Item - 2026.PH31.8

The Planning and Housing Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, to negotiate, approve, and execute, on behalf of the City, one or more long-term nominal leases, with ANPHI Affordable Homes Inc. or a related entity or entities, for the City-owned condominium units at 38 Abell Street and 210 Simcoe Street substantially on the major terms and conditions set out in Attachment 1 to the report (May 28, 2026) from the Executive Director, Housing Secretariat, the Executive Director, Corporate Real Estate Management, and the General Manager, Economic Development and Culture and such other terms as deemed appropriate by the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

2. City Council declare the units at 38 Abell Street and 210 Simcoe Street surplus with the intended manner of disposal to be by way of long term lease to ANPHI Affordable Homes Inc., or a related entity or entities, and City Council direct staff to take all necessary steps to comply with the City of Toronto's real estate disposal process set out in City of Toronto Municipal Code Chapter 213, Real Estate.

3. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, one or more municipal housing project facility agreements (the City's "Contribution Agreement") with ANPHI Affordable Homes Inc., or a related entity or entities, to secure the financial assistance being provided and to set out the terms of the operation of the affordable rental housing, 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 from taxation for municipal and school purposes for the affordable rental homes as listed in and for the periods of time described in Table 1 below in the Financial Impact section of the report (May 28, 2026) from the Executive Director, Housing Secretariat, the Executive Director, Corporate Real Estate Management, and the General Manager, Economic Development and Culture.

5. City Council authorize the Controller and Chief Accountant 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 Contribution Agreement.

In August 2023, Toronto Artscape Inc. (Artscape), a non-profit operator of affordable housing and community cultural spaces, announced that it had become insolvent and that its assets would be put up for sale by a court-appointed receiver. Through Item 2023.MM11.32, City Council provided direction to the City Solicitor to participate in the receivership proceedings with a view to protecting the City's property and interests in affordable housing and affordable not for profit community arts and culture space, and provided authority to settle or take reasonable steps to preserve the affordable housing units and non-profit cultural spaces that had been operated by Artscape.

This report provides an update, as directed by City Council through 2023.MM11.32, on the outcome of the City's efforts to protect residential and non-profit cultural tenants impacted by the receivership proceedings, and requests authorities needed to protect the existing tenancies and preserve affordable rental housing.

As part of the response to the receivership, the City worked with Artscape to develop comprehensive transition plans for each of its properties and provided direct support to tenants and community partners. In September 2024, the City purchased 22 condominium units, located at 38 Abell Street and 210 Simcoe Street, previously owned by Artscape and operated as affordable rental homes. This report requests authority to enter into one or more long-term nominal leases and Contribution Agreement(s) with ANPHI Affordable Homes Inc. (AAHI) to operate these units.

The City's exceptional efforts, in concert with community and government partners, resulted in the retention of all of Artscape's former portfolio for affordable artists' housing and community not-for-profit cultural hubs, save for the former Artscape Launchpad facility - a remarkable outcome in preserving live, work and presentation space for Toronto's cultural community.