Item - 2025.RA19.4

The Board of Directors of CreateTO:

1. Adopted the Confidential Instructions to Staff in Confidential Attachment 1 to the report (June 6, 2025) from the Chief Executive Officer, CreateTO.

2. Directed that Confidential Attachment 1 to the report (June 6, 2025) from the Chief Executive Officer, CreateTO remain confidential in its entirety as it relates to a proposed or pending disposition of property by the City and a position, plan, procedure, criteria or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO and the City.

The Chief Development Officer, CreateTO gave a presentation on Housing Progress Update.

In recognition of the urgent need to expedite efforts to transform Toronto’s housing system, this report provides the CreateTO Board of Directors with a broad update of 2025 housing-related work items:

• Priority housing sites, with proponents and equity confirmed (7 sites)
• Housing sites with secured proponents (2 sites)
• Housing sites that are zoned and tracking to market calls/securing a proponent (8 sites)
• Housing sites in market (1 site)
• Housing sites tracking to final zoning (5 sites)

The projects at 267-275 Merton St. and 610 Bay St./130 Elizabeth St. are signature housing projects that leverage City-owned lands and will deliver over 1,350 new rental homes including at least 369 affordable rental homes.

Market conditions have changed since the Board approved the deal terms for these two sites in 2024, most notably a reduction in market rental rates, and an increase in project costs, impacting the financial viability of the projects.

In order to maintain the viability of these projects in the face of shifting market conditions, this report makes recommendations to help 'unstick' these housing projects to start construction on a significant amount of new purpose-built and affordable rental homes in 2025.