Item - 2026.PH32.9

The Planning and Housing Committee recommends that:

1. City Council request the Mayor to include the updated infrastructure cost estimates for Lawrence Heights Phases 2 and 3, as set out in Confidential Attachment 1, Table 2 to the report (July 14, 2026) from the Executive Director, Housing Development Office in the 2027-2036 Capital Budget and Plan for Transportation Services and Toronto Water, subject to the availability of funding.

2. City Council direct that reimbursement of the 2026 cash flow set out in Confidential Attachment 1, Table 2 to the report (July 14, 2026) from the Executive Director, Housing Development Office, shall be funded from the 2026-2035 Council approved Capital Budget and Plans of Toronto Water and Transportation Services, and that should the existing 2026 Capital Budgets be insufficient, funding is to be accelerated from their respective future year budgets.

3. City Council direct that the confidential information contained in Confidential Attachment 1 to the report (July 14, 2026) from the Executive Director, Housing Development Office remain confidential at this time, as it relates to 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 City of Toronto and authorize it be made public following the completion of the infrastructure work contemplated in this report, at the discretion of the Deputy City Manager, Development and Growth Services.

4. City Council authorize the Executive Director, Housing Development Office, to enter into one or more agreements with the Toronto Community Housing Corporation, if the terms are not otherwise secured in the Subdivision Agreement(s) for Phases 2 and 3, to reimburse eligible infrastructure costs incurred by the Toronto Community Housing Corporation for Phases 2 and 3 of the Lawrence Heights Revitalization Project, in consultation with the General Manager, Toronto Water, the General Manager, Transportation Services, and the Executive Director, Development Review, substantially on the terms identified in Attachment 2 to the report (July 14, 2026) from the Executive Director, Housing Development Office and such other or amended terms and conditions deemed appropriate by the Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor, using funds from the approved 2026-2035 Capital Budget and Plan and as incorporated in the 2027-2036 Capital Budget and Plans Submissions of Toronto Water and Transportation Services referred to in Recommendations 1 and 2 above, subject to any updated cost estimates as approved by Council through the 2027-2036 capital budget processes and/or applicable capital variance reporting processes, subject to the availability of funding, consideration of other City priorities, and Council review and approval.

Toronto Community Housing Corporation (TCHC) revitalization projects are central to advancing the City’s HousingTO 2020-2030 Action Plan, supporting both the preservation of existing social housing and the creation of new affordable rental homes. These projects take a comprehensive, end‑to‑end approach, spanning pre-development, design, construction, community engagement, and resident relocation. Through its 10-year development plan, delivered in partnership with the City, TCHC aims to create more than 10,000 new homes across Toronto by 2035.

As TCHC's largest community, Lawrence Heights is a cornerstone of this development plan, originally built in the late 1950s. Located in North York, the 45-hectare site includes 1,208 rental homes across a mix of detached and semi-detached houses, townhomes, and walk-up apartment buildings. The Lawrence Heights revitalization is a four-phase transformation that will modernize the area into a vibrant, mixed-use, mixed-income neighbourhood.

Phases 2, 3, and 4 of the revitalization have been designated as Toronto Builds sites. Under this framework, capital funding for community amenities, public facilities, and required city-building and civil infrastructure is incorporated into relevant City divisional budgets and brought forward to City Council for approval through the annual budget process.

Phase 2 is scheduled to begin site works in Q4 2026 and will include new and reconfigured public streets, parks, community spaces, and residential buildings ranging from 6 to 28 storeys. This phase will replace 277 existing social housing units and is anticipated to deliver approximately 194 new TCHC affordable homes, and approximately 960 new market units. Phase 3 is planned to commence in 2030 and is planned to include the replacement of 385 social housing units, the creation of approximately 385 new TCHC affordable units, and approximately 2,127 new market units.

This report seeks approval of updated cost estimates for public infrastructure to enable their inclusion in the 2027-2036 Capital Budget and Plan Submissions for Toronto Water and Transportation Services and the reimbursement by the City to TCHC of eligible infrastructure costs incurred by TCHC. When City Council approved the Lawrence Heights Infrastructure Development Plan (IDP) in October 2020, the full financial implications were not incorporated. More detailed and refined cost estimates for Phases 2 and 3 will be developed as design advances, with updates brought forward to Council for consideration through future site phasing approvals.

This report also requests Council authorization for Toronto Water and Transportation Services to reimburse eligible infrastructure costs incurred by TCHC in 2026 for the Lawrence Heights revitalization project, from the approved 2026-2035 Capital Budget and Plans of Toronto Water and Transportation Services.

The Planning and Housing Committee:

1. Received the report (July 2, 2026) from the Executive Director, Housing Development Office for information.

The Executive Director, Housing Development Office, will submit a report to the Planning and Housing Committee in advance of its July 16, 2026 meeting, seeking approval of updated cost estimates for public infrastructure associated with the Lawrence Heights Phases 2 and 3 Revitalization Project. Approval is required to enable the inclusion of these costs in the 2027-2036 Capital Budget and Plan Submissions for Toronto Water and Transportation Services, and to authorize reimbursement by the City to Toronto Community Housing Corporation (TCHC) for eligible infrastructure costs incurred by TCHC. The report will also seek authorization for Toronto Water and Transportation Services to reimburse TCHC for eligible project-related infrastructure costs incurred in 2026.