy priorities of the Toronto Builds Policy Framework, and report back to City Council with the outcome and to seek any additional authorities that may be required to provide these incentives, prior to any lease or other agreement being approved as contemplated in Recommendations 22 and 24 below.

22. City Council authorize the Deputy City Manager, Corporate Services, when transacting with for-profit developers and/or operators in relation to the three Toronto Builds Projects identified in Recommendation 19 above, to approve market value transactions, including leases and related transaction agreements for a term of up to 99 years  for the purpose of achieving the City's affordable housing objectives, notwithstanding that the related values may exceed the Deputy City Manager, Corporate Service’s existing delegated authority of $5 million dollars, as set out in Municipal Code Chapter 213, Appendix A, provided that the Executive Director, Housing Development Office concurs with the proposed transaction terms.

23. City Council authorize, in relation to transactions contemplated in Recommendation 22 above, the Deputy City Manager, Corporate Services, to treat the estimated value of the affordable housing benefits that will be realized by the City as compensation received by the City when assessing whether a proposed overall transaction arrangement reflects market value.

24. City Council authorize the Deputy City Manager, Corporate Services, when transacting with non-profit developers and/or operators in relation to the three Toronto Builds Projects identified in Recommendation 19 above, to approve transactions at nominal or less than market value, including leases and related transaction agreements for terms of up to 99 years  for the purpose of achieving the City's affordable housing objectives, provided that the Executive Director, Housing Development Office concurs with the proposed transaction terms.

25. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Executive Director, Housing Development Office and the Chief Financial Officer and Treasurer, to provide the financial incentives available to eligible rental units under the City’s Rental Housing Supply Program, including exemptions from development charges, parkland dedication, and community benefits charges, where not exempted by Provincial legislation, and waivers of planning application and building permit fees, for up to 504 eligible rental housing units under the Rental Housing Supply Program to be developed in projects referenced in Recommendation 19 above.

26. City Council authorize, severally, the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, to negotiate and enter into, on behalf of the City, municipal housing project facility agreements (the City's Contribution Agreement) with the proponents chosen through the market offering process for each of the three Toronto Builds Projects referenced in Recommendation 19 above to secure the financial assistance being provided and set out the terms of the operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and Executive Director, Housing Development Office, and in a form approved by the City Solicitor. 

27. City Council authorize, severally, the Executive Director, Housing Secretariat and Executive Director, Housing Development Office, or their designate, to execute, on behalf of the City, any security or financing documents required by the developers and/or operators of Toronto Builds Projects referenced in Recommendation 19 above and for projects approved for financial incentives under the City’s Rental Housing Supply Program 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 City’s Contribution 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.

28. City Council authorize, severally, the Deputy City Manager, Corporate Services, the Executive Director, Housing Development Office, and the Executive Director, Corporate Real Estate Management, to execute, on behalf of the City, any documents arising in relation to the exercise of the approval authorities set out in Recommendations 22 and 24 above, subject to such documents being in a form satisfactory to the City Solicitor.

29. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Executive Director, Housing Development Office, to provide any consent necessary to encumber the Toronto Builds Projects referenced in Recommendations 19 above or the affordable rental housing portion thereof, and to negotiate and enter into any associated agreements or other documents required to deliver any of the Toronto Builds Projects or the affordable rental housing portion thereof, on terms and conditions satisfactory to them and in a form approved by the City Solicitor.

30. City Council authorize the Executive Director, Housing Secretariat, to amend the Request for Proposals for the Parkdale Hub – West Block (Block A) to remove the requirement that 10 percent of the affordable housing units be rented at no more than 40 percent of average market rent.

31. City Council direct the Executive Director, Housing Secretariat, and the Executive Director, Housing Development Office, to engage the Toronto Catholic District Board to explore opportunities for activating land in their portfolio to build mixed-income and complete communities that prioritize delivery of rental and affordable rental housing.

32. City Council direct the Deputy City Manager, Development and Growth Services, and the Deputy City Manager, Corporate Services, to ensure that as the Toronto Builds Policy Framework is applied to developments on City land, it be done so in accordance with applicable intergovernmental agreements, funding arrangements and other shared objectives.

Toronto is facing an evolving housing crisis, impacting housing affordability for low-income, vulnerable residents including people experiencing homelessness, as well as key workers and middle-income earners. In recent years, City Council has taken significant action on housing, notably approving a whole-of-government response and range of strategic, program, and policy directions through Item EX9.3 - Advancing a Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes. City Council also increased the HousingTO 2020-2030 Action Plan (“HousingTO Plan") target to approve 65,000 rent-controlled homes (comprised of 6,500 rent-geared-to-income (RGI), 41,000 affordable rental and 17,500 rent-controlled market homes) by 2030.

Effectively mobilizing the public land is necessary to achieve the targets in the HousingTO Plan. Through EX9.3, City Council identified almost 100 sites owned by the City or its Agencies and/or Corporations (hereafter referred to as “City lands” or “City sites”) that are ready to be mobilized to build new homes, or show potential as housing development sites subject to due diligence. This report proposes a new policy framework to guide the development of a range of new rental homes within mixed-income communities on City land (the “Toronto Builds Policy Framework”). Through this Framework, a set of policy requirements and targets will be established to harmonize a range of existing City programs and ensure Council’s housing priorities including to deliver rent-geared-to-income, affordable, and rent-controlled homes, are realized on City land. To support alignment across City Divisions, Agencies, and Corporations, this report requests the Board of CreateTO and Board of TCHC to consider the Toronto Builds Policy Framework when advancing housing developments on public land, including new developments and revitalization projects.

Historically, the development of City land for affordable housing has been facilitated through different programs such as Housing Now, the Modular Housing Initiative, ModernTO, the City-wide Real Estate Program, TCHC Revitalizations, the public developer model, and through tri-government investment in waterfront revitalization.

These programs have included a wide variety of eligibility criteria and requirements, leading to inconsistency and a lack of clarity in direction when City land is mobilized for housing. The Toronto Builds Policy Framework responds to this need for greater consistency by:

·       Establishing a harmonized policy framework when delivering a range of housing on City land, whether the projects are advanced through City Divisions, CreateTO, or TCHC, including with private sector or non-profit organizations as developers and/or operators;

·       Providing flexibility that responds to challenging market conditions which vary across Toronto and impact the financial viability of new affordable housing developments;

·       Ensuring housing developments on City land continue to create mixed-income and complete communities while prioritizing delivery of a range of rental homes (including rent-geared-to-income, affordable, rent-controlled and market rental homes); and

·       Creating a foundation for future intergovernmental partnership focussed on mobilizing public land for housing, and a call to action to federal and provincial governments to join the City in responding to the housing crisis through a tri-government Canada-Ontario-Toronto Builds program.

As detailed in this report, the Toronto Builds Policy Framework establishes policies in 12 key areas to guide the development of new housing on City land. The proposed framework is built on lessons learned through difficult economic conditions since 2020 that have reduced the financial viability of new affordable housing developments. The Deputy City Manager, Development and Growth Services will report to City Council by Q3 2025 with a proposed program delivery and governance approach that provides additional information for Council on the implementation of the framework outlined in this report. This will include updates on a Master Services Agreement between the City and TCHC and CreateTO, respectively, and on the creation of the new Housing Development Office.

Subject to City Council approval, and consideration by the relevant City Agencies and Corporations, the Toronto Builds Policy Framework will be applied to all housing projects on City land listed in Attachment 1 to this report (each being referred to as a “Toronto Builds Project”). This report authorizes relevant City staff to add or remove sites from the Toronto Builds Portfolio as a result of ongoing due diligence on potential housing projects. It also directs staff to first consider inclusion of new housing development opportunities in the framework when assessing City real estate, including where there may be co-location opportunities with other uses such as recreation centres, community amenities, or shelters.

This new policy framework will apply on a go forward basis, maintaining existing direction for housing sites where a market offering has completed or development agreements have been signed. This report also requests Council authority to release three development sites under the Toronto Builds Policy Framework in 2025 through a market offering process. These projects will create approximately 1,523 new rental homes, including 503 affordable rental homes, at 970 Kipling Ave (Bloor-Kipling Block 5), 158 Borough Dr., and 931 Yonge St. Additional information and authorities to deliver future Toronto Builds sites will be provided in the Q3 governance and delivery report to Council.

Achieving Toronto’s ambitious housing supply targets requires a whole of government and whole of community approach. This report demonstrates the importance of partnerships across public sector organizations as it recommends the City enter into a non-binding Memorandum of Understanding (MOU) with Toronto District School Board, as represented by its Manager and Agent, Toronto Lands Corporation to support the redevelopment of up to eight potential housing sites that could deliver over 10,000 new rental homes, including 2,100 affordable rental homes. This MOU will advance shared priorities of the City and TDSB in leveraging public land, including existing TDSB properties, for mixed-use redevelopment, to create mutually beneficial solutions that build more rental homes and new schools along with enhancing community services and amenities.

This report also reiterates Council’s previous requests that the federal and provincial governments join the City in a Canada-Ontario-Toronto Builds program that would align public land, funding, financing, partnerships, and approval processes to build more rental homes affordable to a range of residents. The Toronto Builds Policy Framework lays the foundation for this proposed partnership and demonstrates the City’s leadership in readying its lands through a flexible framework that can be enhanced by participation from provincial and federal partners.

Toronto is facing an evolving housing crisis, impacting housing affordability for low-income, vulnerable residents including people experiencing homelessness, as well as key workers and middle-income earners. City Council has taken significant action to expand the City’s response to this crisis, notably increasing the City’s HousingTO Action Plan targets and approving a whole-of-government response and range of strategic, program, and policy directions through Item EX9.3 - Advancing a Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes.

Effectively mobilizing the City’s land is necessary to achieve the targets in the HousingTO Plan. Through EX9.3, City Council has identified almost 100 City-owned or controlled sites that are ready to be mobilized to build new homes or show potential as housing development sites subject to due diligence. Through EX9.3 and EX7.2, Council has also directed City Divisions, Agencies and Corporations to create greater alignment of resources, mandate, and structure to achieve the City’s expanded HousingTO targets.

This report responding to this direction and proposes a new policy framework to guide the development of affordable and rental homes within mixed-income communities on City land (the “Toronto Builds Policy Framework”). A supplementary report will be provided in time for the Planning and Housing Committee meeting on May 8, 2025.